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Estate planning for second marriages · The Legal Exchange

0:01
Speaker 1: This is the Legal Exchange with Todd Lutsky from the
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Speaker 1: law firm of Cushing and Dolan and Susan Powers of
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Speaker 1: the Armstrong Advisory Group. Each week, Todd and Susan will
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Speaker 1: discuss many topics, including estate planning, how to avoid probate,
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Speaker 1: and protecting your money from a nursing home. If you
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Speaker 1: need assistance in any of these areas, or have a
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Speaker 1: question about another issue that may affect your future, call
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Speaker 1: eight six six eight four eight five six ninety nine
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Speaker 1: to make an appointment. That's eight sixty six eight four
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Speaker 1: eight five six ninety nine. Operators are standing by. Now
0:31
Speaker 1: Here are your hosts, Todd Lutsky and Susan Powers.
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Speaker 2: Welcome into legal Exchange with Todd Lutsky. I'm Susan Powers,
0:41
Speaker 2: a financial advice with the Armstrong Advisory Group, and I'm
0:44
Speaker 2: joined by Todd Lutsky, a partner with the law firm
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Speaker 2: of Cushing and Dolan with a master's in taxation. Welcome Todd.
0:51
Speaker 2: How are you today? I am never better in you?
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Speaker 2: I am great? Thank you. What do you have for
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Speaker 2: us this week? Couple of things. We're going to go
0:58
Speaker 2: to Missouri.
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Speaker 3: We have an a hell at court case there unfortunately,
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Speaker 3: a classic UNDO influenced case. You're going to see how
1:05
Speaker 3: an individual dies after being in poor health but widowed
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Speaker 3: three kids and two grandkids and three step kids through
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Speaker 3: a third marriage.
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Speaker 2: Yeah, well, not a lot of planning done.
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Speaker 3: And you're going to see what the step kids do
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Speaker 3: when they get involved in this, because he ends up
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Speaker 3: moving in with the step kids. So my question is
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Speaker 3: where the heck are the kids? But anyways, uh, not
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Speaker 3: a lot of planning was done. And by the time
1:29
Speaker 3: you get to a third marriage, what are we thinking?
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Speaker 3: Why aren't we doing some planning, folks? And you're going
1:34
Speaker 3: to see.
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Speaker 2: How this how this plays out.
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Speaker 3: And then I have just a real life story that
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Speaker 3: just basically is really a great case that shows how
1:44
Speaker 3: planning can accomplish so many things. This is going to
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Speaker 3: involve an individual who I had done planning for before,
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Speaker 3: had you know, she was single at the time, had kids,
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Speaker 3: and then now comes in with her new soon to
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Speaker 3: be new husband and they're gonna get married. Well that's great,
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Speaker 3: Now we just need to play right. That's a very
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Speaker 3: important reason to plan because now they're going to be
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Speaker 3: sharing a house.
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Speaker 2: He's got a kid, she's got two kids.
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Speaker 3: We want to make sure everybody's taken care of, not
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Speaker 3: only him and her, but the kids from both sides
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Speaker 3: of the marriage, right, and how are we going to
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Speaker 3: do all this? And what are his assets and what
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Speaker 3: are her assets? And wow, the game changes and folks,
2:19
Speaker 3: that's really what this guide is all about. We are
2:22
Speaker 3: at the end of the month. This is the last
2:24
Speaker 3: chance to get it. You know, you think you've done
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Speaker 3: your planning right. Well, there's potholes to avoid. I'm getting remarried,
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Speaker 3: I've got divorced, I'm moving, changing residencies, I've got kids
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Speaker 3: that now are problem children. Folks, there's potholes to avoid.
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Speaker 3: Learn if you've done your planning, what you might need
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Speaker 3: to do to rethink your plan and certainly not looking
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Speaker 3: at it for fifteen years as a pothole. And for
2:49
Speaker 3: all you folks that haven't done planning, this is going
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Speaker 3: to help you avoid things that you might incur in
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Speaker 3: the beginning of planning, like I'm going to rely on
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Speaker 3: my will or just my nominee realty trust folks. This
3:01
Speaker 3: guide's got a little something for everyone. It's the end
3:04
Speaker 3: of the month, last chance to get it. Eight six
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Speaker 3: six eight four eight five six nine nine or legal
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Speaker 3: exchange show dot com again eight six six eight four
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Speaker 3: eight five six nine nine or legal exchange show dot com.
3:20
Speaker 3: You can download it there. Let's take a peek. Missouri
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Speaker 3: Tom eighty five years old, in poor health. He's a widower.
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Speaker 3: He has three kids, two grandkids, and three step kids
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Speaker 3: from the third wife, doesn't matter how many. There's Janine,
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Speaker 3: Darien and Amanda. In twenty twenty September, Tom moved into
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Speaker 3: Jane's house, so that's a step kid, just to keep
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Speaker 3: the players right. After his home was damaged by fire, Amanda,
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Speaker 3: who hapn't had COVID at the time, decided to take
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Speaker 3: him to a bank to open up a joint bank account,
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Speaker 3: where Tom quickly deposited the insurance money from the fire
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Speaker 3: into the joint bank account.
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Speaker 2: Amanda's his daughter or the stepdaughter.
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Speaker 3: Stepdaughter, another step daughter, so Janine, Darian and Amanda. Amanda's
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Speaker 3: one of the step children, and she takes him there
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Speaker 3: and they deposit the money into this joint bank account,
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Speaker 3: who Amanda promptly uses for her own personal use because
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Speaker 3: it's in a joint account. Tom of course then gets
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Speaker 3: COVID to boot, so that wasn't helpful. Now, Janey Janey
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Speaker 3: again is another the same step One of the step
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Speaker 3: children arranges for Tom to meet a lawyer draft deeds
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Speaker 3: to transfer property to all the step kids. The step
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Speaker 3: kids are always present at all the meetings. The attorney
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Speaker 3: had to explain the estate plan several times to Tom,
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Speaker 3: who seemed a little confused, asking questions like, when I'm
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Speaker 3: signing the power of attorney, am I actually signing the will?
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Speaker 1: Now?
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Speaker 3: I don't know if that means you're not competent. I mean,
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Speaker 3: you're signing so many papers in front of you can't
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Speaker 3: tell which one is the difference between the will and
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Speaker 3: a power of attorney. So I'm not overly concerned with that.
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Speaker 2: Comment, but maybe it gives you a little pause.
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Speaker 3: I mean, there seems to be a lot going on,
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Speaker 3: and the step kids are there, they're taking them to
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Speaker 3: the lawyer, they're drafting the documents, They're involved in every meeting.
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Speaker 3: And during that same day when they were signing everything,
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Speaker 3: some of the blood grandchildren wanted to come visit him,
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Speaker 3: and they turned him away. Tom dies two days after
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Speaker 3: signing the deeds. Barbara, Tom's daughter, who knew nothing about
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Speaker 3: these meetings but was named personal representative, decides to file
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Speaker 3: a claim of undue influence shocker and wants to set
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Speaker 3: aside the deeds because they're invalid, and claims conversion for
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Speaker 3: unjustly enriching themselves. Circuit court agreed on both counts.
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Speaker 2: Well.
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Speaker 3: The stepkids, even though they seemingly don't have a case,
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Speaker 3: decided to appeal, and the step kids argued that wait
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Speaker 3: a minute. Now, you have to show that you destroyed
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Speaker 3: the individual's free will and the insurance money anyway, belonged
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Speaker 3: to the insurance company first, that didn't belong to Tom.
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Speaker 3: And when Tom deposited the insurance money into the joint
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Speaker 3: bank account, he's the one that converted it to joint ownership.
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Speaker 2: So there you go, a bit of a stretch, I hope.
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Speaker 1: Yeah.
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Speaker 3: The court affirmed the prior court's decision and said, wait
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Speaker 3: a minute, you, first of all, don't need to destroy
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Speaker 3: someone's free will, as your actions clearly thwarted his free will,
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Speaker 3: and that's really all that's really required here. And as
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Speaker 3: to those other arguments, they're just nonsensical, right, they're just
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Speaker 3: not even worth addressing. So at this point, yes, the
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Speaker 3: step kids are are out, you know, wipe your brow here, though, right,
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Speaker 3: this is all because no planning was done. But just
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Speaker 3: take a quick look. I mean, undue influence is clear here, right,
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Speaker 3: I mean, it's it's classic. And the step kids took
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Speaker 3: them to the attorney. They kept the other family members away. Yep,
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Speaker 3: they attended the meetings. They ended up with way more
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Speaker 3: stuff than the other family members. I mean, that's just
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Speaker 3: clearly undue influence the attorney. You know, you know, keep
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Speaker 3: this in mind when you're an attorney, look out for
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Speaker 3: this stuff. You know, try to remind the kids that,
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Speaker 3: you know, you want something to work, it's not going
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Speaker 3: to work if you have undue influence. And so that
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Speaker 3: leads me to a real life story that I'm working
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Speaker 3: on right now. It's an existing client. He's got a business.
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Speaker 3: He's got one son who's been involved in the business
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Speaker 3: over the years, and we now are in the process
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Speaker 3: of trying to get some shares over to the one son.
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Speaker 3: But he had a family attorney for many years who
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Speaker 3: I'm working with, which is fine. And day got together
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Speaker 3: and as his health is declining to be still very competent,
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Speaker 3: he decided that it's okay to put this daughter on
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Speaker 3: as trustee on a revocable trust just to help.
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Speaker 2: So he decided I'll let my daughter be trustee.
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Speaker 3: Well, now we need these shares and power of attorney
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Speaker 3: as well, and we need these shares moved, and we
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Speaker 3: need some work done. And next thing you know, you're
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Speaker 3: getting these emails from this daughter saying, wait a minute,
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Speaker 3: I'm the power of attorney, I'm the trustee, and every
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Speaker 3: decision needs to be You can't make decisions without talking
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Speaker 3: to me. Everything needs to be run by me. And
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Speaker 3: I'm like, ohh, she's getting a little up at you here.
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Speaker 3: And the next thing I noticed is that we explained
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Speaker 3: that we need to do with the stocks and everything
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Speaker 3: because we need her to sign because she's trustee. We
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Speaker 3: get this big long link the email saying well, if
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Speaker 3: we're going to do that, we need to change the
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Speaker 3: operating agreement. There needs to be checks and balances put
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Speaker 3: in there. There needs to be power for us. Remember,
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Speaker 3: these are kids that never worked in the business, right
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Speaker 3: and the father still wanted to give this. There was
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Speaker 3: a seventy thirty split right now, So the kid that
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Speaker 3: runs a business is thirty and when they die, he's
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Speaker 3: going to end up with fifty one percent, which is fair, yep.
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Speaker 3: And they're going to get stuff. So it's not like
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Speaker 3: they're not getting stuff. And then I get this email
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Speaker 3: and I'm like, wait a minute, you know, and you
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Speaker 3: have to tell these kids right, first of all, you're
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Speaker 3: nothing right now, he's competent. He can, you know, change
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Speaker 3: his mind, change his mind. So this is this is
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Speaker 3: not good for you. And by the way, you're involved
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Speaker 3: in getting a lot of stuff here. And if you
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Speaker 3: start making these changes the way you're putting these engage
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Speaker 3: these emails together, that's classic undue influence. If you heard
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Speaker 3: this case, that's classic undue influence. I said, if you
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Speaker 3: really want this to work, it won't work because of
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Speaker 3: your actions. Your actions will bring an undue influence claim.
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Speaker 3: So basically we just have to say just removers trustee
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Speaker 3: and put yourself back gone and just move on. And
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Speaker 3: it's the only way you can get it done. But folks,
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Speaker 3: you have to remind people do your planning, avoid these
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Speaker 3: potholes that happen with no planning, amongst other things.
10:10
Speaker 2: Get the guide.
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Speaker 3: It's the end of the month, last chance to get
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Speaker 3: at eight six six eight four eight five six nine
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Speaker 3: nine or Legal Exchange show dot com.
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Speaker 2: You've been listening to Todd Lutski, a partner with the
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Speaker 2: law firm of Cushing and Dolan. I'm Susan Powers, a
10:26
Speaker 2: financial advisor the Armstrong Advisory Group. We've got much more
10:30
Speaker 2: to come when we return to the Legal Exchange with
10:33
Speaker 2: Todd Lutsky.
10:35
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13:53
Speaker 2: Welcome back into the Legal Exchange with Todd Latsky. I'm
13:56
Speaker 2: Susan Powers, a financial advisor with the Armstrong Advisory Group.
14:00
Speaker 2: I'm joined by Todd Letsky, a partner with the law
14:02
Speaker 2: firm of Cushing and Dolan with a master's in taxation.
14:06
Speaker 2: Where are we headed now, Todd? Nowhere, We're staying right here.
14:09
Speaker 3: Real life story time excellent. I mean, these are the
14:12
Speaker 3: stuff that I really love, I really enjoy when I
14:14
Speaker 3: have stuff that I can actually just tell you is
14:16
Speaker 3: really happening. Well, these other things are all really happening,
14:19
Speaker 3: They're just not my cases. So it shows you how
14:23
Speaker 3: planning can really accomplish a lot.
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Speaker 2: Right.
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Speaker 3: So, existing client been my client for years, married, was
14:31
Speaker 3: married but not married when I became, when we became
14:33
Speaker 3: a client attorney. Client relationship, had some kids on her own,
14:39
Speaker 3: comes back in years later. Again again one of the
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Speaker 3: planning potholes, right, rethink your plan when to come back
14:45
Speaker 3: in and look things over. She came back in and
14:48
Speaker 3: she has, you know, got the two kids. But she
14:50
Speaker 3: brings her soon to be new husband. Okay, great, you
14:54
Speaker 3: know I they want to do separate planning though he's
14:57
Speaker 3: got his own plan. Yeah, doesn't need to use me,
15:00
Speaker 3: and she wants to continue to work with me, which's fine.
15:06
Speaker 3: And she's got the two kids and he has one child.
15:09
Speaker 3: Now he doesn't have nothing. He has a condo that
15:11
Speaker 3: he's renting and he's got some money, so he's he's
15:15
Speaker 3: self sufficient. She has a nice, you know house on
15:20
Speaker 3: the cape where it's about one point four ish and
15:24
Speaker 3: you know, about seven hundred in an era. And the
15:29
Speaker 3: question now becomes, how do we take care of the
15:32
Speaker 3: new spouse and the kids from her side of the marriage.
15:38
Speaker 3: And she's got a lot of other concerns that start
15:41
Speaker 3: coming out. You know, remember note right now they live
15:44
Speaker 3: together in her house. He's renting his condo, but it's there. Also,
15:51
Speaker 3: she has one daughter who she wants to be able
15:54
Speaker 3: to live in the house forever, okay, but then doesn't
15:58
Speaker 3: want her one son to have to wait forever to
16:01
Speaker 3: get something. So I'm like, well, that's a complication, you know,
16:06
Speaker 3: and really wants to protect the spouse as well, you know,
16:10
Speaker 3: for her husband in that relationship. And then she wants
16:14
Speaker 3: to make sure she protects this home from her daughter's
16:19
Speaker 3: rocky relation, rocky marriage. And she also doesn't want her
16:24
Speaker 3: daughter if they get divorced, moving in with some new deadbeat. Like, well,
16:28
Speaker 3: those are a lot of restrictions and you might not
16:30
Speaker 3: be able to accomplish everything, but you know, we have
16:35
Speaker 3: lots going on here, and but I think I.
16:38
Speaker 2: Think we can do that.
16:40
Speaker 3: But but folks, that's my point about this guide, right,
16:44
Speaker 3: there are so many potholes outside of taxes and probate.
16:49
Speaker 3: There's bloodline planning, there's things to think about, Like here,
16:52
Speaker 3: someone who did this right. If you get this guide,
16:55
Speaker 3: last chance to get it. People like this who have remarried,
17:00
Speaker 3: maybe are getting divorced, maybe are moving residencies, got family
17:05
Speaker 3: dynamics that are changing. There are reasons look at your plan.
17:08
Speaker 3: If you haven't looked at it, you this guide is
17:11
Speaker 3: for you, For you folks who haven't done a plan
17:13
Speaker 3: or been on the fence thinking your wills enough or
17:15
Speaker 3: your nomine realty trust is enough. Or I'm single and
17:18
Speaker 3: I don't have to do planning, or I don't have
17:20
Speaker 3: kids and I don't have to do planning. I mean, folks,
17:23
Speaker 3: there are reasons for you to get this guide to
17:25
Speaker 3: avoid potholes before you do your planning. It's the end
17:28
Speaker 3: of the month, last chance to get it. Eight six
17:30
Speaker 3: six eight four eight five six nine nine or Legal
17:34
Speaker 3: Exchange Show dot com again eight six six eight four
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Speaker 3: eight five six nine nine or Legal Exchange Show dot com.
17:44
Speaker 3: Now what do we learn from this? We learned that
17:48
Speaker 3: through planning we can accomplish almost everything she wants. So
17:53
Speaker 3: let's let's begin first tax planning combine. These folks are
17:57
Speaker 3: close to the four million, but each other. They're not
18:02
Speaker 3: really over. She's pushing close to the two million, and
18:05
Speaker 3: he's close to the two million. So are we going
18:07
Speaker 3: to be able to do tax planning? Even though they're
18:10
Speaker 3: working with another attorney?
18:11
Speaker 2: Right? How do you do that? Two separate trusts.
18:13
Speaker 3: Yeah, this can still work, right as long as on
18:16
Speaker 3: the death of the first spouse, you don't have to
18:20
Speaker 3: have a marital share and a remainder share. You can
18:23
Speaker 3: just have everything held in trust a little bit for
18:26
Speaker 3: the benefit of the spouse but doesn't come out and
18:29
Speaker 3: for the benefit of her kids. That's like one giant
18:32
Speaker 3: remainder share. So the only downside of not having the
18:37
Speaker 3: marital share is if she is slightly over the two million,
18:42
Speaker 3: there will be some tax due. But again, if she's
18:45
Speaker 3: a two point paid upon her passing right, got it.
18:48
Speaker 3: If she's under two million, no problem. If she's slightly
18:52
Speaker 3: over two million, say at two point one or two
18:54
Speaker 3: point two, you got to pay tax on two hundred grand,
18:57
Speaker 3: So what it's ten percent of two hundred grand. I'm
19:00
Speaker 3: not overly upset about that. On his side, he's going
19:03
Speaker 3: to have a similar trust, probably taking care of her
19:06
Speaker 3: in some way and his kids. Again, a giant remainder share.
19:11
Speaker 3: And so unless he's over two million, there won't be
19:15
Speaker 3: any tax when he dies. And since those assets will
19:18
Speaker 3: never be included in her estate, we've done our estate
19:21
Speaker 3: planning and vice versa, her assets will not be included
19:25
Speaker 3: in his estate. So we've done our estate planning, so yes,
19:29
Speaker 3: first and foremost, we can accomplish tax planning.
19:32
Speaker 2: Next.
19:32
Speaker 3: Nursing homes. Yeah, that's a problem. They're not concerned about
19:35
Speaker 3: it though, they said, we've got enough money. We're not
19:37
Speaker 3: really worried about overall nursing home situations.
19:41
Speaker 2: Now.
19:41
Speaker 3: Remember they are living together, so this could be an issue.
19:46
Speaker 3: But they're married, so they did take the step to
19:50
Speaker 3: get married, So there's some benefits to being married from
19:53
Speaker 3: a nursing home perspective, even without planning. If that is
19:59
Speaker 3: their primary residence on the cape, and either one of
20:03
Speaker 3: them gets sick, the primary residence for a healthy spouse,
20:07
Speaker 3: if they're living there and it's located in Massachusetts, regardless
20:12
Speaker 3: of its value, not countable, not leanable, which is in
20:19
Speaker 3: her case, the biggest asset. Now he gets sick, of
20:23
Speaker 3: course his condo would be at risk, but he's renting it,
20:26
Speaker 3: so it would be non countable but leanable still helpful.
20:30
Speaker 2: So for the primary doesn't matter. If he's not on
20:33
Speaker 2: the deed, it's still his primary. It does not matter. Yeah,
20:37
Speaker 2: if you're right.
20:37
Speaker 3: If he's not on the deed, it doesn't, But it
20:39
Speaker 3: matters from an if you own and use it when
20:42
Speaker 3: you sell it for your capital great sax exclusion. But
20:45
Speaker 3: and even then it doesn't if you're married, the owning
20:47
Speaker 3: part doesn't matter. Just the use part matters, because I remember
20:50
Speaker 3: a lot of times one spouse might own a house,
20:53
Speaker 3: right and the other one might not. So but yeah, no,
20:56
Speaker 3: not for not for the nursing home purposes. So I
20:59
Speaker 3: think they're going to be okay there. And they didn't
21:01
Speaker 3: really want to do nursing home planning. They said they
21:03
Speaker 3: have enough money.
21:04
Speaker 2: So what about the families? Well, next is the beneficiaries,
21:07
Speaker 2: and you're right, that's where we go.
21:08
Speaker 5: Now.
21:08
Speaker 2: You know you want to take care of the husband,
21:10
Speaker 2: yes we can. What do we do?
21:11
Speaker 3: So we ended up putting language in here that says
21:15
Speaker 3: and again, she had a lot of issues up there.
21:17
Speaker 3: She wants to take care of her husband. She doesn't
21:20
Speaker 3: want to make her son wait forever, right, but she
21:23
Speaker 3: wants to protect the assets for her daughter, the house,
21:26
Speaker 3: and she wants her daughter to live there. But she
21:28
Speaker 3: doesn't want some deadbeat person new boyfriend moving in and
21:32
Speaker 3: all these restricts.
21:33
Speaker 2: She wants to control from the grave a lot.
21:36
Speaker 3: We can get their ninety percent. We put language in
21:39
Speaker 3: there that says the house stays in trust for one
21:41
Speaker 3: year for the husband to live there, provided he pays
21:46
Speaker 3: all the bills, maintenance, upkeep. But she said, well, I
21:50
Speaker 3: don't even want that. So what if my son wants
21:52
Speaker 3: to sell the house within one year?
21:54
Speaker 2: Okay?
21:54
Speaker 3: If the son wants to sell the house within a year,
21:57
Speaker 3: then the son must give ninety days notice in writing
22:02
Speaker 3: to the husband to get out. Ninety days is enough,
22:05
Speaker 3: the husband said, because I got a condo, I could
22:07
Speaker 3: just and the tendency move into my condo and I'm
22:11
Speaker 3: all set.
22:12
Speaker 2: Okay.
22:12
Speaker 3: Husband was fine with that. Okay, that works great, and
22:16
Speaker 3: so now we've covered that. But if we get beyond
22:18
Speaker 3: the one year and they haven't sold it, well, now
22:21
Speaker 3: it goes equally to the kids. Well, now I want
22:23
Speaker 3: my daughter to live there. Well, I don't want my
22:26
Speaker 3: son to wait forever. So I put our real estate
22:30
Speaker 3: language in there. I said, look, they have you know,
22:33
Speaker 3: do you both want it?
22:34
Speaker 1: No?
22:35
Speaker 3: Okay, If you don't both want it, the one who
22:36
Speaker 3: wants it, the daughter, can buy out the interests of
22:40
Speaker 3: the sun and then hold it in trust so that
22:44
Speaker 3: in case she gets divorced, it's at least protected from
22:47
Speaker 3: the current divorcing marriage, and it's protected from future creditors
22:52
Speaker 3: and for the grandkids and everything else. I told her,
22:54
Speaker 3: But the and your son would have gotten money and
22:56
Speaker 3: not had to wait a year or however long. And
22:59
Speaker 3: most importantly, I said, the only thing I can't do
23:02
Speaker 3: is I can't like draft things up and say, oh,
23:03
Speaker 3: if you're going to get involved with someone us blue
23:06
Speaker 3: eyes or green eyes or is bald, you know they can't.
23:09
Speaker 3: You can't do that. Yeah, right, So I can't necessarily
23:12
Speaker 3: control who she lets live there, but at least we
23:15
Speaker 3: can get everything else done. And folks, that's really what
23:19
Speaker 3: this is about. Do your planning. You can avoid all
23:22
Speaker 3: the potholes that come with the state. Planning something for
23:26
Speaker 3: everything in something for each of you. And this guide
23:29
Speaker 3: last chance to get it eight six' six eight four
23:32
Speaker 3: eight five six nine to nine Or Legal exchange show dot.
23:36
Speaker 2: Com you've been listening To Todd, lutsky a partner with
23:40
Speaker 2: the law firm Of cushing And. Dolan I'm Susan power
23:43
Speaker 2: as a financial advisor with The Armstrong Advisory. Group todd
23:46
Speaker 2: will be answering your listener questions when we return to
23:49
Speaker 2: The Legal exchange With Todd.
23:51
Speaker 1: Lutsky creating an estate plan can be a difficult process
23:55
Speaker 1: if you aren't working with an expert who can make
23:57
Speaker 1: sure your planning a Secure cushing And dolan and help
24:00
Speaker 1: call them today at eight six six eight four eight
24:03
Speaker 1: five six nine. Nine estate planning is their, business and
24:06
Speaker 1: their new monthly guide is Called detour a head estate
24:08
Speaker 1: planning blunders to. Avoid don't put your assets at risk
24:12
Speaker 1: and open yourself up to severe tax. Consequences even if
24:15
Speaker 1: you already have a, plan this guide may correct an
24:17
Speaker 1: issue that could come back to haunt you in the
24:19
Speaker 1: years to. Come proper estate planning is crucial to you
24:22
Speaker 1: being able to enjoy your later, years and it may
24:25
Speaker 1: be the difference between retiring comfortably or living under incredible financial.
24:29
Speaker 1: Pressure Call cushing And dolan right now at eight sixty
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Speaker 1: your free guide today that's eight six six eight four
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Speaker 1: eight five six nine, nine or request an online from
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Speaker 1: their Website legal exchange show dot. Com the proceeding was
24:44
Speaker 1: paid for in the views expressed are solely those Of
24:45
Speaker 1: cushing And. Dolan cushing And dolan and Or Armstrong advisory
24:48
Speaker 1: may contact you offering legal or Investment. Services cushing And
24:50
Speaker 1: armstrong do not endorse each other and are not. AFFILIATED.
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Speaker 5: Hi this Is Mike armstrong from The Armstrong Advisory. GROUP
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Speaker 1: For Ask, todd the segment Where todd will end answer
27:00
Speaker 1: your questions about anything and everything that's included in the
27:03
Speaker 1: estate planning. Process once, again Here's Tod lutsky And Susan.
27:08
Speaker 2: Powers welcome, Back. Todd we have a few questions from
27:12
Speaker 2: listeners for. You first question comes From don And, Harwich
27:16
Speaker 2: mass And don, writes my wife AND i soon will
27:19
Speaker 2: be meeting with an attorney to create an estate, plan
27:22
Speaker 2: likely revocable, trusts as we have plenty of assets as
27:26
Speaker 2: well as long term care, insurance and we aren't concerned
27:29
Speaker 2: with the nursing home. Costs that's my. Question is, This
27:32
Speaker 2: what is the best way to ensure our two children
27:35
Speaker 2: who do not get, along have a smooth transition of
27:39
Speaker 2: their inheritance after we. Pass we'd like to protect from future,
27:43
Speaker 2: divorces but don't want them in charge of each other's. Distributions,
27:48
Speaker 2: yeah and that makes a lot of.
27:49
Speaker 3: Sense and AGAIN i give these folks credit for thinking
27:54
Speaker 3: about the planning that they want to. Do and it's
27:57
Speaker 3: beyond probate and TAX i know we spoke about we
28:02
Speaker 3: speak about that a. Lot but to, me having the
28:06
Speaker 3: family stay together After i'm gone it's really. IMPORTANT i,
28:12
Speaker 3: MEAN i will arrest better knowing that they're they're, together
28:15
Speaker 3: they're helping each. Other you never know what comes, up you,
28:18
Speaker 3: know after we're. Gone so so first and foremost great great.
28:23
Speaker 3: Thinking so when you, die in this, case we have
28:28
Speaker 3: just two, kids, right you can put them both on as.
28:32
Speaker 2: TRUSTING i feel like they're.
28:34
Speaker 3: Going to want that here because they're going to feel
28:36
Speaker 3: that if one is trusty and one isn't that somehow
28:39
Speaker 3: one's got. Power, yeah when the parents. Die when the parents,
28:43
Speaker 3: die you're. Right let me back. Up so when the parents,
28:45
Speaker 3: die the trust becomes. Irrevocable so we would do probably
28:49
Speaker 3: depending on the size of their, state if they're not
28:51
Speaker 3: over like fifteen, million we'd probably do one trust, okay
28:55
Speaker 3: and we do the joint, trust and we would then,
28:59
Speaker 3: say you, know who should be? Trustee why not put
29:05
Speaker 3: both kids, on just just to just to avoid the
29:09
Speaker 3: appearance of you, know upsetting one or the.
29:13
Speaker 2: OTHER i don't love two, trustees but we'll do.
29:15
Speaker 3: It then we'll have language in there that, says you,
29:18
Speaker 3: know it does require a majority vote to do, things
29:22
Speaker 3: which is. Fine they're going to agree or nothing's going
29:24
Speaker 3: to get. Done so there's not going to be any fighting.
29:26
Speaker 3: There and we're going to create two separate, buckets, okay
29:30
Speaker 3: and these two separate buckets are independent of each. Other
29:34
Speaker 3: in other, words they can't ever take reach into one
29:37
Speaker 3: bucket and take money from another bucket and put it
29:39
Speaker 3: so they can't steal from each other's, buckets so that's
29:42
Speaker 3: not even an. Option so that prevents the. Fighting we'll
29:45
Speaker 3: make sure that the buckets are funded, equally even with real.
29:47
Speaker 3: Estate we'll put our real estate language in to make sure,
29:49
Speaker 3: that you, know people get the real estate they want
29:52
Speaker 3: with no fighting or they sell.
29:54
Speaker 1: It so.
29:56
Speaker 3: Now i've got the buckets successfully funded, equally AND i
29:59
Speaker 3: got two kids in.
30:01
Speaker 2: Charge.
30:02
Speaker 3: Man in, fact you can have them managing and investing
30:05
Speaker 3: their own, share.
30:06
Speaker 2: Not dealing with if you want at.
30:08
Speaker 3: All, right so IF i want to buy something in my,
30:10
Speaker 3: SHARE i don't have to, check you. Know but quite,
30:13
Speaker 3: frankly having them both work together to invest the assets
30:16
Speaker 3: is not shouldn't be a big. Problem but they don't
30:18
Speaker 3: like each, other so maybe they keep it separate and
30:20
Speaker 3: have separate, shares and we're going to give them each
30:23
Speaker 3: the power to appoint an independent. Trustee, now why do
30:27
Speaker 3: we need the independent? Trustee the independent trustee is simply
30:31
Speaker 3: there for, distributions no other. Purpose, okay ninety nine percent
30:37
Speaker 3: of the activities are being done by them managing. Investing,
30:40
Speaker 3: yeah so let's say that that you, Know billy wants
30:46
Speaker 3: to take money out of his bucket for him or his.
30:50
Speaker 3: Kids he needs an independent trustee to say yes or
30:53
Speaker 3: no in the independent trustee sole.
30:55
Speaker 2: Discretion so let's say that's you as their. Attorney, Right
30:58
Speaker 2: so he would call you SAY i need some, Money
31:00
Speaker 2: you say, yeah your. Nay, Yes i'm allowed to say
31:02
Speaker 2: yes or.
31:03
Speaker 3: No you might say we're you, know we're going on
31:04
Speaker 3: a family, vacation we're taking, up you, know buying a family,
31:08
Speaker 3: car kids going to, college, Whatever and THEN i would
31:11
Speaker 3: say yes or no to, that same with the other.
31:14
Speaker 2: Child and the coup.
31:16
Speaker 3: De gras really is give them the power to remove
31:22
Speaker 3: and replace. Me so again they're not pitted against each.
31:25
Speaker 3: Other and if for some reason one doesn't like, Me i'm.
31:29
Speaker 3: Out and that way there's no fighting and no, fuss
31:32
Speaker 3: and that language does exactly what they, want the parents,
31:36
Speaker 3: wanted which is protected from future, divorces creditors of all,
31:40
Speaker 3: kind generation skipping tax, benefits getting assets to the grandchildren
31:45
Speaker 3: tax free if the child doesn't take it during their
31:49
Speaker 3: life for themselves or their. Grandkids so, yes it can be, done,
31:53
Speaker 3: Folks like many things can be, done but you got a,
31:57
Speaker 3: plan and not planning to me is the biggest. Pothole
32:00
Speaker 3: and the guide is called Avoiding potholes.
32:03
Speaker 2: In your estate.
32:03
Speaker 3: Planning you, know so you, know if you're if you've
32:06
Speaker 3: already done your, planning please get. It there might be
32:09
Speaker 3: things you need to read in here that might trigger
32:11
Speaker 3: you to amend or update or change your existing. Plan
32:16
Speaker 3: and for folks who haven't done, it it's going to
32:18
Speaker 3: give you reasons why you, think if you think you
32:21
Speaker 3: shouldn't be doing, it why you need to do, it
32:23
Speaker 3: and things to avoid when doing.
32:26
Speaker 2: It so please.
32:27
Speaker 3: Call it's the end of the month eight six six
32:30
Speaker 3: eight four eight five six nine nine Or Legal Exchange
32:34
Speaker 3: show dot. Com last chance to get it eight six
32:37
Speaker 3: six eight four eight five six ninety nine Or Legal
32:41
Speaker 3: Exchange show dot.
32:42
Speaker 2: Com our last question comes From maryland In, westboro Mass
32:46
Speaker 2: And maryland Writes my husband is in his early seventies
32:50
Speaker 2: and was just diagnosed with. Dementia we have revocable, trusts
32:54
Speaker 2: but have done nothing to protect from the nursing. Home
32:57
Speaker 2: we have a. Home he has AN ira worth six
32:59
Speaker 2: hundred and MY ira is worth around one. Fifty is
33:03
Speaker 2: there anything we can do now to protect if he
33:06
Speaker 2: goes into a nursing? Home So i'm going to ask
33:09
Speaker 2: you some follow up questions just to my clients SO
33:12
Speaker 2: i know their. Situation oh super.
33:14
Speaker 6: So.
33:15
Speaker 3: Uh you, know when we look at this, situation we,
33:18
Speaker 3: say just diagnosed with, dementia do we?
33:20
Speaker 2: Do we think we have five?
33:22
Speaker 3: Years probably means, YEAH i would say, probably he's still
33:26
Speaker 3: competent in everything now he's just showing signs of. Forgetfulness
33:29
Speaker 3: and say call it early. Dementia, yes. Exactly and we asked,
33:34
Speaker 3: that folks because just be and it's important for everybody.
33:37
Speaker 3: Listening just because you get the dementia diagnosis doesn't mean
33:42
Speaker 3: you can't plan. It AND i want that to come
33:43
Speaker 3: out from this. Meeting it means there are many phases of,
33:48
Speaker 3: dementia and some progress fast and some.
33:51
Speaker 2: Don't he has more lucid moments than not for, Sure SO.
33:54
Speaker 3: I would say we definitely need to move the plan.
33:58
Speaker 3: Along AND i think at this point it's not sort
34:01
Speaker 3: of frivolous to get the estate planning process, going get
34:04
Speaker 3: the five year lookback period, running because if he makes
34:08
Speaker 3: it four, years it'll give us more options than we
34:12
Speaker 3: would have if we didn't do. It maybe we pay
34:16
Speaker 3: for a, year maybe we protect a million plus and
34:20
Speaker 3: we spend one hundred. Grand, Yep i'm, Okay so there's
34:23
Speaker 3: options to, do so let's get the clock. Started SO
34:26
Speaker 3: i would, say, yes there's some planning you can.
34:29
Speaker 2: Do so they would put their house in there, now
34:31
Speaker 2: but what do they do about those? Iras that's the
34:33
Speaker 2: bulk of the, assets and that's really the problem. Here
34:36
Speaker 2: so you're absolutely, Right.
34:37
Speaker 3: Susan we would at least set it up for the,
34:38
Speaker 3: iras and if the only other assets is THIS, Ira i'm,
34:42
Speaker 3: sorry the.
34:42
Speaker 2: House we would we would then, say at least and
34:46
Speaker 2: how old are they do we put the they're in
34:48
Speaker 2: their early, seventies.
34:50
Speaker 3: So close to what we call THE, rbd the required beginning. Date,
34:54
Speaker 3: yes he's which is seventy, three and that means In
34:58
Speaker 3: english that you have to start to taking your minimum.
35:01
Speaker 3: Distributions you are mds and so at that point we
35:05
Speaker 3: would say we can maybe change THE, dB which is
35:09
Speaker 3: the designated. Beneficiary so you've got the, rmds the rbds
35:13
Speaker 3: and THE dB the designated beneficiary on these iras as
35:18
Speaker 3: part of the estate, plan name the. Estate and then
35:22
Speaker 3: that means inside the wills that we would, do which
35:26
Speaker 3: are part of the estate, plan we'd put a testamentary.
35:31
Speaker 3: Trust the testamentary trust is going to allow the asset
35:35
Speaker 3: from THE ira to flow through. Probate, yeah it's a,
35:39
Speaker 3: negative but it's not really now the asset from THE.
35:43
Speaker 3: Ira and this only works if you die and don't
35:46
Speaker 3: go to a nursing home BECAUSE i can't move it in.
35:48
Speaker 2: Advance but that's.
35:50
Speaker 3: Okay there's more than a fifty percent chance you're going
35:52
Speaker 3: to die and not go to a NURSING. Gymp then
35:54
Speaker 3: those assets will flow into the. Trust they'll be sheltered
35:57
Speaker 3: for estate, taxes they'll be available for the survive. Spouse
36:01
Speaker 3: there will be no adverse required minimum distributions because it's
36:05
Speaker 3: based on the life expectancy of the. Decedent and most,
36:09
Speaker 3: importantly it's immediately protected from the nursing home for the surviving,
36:14
Speaker 3: spouse so you get a better chance of saving some
36:16
Speaker 3: assets for the.
36:18
Speaker 2: Kids.
36:19
Speaker 3: Folks that is a new, technique but also a. Pothole
36:24
Speaker 3: if you don't do your, planning you need to learn
36:26
Speaker 3: how to avoid all the potholes in estate. Planning get the.
36:29
Speaker 3: Guide it's the end of the month eight six six
36:32
Speaker 3: eight four eight five six nine to, nine Or Legal
36:35
Speaker 3: Exchange show dot.
36:37
Speaker 2: Com if you have a question you would like to Ask,
36:40
Speaker 2: todd visit his Website Legal Exchange show dot com and
36:43
Speaker 2: click on the Ask tod. Tab Maybe i'll be able
36:46
Speaker 2: to read your question on the, air and hopefully his
36:49
Speaker 2: answer will stop you from becoming one of his next
36:51
Speaker 2: real life. Stories you've been listening To Todd, lutsky a
36:55
Speaker 2: partner with the law firm Of cushing And. Dolan I'm Susan,
36:59
Speaker 2: powers a financial advisor with The Armstrong Advisory. Group we'll
37:02
Speaker 2: be back with more after this quick break on The
37:05
Speaker 2: Legal exchange With Todd.
37:06
Speaker 1: Lutsky creating an estate plan can be a difficult process
37:10
Speaker 1: if you aren't working with an expert who can make
37:12
Speaker 1: sure your plan is. Secure cushing And dolan can. Help
37:16
Speaker 1: call them today at eight six six eight four eight
37:18
Speaker 1: five six nine. Nine Estate planning is their business and
37:21
Speaker 1: their new monthly guide is Called detour a head estate
37:24
Speaker 1: planning blunders to. Avoid don't put your assets at risk
37:27
Speaker 1: and open yourself up to severe tax. Consequences even if
37:30
Speaker 1: you already have a, Plan this guide may correct an
37:33
Speaker 1: issue that could come back to haunt you in the
37:35
Speaker 1: years to. Come proper estate planning is crucial to you
37:38
Speaker 1: being able to enjoy your later, years and it may
37:40
Speaker 1: be the difference between retiring comfortably or living under incredible financial.
37:44
Speaker 1: Pressure Call cushing And dolan right now at eight sixty
37:47
Speaker 1: six eight four eight five six ninet nine and get
37:50
Speaker 1: your free guide today that's eight six six eight four
37:53
Speaker 1: eight five six ninet, nine or request it online from
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Speaker 1: their Website legal exchange show dot. Com the proceeding was
37:59
Speaker 1: paid for In these expressed are solely those Of cushing And.
38:01
Speaker 1: Dolin cushing And dolan Indor I'm Strong advisory may contact
38:04
Speaker 1: you're offering legal or investment. Services cushing And armstrong do
38:06
Speaker 1: not endorse each other and are not.
38:08
Speaker 6: Affiliated this Is Michael, valila adjuedent of The Disabled American
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Speaker 4: Boston trust can play a key role in your financial,
38:41
Speaker 4: strategy and understanding the different kinds and their purpose may
38:44
Speaker 4: help you make the right decisions for your overall. Plan,
38:47
Speaker 4: hi this Is Chuck zauta from The Armstrong Advisory. Group
38:50
Speaker 4: trusts are utilized for a variety of, reasons but the
38:52
Speaker 4: most basic use is to make settling in a state.
38:55
Speaker 4: Easier trust have the ability to bypass, probate which can
38:57
Speaker 4: save you significant time and money while allowing your assets
39:00
Speaker 4: to be distributed directly to your. Beneficiaries our new guide
39:04
Speaker 4: this month is Called trusts in Your Financial plan and
39:06
Speaker 4: you can get it by calling eight hundred three nine
39:09
Speaker 4: three for zero zero. One learn about trust and their
39:12
Speaker 4: possible benefits to your financial strategy by requesting your free guide.
39:15
Speaker 4: Today that number again is eight hundred three nine three
39:18
Speaker 4: for zero zero, one or request it online At Armstrong
39:22
Speaker 4: advisory Dot. Com That's Armstrong advisory Dot.
39:25
Speaker 1: Com the proceeding was paid for By Armstrong Advisory, group
39:27
Speaker 1: a registered investment. Advisor nothing in the ad or in
39:29
Speaker 1: Any armstrong guide a specific, financial, legal or tax. Advice
39:32
Speaker 1: consult your own, financial tax into state planning advisors before
39:35
Speaker 1: making any investment. Decisions armstrong may contact you to offer
39:37
Speaker 1: investment advisory. Services The United States Virgin islands has consistently
39:43
Speaker 1: voted one of The topcribbean, destinations and recently two of
39:46
Speaker 1: their Beaches Trunk bay And Saint john And Magan's bay
39:49
Speaker 1: And Saint. Thomas we're voted at top ten best beach
39:52
Speaker 1: in The caribbean at the twenty twenty Five Travelers Choice
39:54
Speaker 1: best of The best. Awards from the pristine beaches to
39:57
Speaker 1: its world class, dining rich, history incredible golf and perfect,
40:01
Speaker 1: weather THE usvii has everything you need to make memories
40:05
Speaker 1: that will last a. Lifetime from the moment you, arrive
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Speaker 1: you will fall naturally in rhythm with the heartbeat of the.
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40:14
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Speaker 1: Com your tune to The Legal exchange With Todd. Lutsky
40:42
Speaker 1: if you are a loved one needs a nursing, homestay
40:45
Speaker 1: Call todd right now at eight sixty six eight four
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Speaker 1: eight five six nine, nine or visit him online At
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Speaker 1: Legal exchange show dot.
40:57
Speaker 2: Com welcome back to The Legal exchange With Todd. Letsky
41:02
Speaker 2: I'm Susan, powers a financial advisor with The Armstrong Advisory,
41:05
Speaker 2: group And i'm joined of course By Todd, leutski a
41:08
Speaker 2: partner with the law firm Of cushing And dolan with
41:11
Speaker 2: A masters in. Taxation So TODD i met with a
41:15
Speaker 2: client this past week and since our last, meeting they
41:20
Speaker 2: had their taxes done for twenty twenty four and they
41:22
Speaker 2: came in new trust last. Year averyvocable trusts from the get. Go,
41:27
Speaker 2: okay they're living. It, yes, yeah got. It so they
41:31
Speaker 2: came in and they always bring me a copy of
41:33
Speaker 2: their tax returns with. Them it's. Nice they brought in
41:36
Speaker 2: their ten forty AND i, said, great where's your trust tax?
41:39
Speaker 2: Return and they said.
41:42
Speaker 1: What.
41:45
Speaker 2: YEAH i want to just let people just have the
41:48
Speaker 2: conversation because that's one of the, potholes which is not
41:52
Speaker 2: filing a separate trust tax return during life and after.
41:56
Speaker 2: Death so let's talk about why needs to be. Done
42:01
Speaker 2: but FOR i want to include both revocable and irrevocable
42:04
Speaker 2: trusts and the difference between the. Two that's.
42:06
Speaker 3: RIGHT i think you're tax returns so and you're, right
42:10
Speaker 3: it is a big. POTHOLE i probably haven't mentioned. It
42:12
Speaker 3: but when one, dies what do you? Do that's a
42:14
Speaker 3: reason to pick up your plan and come. In don't
42:17
Speaker 3: just forget about the tax returns that change or what
42:19
Speaker 3: you have to, do and don't empty everything out of
42:22
Speaker 3: one trust and put it in another. TRUST i mean
42:23
Speaker 3: this say is you're bringing up all kinds of things
42:25
Speaker 3: that make me think about. This, yeah so if it's
42:32
Speaker 3: irrevocable of an easy start, revocable, yes there's no tax,
42:36
Speaker 3: returns so no separate tax NO. Sep so if they
42:39
Speaker 3: have a revocable trust plan and they come to you
42:41
Speaker 3: for a follow up meeting and you, say where are
42:43
Speaker 3: my tax, Returns they'll, say, well we don't need to
42:45
Speaker 3: file one because it's. Revocable it's just our ten forty
42:48
Speaker 3: here the nifile.
42:49
Speaker 2: Taxes you're still paying the taxes on, it but not
42:52
Speaker 2: a separate tax.
42:53
Speaker 3: Return so they would give you the ten, forty they
42:55
Speaker 3: wouldn't give you a ten forty, one which is a
42:57
Speaker 3: tax return for a.
42:58
Speaker 2: Trust.
42:59
Speaker 3: Correct, Okay so if it's, irrevocable and it's even confusing
43:04
Speaker 3: for accountants sometimes when they when they see these, things they, go,
43:06
Speaker 3: well if it's a grand tour, trust which means the
43:10
Speaker 3: ownership for income tax purposes is the individual for income tax,
43:17
Speaker 3: purposes not for anything, else it's still owned by the.
43:20
Speaker 3: Trust and so, well then if it's taxed on the
43:23
Speaker 3: individual's income tax return because they're considered the owners for
43:27
Speaker 3: income tax purposes and not at the trust, level which
43:30
Speaker 3: is good because trust level levels are very. High they
43:34
Speaker 3: pay top, tax you pay like thirty nine, whatever the
43:38
Speaker 3: top rate is thirty seven, percent like fifteen.
43:40
Speaker 2: Grand you're in the top tax.
43:42
Speaker 3: Somewhere around fourteen fifteen. Grand you're in the tox top.
43:44
Speaker 3: Bracket so we don't want to pay. That we want
43:47
Speaker 3: it taxed at the individual's. Level so oftentimes even accountants will, say, well,
43:52
Speaker 3: okay well it's a grand to our, trust why DO
43:54
Speaker 3: i need to. File, well when we do medicate irrevocable trust,
43:58
Speaker 3: planning generally the trustee and the donor are separate, People
44:03
Speaker 3: so that's a reason to file in and of. Itself
44:06
Speaker 3: but more, importantly we get a TAX id number for the,
44:09
Speaker 3: trust because one when you're applying For, medicaid helps them
44:13
Speaker 3: understand that this really isn't a, sham it's a real. Entity,
44:16
Speaker 3: look they're filing a tax, return they have AN id,
44:19
Speaker 3: number and it really. Helps but ultimately you're, right it
44:22
Speaker 3: does get picked up on the individual's personal, return but
44:25
Speaker 3: you should file a ten forty one income tax return
44:29
Speaker 3: for the entity just to kick out a letter showing
44:34
Speaker 3: that all of this gets picked up on the personal
44:36
Speaker 3: return of the individual creator donor of the.
44:39
Speaker 2: Trust in that grand tour, letter that's like a ten
44:41
Speaker 2: ninety nine that your trusteh get issues to.
44:44
Speaker 3: You on your personal or like A k one that people,
44:47
Speaker 3: yeah think about it in terms of like, That, yeah, similar.
44:50
Speaker 2: So that kicks, off but you still do need to
44:52
Speaker 2: go through the process the steps of having that tax
44:56
Speaker 2: return in place where it's a MEDICARE i, Agree, yeah,
45:00
Speaker 2: MEDICAID i absolutely.
45:01
Speaker 3: Agree and you know, what, folks it is the end
45:03
Speaker 3: of the, month And susan just brought up one of
45:05
Speaker 3: the bigger potholes THAT i don't even. Mention, right you
45:07
Speaker 3: have your existing estate plan in, place someone dies and
45:11
Speaker 3: tax returns change because someone. Died don't empty a trust
45:15
Speaker 3: and give it all to the surviving spouse's. Trust horrible.
45:18
Speaker 3: Idea you can't do it, anyway but don't do. It
45:20
Speaker 3: people do. It there's lots of mistakes that can be
45:23
Speaker 3: made during, life between, divorces, relocating. Deaths deaths are a
45:29
Speaker 3: big reason to relook at your. Plan, also for all
45:32
Speaker 3: you folks that haven't done, planning please don't not do.
45:35
Speaker 3: It there's reasons in here to tell you why you
45:38
Speaker 3: should do it and things to avoid when doing your.
45:41
Speaker 3: Planning so it's the end of the, Month please call
45:43
Speaker 3: and get the guide eight six six eight four eight
45:47
Speaker 3: five six nine nine Or Legal exchange show dot. COM
45:51
Speaker 3: i think there's a little something in here for everybody
45:53
Speaker 3: eight six six eight four eight five six nine nine
45:58
Speaker 3: Or Legal exchange show dot.
46:00
Speaker 2: COM i think right up there with relying on a
46:03
Speaker 2: will as your only a state planning document is also
46:08
Speaker 2: the folks that, say, OH i have a, will my
46:11
Speaker 2: attorney prepared that for, me who happens to be a
46:15
Speaker 2: real estate. Attorney so at the same, time they created
46:19
Speaker 2: A nominee reality trust for my, house SO i don't
46:22
Speaker 2: have to worry about. ANYTHING i. Trust i've got the
46:24
Speaker 2: will and the trust really and The nominee reality. Trust
46:26
Speaker 2: so or they might just say a, trust, yeah they
46:28
Speaker 2: think it's, Yeah so let's talk about A nominee reality
46:32
Speaker 2: trust and not relying on that for your estate plan
46:36
Speaker 2: because it's not really a.
46:37
Speaker 3: Trust, yeah it's really, not and it is so, confusing
46:41
Speaker 3: AND i wish you, know we don't use them much,
46:43
Speaker 3: anymore but for, many many years here In massachusetts, anyway
46:48
Speaker 3: we would use these things Called nominee realty. Trust or
46:51
Speaker 3: you might just see the word realty trust that you
46:53
Speaker 3: leave off the word, nominee but it is one.
46:55
Speaker 2: Anyway you could say one two Three School street reality.
46:58
Speaker 2: Trust it's usually a property good.
47:00
Speaker 3: Susan it's usually a tied to some. Address and so
47:03
Speaker 3: if you're now flipping, through go pull your estate plan
47:06
Speaker 3: of off the shelf and take a look at and
47:11
Speaker 3: and you, know oh, YEAH i got one of. Those
47:14
Speaker 3: take a look at. It and now you'll you'll realize
47:17
Speaker 3: why this is not a. Trust you'll see that you're
47:22
Speaker 3: probably listed as the, trustees and then you're not going
47:26
Speaker 3: to realize. It but there's language in there in the
47:29
Speaker 3: document that says as, trustees you, guys let's, say, husband,
47:34
Speaker 3: wife you guys have no power as trustee to deal
47:42
Speaker 3: with the assets that are in the trust without direction
47:47
Speaker 3: from the, beneficiaries from all the. Beneficiaries, yeah that seems, strange,
47:52
Speaker 3: right because that puts the power in the hands of who.
47:57
Speaker 2: The, beneficiaries which don't get it till you. Die.
48:00
Speaker 3: Right, well that's exactly what real trusts provide FOR i
48:05
Speaker 3: call them a true trust if you. Will this is
48:09
Speaker 3: not a true, trust it's a realty. Trust and that
48:13
Speaker 3: language alone sort of vests control of the asset in
48:19
Speaker 3: the beneficiaries'. Hands not only does it vest control of
48:23
Speaker 3: the assets in the beneficiaries', hands they're really deemed the
48:27
Speaker 3: owner right, now not at. Death and that's the confusing.
48:32
Speaker 3: Part it's like you put it in the trust and
48:36
Speaker 3: then it automatically flows through to who's listed on the
48:41
Speaker 3: schedule of.
48:42
Speaker 2: Beneficiaries so if there are parents who are listening right,
48:45
Speaker 2: now we're, thinking wait a, minute are you telling me
48:48
Speaker 2: that my kids own our? House now if they're listed
48:53
Speaker 2: as the, beneficiary.
48:54
Speaker 3: It could be, so and that's really. Scary so please
48:58
Speaker 3: look at your, trust your nominee realty, trust and so
49:01
Speaker 3: that's what we're talking, about and see if in fact
49:04
Speaker 3: you put that on. There now there's some less bad
49:06
Speaker 3: result that you might. Have the less bad result is
49:10
Speaker 3: you might look there and, say, oh husband and wife are.
49:13
Speaker 3: Beneficiaries oh, well that's. Different so if if you put
49:18
Speaker 3: it in a nominee realty trust and the husband and
49:20
Speaker 3: wife are listed as the, beneficiaries then it went from
49:23
Speaker 3: both of you, yep back to both of.
49:26
Speaker 2: You, Right so you've done nothing, nothing so real probate,
49:30
Speaker 2: avoidance there's no estate that there's no there'd be no
49:33
Speaker 2: benefits that state tax planning.
49:35
Speaker 3: Benefits it's almost like you still own it jointly because
49:38
Speaker 3: it's just going to go right back to you and
49:39
Speaker 3: then when one, dies it'll probably go to the. Other
49:41
Speaker 3: one and and so at least it's less. Bad you
49:44
Speaker 3: didn't give it, away.
49:45
Speaker 2: Right your kids don't own, It you still own, it
49:47
Speaker 2: you control, it accomplish, anything but.
49:49
Speaker 3: Really doesn't accomplish much it certainly everybody says it protect from. Creditors,
49:53
Speaker 3: no it really. Doesn't you're the owner and you can't hide.
49:56
Speaker 3: Today in today's, world there's no. Hiding so you know
50:00
Speaker 3: that that to me is a. Problem but if it,
50:02
Speaker 3: did say, kids bigger.
50:05
Speaker 2: Problem.
50:06
Speaker 3: YEAH i mean you might not realize it now and
50:08
Speaker 3: you might, not you, know living your life just. Fine but,
50:11
Speaker 3: folks if they get, divorced you're gonna find out really
50:14
Speaker 3: quickly who owns that property because they're gonna.
50:17
Speaker 2: Look, yeah and you don't want.
50:19
Speaker 1: That.
50:19
Speaker 3: Folks there's so many potholes to avoid in the estate planning,
50:24
Speaker 3: world not only from. Taxes but it's the last chance.
50:27
Speaker 3: Ever get the guide avoid all of the potholes from
50:31
Speaker 3: planning to post planning eight six six eight four eight
50:36
Speaker 3: five six nine, nine or go to our Website legal
50:39
Speaker 3: Exchange show dot com and download it right.
50:42
Speaker 2: There Todd letsky from the law firm Of cushing And,
50:45
Speaker 2: dolan thank you so. Much thank, You susan it's always a.
50:47
Speaker 2: Pleasure I'm Susan power as a financial advisor with The
50:50
Speaker 2: Armstrong Advisory. Group we thank you for joining us today
50:54
Speaker 2: and we'll be back again next week on The Legal
50:56
Speaker 2: exchange With Todd lutsky in The.
51:00
Speaker 1: State plan can be a difficult process if you aren't
51:03
Speaker 1: working with an expert who can make sure your plan is.
51:05
Speaker 1: Secure cushing And dolan can. Help call them today at
51:08
Speaker 1: eight sixty six eight four eight five six nine. Nine
51:11
Speaker 1: estate planning is their, business and their new monthly guide
51:14
Speaker 1: is Called detour a head estate planning blunders to. Avoid
51:17
Speaker 1: don't put your assets at risk and open yourself up
51:20
Speaker 1: to severe tax. Consequences even if you already have a,
51:23
Speaker 1: plan this guide may correct an issue that could come
51:25
Speaker 1: back to haunt you in the years to. Come proper
51:28
Speaker 1: estate planning is crucial to you being able to enjoy
51:30
Speaker 1: your later, years and it may be the difference between
51:33
Speaker 1: retiring comfortably or living under incredible financial. Pressure Call cushing
51:37
Speaker 1: And dolan right now at eight sixty six eight four
51:40
Speaker 1: eight five six ninet nine and get your free guide.
51:42
Speaker 1: Today that's eight six six eight four eight five six nine,
51:46
Speaker 1: nine or request an online from their. Website legal exchange
51:49
Speaker 1: show Dot. Com the proceeding is paid for In the
51:51
Speaker 1: views expressed are solely those Of cushing And. Dolan cushing
51:53
Speaker 1: And dolan ind Or Armstrong advisory may contact your offering
51:56
Speaker 1: legal or investment. Services cushing And armstrong do not endorse
51:58
Speaker 1: each other and are not AFFILIATE.
52:00
Speaker 5: Hi this Is Mike armstrong from The Armstrong Advisory. GROUP
52:02
Speaker 5: a state and financial plan and go hand in, hand
52:05
Speaker 5: and one of the most common ways to keep that
52:07
Speaker 5: bond secure is with a. Trust our new guide Called
52:09
Speaker 5: trusts in Your Financial plan is available right. Now in,
52:12
Speaker 5: it we'll discuss the various types of trusts that exist
52:15
Speaker 5: and how they might benefit your planning. Process trust provide
52:18
Speaker 5: a number of different protections for your, assets including privacy
52:21
Speaker 5: control and tax. Efficiency if you're retired or nearing retirement
52:24
Speaker 5: and have concerns about your financial strategy and whether or
52:27
Speaker 5: not a trust may, help call us today at eight
52:29
Speaker 5: hundred three nine three four zero zero one and ask
52:32
Speaker 5: for your free guide Called trusts and Your Financial. Plan
52:35
Speaker 5: learn about how a trust could make a difference for
52:37
Speaker 5: you and your family by calling eight hundred three nine
52:39
Speaker 5: three four zero zero. One that number again is eight
52:42
Speaker 5: hundred three nine three four zero zero, one or you
52:44
Speaker 5: can request the guide From Armstrong advisory Dot.
52:47
Speaker 1: Com the proceeding was paid for By Armstrong Advisory, group
52:49
Speaker 1: a registered investment. Advisor nothing in the ad or in
52:51
Speaker 1: Any Armstrong guide a specific, financial, legal or tax. Advice
52:54
Speaker 1: consult your own financial tax into state planning advisors before
52:56
Speaker 1: making any investment. Decisions armstrong may contact you to offer
52:59
Speaker 1: investment advisory. Service The United States Virgin islands has consistently
53:03
Speaker 1: voted one of The topcribbean, destinations and recently two of their,
53:07
Speaker 1: Beaches Trunk bay And Saint john And Magan's bay And Saint,
53:10
Speaker 1: thomas were voted at top ten best beach in The
53:13
Speaker 1: caribbean at the twenty twenty Five Travelers Choice best of
53:15
Speaker 1: The best. Awards from the pristine beaches to its world class,
53:19
Speaker 1: dining rich, history incredible golf and perfect, weather THE usvii
53:23
Speaker 1: has everything you need to make memories that will last a.
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Speaker 1: Lifetime from the moment you, arrive you will fall naturally
53:30
Speaker 1: in rhythm with the heartbeat of the. Islands there's no
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Speaker 1: Vacation THE Us Virgin islands is the perfect place for
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Speaker 1: your next. Adventure go to VISIT usvii dot com right
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Speaker 1: Today that's VISIT usvii dot.
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Speaker 2: Com