Real Life Stories of The Legal Exchange 9-24-17

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Sunday, September 24th
00:54:05

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These are the real life stories of the legal exchange with Susan powers of the Armstrong advisory group and Todd let's just from the love for love Cushing and Tillman Susan and John have been helping people understand and react to legal issues that they're faced with every day and they're here to help you to. If you have a story to share contact us on our web site legal exchange show does come up that's legal exchange showed does come. Now here are your posts Todd let's deep and Susan powers. Welcome into the relay stories of some relief to these I'm sleeping patterns I think its good sides of the armed and advisory group. And in doing that public he apart in with the law firm of Cushing and only with a masters in taxation. Todd welcome how are you. Guiding you I'm good thank you what we have for your week in review today. Well you know so uninteresting stories on this first one thoughtless was perfect because it really goes into talking about an hour in our education material. You know how do you know what you need to do is right and this one Lewis hasn't come weird because she came you know on her own and she is from Brazil. But she's an American citizen wouldn't and didn't bring her husband was also by the way she's a citizen she's married to an American citizen movement so that's not an issue. What about. You know six million. Not counting the money counting the properties that she just inherited from her parents who passed away in Brazil OK while. Thought policy it was a was a that all she needed was a nominee realty trust is to provide some privacy who. Folks. Its not what you need them so we're gonna try and help you understand why that's not a great idea and what you need to think about to do your plan. To fit into that. The one I had was interesting work siblings are trustees of of their mom's trust in their mom has house and at that they wanna sell. Because they think they wanna use the money to put as a down payment for her to move into. Senior housing. And then there registered mom want them to terminate the trust of mr. got to the remaining amount of money which is about a 100000 dollars to them. They're wondering which we do we really don't want to do that. Ray and you know what. Kudos to them for me because I think that's a good idea not to do that let me explain to a situation like that but also the flexibility of these trusts. It's wonderful that she can do all that stuff even though the trust is erratic also stay tuned for that. And and lastly this is one where it's a nursing home situation the kids come in mom's charity going into the nursing home. And you know they basically want to sell the house. And and they want it has the largest value largest asset they have and they wanna use the money to pay for mom's nursing home care. But the real first that you probably can get much for because mom let it run its so rundown that you'll even get assessed value. Well there's a lot of other reasons they shouldn't tell how other than that and we'll talk about what to do and that kind of a situation as well. And we also have a few questions from listeners for you Todd in folks if you do not yet taken the time to request Todd sky. The eighties written for the month of September. You should use so it is back to the B thinks it's a great starting point. In the education process for you to see what it takes to create in this steeply and how to value you're ST. How your age and may be your family dynamic play into the type of Lian that you have in place for you to. Depending upon the objectives that you want to accomplished. Maybe you want to avoid probate eliminate your estate taxes. Maybe you want re vulnerable maybe one hearing local trusts if you're concerned with the long term care expenses. This guy will even show you what qualifications you should be looking for in a steepening attorney. You can call right now to request your free copy. At 8668485699. That's 8668485699. You can always download a copy on our web site legal exchange showed dot com just click on the guides and articles tab. If you miss any of today's or any of our past youth you can download a podcast and listen Mike York convenient. Socialist thought about this first and it's it's just sad it's all about how do you know how he'd know what to do to get started right. You need to do things like value your assets and figure out how you own them what they kind of assets they are rental properties vacation homes I our case. And how their own it. And those are the things that are gonna write you in what you need like this person came in worth about six point five million to six million college. In two million of of assets sitting in. And Brazil then. Well and again. All this is above board by the way they rent the properties a report all the income to United States and to Brazil and there they're on board right. Now they're saying someone someone told her house accountant or somebody. Told her or maybe just you know get a realty trust so you can have some privacy. I guess at a bare minimum of realty trust would provide. Privacy. I mean it at a bare minimum. But remember. A realty trust is one of those most misunderstood. Trusts. Out there. I I explained Greg no doubt we can put that on their ankle but who would be the beneficiary of the real too fast. She's that'll probably me. That's better than the kids thank goodness and by the way your kids are minors. And and I said the reason that's good is because you actually didn't do anything leading cause any harm. When you put assets and a nominee realty trust folks it goes from the client's name into the trust. Designated beneficiary client's name right back to the client's name's Phil boomerang. Did nothing to it to avoid probate did nothing to help reduce estate taxes to nothing to protect assets from the nursing home nothing. I'd guess that provided privacy is at the registry all that there is the nominee realty trust. It shows the deed is out your name right folks there's sole many better ways. To get deprive this year looking for. But not give up all of the estate planning that you need. Saw a guy so what's the solution you recommended for her in the case here so here I said look. Husband wife frank why don't we just do. Basic estate planning put together re vocal trusts they're young enough there in their late forties early fifties they don't need. Nursing home planet plus they have too much. Let's get all the assets into revoke a ball trusts you guys control him. You guys at Abbas no separate income tax returns need to be prepared. You are all set. And by re title winning all of your real estate and not just for take. Investment accounts bank accounts she wouldn't have had those in her nominee realty trust this is for real estate right where you could actually put him in there. And you can use and let's do it it doesn't really help. I think at the end of the day. You now happen in a family trust that you could call it anything you want on a college you know the elephant family trust or something you cut. And so the name of would be sheltered which is what she's looking for now were avoiding probate what she wasn't for great. Now we've got the assets sheltered what the pockets so that if one guy's we've. On eight million dollars because remember at the Brazil property would be taxed in. The United States there may be some sort of offsetting credit for any tax due in Brazil I get batten. But still it's included so if you got an eight million dollars stayed in in you don't do planning. Because all you're doing is those nominee realty trust's. Again misunderstanding. Then. You're looking at tax just for easy numbers right five minus three air eight minus five. Is three. Three times 40% to one point two million. So we are able to eliminate one point two million dollars in tax and give her the privacy she's looking for me at the same time. And whether it's sizeable estate like that. You know hurt children minors now but she could be concerned very she's young and these that's independent growing row from a divorced perspective that's exactly the next thing I mentioned I don't remember that where you had it what don't what the nominee realty trust everything we just. Gold through your three your name. Don't them. Now we can have this trust designed for divorce proofing generation skipping tax benefits. For your kids protecting them from their predators and tie you generation skipping Texas explain neck that there is you know the benefit of that is huge yeah people don't realize that if there's if she ends up living her life and there's ten million dollars here and then she leaves five million each of our kids and we allocate the five million dollar generation skipping tax exemption to those buckets for the kids. In those kids live out their lifetime and those assets even though they're using them. Say even if it just doubles one time right it could double many times sure but if it just doubles one time. Now each kid has ten million dollars when they die. None of it is taxed in their state. We've just skip the taxation at their level. I dumped it in their hands. In the government's gonna take a bite when they die so huge current ST tax benefits an unknown future. Generation calculator app so. You know and then I mentioned LLC you know you need to put these properties and LLC is to provide creditor protection. And even in Brazil I can't do it. Perhaps somebody set up an LLC and let's just take the shares of the LLC and deposit them into your trust account and and trust that we put together here. Perfectly okay. You can do that so. Folks your state might not be that large but you can Whittle it down get the picture share that you know regardless of what you have some kind of trust is likely the way to go. And whether it's revoke a bowl irrevocable even if you have some rental properties LLC is can work you don't have to be worth six. Or eight million. Just over two million you have to have an estate tax problem here masks you know folks you just need to decide what you want to accomplish from an objective perspective do you wanna avoid probate for your him. Do you want every deuce or even eliminate terrorist state taxes do you wanna protect your kids. Inheritance from future divorces do you wanna protect assets for a special needs child or create trapped. You come up with the objective in the attorney. We'll come up with a legal solution that will help you accomplish those objectives. Todd sky for the month back to basics we'll show you how you can accomplish many of these objectives. By. 86684856990. 866848. 5699. Or download a copy and our website legal exchange show dot com you're listening to Todd black ski apart in with the law firm Cushing and talent. I'm Susan powers a financial advisor with the Armstrong advisory group we're gonna take a quick break but we'll be right back in just a few minutes on the real life stories of illegal exchange. Securities offered to securities America member finreg SIPC advisory services are with the securities America advisors think securities America and its representatives do not provide legal advice therefore it's important to consult with your legal advisor regarding your specific situation she named all the Armstrong advisory group real life stories of the legal exchange and securities America companies are not affiliated. If you worked hard and had success in your professional life protecting your wealth and your assets is essential to your ability to enjoy your later years advanced estate planning as many benefits and if you're like me you should want some sound advice on the best way to set up your state hi this is very Armstrong and if you're in need of state planning council or perhaps you just want to take a second look at your existing plan you should call Cushing and -- at 8668485699. And ask for their brand new guide called back to the basics -- -- 86684856998. -- free guide today the law firm of Cushing and -- has been helping families protect their assets for more than thirty years let them help your family call now for your free copy of back to the basics at 8668485699. You can also download the guide by logging on to legal exchange showed dot com. Planning for retirement can be complicated process but I'd like to help make it easier this is very Armstrong from the Armstrong advisory group and if you've been saving money through and higher rate you should know that once you turn seven and a half to our record. Choir to start drawing from that account but how much should you take and where should you take affront if you don't take the required minimum you'll be subjected to a huge IRS penalty call my office at 803934001. Get my brand new free guide and learn all about RA MD's call 803934. Zeros or one to get this free guide and if you'd like we can also set up a free no obligation consultation to review your investment strategy call 803934001. For our new guide about required minimum distributions or you can download it from our website financial exchange show dot com. Juries are for two securities America incorporated member finreg SIPC and advisory services are for the securities America advisors incorporated Barry Armstrong representative Armstrong advisory group in the securities America companies are unaffiliated. George tune into the real life stories of the legal exchange with Susan powers of the Armstrong advisory group and Todd let's keep. From the law firm of Cushing and buildings if you have a legally shoot you like just to discuss on the show send us an email and we may read your story on the air contact us through our website at legal exchange showed does come up that legal exchange show. Dive come. Welcome back into the relay stories of the legally changed I'm Susan powers financial advisor with the Armstrong advisory group. And judging by Todd black he apart in with the law firm of Cushing and Allen with a masters in taxation. On today show we have tot IDD is written for the month of September is back to the basics in its complete guide to state an asset protection cleaning. It we'll show you how to begin the whole process. Mystique cleaning and determine what type of trust is right for you. He ain't your feeling it change your head of value you're ST what type of assets make up here ST how your age can impact your steeply. Why you need to consider your family dynamics needy wanna control those assets from beyond the grave maybe your future divorce issues that you are dealing with it. Maybe a special needs considerations or you could have a second marriage that the only guy Munich is so important in your state plenum. Call right now to receive your free copy of Todd back to the basics guide. The number to get your free copy is 86684. Key. 5699. That's 866848. 5699. You can always download a copy on our web site legal exchange showed dot com just click on the guide and. Articles. So Susan let's take a minute and talk about this next one this is a great great situation because this is a prime example. Of people not knowing. What they should do and not because we're making fun of them. But because this is why you ask for guidance we always say why don't apply for Medicaid on Euro right now. Don't do other things on erroneous electric there's a trust in place already that your parents set up don't try to stuff just. Asked the lawyer again should we do this how do we do it. What are the ramifications. Of doing it if we do you do it once again you come up with what you'd like to do they come up with a legal solution that's right is there a better way to do. So at and I and I applaud the children of mom in this case who came in and wanted to tell it to do some X here's a situation. So the children siblings they come in. And they are that trustees of an irrevocable trust that mom put together their elderly mother who can't. She's wants to sell or are she wants that the sell the house to finance her moving into a senior housing. Development so the houses in the area of Kabul trust right got it but she's talking to our kids who are trustees to sell the house. Great I love this right remember folks these irrevocable trust mom lightly has the power to tell the kids. So that or I'm removing US trustee. That's okay chair put on another trustee so that should that should be perfectly up permissible. Okay. And they need a large down payment as you know most of these share with you hear that living housing. OK great. I'm gonna say you know what Adobe about a 100000 dollars left in the trust after we Sally. And mom said at that point she just wants to dissolve the trust and give us the money. But we really don't want the money and most competent she's fine she's you know. She just wants us to happen worst thing we'd rather leave in the trust. What should we do. There actually also worried about college scholarships share financially and on that impacts all of that when you have more financial aid and whatnot that piano I went to the one of the hosts seminars with a CDs in the SE yes oh my gosh overwhelming right could never pass that test not a doesn't seem like. So. So you know the good news is that they came in and they asked and they didn't just sell the house and distribute the money and then coming in say. Should we have done this. Right to have ray gun yet it's good now instead of saying how do we fix what we've done some damage so let's talk a little bit about. Don't know the ramifications of this well. I get it if they really really need the money for a down payment. Selling the house is a perfectly acceptable option news because it will be sold in side that trust so the house goes out. The money comes into the trust and now they have a bucket of money pocketed money just what they want him. They also because the way these trusts are designed against my trust are pushing indulge trust I should say but. If in fact it was designed like a Cushing handle and trust. Then we know what to grant toward trust and we know there's no income tax liability here that would be different. She still gonna get hurt 250000. Dollar capital gains tax exclusion. For selling the house is so same tax. Code. And that money is now in the trust which is just just protected. As the housewives of selling the house does not restart a five year clock it. Does not restart the 5 o'clock. You know what folks if you're curious how these trust's operating how to accomplish all of those objectives out in the U have so you wanna take care your spouse she wanna take care your family. Start educating yourself. Call for a copy of Todd Scott is written back to the basics. It shows how you can avoid probate Lemony your estate taxes keep those assets. In your bloodline Ian protect them from possible long term care expenses. Call for your free copy right now. 866848. 5699. That's 866848. 5699. Or download a copy and our web site legal exchange showed dot com just click on the guides and articles cap. So in this case Susan now we've we've got the whole thing look at the flexibility she wants to mold it's an durable global trust she can motion can sell my house. Now the money sitting in how we gonna get it. Well the money is available but only through distributions to children she can't get the money back directly never the money has to come out if she wants to making gift to her children and then once that happens. She needs to realize that that the completed gift for gift tax purposes yeah. That the children all in the money and that the children have no obligation. To give that money they can walk into okay thanks and an uncle that here and that's the protection right that's the key that they can do if not. They can voluntarily or on keel to her. Love and affection whatever they are feeling they could pay. The the assisted living that the senior living people who give them a deposit to. That's okay. So we have a little bit of flexibility concern. That you know you have to realize that it doesn't just happen where it has to just be done this way and then and then it may or may not happen. But at least I know now she still gonna get what she wants now. Through this gifting ability she wants to get the balance of our 100000 dollars to her children and she should be allowed to do. And she is the trust says hey write a check to the children you can make gifts out of these trusts a year children and grandchildren or really. Whatever class of people what you wanna make a gift to. Anyway. And so she could do that now the kids are saying all way to. What are the ramifications of that. Well we got kids going to college and we don't want to mess up any possible scholarships. Or or maybe what anybody Ilia. That you might wanna get. While. Then don't make the distribution. And I be against it just like the kids are not just because like college. Financial aid that's not. Really what my concern is. Concern is from my client would need it suddenly she needs something just short money mom. Don't give it away you're just going into a senior housing. Up project or eight senior you know one of those senior development like independently of the pond yeah yeah I you know Brookes B village type place. You've we want this money to live on now she said. That her pension and her other Social Security income. Is more than enough to cover her additional rent and living expenses there. So she doesn't need yes. Who knows what's unique right maybe she asked to go into more acute care and as a lead the same place and it cost her more than when he ran for her apparatus. Plea you never know you want take a few trips you wanna go somewhere right you should be allowed to and I would not give the money away either I'm glad that children don't want it. I also like the fact it. Eat you don't have to but if you had money in the trust its not gonna restart the clock for the money that's in the chastity gifted because that's parties aren't you when you put it in the initial at that point yet giving it out of the trust does not create a new clock it all started when it when it. Right that's the key. And in this case the nice part about leaving it to areas. It's still just as protected rainy as it was when it was a house then you haven't lost anything here. And quite frankly who knows she invested it grows in value in the kids inherited the get a step up and base. And we'll eliminate any built in capital gain that this might develop into if she doesn't touch it and so she's right and it never runs. It now mean it never it never gets spent and in past it you know if she lives and it doubles and I got to an agreement. And no capital play which is nice and folks it doesn't hurt anything to leave it in there I'd leave it. It's flexible you know what's nice folks when you work within estate planning attorney that's a flat fee attorney. You can pick up the phone and you can ask these questions and not wary about getting a bill in the mail. I know that Cushing in Dolan is a flat fee firm when it comes to that he's never done with your estate plan folks she should be able to contact your asp experts. To ask for their advice along the way. You can not so. Ask Chris some great expert advice here by requesting Todd sky back to the basics that he is written for the month of September it's going to show you how to begin the ST cleaning process what happens right for you how to pick an estate planning attorney what you need to rebook global and your remarkable trust in all the benefits that you can get. By having an ST clean in place. Call right now for your free copy of this useful guide at 866. 848569. Netting. That's 8668485699. Or download a copy on our website legal Eckstein showed dot com. Just select the guides and articles tab. And you can download your free copy. Right away you're listening to Todd black ski apart in with the law firm of Cushing and Dolan. I am Susan powers a financial advisor with the Armstrong advisory group. We're gonna take a quick break and we'll be right back in just a few minutes on the real life stories of the legally exchange. Planning for retirement can be complicated process but I'd like to help make it easier this is very Armstrong from the Armstrong advisory group and if you've been saving money through and higher rate you should know that once you turn seven and a half who are required to start drawing from that account but how much should you take and where should you take affront if you don't take the required minimum you'll be subjected to a huge IRS penalty call my office at 803934001. Get my brand new free guide and learn all about RA MD's call 803934. Zeros or one to get this free guide and if you'd like we can also set up a free no obligation consultation to review your investment strategy call 803934001. For our new guide about required minimum distributions or you can download it from our website financial exchange show. Dot com securities offered to securities America incorporated member finreg SIPC and advisory services are for the securities America advisors incorporated Barry Armstrong representative Armstrong advisory group in the securities America companies are unaffiliated. Hi this is very Armstrong and I've told you for years about my relationship with leader bank -- been doing business with them for years because they're always coming up with great deals they've got another one that is surely worth your time to check out -- bank is offering in -- savings account providing free online banking with a one point 15%. Annual percentage -- this is an online product only and there -- no minimum balance required so log on to leader bank dot com and sign up today this rate may change without notice -- don't delay log -- to leader bank dot com get all the information about this great offer and sign up today before the rates change get free online banking with leader banks in new. 15%. Annual percentage -- and no minimum balance and remember this product is only available online so logon to leader bank dot com right now its leader bank dot com -- -- a step ahead. You're listening to the legal exchange and its time for. Ask. The segment where time will answer your questions about anything and everything that's included in the estate planning process once again here's Todd lets PN's Susan power. Welcome back tot have a few questions from listeners for you. First question comes from Norman in Dedham mass in Norman writes. My widowed mother has been advised by an attorney that day she does not need to trust in only needs a whale a power of attorney and health care proxy. While she has beneficiaries on her I airy brokerage and bank account she owns a home and her name valued around 600000. In her total ST is over one million. Did this makes sense for her to not have a trust at all. This is what and who gave this advice you get beat her mother's attorney. And it's and Ian attorney advised her that she doesn't need to trust I'm guessing this is a. Probate attorney. Our real estate attorney or something out I don't I don't know again not knocking any of these attorneys just trying to say that you know what if they liked me and and that I can only do. What I know I would do. If somebody comes to me. With a question. About something that I don't do like personal injury chair crime and yes even the horse yet. I'm gonna say you know what I can give you might gut answer. But he. You know what might be. You should go seek counsel. In that. Area right and so these attorneys should probably say you know what you might need more I don't know look into. And here's a name we know he's owns perfectly okay. And I think this is a great. Story question really. For all of your listeners today again because it really goes right to the heart of our education. That we're trying to talk about I mean this is how do you know what you don't know how do you know what you need right. And in this is a great thanks so let's look look a million dollars so look at the value of your assets in an idea what that number is. Look at what the type of assets they aren't of that 1600000. Is in her home. That's a big asset a lot of us have that big asset. And then there's some Ira brokerage and bank accounts for the other four underground. Even if I want to just protect my 600000 dollar home right that's enough now I know I'm at a million and. I know lol you know and it says that she's widowed so. I know whom don't have any federal estate tax that gives me that answer. I know that I may have a little Massachusetts estate tax but you know what I'm not worried because I probably not overly concerned about that she could be spending it down the age is not here but she could certainly spend it down below and I think absolutely that that could certainly happen. And so you don't not too word up that's right off the bat just looking at age. And and dollar amount of assets. I know that I don't have to worry too much about taxes. But I do wanna worry about probate lose. Probably my age is that thing that's telling me I do want to protect its share I want you narrowed it down to one trust. Irrevocable nature. And not ready to go talk to my turn right I wanna protect assets knowing needed irrevocable trust. And I wanna go learn about how to do this. And I walked into this attorney's office and just making share based on these back Paris. And tell these are the things I wanna do. And he comes back with this idea that says I don't need to trust nevermind you don't need an irrevocable Medicaid trust you don't need any trust Kyrie well. You're sitting there than as a as a potential clients all you folks trying to get started you're sitting there is a potential client. Saying to yourself well. I I heard the shell that I don't says that the and it sounds like. I want to at least avoid probate so why wouldn't some trust being lower rates are wrapped up that I know that's not right. And I know that if I don't have any trust for getting probate I know I'm not going to be able to protect my assets from the nursing home. Those are things I wanna do immediately the attorney back why would you say that and how am I gonna do these things with your answer ray. It. You know even if I'm if I'm you folks was thing if I hear that from the lawyer I'm like not that you might not know who. I wouldn't even ask you rely on the leak of the expert legal opinion. But my point here is not that I wouldn't ask the questions of the lawyer I would say you know like. Frankly I am ago. Thank you. I need to go now yet thanks but no pain and and you leave and go find another attorney. Now it be different if the attorney said you know what I don't do this kind of stuff goes to social now. This it was worth it each other great referral. Go check it out and find out what it is that you do need but I think that's a great little story there about what everybody. Needs to do when they're getting ready. To think about a state plan you're armed and dangerous now. Yes and you know what folks you can get ready for the entire ST an answer protection cleaning process. By educating yourself. Toddler sky that he is written for the month of September really is a roadmap that he is blue outline. For you how to get started how to value your state what type of assets actually make appearance date. Hi you're each impacts your lean and how your family dynamics may be of a second marriage concern and even rate down to how to take an estate planning attorney. Call for your free copy of Todd sky. Back to the basics right now. 8668485699. At 866848. 5699. Or download a copy on our website legal exchange showed dot com just select the guide. And articles ten Todd next question comes from Donna in Adams Nantz and Donna writes. My only son has been in some financial trouble in the past and he has an estranged ex girlfriend that claims he's the father her child groups. If he were to inherit money from me. Could an alleged child go after those monies how about once he passes away could they go after his estate he eons to inherit around two million dollars from whom I wonder from moms have Don as the mom she's gonna leave her son two million dollars but the sun. All as you want it. Adult child or friend can go out of girls right on behalf of the Childs. Yet the child really Witten well the child can't go after the father's estate until the father hasn't state. Right so I think it's very soon she's looking down the road firm maybe few get editors what we need to make that very clear if mom dies and mom leaves things to sun. Even at sun has. An illegitimate child. That child can't go after Koran laws. Money that grandma left to dad okay because that doesn't have a state to pursue. Got it okay dad still living so I think that makes a very. That up a huge difference to wait look at this. That at least we'll help mom a little bit. But meanwhile. I think what mom might be worried about his cane girlfriend. Go laughter son Luke who's four. For something never mind for the tidbit I think what you run into there is no. This is the crazy part if they if this is his shy. Even though they were married so maybe there's not like alimony the divorce settlement can they never were married him. I still think there's child support chair I think child support. Applies. Across the important you know so I would say that the ex girlfriend likely would go laughter. Father yeah the sun here of mom. And say you know what you need to provide some kind of the child support. For your child. And Hal about you know if he's got financial troubles in the past. For creditor protection of you know Harry in his other creditors would certainly have a claim to anything you believe. To this child directly so am yes I think in this case. Ex girlfriend. Possible. Estranged grain child in this case of again looking at it from you know. Mom's point of view. Right so I would say she definitely would want to think about her own the state plan and set up her own irrevocable trust. And not leave things directly to sun. Okay period. I mean that's why we look at family situations in our guide as to. Part of the questions you need to ask yourself before you go scene attorney that your you know what. Went right now I now that I understand what I wanna do well and living. What do I wanna do when I die. How I want to go and what kind of controls. To watch one old for it right. And and just leaving things out right. And it's gonna say as a cart launch to I think it ever work bring nothing good can come from. This way you can control it you can divorce profit from girlfriends maybe he gets married you can protect it from his future creditors of whatever problems he has news you need to set it up with a divorce proof language you need a independent trustee to serve. You know with the sun on mom's trust after mom dies. And control those distributions. So that those ex girlfriend's ex wives Sadr. Can't come after. Folks if you have a question you would like to halftime. Visit our web site legal Eckstein showed dot com and click on the ask Todd cash. Meat eat will be able to read your question on the air and hopefully his answer. We'll stop you from being when it is next real life stories while you're out there on the website I could encourage you to download a copy of Todd sky. For the month of September. It is his back to the beat six guys in its chili a complete guide to understanding. Estate and asset protection cleaning. It will show you how to avoid probate how to reduce or eliminate ST taxes. Why can't we lion junior will as your only ST cleaning tool in what the differences are between revoke noble in theory book about trust even. What you should look for an estate planning attorney. Call right now for your free copy. 86684856. 99 that's 8668485699. If you missed any of today's any of our cash youth you can also download our podcasts out there. And listen at your convenience. You are listening to Todd let's eat a partner with the law firm of Cushing in Dolan. I'm Susan Paris a financial advisor with the Armstrong advisory group we've got more to come and we'll be back in just a few minutes after we take a quick break. On the relay stories of the legally exchange. Hi this is very Armstrong and I've told you for years about my relationship with leader bank I've been doing business with them for years because they're always coming up with great deals they've got another one that is surely worth your time to check out leader bank is offering in east savings account providing free online banking with a one point 15%. Annual percentage -- this is an online product only and there's no minimum balance required so logon to leader bank dot com and sign up today this rate may change without notice that don't delay log -- to leader bank dot com get all the information about this great offer and sign up today before the rates change get free online banking with leader banks in new east savings account that has a one point 15%. Annual percentage yield and no minimum balance and remember this product is only available online so logon to leader bank dot com right now its leader bank dot com leader bank a step ahead. If you worked hard and had success in your professional life protecting your wealth and your assets is essential to your ability to enjoy your -- years advanced estate planning as many benefits and if you're like me you should want some sound advice on the best way to set up your state hi this is very Armstrong and if you're in need of state planning council or perhaps you just want to take a second look at your existing plan you should call Cushing and -- at 8668485699. And asked for their brand new guide called back to the basics -- lets -- host of the legal exchange radio program will educate you on the basics of creating your state plan including how to avoid probate and estate tax reduction call 8668485699. To get your free guide today the law firm of -- and Dolan has been helping families protect their assets for more than thirty years let them help your family call now for your free copy of back to the basics at 8668485699. You can also download the guide by logging on to legal exchange showed dot com. You're listening to the real life stories of the legally exchanged we Susie powers and Todd let's keep. Susan until they've been helping people solve their legal problems for years and they can do what's presumed to. Be a part of the show by emailing us your story on our website at legal exchange showed Doug come on that's legal exchange show Todd come. Welcome back into the real life stories of the weekly exchange I'm Susan powers a financial advisor with the Armstrong advisory group. And I'm joined by Todd black ski apartment with the law firm of Cushing window and with a masters in taxation. On today show we have Todd sky beauty is written. For the month of September it's back to the basics in its complete guide to the estate and asset protection cleaning process. It is a great place to begin your education. To know how to value your ST what assets are included in your in state how your aging maybe your family dynamics. Impact the type of plane that's right for you if you're concerned about avoiding probate. This guide we'll show you how you can do so. Media concerned about a steep taxes whether they're federal or the state level this guide we'll show you how you can not only reduce them. But also eliminate them. Call for your free copy right now 866848. 5699. At 866. 8485699. Or download a copy on our website. Legal age teens you dot com just click on the guides and articles to so now our last. Sort of situation I ran into last week. This is one that you know again I I think kids came in they think they know what they wanna do and not always sure. That what they're doing is the best thing to do okay similar to the last story right they think they don't they want. But let's make sure it's what you want so in this case the kids can Myanmar and mom is in nursing home. They said that they would like to sell the property. Because it's their largest asset. And they want to spend the money. On a nursing home. As she's already in manners and so they wanna sell the house deprive it deprived pace is different than the other point to the other and they are not my game going into one of those you know independent living yep. Very different. Right and I'm glad we can help the other person get her money. This one she's like yeah eyes myself take the money. And paid an arsenal the realtor however said that you know mom early kept up house and well and and so. You're probably not giving in to get the assessed value for so. You know maybe agents now. Like I'm not sure. Whether you're getting the assessed value or better in the assessed value or fair market value. Not sure that is really the reason to sell or not this is Michael. As it let's talk about the situation here. I mean. You've got this house there doesn't appear to be any trust work done right keep that in mind folks there's an old Justin on the theme yeah there's no trust here. And so. I sit and look what else does mom and apple that's our largest state she might have a couple of bucks kicking around but not many it's how. I said look folks. If we want to get her on Medicaid. One of the best asset she can have. If you don't know planning. There's a house and this is truly a last minute cleaning situation it's. As I said do you have any east Andy Andy disabled children. Chair they get so there was no disabled child exception there's no caretaker child exception here. No one has been living in the house you know for two years we don't have any. So I said well. If you sell the house. It becomes a little harder to protect the assets. From. The nursing home then leaving as a house so house's c.s easier protect last minute and pocket money. Plus even though they are discussing. The fact that you know while letter rundown. We don't properties worth in Massachusetts. We don't Wear him down. Is worth in Massachusetts. So I said look what's the house worth. Even in this lower number you're telling me about what's worth about half a million. I get it might have been worth a lot more had she put improvements and and in kneeled down that I I get it a lot of money I think. How long boat she buys. I'll geez you know 45 years ago forty years ago whenever my mind this is one of those houses where they just bought it lived there. Didn't put a lot of money into it which means their basis is vary lol there you know. So I said if you go to sell this even if her basis is a 100000 dollars which had outages. For five minus one is 400000. Dollars of capital gains. Built into this thing moot even if she could shelter to fifty. That's still leaves a 150000. Dollars of capital gains. Even 150000. Dollars you know you figure that's about forty grant you know 44 in taxes in taxes. That need. Not. Beep hate. You know what folks there's so much information that tie is giving you today in all of it is included in his guide. That he is written for the month of September. It is back to the beat six NET tales howdy gets started in the state cleaning process. And how to accomplish what are very common objectives. Amongst a lot of our listeners BA probate estate taxes bloodline planning. Divorce protection you payment Todd is included it in this guide call right now for your free copy. 8668. For eat. 5699. At 8668485699. Or download a copy and our web site. Legal exchange. Oh dot com so by not selling it why is that so much better well if we don't sell what we don't pay the taxes break good. All pirates in Texas has no matter what when mom dies. Even if they put a lien on the house know how nursing in the states today but yeah okay and even though they might put a lien on the house for the portion of that bill paid by the state which remember by getting on Medicaid we go from 141000 a month to 6000 a month. Minus 2000 a month Social Security. The State's paying four grand a month so little less than fifty going in a year that's only you know what. Look at mom's health look at how old everybody is look at that in a situation and say you know what I'm willing to do. In Nat. Fifty grand a year compared to. Private paying at that fourteen grand a month mine is that that Social Security mentioning them she cat you know you're talking about a savings of you know. Old car. 5070 grand a year compared to what you would pay if you're writing those checks herself in the pocket easily so. You keep the house now busily writing up you know what. When they die you guys inherited eye tellem. With a brand new basis equaled a fair market value caught stepped up in basis fair market value on the date of death. Wonderful now you could salad and there's no capital gains tax and you take a little bit of the money you pay off the lead once everybody's happy. Okay. One of forty your siblings need a place to live. Even file a hundred grand to this to this state on the lean. I'm basically buying a house worth 500000 dollars for underground yeah I'll take that all day every Google get the mortgage I'm gonna do that and I think that's a good deals and plus it's given somebody an option. To live somewhere that they might not have had and had you sold the house so keeping their house is more likely than not my. My first gut reaction. As a little known technique that also could be done that even if you agreed to sell it. And you put her on the market and nobody offers the asking price for the next nine months. Then there's a regulation that says you could step up and buy it for two thirds of the assessed value. So the house is worth five a zest for four. And you wanna buy it for two thirds of four yeah. Huge win them and so US a family member then could step in and buy it for two thirds of the assessed value if it's been on the market for nine months. And you could take a house right Dan yeah and if someone really wanted to house yet they need rented out. I mean is lots of options other than just selling or even mean even if you wanted to you could just turn around and say you know what we're gonna keep the house and we're gonna rent. And so now maybe I'm generating too grand a month in rent them. One now the lean on the house has been reduced to minimum I got six for the nursing home minus two rent minus two Social Security. The 2000 that's left now the states in 2000 a month. And I'm renting a house and even though on depreciating their house. Even then when you pass away full step up and bases and so even though you've reduced them the basis by depreciating at treasure renting it. It doesn't hurt can you get a full step up in basis wiping out the capital gain that's built in when mom dies. And that is why you pick up the phone and you get some advice books you know what. Todd sky daddy is written for the month of September it is back to the basics in its complete guide to understanding. The estate and asset protection cleaning process. It has information in here about. Where do you start how do you value year ST what type of assets are included in your ST he. Hi your gage impacts your plane and how you're feeling dynamics impacts that maybe you are concerned about future divorces me via the special needs. Child or grandchild. Maybe you have a second marriage where you wanna take care of each other but you want your assets to go to your respective bloodline. His guy even has information on the qualifications. To look for in an estate planning attorney. It goes over how to avoid probate how to reduce or eliminate your estate taxes. In why you will is really a won't you cannot. Will lie unjust and will answer or a state plane. Call right now for your free copy 8668. For eat 5699. 866848. 5699. Or download a copy on our website legal exchange showed dot com you can find their podcast. In submit your questions for Todd if you have a question you would like to ask him. Todd black ski from the law firm of Cushing in Dolan. Thank you so much off thank you Susan always a pleasure I am Susan power is a financial advisor with the Armstrong advisory group. We thank you for joining us today and we will be back again next week. On the real life stories of the legal exchange. Securities offered through securities America member finreg SIPC and advisory services are with the securities America advisors think securities American misrepresented just do not provide legal advice therefore it's important to consult with your legal advisor regarding your specific situation she named all the drug advisory group real life stories of the legal exchange and securities America companies are not affiliated. Planning for retirement can be complicated process but I'd like to help make it easier this is very Armstrong from the Armstrong advisory group and if you've been saving money through and higher rate you should know that once you turn seven and a half into our record. Choir to start drawing from that account but how much should you take and where should you take affront if you don't take the required minimum you'll be subjected to a huge IRS penalty call my office at 803934001. Get my brand new free guide and learn all about RA MD's call 803934. Zeros or one to get this free guide and if you'd like we can also set up a free no obligation consultation to review your investment strategy call 803934001. For our new guide about required minimum distributions or you can download it from our website financial exchange show. Dot com securities offered to securities America incorporated member finreg SIPC and advisory services are there securities America advisors incorporated Barry Armstrong representative Armstrong advisory group in the securities America companies are unaffiliated. If you worked hard and had success in your professional life protecting your wealth and your assets is essential to your ability to enjoy your later years advanced estate planning as many benefits and if you're like me you should -- sound advice on the best way to set up your state hi this is very Armstrong and if you're in need of a state planning council or perhaps you just want to take a second look at your existing plan you should call Cushing and -- at 8668485699. And asked for their brand new guide called back to the basics -- lets -- host of the legal exchange radio program will educate you on the basics of creating your state plan including how to avoid probate and estate tax reduction call 8668485699. To get your free guide today the law firm of Cushing and Dolan has been helping families protect their assets for more than thirty years let them help your family call now for your free copy of that. Back to the basics at 8668485699. You can also download the guide by logging on to legal exchange showed dot com.
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