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The Trust Decisions That Can Make or Break an Estate Plan · The Legal Exchange

• 0:01
  Speaker 1: This is the Legal Exchange with Todd Lutsky from the
• 0:04
  Speaker 1: law firm of Cushing and Dolan and Susan Powers of
• 0:07
  Speaker 1: the Armstrong Advisory Group. Each week, Todd and Susan will
• 0:10
  Speaker 1: discuss many topics including estate planning, how to avoid probate,
• 0:13
  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: to make an appointment. That's eight six six eight four
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• 0:31
  Speaker 1: Here are your hosts, Todd Lutsky and Susan Powers.
• 0:36
  Speaker 2: Welcome into the Legal Exchange Show with Todd Lutsky. I'm
• 0:39
  Speaker 2: Susan Powers, a financial advisor with the Armstrong Advisory Group,
• 0:43
  Speaker 2: and I'm joined by Todd Lutsky, a partner with the
• 0:46
  Speaker 2: law firm of Cushing and Dolan with a master's in taxation.
• 0:50
  Speaker 2: Welcome Todd, how are you today? I am never better
• 0:53
  Speaker 2: in you great, Thank you what you have for us
• 0:55
  Speaker 2: this week.
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  Speaker 3: So we are going to go to Ohio. We have
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  Speaker 3: a durable power of attorney situation. Basically, we got to
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  Speaker 3: be careful who you appoint right, what constitutes self dealing
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  Speaker 3: and what constitutes too much self dealing? Even if self
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  Speaker 3: dealing is allowed, could there be too much self dealing?
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  Speaker 3: And then we'll learn about some tips and lessons and
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  Speaker 3: why we're relying on powers of attorney here not having
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  Speaker 3: a trust in place that could have saved all of
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  Speaker 3: these headaches, because again, powers of attorney are good, they're
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  Speaker 3: not the end all be all as part of your
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  Speaker 3: estate plan. Then I have not a case, but a
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  Speaker 3: real life story one dealing with a fact pattern of
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  Speaker 3: about three point nine million. Married couple comes in and
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  Speaker 3: they want to do both estate planning and nursing home
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  Speaker 3: planning at the same time, and they have decent amount
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  Speaker 3: of assets in iras, so we want to figure out
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  Speaker 3: how we're going to handle that situation. And this would
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  Speaker 3: be really interesting. And it also deals obviously primarily with
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  Speaker 3: the two irrevocable medicaid trust approach. But folks, that's just
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  Speaker 3: one of the trusts that are in this guide this
• 2:08
  Speaker 3: month the top eight newly updated guide Top eight estate
• 2:13
  Speaker 3: planning trusts that are used in estate planning. Folks, not
• 2:18
  Speaker 3: everybody knows what to do when you're starting your estate plan.
• 2:22
  Speaker 3: This guide gives you a top eight from nominee realty
• 2:25
  Speaker 3: trust which you should stay away from, to revocable to
• 2:29
  Speaker 3: irrevocable medicaid, irrevocable life insurance trusts and you know pool
• 2:34
  Speaker 3: trust special needs trusts, and it also explains how they
• 2:39
  Speaker 3: work and the tax ramifications, the estate planning savings that
• 2:43
  Speaker 3: can be done. Call and figure out what's right for
• 2:46
  Speaker 3: you to get your estate plan going eight six six
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  Speaker 3: eight four eight five six ninety nine or legal exchange
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  Speaker 3: show dot com again eight six six eight four eight
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  Speaker 3: five six or Legal Exchange Show dot com. You can
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  Speaker 3: always go to Cushing Dolean PC for our Instagram page
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  Speaker 3: for more information over to Ohio. So we've got a
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  Speaker 3: situation where this is going to deal really with all
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  Speaker 3: of the children of Adelina. So the husband died, so
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  Speaker 3: this was a meritable marriage situation. You're going to already
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  Speaker 3: start to see how there was no planning done when
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  Speaker 3: husband died. But I'll come back to that. When the
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  Speaker 3: husband died, Adelina received a very large settlement. So there
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  Speaker 3: might have been some kind of a you know, injury
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  Speaker 3: or something here in which a large settlement came to
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  Speaker 3: Adelina already thinking that's not the best way to get
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  Speaker 3: it anyways, Carlos, the son, helped manage the affairs for
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  Speaker 3: Adelina and was named power of attorney on all the
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  Speaker 3: documents that were executed prior to dad's Dad. Okay, well
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  Speaker 3: there were some actions done. So Carlos and the sister
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  Speaker 3: Luna moved families into mom's home and helped manage the money.
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  Speaker 3: And then Mom died eighteen months later. Well, the guardian,
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  Speaker 3: who was also Carlos, had a guardian ship put together.
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  Speaker 3: They did an accounting. At the end the balance was
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  Speaker 3: one hundred and ninety eight thousand dollars, but two hundred
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  Speaker 3: and twenty three thousand had been distributed out and the
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  Speaker 3: ending balance ending inventory of the estate was ten grand.
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  Speaker 2: Wow.
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  Speaker 3: Yeah, well it gets better. Daughter Belinda a new daughter,
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  Speaker 3: are right? She decides to sue Carlos for depleting the
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  Speaker 3: estate by eight hundred thousand dollars. Wow. With evidence of
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  Speaker 3: checks written to himself, to his siblings, apparently not to
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  Speaker 3: Belinda Blinda signed by someone different. Some were signed by
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  Speaker 3: him individually, Carlos individually, Some were signed by him as
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  Speaker 3: power of attorney. Some checks were signed by Carlos for
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  Speaker 3: Adeleina by Adlena. Even wire transfers were made and directly
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  Speaker 3: to siblings, and wire transfers and cashier's checks were made
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  Speaker 3: directly to siblings, so a lot of money seems to
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  Speaker 3: have moved. Well. The trial court found summary judgment for Carlos.
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  Speaker 2: Because in his pocket.
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  Speaker 3: Yeah yeah, well, because the power of attorney authorized gifting
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  Speaker 3: to himself, it allowed self dealing and acting within the
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  Speaker 3: Therefore he's acting within the powers authorized in the power
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  Speaker 3: of attorney. And the court went on to say, if
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  Speaker 3: Adelina was really not happy with the amount of money
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  Speaker 3: that was being moved, she could have revoked the power
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  Speaker 3: of attorney anytime she wanted.
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  Speaker 2: Got to be really careful who you're picking.
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  Speaker 3: You really do well. Needless to say, this got appealed
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  Speaker 3: and the appellate court reversed.
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  Speaker 2: Oh nice, All these overturnings today make me very happy.
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  Speaker 3: Kind of smelled bad from the beginning. But they only
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  Speaker 3: reversed on the grounds of breach of fiduciary duty and
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  Speaker 3: tortious interference with an inheritance. They did not overturn or
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  Speaker 3: on fraud or undue influence because that wasn't pled very well,
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  Speaker 3: there's no proof, but they argue that he did breach
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  Speaker 3: his fiduciary duty because he made just too many self
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  Speaker 3: dealing transactions you think, maybe a little over the top.
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  Speaker 3: So interesting how that played out. But you know, what
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  Speaker 3: are the tips and lessons you really get from this?
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  Speaker 1: Right?
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  Speaker 3: You know, first of all, I'm going to say, we
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  Speaker 3: should be comparing a power of attorney with a trust
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  Speaker 3: in this case. Right, Careful, as you just said, Susan,
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  Speaker 3: who you appoint and always decide whether or not you
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  Speaker 3: want to give the power of attorney the power to
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  Speaker 3: self deal. That does not have to be drafted in
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  Speaker 3: every power of attorney. It can be up to the individual.
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  Speaker 3: So nevertheless, I'm going to compare this with the trust
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  Speaker 3: because I think that's really where the issue is. So
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  Speaker 3: the power of attorney is not doing the following. It's
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  Speaker 3: not protecting assets from a nursing home in case they
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  Speaker 3: ever needed that down the road. It's certainly not avoiding probate.
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  Speaker 3: You're just acting on assets that are in Adelina's name
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  Speaker 3: at this point, and so that's not helpful. There's certainly
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  Speaker 3: no estate tax planning done here on the first death,
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  Speaker 3: as all the assets seemingly went right to Adelina and
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  Speaker 3: That's really where I have a problem with the case. Right,
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  Speaker 3: I'm not here to just point out things that are
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  Speaker 3: that the case says it's wrong. I'm going beyond that.
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  Speaker 3: I'm saying, well, there was a large settlement that she
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  Speaker 3: got because of his death. Now, if he was dying
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  Speaker 3: of something that we knew and it was maybe a malpractice,
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  Speaker 3: I don't know. But if they had done their estate
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  Speaker 3: plan in place, even if they didn't fund the trust
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  Speaker 3: and the settlement just went to his estate because it
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  Speaker 3: was a sudden thing, you could have had a poor
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  Speaker 3: overwill in place with a trust that he could have
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  Speaker 3: set up while he was alive and healthy, and then
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  Speaker 3: that asset, that large settlement would have gone through probate. Yes,
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  Speaker 3: but I don't care because I have a poor overwill
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  Speaker 3: that puts it into his trust. And if it gets
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  Speaker 3: into his trust now it sheltered from future estate taxes
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  Speaker 3: when Adelina dies again, providing more money for the family.
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  Speaker 2: When you have that kind of a settlement, Todd, does
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  Speaker 2: that typically go to the estate of like if it
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  Speaker 2: were a negligent depth and they to you know, a
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  Speaker 2: car accident or whatever the good cause of it, mailpractice
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  Speaker 2: anything like that.
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  Speaker 3: Yeah, I think likely that if if it was a
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  Speaker 3: sudden situation and you you died and you didn't you know,
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  Speaker 3: you're not alive anymore. So after the accident, Yeah, and
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  Speaker 3: it settles after you're dead, they're going to cut the
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  Speaker 3: check to the estate.
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  Speaker 2: To the estate. Okay, I'm just curious about that.
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  Speaker 3: So then you'd have the poor overwill to grab it
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  Speaker 3: and put it where where it needs to go. So again,
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  Speaker 3: I think there's some some huge estate planning benefits that
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  Speaker 3: could have been done here. And of course if you
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  Speaker 3: have that, then that's also going to avoid this whole
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  Speaker 3: self dealing issue, right. Think about it. If you have
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  Speaker 3: a trust and and it's revocable during life, no distributions
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  Speaker 3: can be made to kids. If it's irrevocable, then the
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  Speaker 3: trustee in this case fit was Carlos could not make
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  Speaker 3: gifts to himself. It would have to go through other kids.
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  Speaker 3: So there's a lot that could have been done that's
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  Speaker 3: better with trust in place. But folks, no trusts were
• 9:58
  Speaker 3: in place here. Call get the guide, learn which trust
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  Speaker 2: You've been listening to Todd Lutsky, a partner with the
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  Speaker 2: Welcome back into the Legal Exchange with Todd Lutsky. I'm
• 13:55
  Speaker 2: Susan Powers of Financial Advisor the Armstrong Advisory Group, and
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  Speaker 2: I'm sure by Todd Latsky, a partner with the law
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  Speaker 2: firm of Cushing and Dolan with a masters in taxation.
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  Speaker 2: Where we headed down Todd, We're not headed anywhere, staying
• 14:09
  Speaker 2: right here.
• 14:09
  Speaker 3: We got a real life story. Nice, So I guess
• 14:12
  Speaker 3: that's staying here.
• 14:12
  Speaker 2: Yeah.
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  Speaker 3: So I had this couple, second marriage. They come in.
• 14:18
  Speaker 3: They want to do both state planning and nursing home
• 14:22
  Speaker 3: planning at the same time. Now the estate's about three
• 14:24
  Speaker 3: point nine million. It's got about a home worth about
• 14:27
  Speaker 3: one point five. They got some land worth about two hundred.
• 14:31
  Speaker 3: They've got qualified plan money. You know, husband's seven point fifty,
• 14:35
  Speaker 3: wife five hundred, So that's a good chunk of the estate.
• 14:39
  Speaker 3: Got like a half a million dollar life insurance policy
• 14:42
  Speaker 3: on husband, and then some investments four hundred thousand in
• 14:46
  Speaker 3: the bank. Four hundred thousand of investments and about one
• 14:49
  Speaker 3: hundred grand kicking around the bank. Now it is a
• 14:52
  Speaker 3: second marriage. They have one kid together, which always makes
• 14:56
  Speaker 3: it complicated, and one kid from husband prior marriage, you know.
• 15:02
  Speaker 3: But they've been married thirty two years and they all
• 15:04
  Speaker 3: get along, so this is almost like a first marriage. So, folks,
• 15:08
  Speaker 3: when you're looking at fact patterns like this, when you
• 15:11
  Speaker 3: see the thirty two year marriage, it doesn't feel so
• 15:14
  Speaker 3: much like a second marriage, and it can be treated
• 15:18
  Speaker 3: a lot more like a first marriage. So nevertheless, what
• 15:21
  Speaker 3: are the tips and lessons, you know, what do we
• 15:22
  Speaker 3: need to learn? What do we need to figure out
• 15:25
  Speaker 3: on a case like this, Obviously getting the lay of
• 15:28
  Speaker 3: the land, learning the assets, learning you know, the fact
• 15:32
  Speaker 3: that it's a second marriage, Learning how well they get along.
• 15:36
  Speaker 3: That's gonna help us when we start determining what kind
• 15:40
  Speaker 3: of trust they need. And so first let's get that
• 15:43
  Speaker 3: laid out and then I'll run through how it works.
• 15:46
  Speaker 3: They're gonna need to trusts because they're over over two
• 15:51
  Speaker 3: million dollars, which is the Massachusetts estate tax exemption currently.
• 15:57
  Speaker 3: They're also and again that's design so that we can
• 16:01
  Speaker 3: shelter the assets for state tax purposes. They're going to
• 16:05
  Speaker 3: need irrevocable trusts. Again, we got to sort of pick
• 16:09
  Speaker 3: which kind of trust is right for you. Right, I
• 16:12
  Speaker 3: say that with the guide, I say that with this case,
• 16:15
  Speaker 3: what trust is right for you? Well, they indicated that
• 16:19
  Speaker 3: they want not only state tax planning, but also nursing
• 16:22
  Speaker 3: home planning. Well, if they want nursing home planning, I'm
• 16:24
  Speaker 3: going to need irrevocable type trusts. And then you just
• 16:28
  Speaker 3: spend a little bit more time looking at the type
• 16:30
  Speaker 3: of assets, so we know what's going to go into
• 16:33
  Speaker 3: these trusts, what's not going to go in, and again
• 16:36
  Speaker 3: the family dynamics in terms of how we might ultimately
• 16:40
  Speaker 3: leave these assets to the family. Okay, So I just
• 16:44
  Speaker 3: wanted to pause there for a minute, because when you
• 16:48
  Speaker 3: talk about this, I'm already talking about picking trusts, and
• 16:52
  Speaker 3: that's kind of where we are with this guide. This
• 16:55
  Speaker 3: guide is picking the right trust for you to get
• 16:59
  Speaker 3: you if your estate plan started from a medicaid e
• 17:03
  Speaker 3: rev to a revocable trust to a if you have
• 17:07
  Speaker 3: a life insurance which they have here, do we need
• 17:09
  Speaker 3: an irrevocable life insurance trust that fits in? Do we
• 17:12
  Speaker 3: have special needs child? We got the family dynamics from this.
• 17:15
  Speaker 3: Does that needed? We have a special needs trust? Here?
• 17:18
  Speaker 3: They own real estate? Do I need a nominee realty trust?
• 17:21
  Speaker 3: When I am dealing with putting assets into these irrevocable trusts,
• 17:26
  Speaker 3: you know, learn what kind of trust is right for
• 17:29
  Speaker 3: you to help you get your estate plan off the ground.
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  Speaker 3: Eight six six eight four eight five six nine nine
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  Speaker 3: or Legal Exchange Show dot Com again eight six six
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  Speaker 3: eight four eight five six nine nine or Legal Exchange
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  Speaker 3: Show dot com and learn how to do your estate plan.
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  Speaker 3: You can also go to Cushing dolean PC our Instagram
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  Speaker 3: page for more information. Now I'm going to take you
• 17:55
  Speaker 3: through the entire estate plan. So we already said the
• 17:59
  Speaker 3: two trusts we need those. They need to be irrevocable,
• 18:02
  Speaker 3: they will avoid probate, they will shelter the assets for
• 18:05
  Speaker 3: a state taxes. They will utilize two million dollars of
• 18:09
  Speaker 3: exemption on each death, so we can double that up.
• 18:14
  Speaker 3: Funding the trust. We talked about what's going to go
• 18:16
  Speaker 3: in there, let's dive into that. What is going in there?
• 18:20
  Speaker 3: The real estate, the home. It's one point five million
• 18:23
  Speaker 3: that will be deeded fifty percent into each trust. For sure,
• 18:27
  Speaker 3: they got a four hundred thousand dollars investment account. Put
• 18:30
  Speaker 3: two hundred thousand of that into each trust. Again, you
• 18:34
  Speaker 3: work with your advisor, you retitle the accounts to that
• 18:38
  Speaker 3: particular trust, and you get tax id numbers for those
• 18:43
  Speaker 3: trusts when you're setting up the accounts because they're going
• 18:46
  Speaker 3: to have to file their own income tax returns each year. Okay,
• 18:53
  Speaker 3: now that we kind of know what can go into
• 18:55
  Speaker 3: those trusts right away, we still have a couple of
• 18:58
  Speaker 3: big items that we have to learn to deal with here,
• 19:01
  Speaker 3: and those big items are life insurance and iras. Not
• 19:08
  Speaker 3: easy to deal with when you're doing an estate plan
• 19:11
  Speaker 3: like this. However, since we're beyond twenty twenty two and
• 19:16
  Speaker 3: the Secure Act has changed things for us in this
• 19:19
  Speaker 3: particular trust plan or state plan for this client. Not
• 19:24
  Speaker 3: only did we decide to pick two irrevocable trusts, we
• 19:29
  Speaker 3: decided because of the life insurance and the qualified plan money,
• 19:34
  Speaker 3: we decided to add a testamentary trust to the mix.
• 19:41
  Speaker 3: I know that's another kind of trust.
• 19:43
  Speaker 2: Yeah, what does that get you?
• 19:45
  Speaker 3: That's going to help us deal with life insurance and
• 19:48
  Speaker 3: an era. Let's start with life insurance. If I have
• 19:52
  Speaker 3: an irrevocable Medicaid trust, and I was to say, I
• 19:55
  Speaker 3: want to name the life insurance designated beneficiary my trust,
• 20:01
  Speaker 3: what will that do for me? Well, that will avoid probate,
• 20:04
  Speaker 3: it will shelter it from a state taxes, it will
• 20:08
  Speaker 3: protect it from the nursing home. But it's going to
• 20:11
  Speaker 3: take five years from the date of death because that's
• 20:14
  Speaker 3: when it pays out, and my spouse will only have
• 20:18
  Speaker 3: access to the income because it's in my irrevocable trust. Well,
• 20:24
  Speaker 3: not horrible, but not great. Instead, I would name the
• 20:31
  Speaker 3: estate the designated beneficiary as long as I have a
• 20:35
  Speaker 3: testamentary trust, which is a trust built into the will.
• 20:38
  Speaker 2: So if the estates named it, then you're going to probate.
• 20:41
  Speaker 3: Right, exactly right. So is there a negative to what
• 20:44
  Speaker 3: I'm doing, Susan, You love to jump on the.
• 20:45
  Speaker 2: Negative too, but I also appreciate and celebrate the positives.
• 20:51
  Speaker 3: So that is a negative. But there's a lot more loopholes,
• 20:54
  Speaker 3: which you like, really a loophole than the negative. And
• 21:00
  Speaker 3: it's not really a big deal because it's just one
• 21:02
  Speaker 3: item going to probate. It's going to go right into
• 21:05
  Speaker 3: the will trust, to be tucked away into the remainder
• 21:08
  Speaker 3: share of the will trust, and it will what be
• 21:11
  Speaker 3: sheltered from mistate taxes kind of like the other way.
• 21:14
  Speaker 3: It will be accessible to the spouse both income and principle,
• 21:21
  Speaker 3: whereas the other way it was only income, So more
• 21:24
  Speaker 3: access to the spouse for this death benefit money. And
• 21:29
  Speaker 3: it also will immediately protect the asset from the nursing
• 21:34
  Speaker 3: home within five years, I mean without without any five
• 21:38
  Speaker 3: year waiting period. So it's an immediate protection from the
• 21:42
  Speaker 3: nursing home without a five year waiting period and allows
• 21:45
  Speaker 3: a lot more access. And of course shelters are from
• 21:48
  Speaker 3: a state taxes.
• 21:49
  Speaker 2: So even though you can't in advance put that.
• 21:53
  Speaker 3: In the trust, IRA into this, well, this is just
• 21:55
  Speaker 3: life insurance, not even I'm going to do IRA next.
• 21:58
  Speaker 3: So the IRA, even life insurance, you can't because you've
• 22:00
  Speaker 3: got to pay. If you're paying the premiums, you're creating
• 22:02
  Speaker 3: five year waiting periods. So there's reasons not to put
• 22:04
  Speaker 3: life insurance into the trust while you're alive either. But
• 22:08
  Speaker 3: IRA is even more problematic. As you said, Susan, you
• 22:11
  Speaker 3: can't put it in because of a tax. You have
• 22:13
  Speaker 3: big tax if you move it. But you can get
• 22:16
  Speaker 3: this effect if you die and you've named the estate
• 22:19
  Speaker 3: the beneficiary versus naming your spouse. Again, if you name
• 22:24
  Speaker 3: your spouse, she gets it all outright, no probate, no
• 22:29
  Speaker 3: sheltering for estate taxes, and completely at risk for the
• 22:32
  Speaker 3: nursing home. In a nutshell, that's what happens. But that's
• 22:35
  Speaker 3: what most people do with iras they name the estate,
• 22:41
  Speaker 3: I mean they name the spouse the beneficiary. Instead name
• 22:45
  Speaker 3: the estate the beneficiary and have a testamentary trust in place. Now, yes,
• 22:50
  Speaker 3: that one item goes to probate, but now it sits
• 22:53
  Speaker 3: in the b bucket for the spouse. It's going to
• 22:56
  Speaker 3: come out over the life expectancy of the decedent. That's fine, hmm.
• 23:02
  Speaker 3: It's going to be completely available to the surviving spouse
• 23:05
  Speaker 3: both income and principle, sheltered from estate taxes, and in
• 23:11
  Speaker 3: case the spouse gets sick, it's immediately protected from the
• 23:14
  Speaker 3: nursing home. Learn how to do these things call get
• 23:19
  Speaker 3: the guide. Learn what trust is right for you. There's
• 23:21
  Speaker 3: the top eight estate planning trust and how they work.
• 23:26
  Speaker 3: Soup to Nuts eight six six eight four eight five
• 23:30
  Speaker 3: six ninety nine or Legal Exchange show dot com again
• 23:34
  Speaker 3: eight six six eight four eight five six nine to nine.
• 23:38
  Speaker 2: You've been listening to Todd Lutski, a partner with the
• 23:40
  Speaker 2: law firm of Cushing and Dolan. I'm Susan Powers, a
• 23:44
  Speaker 2: financial advisor with the Armstrong Advisory Group, and Todd will
• 23:47
  Speaker 2: be answering your listener questions when we return to the
• 23:50
  Speaker 2: Legal Exchange with Todd Lutsky.
• 23:53
  Speaker 1: The state planning isn't just about writing a will. The
• 23:56
  Speaker 1: right trust can help your family avoid probate, protect your home,
• 24:00
  Speaker 1: reduce the state taxes, and even help shield assets from
• 24:03
  Speaker 1: the cost of long term care. That's why Cushing and
• 24:05
  Speaker 1: Dolan created a new guide called Demistifying the Top eight
• 24:08
  Speaker 1: Estate planning Trusts. Inside you'll learn the difference between revocable
• 24:12
  Speaker 1: and irrevocable trusts, why some trusts are designed to protect
• 24:15
  Speaker 1: assets from a nursing home, and how certain trusts can
• 24:18
  Speaker 1: keep your family's affairs private. The guide also explains some
• 24:21
  Speaker 1: of the biggest mistakes families make, including creating trusts but
• 24:25
  Speaker 1: never properly funding them. If you've been putting off of
• 24:27
  Speaker 1: state planning, this guide is a great place to start.
• 24:30
  Speaker 1: Call Cushing and Dolan today at eight sixty six eight
• 24:33
  Speaker 1: four eight five six ninety nine to get your free
• 24:36
  Speaker 1: copy that's eight six six eight four eight five six
• 24:39
  Speaker 1: nine nine, or request it online at Legal exchange show
• 24:42
  Speaker 1: dot com. The proceeding was paid for in The views
• 24:44
  Speaker 1: expressed are solely those of Cushing and Dolan. Cushing and
• 24:46
  Speaker 1: Dolan and or Armstrong Advisory may contact you offering legal
• 24:49
  Speaker 1: or investment services. Cushing and Dolan and Armstrong Advisory do
• 24:52
  Speaker 1: not endorse each other and are not affiliated.
• 24:54
  Speaker 2: This is susan powers from the Armstrong Advisory Group when
• 24:56
  Speaker 2: it comes to social security and Medicare. The decisions you
• 24:59
  Speaker 2: make today can have lasting impact on your retirement. There
• 25:02
  Speaker 2: are key choices to consider, like when to claim, how
• 25:04
  Speaker 2: spousal and survivor options work, and whether your Medicare coverage
• 25:08
  Speaker 2: is aligned with your needs. Without a clear strategy, it's
• 25:10
  Speaker 2: easy to overlook how taxes, income and healthcare costs all connect.
• 25:14
  Speaker 2: Join us for a complementary educational seminar on Thursday June
• 25:18
  Speaker 2: twenty fifth at five pm at the Marriott in Quinsy
• 25:21
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• 25:24
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• 25:27
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• 25:30
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• 25:33
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• 25:36
  Speaker 2: or register online at Armstrong Advisory dot com.
• 25:40
  Speaker 1: The proceeding was paid for by Armstrong Advisory Group, a
• 25:42
  Speaker 1: registered investment advisor. Nothing in the ad or in any
• 25:44
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• 25:47
  Speaker 1: your own financial, tax into state planning advisors before making
• 25:50
  Speaker 1: any investment decisions. Armstrong may contact you to offer investment
• 25:53
  Speaker 1: advisory services without the right of state plan your family
• 25:56
  Speaker 1: could face unnecessary costs in the future. The right trust
• 25:58
  Speaker 1: may help your loved ones avoid probate and better protect
• 26:01
  Speaker 1: family assets. Get Cushing and Dolan's new guide called Demystifying
• 26:04
  Speaker 1: the Top eight Estate Planning Trusts by calling eight six
• 26:06
  Speaker 1: six eight four eight five six nine nine. That's eight
• 26:09
  Speaker 1: six six eight four eight five six nine nine, or
• 26:11
  Speaker 1: request it online at legal exchange show dot com. The
• 26:14
  Speaker 1: proceeding was paid for in The views expressed are solely
• 26:16
  Speaker 1: those of Cushing and Dolan. Cushing and Dolan A or
• 26:18
  Speaker 1: Armstrong Advisory may contact you offering legal investment services. Cushing
• 26:21
  Speaker 1: and Dolan and Armstrong Advisory do not endorse each other
• 26:23
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• 26:26
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  Speaker 1: five K dot Boston. You're listening to the Legal Exchange
• 26:57
  Speaker 1: and it's time for Ask Todd. This segment where Todd
• 27:00
  Speaker 1: will answer your questions about anything and everything that's included
• 27:04
  Speaker 1: in the estate planning process. Once again, here's Todd, Lutsky
• 27:08
  Speaker 1: and Susan Powers.
• 27:10
  Speaker 2: Welcome back, Todd. A couple of questions from listeners for you.
• 27:13
  Speaker 2: First question comes from Ken in Stone and Mass and
• 27:16
  Speaker 2: Ken writs, my husband and I created irrevocable trust with
• 27:20
  Speaker 2: you many years ago. We each have two kids and
• 27:23
  Speaker 2: have divided our assets equally among our four children. My
• 27:27
  Speaker 2: daughter recently passed away, and I'm not sure if we
• 27:30
  Speaker 2: need to update our trusts to reflect this. She had
• 27:33
  Speaker 2: two children and we are estranged from one of them.
• 27:36
  Speaker 2: Can I have my daughter share go to just one
• 27:39
  Speaker 2: of her sons rather than both? Can I even change
• 27:42
  Speaker 2: this if my trust is irrevocable?
• 27:45
  Speaker 3: Okay, So this is a little bit of going on here.
• 27:50
  Speaker 3: So there are trusts, so that allows me to understand
• 27:53
  Speaker 3: that changes right off the bat are going to be allowed. Okay,
• 27:56
  Speaker 3: but let's dive into it a little closer. So they've
• 28:00
  Speaker 3: got two kids together.
• 28:03
  Speaker 2: They each have.
• 28:04
  Speaker 3: Two kids, each have from prior marriages and I'm sure
• 28:08
  Speaker 3: we've drafted the document to provide for all the kids initially.
• 28:14
  Speaker 3: Now she's saying she wants two of them to be removed.
• 28:21
  Speaker 2: No, Ken has two children, his husband has two children
• 28:26
  Speaker 2: from prior marriages. One of Ken's children died, his daughter died.
• 28:31
  Speaker 3: Oh, I see.
• 28:31
  Speaker 2: He has one surviving son and two grandchildren from his
• 28:36
  Speaker 2: daughter who died. He is estranged from one of his
• 28:40
  Speaker 2: grandchildren and wants to leave her share his daughter's share
• 28:43
  Speaker 2: to just one of her sons rather than both.
• 28:47
  Speaker 3: I can see this now, you can see how I
• 28:49
  Speaker 3: needed a diagram. I need a diagram for this. So
• 28:53
  Speaker 3: the answer is in the trust. There's something called a
• 28:57
  Speaker 3: limited power of appointment, and the limited power of appointment
• 29:03
  Speaker 3: is going to be defined. I don't have it in
• 29:05
  Speaker 3: front of me, but I'm going to assume that this
• 29:08
  Speaker 3: would have been drafted this way. It will have language
• 29:10
  Speaker 3: that says we're giving each of them the power to
• 29:15
  Speaker 3: change their trusts, but they have to do it through
• 29:19
  Speaker 3: the will because it's irrevocable and we don't want to
• 29:22
  Speaker 3: mess up the five year waiting period for medicaid eligibility.
• 29:26
  Speaker 3: So you have to exercise the power testamentarily, which is
• 29:30
  Speaker 3: through the will, addressing or exercising the power in the trust.
• 29:36
  Speaker 3: So you reference the power in the trust to say,
• 29:39
  Speaker 3: I now hereby am exercising the power of appointment in
• 29:42
  Speaker 3: my trust to change paragraph so and so from how
• 29:47
  Speaker 3: it is to how I want it to read. In English,
• 29:52
  Speaker 3: that means that I can change it, but limited to
• 29:57
  Speaker 3: a group known as children of all generations. So this
• 30:01
  Speaker 3: gets to the grandchildren issue that you're talking about, Susan. Now,
• 30:06
  Speaker 3: likely we would have defined children of his to be
• 30:11
  Speaker 3: children of hers and vice versa, so regardless of parentage,
• 30:17
  Speaker 3: they would be considered children. Yes, an issue, and so
• 30:20
  Speaker 3: if that's the case, they can exercise that and change
• 30:25
  Speaker 3: any way they want. I'm not even going to limit
• 30:27
  Speaker 3: it to what he wants any way they want among
• 30:31
  Speaker 3: that group. So if they say I wanted to go
• 30:34
  Speaker 3: three ways instead of four ways, or I want the
• 30:37
  Speaker 3: one who died share only to go to one grandkid
• 30:40
  Speaker 3: and not two grandkids, I can do that perfect, but
• 30:43
  Speaker 3: it has to be done through the will.
• 30:45
  Speaker 2: Okay.
• 30:46
  Speaker 3: The one thing people forget about that is that that
• 30:48
  Speaker 3: does cause the will to go to probate, and we
• 30:51
  Speaker 3: have to open up a probate. That does not mean
• 30:55
  Speaker 3: that the assets in the trust go to probate, and
• 30:58
  Speaker 3: all your other assets go to probate. No, there may
• 31:01
  Speaker 3: be no real assets in probate, so no real inventory
• 31:04
  Speaker 3: that needs to be done. But you do got to
• 31:07
  Speaker 3: open up the probate to effectuate the change in the
• 31:11
  Speaker 3: trust through the will YEP.
• 31:13
  Speaker 2: And we had a mutual client where we went through
• 31:16
  Speaker 2: that process not too long ago, and it was not painful. No, no,
• 31:21
  Speaker 2: it was relatively.
• 31:22
  Speaker 3: But it's just so scary. People always say, oh, I
• 31:24
  Speaker 3: didn't know about it. Yes, you got to go to probate,
• 31:26
  Speaker 3: but it's not bad. It's not a full blown probate.
• 31:29
  Speaker 3: There's so many different levels of probate that people need
• 31:32
  Speaker 3: to understand. So good tough description, but I'm glad we
• 31:37
  Speaker 3: got through it. Eight. Let's go to these new guide Now.
• 31:41
  Speaker 3: In this case, these are dealing with irrevocable trusts, folks.
• 31:45
  Speaker 3: That's in my new guide to mystifying the top eight.
• 31:49
  Speaker 3: But there's also irrevocable medicaid irrevocable life insurance trust different
• 31:54
  Speaker 3: than this irrevocable medicaid trust. Also, the regular revocable trusts
• 31:59
  Speaker 3: are in there for folks that need those. Nomine realty
• 32:02
  Speaker 3: trusts so many of you have those with your real estate.
• 32:04
  Speaker 3: Please learn how ineffective those are. Call and get the guide.
• 32:09
  Speaker 3: Learn what trust is right for you. It also explains
• 32:12
  Speaker 3: how they work during life. They explain the tax savings
• 32:16
  Speaker 3: and how the tax savings works. Get your estate plan
• 32:21
  Speaker 3: off the dime, Learn how to begin and pick the
• 32:23
  Speaker 3: trust that's right for you. Eight six six eight four
• 32:27
  Speaker 3: eight five six ninety nine or Legal Exchange Show dot
• 32:31
  Speaker 3: com again eight six six eight four eight five six
• 32:35
  Speaker 3: nine nine or Legal Exchange Show dot com.
• 32:39
  Speaker 2: Our last question comes from Janine and Wellesleymass and Ganine Rights.
• 32:43
  Speaker 2: My husband was recently diagnosed with an untreatable cancer and
• 32:47
  Speaker 2: does not have very long to live. Excuse me. I
• 32:50
  Speaker 2: am forty five and we don't really own much in assets,
• 32:53
  Speaker 2: but he does have a two million dollar life insurance policy.
• 32:57
  Speaker 2: We have two children, ages five and seven, and we
• 33:00
  Speaker 2: do not have a trust yet. Is there anything that
• 33:02
  Speaker 2: you recommend we do immediately in terms of legal documents.
• 33:06
  Speaker 2: My parents have an irrevocable trust, but I feel like
• 33:09
  Speaker 2: we are too young for that. We do not have
• 33:11
  Speaker 2: anything in place currently.
• 33:14
  Speaker 3: Yeah, so this one is obviously a sad situation. But
• 33:19
  Speaker 3: you know, I'm assuming you know, I don't know how
• 33:22
  Speaker 3: long not very long is to live, but you know,
• 33:27
  Speaker 3: it sounds to me that that they have one two
• 33:31
  Speaker 3: million dollar life insurance policy, but the other assets combined,
• 33:35
  Speaker 3: let's just speculate probably under two million.
• 33:40
  Speaker 2: Oh, I think probably well under two million, because they
• 33:44
  Speaker 2: probably have a house with a mortgage on it. You know,
• 33:46
  Speaker 2: they're they're at that stage, they have young children.
• 33:49
  Speaker 3: Maybe you have little four h one k's, some have
• 33:51
  Speaker 3: some you know, investments and stuff like that. So so
• 33:54
  Speaker 3: let's say let's say they're two million dollar life insurance
• 33:58
  Speaker 3: policy plus another million sure in total. Yep, so they're
• 34:02
  Speaker 3: at three million, and even if they're at four million,
• 34:06
  Speaker 3: it's not going to change my recommendation for them at
• 34:09
  Speaker 3: this age. One. Yes, you should do something. What a
• 34:15
  Speaker 3: basic revocable probably a joint revocable trust Okay, they don't
• 34:21
  Speaker 3: need two. One would work really well. And make sure
• 34:26
  Speaker 3: that the designated beneficiary on the life insurance policy is
• 34:30
  Speaker 3: his trust at a bare minimum or actually the joint trust.
• 34:34
  Speaker 3: It doesn't matter. It can go right into the joint trust.
• 34:39
  Speaker 3: And I would probably put the home in to that trust,
• 34:42
  Speaker 3: and maybe some of their non IRA money into that trust.
• 34:46
  Speaker 3: Why are we doing this. Yeah, we want to avoid probate.
• 34:49
  Speaker 3: That's fine, but also remember just in case either of
• 34:53
  Speaker 3: them or both of them die, kids can't own anything
• 34:56
  Speaker 3: at five and seven, so we got to be thinking
• 34:59
  Speaker 3: beyond on taxes, beyond probate, but understand that kids can't
• 35:05
  Speaker 3: own it. I don't want some guardian owning all my
• 35:07
  Speaker 3: stuff if we're both gone. I want a trust owning it,
• 35:13
  Speaker 3: and when we both die, a trustee of the trust
• 35:15
  Speaker 3: will own everything and direct how and when and why
• 35:19
  Speaker 3: my kids can use it. Good. That's the main reason.
• 35:23
  Speaker 3: The second reason is, yes, we want to avoid probate
• 35:25
  Speaker 3: so that you know, the wife doesn't have to go
• 35:28
  Speaker 3: through probate when her husband passes. But again I told
• 35:32
  Speaker 3: you just the two million dollar life insurance policy alone
• 35:35
  Speaker 3: makes the estate equal to the massive state tax exemption
• 35:40
  Speaker 3: of two million, and when you throw in the other assets,
• 35:43
  Speaker 3: there over two million. So we would not want to
• 35:47
  Speaker 3: do nothing and have everything pass to the spouse because
• 35:51
  Speaker 3: then she would be worth more than two million.
• 35:54
  Speaker 2: Okay, So when he passes, will she have access to
• 35:57
  Speaker 2: those funds the two million that's in the trust.
• 36:00
  Speaker 3: Absolutely, so when she dies that trust will become irrevocable.
• 36:04
  Speaker 3: But it will, but it will also provide her to
• 36:08
  Speaker 3: be trustee and have access both the income principle as needed,
• 36:13
  Speaker 3: sheltering two million from estate taxes and providing for her
• 36:17
  Speaker 3: without any disruption for her. So and again for the kids. Folks.
• 36:22
  Speaker 3: This is just one trust that's a joint revocable trust.
• 36:25
  Speaker 3: There's seven others in the guide. Call and figure out
• 36:29
  Speaker 3: what trust is right for you. Eight six six eight
• 36:32
  Speaker 3: four eight five six nine nine or Legal Exchange Show
• 36:36
  Speaker 3: dot com and you can download the guide right there.
• 36:39
  Speaker 2: If you have a question you'd like to ask Todd,
• 36:42
  Speaker 2: visit his website Legal Exchange Show dot com and click
• 36:45
  Speaker 2: on the ask Tod tab. Maybe I'll be able to
• 36:47
  Speaker 2: read your question on the air, and hopefully his answer
• 36:50
  Speaker 2: will stop you from becoming one of his next real
• 36:53
  Speaker 2: life stories. You've been listening to Todd Lutsky, a partner
• 36:56
  Speaker 2: with a law firm of Cushing and Dolan. I'm Susan Howers,
• 37:00
  Speaker 2: a financial advisor with the Armstrong Advisory Group. We'll be
• 37:03
  Speaker 2: back with more after this quick break on the Legal
• 37:06
  Speaker 2: Exchange with Todd Lutsky.
• 37:09
  Speaker 1: The state planning isn't just about writing a will. The
• 37:12
  Speaker 1: right trust can help your family avoid probate, protect your home,
• 37:15
  Speaker 1: reduce estate taxes, and even help shield assets from the
• 37:18
  Speaker 1: cost of long term care. That's why cushingan Dolan created
• 37:21
  Speaker 1: a new guide called Demistifying the Top eight Estate Planning Trusts.
• 37:25
  Speaker 1: Inside you'll learn the difference between revocable and irrevocable trusts,
• 37:29
  Speaker 1: why some trusts are designed to protect assets from a
• 37:31
  Speaker 1: nursing home, and how certain trusts can keep your family's
• 37:34
  Speaker 1: affairs private. The guide also explains some of the biggest
• 37:37
  Speaker 1: mistakes families make, including creating trusts but never properly funding them.
• 37:41
  Speaker 1: If you've been putting off of state planning, this guide
• 37:44
  Speaker 1: is a great place to start. Call Cushing and Dolan
• 37:47
  Speaker 1: today at eight sixty six eight four eight five six
• 37:49
  Speaker 1: ninety nine to get your free copy. That's eight sixty
• 37:52
  Speaker 1: six eight four eight five six ninety nine, or request
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  Speaker 3: Hi.
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• 39:40
  Speaker 1: Estate planning isn't just about writing a will. The right
• 39:43
  Speaker 1: trust can help your family avoid probate, protect your home,
• 39:46
  Speaker 1: reduce estate taxes, and even help shield assets from the
• 39:49
  Speaker 1: cost of long term care. That's why Cushing and Dolan
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  Speaker 1: created a new guide called Demystifying the Top eight estate
• 39:55
  Speaker 1: Planning Trusts. Inside you'll learn the difference between revocable and
• 39:58
  Speaker 1: irrevocable trusts, why some trusts are designed to protect assets
• 40:02
  Speaker 1: from a nursing home, and how certain trusts can keep
• 40:04
  Speaker 1: your family's affairs private. The guide also explains some of
• 40:08
  Speaker 1: the biggest mistakes families make, including creating trusts but never
• 40:11
  Speaker 1: properly funding them. If you've been putting off a state planning,
• 40:14
  Speaker 1: this guide is a great place to start. Call Cushing
• 40:17
  Speaker 1: and Dolan today at eight sixty six eight four eight
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  Speaker 1: five six ninety nine to get your free copy. That's
• 40:23
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• 40:26
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• 40:29
  Speaker 1: The proceeding was paid for in The views expressed are
• 40:31
  Speaker 1: solely those of Cushing and Dolan. Cushing and Dolan and
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  Speaker 1: or Armstrong Advisory may contact you offering legal investment services.
• 40:36
  Speaker 1: Cushing and Dolan and Armstrong Advisory do not endorse each
• 40:38
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• 40:42
  Speaker 1: Exchange with Todd Lutsky. If you are a loved one
• 40:44
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• 41:00
  Speaker 2: Come back into the Legal Exchange with Todd Lutsky. I'm
• 41:03
  Speaker 2: Susan Powers, a financial advisor with the Armstrong Advisory Group,
• 41:06
  Speaker 2: and I'm joined, of course by Todd Lutsky, a partner
• 41:09
  Speaker 2: with the law firm of Cushing and Owen with a
• 41:11
  Speaker 2: master's in taxation. So, Todd, this month's guide all about
• 41:16
  Speaker 2: demystifying the top eight estate planning trusts.
• 41:20
  Speaker 3: You made a.
• 41:20
  Speaker 2: Couple comments about a specific type of trust twice in
• 41:24
  Speaker 2: this show.
• 41:25
  Speaker 3: But I didn't talk about.
• 41:27
  Speaker 2: Nominee reality trusts. First you said shouldn't use these, and
• 41:31
  Speaker 2: then you said ineffective. So people are probably out there
• 41:36
  Speaker 2: with these types of trusts, saying we what did I do?
• 41:41
  Speaker 2: Let's break these down because there are definitely situations where
• 41:45
  Speaker 2: these are used. There's situations where you've used them. So
• 41:50
  Speaker 2: let's talk about it. What exactly is a nominee reality trust?
• 41:53
  Speaker 3: Well, first of all, didn't you get my hint that
• 41:56
  Speaker 3: I didn't want to talk about these.
• 41:57
  Speaker 2: Well, it's too bad, you said, I'd pick on negative.
• 42:00
  Speaker 3: I don't like where I am. I don't like them.
• 42:02
  Speaker 3: I don't want to talk about them. But you're absolutely right, Susan.
• 42:05
  Speaker 3: They're used very frequently and a lot of people use them.
• 42:09
  Speaker 3: A lot of a lot of real estate. People will
• 42:11
  Speaker 3: buy a house and the realtor or the lawyer will say, here,
• 42:14
  Speaker 3: throw it in to a nominee realty trust. You know,
• 42:18
  Speaker 3: I need a trust, and they they create these nominee
• 42:20
  Speaker 3: realty trusts, which which I must tell you were popular
• 42:25
  Speaker 3: before we had trustee certificates. So they were used a lot,
• 42:31
  Speaker 3: and maybe I used them a lot, but we don't
• 42:34
  Speaker 3: use them so much anymore. And I say anymore. It's
• 42:38
  Speaker 3: not like trustee certificates are new. They've been around a while, right,
• 42:42
  Speaker 3: But but.
• 42:43
  Speaker 2: So have we, so it can field new.
• 42:45
  Speaker 3: Yes, exactly, So, so you know what is it? It's
• 42:50
  Speaker 3: it's not really a trust. And that's the confusing thing,
• 42:53
  Speaker 3: because it has the word trust in it. It's it's
• 42:57
  Speaker 3: more of a principal agency relationship, almost like an employer
• 43:03
  Speaker 3: employee relationship. Notice when we talk about trusts all the time,
• 43:09
  Speaker 3: we talk about them with a clear donor and a
• 43:12
  Speaker 3: clear trustee. Yeah, and trustee powers. This trust is not
• 43:17
  Speaker 3: like that. This trust while has a trustee listed the
• 43:23
  Speaker 3: trust and has trustee powers listed, Yep, there's one thing
• 43:27
  Speaker 3: that's different. And in the trust it says that the
• 43:30
  Speaker 3: trustee cannot exercise any of these powers that are listed
• 43:36
  Speaker 3: unless directed by the beneficiary, which is very different.
• 43:41
  Speaker 2: In a lot of the trust nominee reality trusts, they
• 43:44
  Speaker 2: may have their children listed as the beneficiaries because you
• 43:47
  Speaker 2: think beneficiaries, who gets it when I die?
• 43:49
  Speaker 3: That's what everybody thinks. Yeah, that's exactly what everybody thinks.
• 43:52
  Speaker 3: But in this case, that little dynamic means this is
• 43:58
  Speaker 3: to your point, Susan, that dynamic means that the beneficiary
• 44:03
  Speaker 3: really controls the trustee.
• 44:05
  Speaker 2: Which is not what I want to hear when you're
• 44:07
  Speaker 2: talking about my kids.
• 44:08
  Speaker 3: Especially if they're the beneficiaries. Right, Yeah, but there's really
• 44:12
  Speaker 3: two concepts with that one. Not only is the beneficiary
• 44:17
  Speaker 3: the one controlling the trustee, which is bad enough, but
• 44:22
  Speaker 3: in reality, whatever you put in the trust, the beneficiary
• 44:27
  Speaker 3: actually owns immediately immediately, not when you die. Not when
• 44:31
  Speaker 3: you die. And so I think that's the real big
• 44:34
  Speaker 3: distinction that people don't pick up on, is I'm putting
• 44:39
  Speaker 3: it in a nominee realty trust. But in my head
• 44:41
  Speaker 3: I always thought that it meant only after my kids
• 44:45
  Speaker 3: only get it after I die. Now, having said that,
• 44:50
  Speaker 3: could we still use them, Yes, but make the beneficiary
• 44:57
  Speaker 3: not the kids beneficiary a revocable trust or a family
• 45:05
  Speaker 3: irrevocable medicaid trust. Okay, that would be different, and we
• 45:09
  Speaker 3: can explore that, and that's how they should be used anyway, folks.
• 45:15
  Speaker 3: That is the Actually I listed it as my number
• 45:18
  Speaker 3: one trust, not that that's in order. Maybe it's my
• 45:21
  Speaker 3: number one dislike trust in the guide. But it's in
• 45:24
  Speaker 3: the guide and it really explains how they work. And
• 45:26
  Speaker 3: there's eight other ones in here, from revocable to irrevocable
• 45:30
  Speaker 3: to life insurance irrevocable trusts which are different. Talks about,
• 45:34
  Speaker 3: you know, not only special needs trust if you've got
• 45:37
  Speaker 3: them sole benefit if you've got a special needs child.
• 45:41
  Speaker 3: It explains how they work, It explains how to fund them,
• 45:45
  Speaker 3: It explains the purpose of each one of these. It
• 45:48
  Speaker 3: explains the tax savings and how you get the tax savings.
• 45:51
  Speaker 3: Even has numbers in there. So it's way more than
• 45:55
  Speaker 3: just a list of the top eight estate planning trusts.
• 45:58
  Speaker 3: It will truly help you you figure out which one's
• 46:02
  Speaker 3: right for you. So call and get it eight six
• 46:05
  Speaker 3: six eight four eight five six nine nine or legal
• 46:09
  Speaker 3: Exchange show dot Com again eight six six eight four
• 46:13
  Speaker 3: eight five six ninety nine or Legal Exchange show dot
• 46:17
  Speaker 3: com and you can download it there and also go
• 46:19
  Speaker 3: to Cushing, Dole and PC for more information on our
• 46:22
  Speaker 3: Instagram page.
• 46:23
  Speaker 2: So, Todd, you said that you don't really use these
• 46:25
  Speaker 2: anymore since trustee certificates exist.
• 46:29
  Speaker 3: What is that? So the reason that sort of begs
• 46:32
  Speaker 3: the question as to the reason why we use them
• 46:36
  Speaker 3: was if we were to make the designated beneficiary our
• 46:40
  Speaker 3: revocable family trust. Right now, I know that my house
• 46:45
  Speaker 3: is owned by my revocable trust because the beneficiary is
• 46:48
  Speaker 3: the owner starts immediately, starts immediately. So I'm happy that
• 46:51
  Speaker 3: I got my house into my revocable trust via or
• 46:56
  Speaker 3: through this Nominee Realty trust. We would have used it
• 47:00
  Speaker 3: in the past because I don't want to put on
• 47:03
  Speaker 3: record my big, thick revocable family trust with all my
• 47:08
  Speaker 3: family wishes in it and who gets what. I don't
• 47:10
  Speaker 3: want that public. So instead, this little vanilla Nominee Realty
• 47:15
  Speaker 3: trust that doesn't really say much of anything would go
• 47:18
  Speaker 3: on record along with the deed. So it was and
• 47:23
  Speaker 3: added a privacy kind of thing where I don't want
• 47:25
  Speaker 3: to put that on record. So that made sense to
• 47:28
  Speaker 3: use it, even though I don't love them. Fast forward,
• 47:33
  Speaker 3: as time went on. Massachusetts now says we don't need this,
• 47:36
  Speaker 3: and other states have this way as well. Massachusetts says,
• 47:40
  Speaker 3: we don't need a nominee realty trust. We can deed
• 47:45
  Speaker 3: property directly from me into my revocable trust or into
• 47:52
  Speaker 3: my medicaid irrevocable trust, and I don't have to put
• 47:56
  Speaker 3: the trust per se on record. I simply put a
• 48:00
  Speaker 3: two page trustee certificate on record that in essence acknowledges
• 48:05
  Speaker 3: that the trust exists, list who the trustee is, and
• 48:08
  Speaker 3: acknowledges that the trustee has power over real estate. That's it, okay,
• 48:13
  Speaker 3: very vanilla, very clean, and I don't need the nominee
• 48:16
  Speaker 3: realty trust anymore.
• 48:18
  Speaker 2: So I'm assuming that when you did them in the past,
• 48:21
  Speaker 2: the trust was always listed as a beneficiary, never the children.
• 48:24
  Speaker 3: In our case, I can knock on would say never
• 48:26
  Speaker 3: the children. Yeah, but I see it a lot.
• 48:29
  Speaker 2: What did someone do now who's listening to this and
• 48:32
  Speaker 2: they they're saying, oh, row, my kids are listed as
• 48:37
  Speaker 2: the beneficiary. Yeah, what do I do now to undo that?
• 48:41
  Speaker 2: Because you said you can only change things with instruction
• 48:44
  Speaker 2: from the beneficiary.
• 48:46
  Speaker 3: Yeah, you're going to need to talk to the kids.
• 48:48
  Speaker 3: It's changeable. But You're absolutely right. You're going to need to,
• 48:51
  Speaker 3: you know, have a little conversation with the children. Hopefully
• 48:55
  Speaker 3: you've retained enough other assets to threaten disinheritance to keep
• 48:58
  Speaker 3: them in line. At the end of the day. Yeah,
• 49:02
  Speaker 3: they're going to have to allow a revocation or an
• 49:05
  Speaker 3: amendment of this. The amendment would simply be, let's change
• 49:09
  Speaker 3: the beneficiaries to mom and dad. Got it. Then mom
• 49:14
  Speaker 3: and dad can deed the property out of the Nominee
• 49:17
  Speaker 3: Realty trust to mom and dad, and mom and dad
• 49:20
  Speaker 3: can then deed the property into their family trust directly.
• 49:24
  Speaker 2: So you just made me think of in the past.
• 49:26
  Speaker 2: I know that when we have met with people mutually,
• 49:30
  Speaker 2: we've seen these Nominee reality trusts where the schedule of
• 49:33
  Speaker 2: beneficiaries has mom and dad. So what's the benefit of
• 49:37
  Speaker 2: doing that?
• 49:38
  Speaker 3: Yeah, that's sort of again there. You know, they probably
• 49:40
  Speaker 3: just bought a house their their real estate attorney said,
• 49:43
  Speaker 3: you know, why don't you set up a Nominee realty
• 49:46
  Speaker 3: trust and they throw it in and they put their
• 49:48
  Speaker 3: names on it. I'm like, well, you really haven't done anything.
• 49:51
  Speaker 3: You've done. You've done a great.
• 49:52
  Speaker 2: Big circle right and big old we boomerang.
• 49:55
  Speaker 3: Yeah, it just sort of went from you through the
• 49:58
  Speaker 3: trust back to you, and not only did you really
• 50:02
  Speaker 3: do nothing. I mean they would have at least hoped
• 50:05
  Speaker 3: that it would avoid probate, but I don't really see
• 50:07
  Speaker 3: how it even avoids probate, right because they own it
• 50:10
  Speaker 3: if the beneficiary is their name alone. So you have
• 50:14
  Speaker 3: that going for you, folks. There's always a lot to
• 50:17
  Speaker 3: think about where the state. Planning and getting started isn't easy.
• 50:21
  Speaker 3: But if you get this guide, the top eight estate
• 50:23
  Speaker 3: planning trust it's going to help you understand how they
• 50:27
  Speaker 3: work from soup to nuts so that you can pick
• 50:30
  Speaker 3: the right one for you. It's not just a list
• 50:32
  Speaker 3: of documents. Can get it eight six six eight four
• 50:37
  Speaker 3: eight five six ninety nine or Legal Exchange show dot
• 50:41
  Speaker 3: com and you can download the guide right there.
• 50:43
  Speaker 2: Todd Lutsky from the law firm of Cushing and Dolan,
• 50:46
  Speaker 2: thank you so much.
• 50:47
  Speaker 3: Thank you, Susan. Always a pleasure.
• 50:49
  Speaker 2: I'm Susan Powers, a financial advisor with the Armstrong Advisory Group.
• 50:53
  Speaker 2: We thank you for joining us today and we'll be
• 50:55
  Speaker 2: back again next week on the Legal Exchange with Todd Lutsky.
• 51:00
  Speaker 1: Estate planning isn't just about writing a will. The right
• 51:03
  Speaker 1: trust can help your family avoid probate, protect your home,
• 51:06
  Speaker 1: reduce estate taxes, and even help shield assets from the
• 51:09
  Speaker 1: cost of long term care. That's why Cushing and Dolan
• 51:12
  Speaker 1: created a new guide called Demistifying the Top eight Estate
• 51:15
  Speaker 1: Planning Trusts. Inside you'll learn the difference between revocable and
• 51:19
  Speaker 1: irrevocable trusts, why some trusts are designed to protect assets
• 51:22
  Speaker 1: from a nursing home, and how certain trusts can keep
• 51:24
  Speaker 1: your family's affairs private. The guide also explains some of
• 51:28
  Speaker 1: the biggest mistakes families make, including creating trusts but never
• 51:31
  Speaker 1: properly funding them. If you've been putting off of state planning,
• 51:35
  Speaker 1: this guide is a great place to start. Call Cushing
• 51:37
  Speaker 1: and Dolan today at eight sixty six eight four eight
• 51:40
  Speaker 1: five six ninety nine to get your free copy. That's
• 51:43
  Speaker 1: eight sixty six eight four eight five six nine nine,
• 51:46
  Speaker 1: or request it online at Legal exchange show dot com.
• 51:49
  Speaker 1: The proceeding was paid for in The views expressed are
• 51:51
  Speaker 1: solely those of Cushing and Dolan. Cushing and Dolan and
• 51:53
  Speaker 1: or Armstrong Advisory may contact you offering legal or investment services.
• 51:56
  Speaker 1: Cushing and Dolan and Armstrong Advisory do not endorse each other.
• 51:59
  Speaker 1: And are not affiliated.
• 52:00
  Speaker 2: This is Susan Powers from the Armstrong Advisory Group. When
• 52:02
  Speaker 2: it comes to social security and Medicare, the decisions you
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  Speaker 2: make today can have a lasting impact on your retirement.
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  Speaker 2: There are key choices to consider, like when to claim,
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• 52:46
  Speaker 1: The proceeding was paid for by Armstrong Advisory Group, a
• 52:48
  Speaker 1: registered investment advisor. Nothing in the ad or in any
• 52:50
  Speaker 1: Armstrong guide a specific financial, legal or tax advice. Consult
• 52:53
  Speaker 1: your own financial tax into state planning advisors before making
• 52:56
  Speaker 1: any investment decisions. Armstrong may contact you to offer investment
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  Speaker 1: six six eight four eight five six nine nine. That's
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  Speaker 1: eight six six eight four eight five six nine nine,
• 53:17
  Speaker 1: or request it online at legal exchange show dot com.
• 53:20
  Speaker 1: The proceeding was paid for in The views expressed are
• 53:21
  Speaker 1: solely those of Cushing and Dolan. Cushing and Dolan A
• 53:23
  Speaker 1: or Armstrong Advisory may contact you offering legal investment services.
• 53:26
  Speaker 1: Cushing and Dolan and Armstrong Advisory do not endorse each
• 53:28
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