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No estate planning can change everything · 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
• 0:16
  Speaker 1: need assistance in any of these areas, or have a
• 0:18
  Speaker 1: question about another issue that may affect your future, call
• 0:21
  Speaker 1: eight six six eight four eight five six ninety nine
• 0:24
  Speaker 1: to make an appointment. That's eight six six eight four
• 0:27
  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 the Legal Exchange with Todd Lutsky. I'm Susan Powers,
• 0:40
  Speaker 2: of financial Advisor with the Armstrong Advisory Group, and I'm
• 0:43
  Speaker 2: joined by Todd Lutsky, a partner with the law firm
• 0:46
  Speaker 2: of Cushing and Dolan with a master's in taxation. Welcome Todd,
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  Speaker 2: How are you today?
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  Speaker 3: I am pretty much never better.
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  Speaker 2: This thing just keeps hanging on and on.
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  Speaker 3: That's all right, So let's take a look. We have
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  Speaker 3: this Connecticut Appellate Court case we're going to go to
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  Speaker 3: first basically another poor drafting of a trust and a
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  Speaker 3: medicaid denial situation. Right. Basically, they drafted a trust and
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  Speaker 3: one spouse went in the nursing home, and they deemed
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  Speaker 3: the assets of the trust countable because it said the
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  Speaker 3: trust basically becomes irrevocable when one spouse is not able
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  Speaker 3: to revoke it, then it becomes irrevocable. Wow, well then
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  Speaker 3: that's a problem, and we're going to see why it's
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  Speaker 3: a problem. This trigger language I can't believe is still
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  Speaker 3: being used, but this is going to be really helpful
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  Speaker 3: because I'm going to explain why this trust failed and
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  Speaker 3: how we can draft these trusts so they don't fail. Yeah,
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  Speaker 3: and then we're going to head over to Oklahoma. Got
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  Speaker 3: a Supreme Court case there basically what's marital property and
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  Speaker 3: what is not marital property. In this case, there was
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  Speaker 3: really not a lot of planning done. In fact, no planning.
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  Speaker 3: And it was a second marriage and they had a
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  Speaker 3: cattle farm together, and there was some question as to
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  Speaker 3: whether or not some of the cows that existed before
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  Speaker 3: the marriage and had cows afterwards we're part of marital
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  Speaker 3: property or not.
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  Speaker 2: Yellowstone here, So this is.
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  Speaker 3: A very interesting UH situation, and and we'll come back
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  Speaker 3: to that and explain. But again, drafting, drafting, no planning done, guys,
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  Speaker 3: you're starting to get the gist of this, right. The
• 2:31
  Speaker 3: more we plan, the more we can control what we
• 2:35
  Speaker 3: do while we're living and how it works when we
• 2:37
  Speaker 3: pass call and get this guide. It's the end of
• 2:40
  Speaker 3: the month, last chance to get balancing the specific it
• 2:44
  Speaker 3: is end of the year. Sorry, end of the month
• 2:46
  Speaker 3: and year balancing, asset protection and avoiding estate taxes. Talks
• 2:51
  Speaker 3: about portability, really explains in how it works regarding the
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  Speaker 3: UH marital share and the remainder share. We talk about it,
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  Speaker 3: but you don't necessarily get the explanation. It's how it works.
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  Speaker 3: Gives you the tax calculation, gives you the charts so
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  Speaker 3: you can calculate your estate tax, and it does the
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  Speaker 3: same thing for revocable irrevocable trust excuse me, so that
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  Speaker 3: in case you want to do nursing home protection, you
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  Speaker 3: can look at how it works. There something for everyone.
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  Speaker 3: Last chance to get it, folks eight six six eight
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  Speaker 3: four eight five six nine nine or legal exchange show
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  Speaker 3: dot com again eight six six eight four eight five
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  Speaker 3: six nine nine or Legal Exchange show dot com. Okay,
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  Speaker 3: let's take a peek at this. So we are in Connecticut,
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  Speaker 3: poor drafting, right, here's what happens Medicaid denial crazy case.
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  Speaker 3: Tony's admitted to a skilled nursing facility in twenty nineteen
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  Speaker 3: September and he applies for medicaid on December twenty nineteen.
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  Speaker 3: He died August twenty twenty. Well, he was denied medicaid
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  Speaker 3: for the period of December to September, which is the
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  Speaker 3: whole time he was there, because he plus his wife
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  Speaker 3: had too many assets, mainly property in Connecticut owned in
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  Speaker 3: their trust. Well, Antonetta was the wife, and she filed
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  Speaker 3: an appeal with the DSS, the Department of Social Services,
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  Speaker 3: stating that the trust assets should not be includable as
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  Speaker 3: countable because Section eleven of the trust states, and I quote,
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  Speaker 3: the assets of the trust could be withdrawn from the
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  Speaker 3: trust by both Tony and his wife Antonetta, provided they
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  Speaker 3: were both alive and competent. Also, the trust could not
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  Speaker 3: be revoked in the event of incapacity. Okay, so this
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  Speaker 3: is a revocable trust. Sounds like it. Yeah, certainly sounds
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  Speaker 3: like it. Therefore, since this is her argument, Therefore, since
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  Speaker 3: Tony is incapacitated going into this guilled nursing facility. The
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  Speaker 3: trust was irrevocable. Evidence presented was insufficient to establish lack
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  Speaker 3: of capacity, even though the attorney signed an affidavit saying
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  Speaker 3: that he was incapacitated, so they denied the medicaid benefits
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  Speaker 3: they appealed. On appeal, the statute says that the trust
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  Speaker 3: is revocable, as you said, Susan, Ye, therefore the assets
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  Speaker 3: accountable and there is no error given. When you don't
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  Speaker 3: give enough weight to an attorney's affidavit, denial stands. Guess what, folks,
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  Speaker 3: that's the right answer.
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  Speaker 2: It is.
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  Speaker 3: It's the right answer.
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  Speaker 2: You'll never protect him with a revocable trust. You never
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  Speaker 2: start that five year clock.
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  Speaker 3: I mean here in Mass and even in the federal statutes,
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  Speaker 3: it says clearly revocable trusts are not protected from the
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  Speaker 3: nursing Basically, here's the statute, folks. This is the federal statutes,
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  Speaker 3: also the one we use in Mass. Most states have
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  Speaker 3: this statute. If there are any circumstances in which principle
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  Speaker 3: or income on the principle can be distributed to or
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  Speaker 3: for the benefit of the applicant, then that portion of
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  Speaker 3: the trust is countable. That's pretty clear, right, pretty clear.
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  Speaker 3: If you can get it or benefit from it in
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  Speaker 3: any way, then it's accountable asset and you'll be denied
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  Speaker 3: medicaid eligibility. Okay, folks, we're going to give you some
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  Speaker 3: drafting tips here. If you're doing these medicaid trusts, you're
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  Speaker 3: thinking about doing asset protection planning. This is what you
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  Speaker 3: really need to listen. I got some real problems with
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  Speaker 3: this case simply because I think they got it all wrong.
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  Speaker 3: They got it right, but for the wrong reason. So here,
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  Speaker 3: there's a five year role. We all know it. You
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  Speaker 3: put assets in a trust, five years later it's protected
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  Speaker 3: from the nursing home. You put assets in a revocable trust,
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  Speaker 3: and five years later you ain't any more protected than
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  Speaker 3: you were before. So why because you never started the clock.
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  Speaker 3: In order to start the clock running, you have to
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  Speaker 3: have it in a place where you can't get it back. Yes, okay,
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  Speaker 3: this is something called trigger language. Way back in the
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  Speaker 3: co In case days. This was an SJC case here
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  Speaker 3: in mass the Coen case back in ninety one or
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  Speaker 3: ninety two somewhere back there, basically saying you know, like
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  Speaker 3: here that if the trust is revocable until one becomes incapacitated,
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  Speaker 3: which is kind of what happened here, right, Well, then
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  Speaker 3: the trust is still revocable. It does not work. But
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  Speaker 3: why because it never started the clock. And here they're saying,
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  Speaker 3: I don't believe that capacity is the issue, or I'm
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  Speaker 3: saying I don't believe capacity was the issue. I think
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  Speaker 3: that wouldn't even matter. I think the Comport Court completely
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  Speaker 3: missed the point to me, whether this person has capacity
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  Speaker 3: or not, while they're sitting in the trust. The five
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  Speaker 3: year clock we all know is not waiting, is not
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  Speaker 3: running because it's said it's revocable. So if he became incapacitated,
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  Speaker 3: let's say six months before he went to the nursing home,
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  Speaker 3: and that was the trigger event, if it.
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  Speaker 2: Was a valid if it were valid, if.
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  Speaker 3: You could even do this, well, then the five year
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  Speaker 3: clock would have started then six months before the nursing home,
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  Speaker 3: and you would never even have been eligible for medicaid
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  Speaker 3: forget capacity, right, it just even then the five year
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  Speaker 3: clock wouldn't have wouldn't have run. So and remember, folks,
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  Speaker 3: this trigger language doesn't work anyway, so please don't use it.
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  Speaker 3: It doesn't even work the way I just described it.
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  Speaker 2: I wonder if she did this application.
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  Speaker 4: On her own.
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  Speaker 3: Maybe. Now there's a Guerrero case here in mass that
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  Speaker 3: explains this, where they had set up a trust where
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  Speaker 3: they could get principal. They applied, they got denied, then
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  Speaker 3: they did a waiver of the principle. Well that started
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  Speaker 3: the five year clock. When they did the waiver, they said, okay,
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  Speaker 3: wait five years and then you'll be eligible. That's how
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  Speaker 3: it works, folks, right here. You know, if the trust
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  Speaker 3: could be revoked until such a time as it became
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  Speaker 3: the individual became incapacitated, then the five year clock would
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  Speaker 3: not have started to run until then. So even if
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  Speaker 3: he was incapacitated on the date of application, you wouldn't
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  Speaker 3: be eligible for medicaid, just because the five year clock
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  Speaker 3: hasn't run.
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  Speaker 2: Got to use a law firm that has experience applying
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  Speaker 2: for medicaid, because there were things you could have done.
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  Speaker 2: Oh yeah, well you get them approved.
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  Speaker 3: Yeah we have not.
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  Speaker 2: This way.
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  Speaker 3: Very good point. Even if this didn't work because it
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  Speaker 3: was a bad trust, you would be able to apply,
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  Speaker 3: yeah and get somebody eligible, especially with a married couple. Folks,
• 10:02
  Speaker 3: call and get the guide regarding estate planning and asset
• 10:05
  Speaker 3: protection planning. See which one's right for you eight six six,
• 10:09
  Speaker 3: eight four eight, five six nine nine or Legal Exchange
• 10:13
  Speaker 3: show dot com. And yes, the irrevocable trust that we
• 10:16
  Speaker 3: just discussed is in here as well.
• 10:19
  Speaker 2: You've been listening to Todd Lutsky, a partner with the
• 10:22
  Speaker 2: law firm of Cushing and Dolan. I'm Susan Powers, a
• 10:25
  Speaker 2: financial advisor with the Armstrong Advisory Group. We've got much
• 10:28
  Speaker 2: more to come when we return to the Legal Exchange
• 10:31
  Speaker 2: with Todd Lutsky.
• 10:33
  Speaker 1: If you're retired or getting close, now's the perfect time
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  Speaker 1: with Todd Lunsky, an expert in elder life planning and taxation.
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  Speaker 1: Need help with your estate plan Call Todd right now
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• 13:52
  Speaker 2: Welcome back into the legal exchange with Todd Lutsky. I'm
• 13:55
  Speaker 2: Susan Powers of financial advice with the Armstrong Advisory Group,
• 13:59
  Speaker 2: and I'm joined by Tod Lutsky, a partner with the
• 14:01
  Speaker 2: law firm of Cushing and Dolan with a master's in taxation.
• 14:05
  Speaker 2: Where we headed now, Todd.
• 14:07
  Speaker 3: We're gonnad over to Oklahoma. We have a Supreme Court
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  Speaker 3: case there. This is interesting. What is marital property and
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  Speaker 3: what is not? Okay, obviously second marriage, yeah, the cows.
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  Speaker 3: Second marriage, right, you don't think of these things. But again,
• 14:24
  Speaker 3: second marriage, we're gonna talk about it. But in this
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  Speaker 3: case Ted and Charlene got married two thousand and four.
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  Speaker 3: Second marriage. During the marriage, they ended up converting all
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  Speaker 3: their assets that might have been separate when they were
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  Speaker 3: not married to joint and joined tenancy by the entirety
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  Speaker 3: for some property they're like the home and or they
• 14:52
  Speaker 3: continued to purchase cattle, so they also had this farm
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  Speaker 3: right and or they continued to purchase them all their
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  Speaker 3: other assets they purchased as joint owners. Ted used to
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  Speaker 3: raise cattle before he met Charlene, but they got together
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  Speaker 3: and they expanded this herd of cattle and ran the
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  Speaker 3: ranching business. Together. They sold and purchased cattle and cared
• 15:21
  Speaker 3: for the herd their whole life going forward. September twenty twenty,
• 15:28
  Speaker 3: Ted died without a will. Shocker, again, no planning, survived
• 15:35
  Speaker 3: by four kids and one grandchild whose parent had died previously. Again,
• 15:42
  Speaker 3: we have this problem again, right, so we saw this
• 15:47
  Speaker 3: in previous shows. So remember that grandkid steps into the
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  Speaker 3: shoes generally of the deceased parent. Okay, well, we have
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  Speaker 3: to look at the interstate rules and that's why what
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  Speaker 3: I just said is so important. So we've got no will.
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  Speaker 3: So where do all these assets go? But they are married,
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  Speaker 3: Remember they're married. Well, the interstate succession statute gives one
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  Speaker 3: half to the spouse and one half to the kids. Well,
• 16:22
  Speaker 3: the kids claimed that some of the cattle before the marriage,
• 16:28
  Speaker 3: and that dad owned some of this cattle, and since
• 16:33
  Speaker 3: they owned the cattle when he died, some of the
• 16:36
  Speaker 3: cattle is considered separate property as it relates back to
• 16:41
  Speaker 3: before the marriage. Also, Charlene really had to prove that
• 16:47
  Speaker 3: the business was supposed to be a marital asset. That's
• 16:51
  Speaker 3: their argument. Wow. The trial courts found that the cattle
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  Speaker 3: were marital property and evident and showed that the whole
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  Speaker 3: family was working the farm and it was a joint endeavor. Yep. Well,
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  Speaker 3: the kids weren't happy with that, so they appealed. Of course,
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  Speaker 3: the appellate court reversed. Opened my eyes too. I'm not
• 17:16
  Speaker 3: even gonna discuss it, because they appealed again to the
• 17:18
  Speaker 3: Supreme Court, and the Supreme Court reversed again. So back
• 17:23
  Speaker 3: when we started property, yeah, yeah, reversed again, saying listen,
• 17:28
  Speaker 3: Ted's kids had to show that the cattle or the
• 17:32
  Speaker 3: offspring from the set that were produced after life were
• 17:38
  Speaker 3: separate property, and which were significant and which were specifically
• 17:43
  Speaker 3: cited as the court said such separate offspring would be
• 17:49
  Speaker 3: separate property. But the kids could not show that. How
• 17:53
  Speaker 3: can you show what offspring came from? You have to
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  Speaker 3: do some.
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  Speaker 2: Serious track years ago plus.
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  Speaker 3: There were joint accounts. Everything was commingled the cattle and
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  Speaker 3: the related income and expenses and all the personal every
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  Speaker 3: they filed joint tax returns. They ran the business together jointly.
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  Speaker 3: It was clearly a joint effort.
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  Speaker 2: And if it's joint property, doesn't just go to her
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  Speaker 2: by survivorship.
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  Speaker 3: That's a good question. I'm not sure that's what they
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  Speaker 3: came up to here, but I think I think it
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  Speaker 3: probably would if you can somehow say that it was
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  Speaker 3: jointly owned property. But the issue here is was it
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  Speaker 3: really marital property or was it somehow really not part
• 18:36
  Speaker 3: of the days? Again, I think you can only separate
• 18:39
  Speaker 3: these things with a pre nup, and I don't think
• 18:42
  Speaker 3: they had one. So, folks, just a crazy case. But again,
• 18:47
  Speaker 3: it's only crazy. It's only even a case as I
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  Speaker 3: see it, because they didn't plan.
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  Speaker 2: Yeah, no, will do you see your documentary?
• 18:55
  Speaker 3: You can't do anything. I mean, if you did your planning,
• 18:58
  Speaker 3: you wouldn't have that, folks. That that's what this guide
• 19:00
  Speaker 3: is about, right, it's the last chance to get it.
• 19:02
  Speaker 3: We're at the end of the month and year, as
• 19:05
  Speaker 3: Susan corrected me earlier, to get this guide, last chance
• 19:09
  Speaker 3: balancing assets and avoiding estate taxes. It's more for basic
• 19:13
  Speaker 3: estate planning, portability discussion, marital share, remainder share. It gives
• 19:18
  Speaker 3: you a much more detailed description of how these share
• 19:22
  Speaker 3: shelter assets for estate taxes than we could do on
• 19:25
  Speaker 3: the radio. It gives you charts to calculate your own
• 19:29
  Speaker 3: estate tax and it does the same thing with an
• 19:31
  Speaker 3: irrevocable trust and explains a little bit of difference in
• 19:35
  Speaker 3: terms of how those shares operate in an irrevocable trust setting.
• 19:38
  Speaker 3: Call and figure out which type of estate planning is
• 19:41
  Speaker 3: right for you. Get the guide End of the Month
• 19:44
  Speaker 3: eight six six eight four eight five six nine to
• 19:48
  Speaker 3: nine or Legal Exchange Show dot com again eight six
• 19:52
  Speaker 3: six eight four eight five six nine to nine or
• 19:55
  Speaker 3: Legal Exchange Show dot com.
• 19:58
  Speaker 2: It's so important for people to do their planning, even
• 20:00
  Speaker 2: if it's a first marriage. But when it's a second
• 20:03
  Speaker 2: marriage and you've got children from another marriage, Wow, that's
• 20:07
  Speaker 2: like a giant red flag that people just should not ignore.
• 20:11
  Speaker 3: Giant red flag. Totally agree in this case. Again, I
• 20:15
  Speaker 3: think this whole case only came about because there was
• 20:18
  Speaker 3: no planning. If they were planning done, they wouldn't have
• 20:20
  Speaker 3: a leg to stand on. Nope, let's talk about it.
• 20:23
  Speaker 3: What could you do?
• 20:23
  Speaker 2: And they might have been accommodated for.
• 20:26
  Speaker 3: That's right, that's right. So here as you said, susan
• 20:29
  Speaker 3: second marriage, when you have a second marriage, you need
• 20:32
  Speaker 3: to plan right. So this way, if you die without
• 20:35
  Speaker 3: a will, it's just as you know, a disaster as
• 20:41
  Speaker 3: this shows in this case a the cattle business. Now
• 20:46
  Speaker 3: the wife if since it's not you know, it is
• 20:48
  Speaker 3: a mayor ale asset, right, But now the wife cannot
• 20:51
  Speaker 3: control it and they can't run it without consent from
• 20:55
  Speaker 3: the other kids. Right because again, if this goes fifty
• 20:58
  Speaker 3: percent to the wife, to the wife and fifty percent
• 21:02
  Speaker 3: to the kids, according to the I guess the Oklahoma.
• 21:05
  Speaker 2: Six people running a business together.
• 21:07
  Speaker 3: That sounds fun, And that's fifty percent out and the
• 21:11
  Speaker 3: over multiple people. So the other fifty percent went to
• 21:14
  Speaker 3: multiple people. So likely now you're going to need a
• 21:17
  Speaker 3: majority to run this thing. Now, it may not be
• 21:22
  Speaker 3: as bad because if she's got fifty percent, she might
• 21:25
  Speaker 3: only need to find one kid to.
• 21:28
  Speaker 2: Get on grand kid that just got the other little chunk.
• 21:30
  Speaker 3: To get her to the fifty one percent. But it's
• 21:33
  Speaker 3: still a headache.
• 21:34
  Speaker 2: Yeah, in addition to deal with that.
• 21:36
  Speaker 3: These kids might not even have an interest in the business,
• 21:39
  Speaker 3: They might not want to run it. They might could
• 21:41
  Speaker 3: care less or understand it next other assets. Right, you know,
• 21:47
  Speaker 3: maybe the spouse needed more than fifty percent to live on.
• 21:52
  Speaker 3: I don't know. I mean, I certainly wouldn't just leave
• 21:55
  Speaker 3: it to chance if I was married I would want
• 21:59
  Speaker 3: to take care of right, my spouse the best way
• 22:02
  Speaker 3: I could.
• 22:02
  Speaker 2: Without disinheriting your own kids. So at the same time, right.
• 22:06
  Speaker 3: Right, I think the third then think about here is
• 22:08
  Speaker 3: the fighting that could happen with the kids. Right. If
• 22:10
  Speaker 3: you have a trust, right, then the spouse could be
• 22:14
  Speaker 3: the trustee. The spouse could be running the business. Because
• 22:18
  Speaker 3: if the spouse is the trustee and the assets are
• 22:20
  Speaker 3: in the trust held for the spouse, the spouse is
• 22:23
  Speaker 3: in charge, and you.
• 22:24
  Speaker 2: Could have that fabulous no contest clause.
• 22:27
  Speaker 3: Absolutely need that. The spouse could then sell the business
• 22:31
  Speaker 3: if needed to. The proceeds could go back into the trust,
• 22:34
  Speaker 3: not to the spouse, and they could be protected for
• 22:37
  Speaker 3: the spouse. The spouse could then be investing in managing
• 22:40
  Speaker 3: the money if it's in the trust, collecting income principle
• 22:44
  Speaker 3: has needed to maintain your standard of living. That's what
• 22:47
  Speaker 3: these marital shares and remainder shares are designed to do. Folks.
• 22:52
  Speaker 3: You know, even you could give some money or outright
• 22:54
  Speaker 3: to the kids if you want, knowing they're going to
• 22:56
  Speaker 3: get more later. Here's a little now doesn't matter, right,
• 23:00
  Speaker 3: So as trustee, you could really provide for the spouse
• 23:04
  Speaker 3: and the kids and make sure it goes to that
• 23:06
  Speaker 3: side of the marriage. Folks, call and get the guide.
• 23:09
  Speaker 3: It's the end of the month. Learn how these marital
• 23:11
  Speaker 3: shares and remainder shares work as I just mentioned in here,
• 23:15
  Speaker 3: providing for the survivor and sheltering for a state taxes
• 23:19
  Speaker 3: both for a revocable and in your revocable trust eight
• 23:23
  Speaker 3: six six eight four eight five six nine to nine
• 23:27
  Speaker 3: or Legal Exchange show dot com and learn how both
• 23:30
  Speaker 3: of these trusts work.
• 23:32
  Speaker 2: Because you can do both asset protection and a state
• 23:35
  Speaker 2: tax elimination.
• 23:36
  Speaker 3: At the same time.
• 23:37
  Speaker 2: Right you've been listening to Todd Lutsky, a partner with
• 23:41
  Speaker 2: the law firm of Cushing and Dolan. I'm Susan Powers,
• 23:44
  Speaker 2: a financial advisor with the Armstrong Advisory Group. Tod will
• 23:47
  Speaker 2: be answering your listener questions next on the Legal Exchange
• 23:51
  Speaker 2: with Todd Lutsky.
• 23:53
  Speaker 1: If you're retired or getting close, now's the perfect time
• 23:56
  Speaker 1: to take a fresh look at your estate plan. Doing
• 23:58
  Speaker 1: your planning early can help you act your assets and
• 24:00
  Speaker 1: keep more of your wealth in your family. Cushing and Dolan,
• 24:03
  Speaker 1: the leaders in elder lawn taxation, have put together a
• 24:06
  Speaker 1: new guide called balancing, asset protection and avoiding estate taxes.
• 24:09
  Speaker 1: And in it you'll learn how to secure your assets
• 24:11
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• 24:13
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• 24:15
  Speaker 1: a clearer picture of your estate tax exposure. The guide
• 24:18
  Speaker 1: also breaks down real options that may help you reduce
• 24:20
  Speaker 1: or even eliminate your estate taxes when you plan the
• 24:23
  Speaker 1: right way and plan early. Whether you have an existing
• 24:25
  Speaker 1: estate plan or starting from scratch, this guide makes it
• 24:28
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• 24:30
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• 24:32
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• 24:35
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• 24:37
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• 24:40
  Speaker 1: it online at legal exchainshow dot com. That's Legal exchange
• 24:43
  Speaker 1: show dot com. The proceeding was paid for in the
• 24:45
  Speaker 1: use expressed or so legos of Cushing and Dolin. Cushing
• 24:47
  Speaker 1: and Dolan and or Armstrong Advisory may contact you offering
• 24:49
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• 24:52
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• 25:55
  Speaker 6: The Armstrong Advisory Group understands retirement planning and when it
• 25:58
  Speaker 6: comes to married couples, it can be about more than money. Hi,
• 26:01
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• 26:04
  Speaker 6: Planning for Spouses tackles many issues that couples face as
• 26:07
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• 26:13
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• 26:21
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• 26:41
  Speaker 1: The proceeding was paid for by Armstrong Advisory Group, a
• 26:43
  Speaker 1: registered investment advisor. Nothing in the ad or in any
• 26:46
  Speaker 1: Armstrong guide a specific financial, legal or tax advice. Consult
• 26:48
  Speaker 1: your own financial, tax and to state planning advisors before
• 26:51
  Speaker 1: making any investment decisions. Armstrong may contact you to offer
• 26:53
  Speaker 1: investment advisory services. You're listening to the Legal Exchange and
• 26:58
  Speaker 1: it's time for Ask'd, the segment where Todd will answer
• 27:02
  Speaker 1: your questions about anything and everything that's included in the
• 27:05
  Speaker 1: estate planning process. Once again, here's Todd Lutsky and Susan Powers.
• 27:12
  Speaker 2: Welcome back, Todd. We have a few questions from listeners
• 27:14
  Speaker 2: for you. First question comes from Donna in Newburyport, mass
• 27:19
  Speaker 2: And Donna writes, my mother recently passed away after having
• 27:23
  Speaker 2: spent some time in a nursing home and on Medicaid.
• 27:26
  Speaker 2: She had a life estate in her home and I
• 27:28
  Speaker 2: own the rest of it. If I sell the house,
• 27:31
  Speaker 2: can the state go after her life estate portion and
• 27:34
  Speaker 2: make me pay back what they paid out on her behalf.
• 27:37
  Speaker 2: She was eighty five when she died and the home
• 27:40
  Speaker 2: was worth around five hundred thousand.
• 27:43
  Speaker 3: All right, so we've got we've got something. This is
• 27:45
  Speaker 3: a whole life estate question. Yeah right, And you know me,
• 27:49
  Speaker 3: I'm not a huge fan of life estates. I do
• 27:54
  Speaker 3: them when needed it's rare, but generally I don't love
• 27:59
  Speaker 3: life estates. And if I'm going to do a life estate.
• 28:02
  Speaker 3: I'm certainly not going to do it where I give
• 28:05
  Speaker 3: it to the child, which is I think what happened here, right,
• 28:08
  Speaker 3: It was it was deeded to the child, and the
• 28:11
  Speaker 3: child and the mother reserved the right to live there, which,
• 28:16
  Speaker 3: by the way, isn't it is considered an acceptable way
• 28:19
  Speaker 3: to do it. I just don't like the risks that
• 28:22
  Speaker 3: go with that approach. If I, yes, yes, if I
• 28:27
  Speaker 3: was going to do what I would make the irrevocable
• 28:30
  Speaker 3: trust the remainderman not a child, and Mom could retain
• 28:36
  Speaker 3: the life estate. Big difference in terms of taxes, control, operation,
• 28:43
  Speaker 3: et cetera. For mom. You're right the other way, kids
• 28:46
  Speaker 3: have too much control, and you also have other issues
• 28:51
  Speaker 3: that go with it, which I can come back to,
• 28:53
  Speaker 3: but I want to address the question. So in this case, though,
• 28:57
  Speaker 3: if you do it that way and everything works out,
• 29:00
  Speaker 3: which it sounds like it did.
• 29:02
  Speaker 2: Mom was in the nursing home, she's now passed away.
• 29:05
  Speaker 2: So but they must have been after five years, right.
• 29:08
  Speaker 3: Yeah, So I'm guessing that once it's set up. The
• 29:11
  Speaker 3: first issue, as you said, Susan, is it's deemed as
• 29:14
  Speaker 3: if you made a gift to the daughter at the
• 29:18
  Speaker 3: time you set this up again, got a file of
• 29:21
  Speaker 3: gift tax return. There probably isn't any gift tax due
• 29:24
  Speaker 3: because we have a fifteen million dollar exemption starting January one.
• 29:28
  Speaker 3: Back then it was still high and so no gift
• 29:34
  Speaker 3: text to five year clock.
• 29:36
  Speaker 2: She ain't anything by giving it to a kid versus
• 29:39
  Speaker 2: a trust. No, she only loses things righting, same waiting period.
• 29:44
  Speaker 3: Yeah, nothing, and she loses a lot of other things,
• 29:47
  Speaker 3: control and creditors and whatnot. So once she did that,
• 29:54
  Speaker 3: it was that transaction that triggered the five year waiting.
• 30:00
  Speaker 3: So we're going to assume that by the time she
• 30:03
  Speaker 3: got into the nursing home five years had passed. Okay,
• 30:08
  Speaker 3: Now the house is quote protected from the nursing home,
• 30:11
  Speaker 3: and it is you're able to go in. And why
• 30:15
  Speaker 3: is it protected even though she has a life estate
• 30:18
  Speaker 3: because the life estate is in your primary residence, and
• 30:22
  Speaker 3: a primary residence is a special asset that is non
• 30:25
  Speaker 3: countable even though you're sick and in the nursing home. Right,
• 30:29
  Speaker 3: it's a non countable asset. It's leanable while you're alive. Yep,
• 30:35
  Speaker 3: she died, so okay, so that's how you're able to
• 30:39
  Speaker 3: get on medicaid perhaps and still have this house. She dies,
• 30:44
  Speaker 3: what happens to the life estate. It magically goes away,
• 30:48
  Speaker 3: It just ends, and it avoids probate, and one hundred
• 30:54
  Speaker 3: percent of the house will now vest in the remainderment
• 30:58
  Speaker 3: who had the only the future interest earlier.
• 31:00
  Speaker 2: So the state can't go after the value of that
• 31:03
  Speaker 2: life estate.
• 31:04
  Speaker 3: Well here in mass for sure, right now. In other
• 31:07
  Speaker 3: states like New Hampshire, rules are a little different on
• 31:10
  Speaker 3: estate recovery. So on a state in New Hampshire they
• 31:14
  Speaker 3: could go after that life estate because in New Hampshire
• 31:17
  Speaker 3: it says any asset you had an interest in immediately
• 31:21
  Speaker 3: before death, well, immediately before death you had that. So
• 31:26
  Speaker 3: here in Mass though, they can only go after the
• 31:28
  Speaker 3: estate recovery for the benefits paid on behalf only four
• 31:33
  Speaker 3: assets in the probatea state life estate expires avoids probate.
• 31:38
  Speaker 3: Not in the probta. State passes free and clear. So
• 31:42
  Speaker 3: long winded answer for Diane, passes free and clear. You
• 31:46
  Speaker 3: get it. They can't come after you, They can't come
• 31:49
  Speaker 3: after the house.
• 31:51
  Speaker 2: You're good, So she's good.
• 31:53
  Speaker 3: You got to step up in basis so you can
• 31:56
  Speaker 3: eliminate capital gains tax if you go to sell the house.
• 31:59
  Speaker 2: Fortunately, silver lining the life estate route worked out for them,
• 32:04
  Speaker 2: but that's not the case for everybody, so it is.
• 32:06
  Speaker 3: Not in Folks. I don't love life estates to me
• 32:09
  Speaker 3: learn get the guide. It's the end of the month.
• 32:11
  Speaker 3: Talks about revocable and irrevocable trusts, explains the marital share,
• 32:16
  Speaker 3: the remainder share, how the sheltering actually works. We can't
• 32:20
  Speaker 3: get into it on the air as well as this
• 32:22
  Speaker 3: article does not only that, it does it for the
• 32:25
  Speaker 3: revocable and the irrevocable. So if you want to protect assets,
• 32:29
  Speaker 3: you can learn how the irrevocable marital share and remainder
• 32:32
  Speaker 3: share work for taxes, but also understand how it works
• 32:37
  Speaker 3: to protect it from the nursing home. A little something
• 32:39
  Speaker 3: for everybody in this guide. Folks call and get it
• 32:42
  Speaker 3: eight six six eight four eight five six nine nine
• 32:47
  Speaker 3: or Legal Exchange Show dot com. Download it there end
• 32:50
  Speaker 3: of the month Folks eight six six eight four eight
• 32:54
  Speaker 3: five six nine to nine or Legal Exchange Show dot com.
• 32:58
  Speaker 2: Last question comes from Barbara and Newton Mass and Barbara Wrights.
• 33:02
  Speaker 2: My father is on hospice and not expected to live long.
• 33:05
  Speaker 2: Is there a benefit to gifting any assets to the
• 33:08
  Speaker 2: family now to bring his estate down. His total net
• 33:12
  Speaker 2: worth is two and a half million, and he has
• 33:14
  Speaker 2: a lot of cash in the bank that he could gift.
• 33:16
  Speaker 2: Should he give away five hundred thousand to get below
• 33:19
  Speaker 2: the two million dollar exemption amount?
• 33:22
  Speaker 3: So really good question because for the longest time, I'll
• 33:28
  Speaker 3: say until twenty twenty three, which is when the mass
• 33:33
  Speaker 3: estate law estate tax laws changed and were updated. Not
• 33:39
  Speaker 3: only did it take us from one million dollar estate
• 33:41
  Speaker 3: tax exemption to a two million dollar estate tax exemption.
• 33:46
  Speaker 3: Note here the estate is two point five. Yeah, that's
• 33:50
  Speaker 3: why I'm stressing the two million, because we are over
• 33:53
  Speaker 3: by five hundred thousand under the old rule. Could you
• 33:58
  Speaker 3: make a gift of the cash? I love cash. Cash
• 34:02
  Speaker 3: is the best thing to give away if you're going
• 34:03
  Speaker 3: to make a gift. Why because when you give away cash,
• 34:08
  Speaker 3: there's no loss of a step up in basis.
• 34:10
  Speaker 2: No capital gains to worry about.
• 34:12
  Speaker 3: Right, There's no built in gain that you're giving away,
• 34:16
  Speaker 3: So you're not hurting the beneficiary of the money by
• 34:22
  Speaker 3: making the gift. So when they because there's no built
• 34:25
  Speaker 3: in gain for them to worry about when they sell it.
• 34:27
  Speaker 2: Because when you gift away an asset, you also gift
• 34:30
  Speaker 2: away your cost basis.
• 34:31
  Speaker 3: That's right. So you have to balance twenty eight percent
• 34:35
  Speaker 3: capital gains tax on that item versus twelve percent mass
• 34:43
  Speaker 3: ten twelve percent massive state tax by dying owning it? Yep,
• 34:47
  Speaker 3: which is better? Well, the percentages alone tell you probably.
• 34:52
  Speaker 3: So if you're only concerned about massive state tax and
• 34:55
  Speaker 3: here we're only concerned about MASSI state tax, right, there
• 34:58
  Speaker 3: is no federal or above that. So that's a little something.
• 35:03
  Speaker 3: Why I'm excited about this this question and why cash
• 35:07
  Speaker 3: is okay, I don't have to worry about that. But
• 35:10
  Speaker 3: remember the old rule would not have eliminated the estate
• 35:14
  Speaker 3: tax because under the old rule, you would have had
• 35:17
  Speaker 3: to reduce your exemption. And then there's this thing called
• 35:20
  Speaker 3: a cliff rule. Remember if you went over, you paid
• 35:23
  Speaker 3: tax on everything. Once you went over, you lost the exemption.
• 35:29
  Speaker 3: It was the old cliff rule. Well, not only when
• 35:33
  Speaker 3: they fixed the exemption in twenty twenty three to two million,
• 35:39
  Speaker 3: they also fixed the cliff problem. Why because now the
• 35:45
  Speaker 3: statute reads, if you are worth two point five million,
• 35:50
  Speaker 3: they will calculate the tax on the five hundred thousand,
• 35:53
  Speaker 3: and you still get your ninety nine thousand, two hundred
• 35:57
  Speaker 3: dollars credit, which is against your state tax.
• 36:01
  Speaker 2: So instead of going back to dollar number one in taxing.
• 36:04
  Speaker 3: So in this case, if they gave away five hundred
• 36:07
  Speaker 3: thousand dollars, it would lower the exemption and you would
• 36:11
  Speaker 3: still have You'd have two million. They would calculate the
• 36:15
  Speaker 3: tax on the two million, but you still have your
• 36:17
  Speaker 3: ninety nine thousand dollars credit, which is the tax on
• 36:19
  Speaker 3: the two million. So yes, long winded answer, do it.
• 36:24
  Speaker 3: In this case it will work. Pick up and get
• 36:26
  Speaker 3: some advice, but don't do things on your own. Get
• 36:29
  Speaker 3: the guide eight six six eight four eight five six
• 36:33
  Speaker 3: nine to nine or Legal Exchange Show dot com again.
• 36:36
  Speaker 3: End of the month, folks, last chance to get it.
• 36:39
  Speaker 2: If you have a question you would like to ask Todd,
• 36:41
  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
• 36:52
  Speaker 2: life stories. You've been listening to Todd Lutsky, a partner
• 36:56
  Speaker 2: with the law firm of Cushing and Dolan. I'm Susan Powers,
• 37:00
  Speaker 2: financial advisor with the Armstrong Advisory Group. We'll be back
• 37:03
  Speaker 2: with more after this quick break on the Legal Exchange
• 37:07
  Speaker 2: with Todd Lutsky.
• 37:08
  Speaker 1: If you're retired or getting close, now's the perfect time
• 37:11
  Speaker 1: to take a fresh look at your estate plan. Doing
• 37:13
  Speaker 1: your planning early can help you protect your assets and
• 37:16
  Speaker 1: keep more of your wealth in your family. Cushing and Dolan,
• 37:18
  Speaker 1: the leaders in elder lawn taxation, have put together a
• 37:21
  Speaker 1: new guide called Balancing, Asset Protection and Avoiding Estate Taxes,
• 37:24
  Speaker 1: and in it you'll learn how to secure your assets
• 37:26
  Speaker 1: if you ever need long term care, how to avoid
• 37:28
  Speaker 1: having everything tied up in probate, and how to get
• 37:30
  Speaker 1: a clearer picture of your estate tax exposure. The guide
• 37:33
  Speaker 1: also breaks down real options that may help you reduce
• 37:36
  Speaker 1: or even eliminate your estate taxes when you plan the
• 37:38
  Speaker 1: right way and plan early. Whether you have an existing
• 37:40
  Speaker 1: estate plan or starting from scratch, this guide makes it
• 37:43
  Speaker 1: easy to understand what steps could help you and your
• 37:45
  Speaker 1: family in the long run. To get your free copy,
• 37:47
  Speaker 1: call Cushing and Dolan at eight six six eight four
• 37:50
  Speaker 1: eight five six ninety nine. That's eight six six eight
• 37:52
  Speaker 1: four eight five six nine nine, or you can request
• 37:55
  Speaker 1: it online at Legal Exchange Show dot com. That's Legal
• 37:58
  Speaker 1: Exchange Show dot com. The eating was paid for in
• 38:00
  Speaker 1: the use expressed or so lay. Those of Cushing and Dolin,
• 38:02
  Speaker 1: Cushian Dolin and or Armstrong Advisory may contact you offering
• 38:04
  Speaker 1: legal or investment services. Cushing and Dolin and Armstrong Advisory
• 38:07
  Speaker 1: do not endorse each other and are not affiliated at.
• 38:09
  Speaker 5: Armstrong Advisory Group. We understand that retirement planning for couples
• 38:13
  Speaker 5: is about making smart, coordinated decisions that support both partners. HI,
• 38:17
  Speaker 5: this is Chuck Zada. We've got a brand new free
• 38:19
  Speaker 5: guide called Retirement Planning for Spouses that focuses on key
• 38:23
  Speaker 5: financial moves that every couple should understand, like how to
• 38:26
  Speaker 5: time your sol security benefits, how to prepare for healthcare
• 38:28
  Speaker 5: expenses and long term care needs, and how to manage
• 38:31
  Speaker 5: your investment withdrawals in a way that keeps taxes under
• 38:34
  Speaker 5: control while still maintaining the lifestyle that you want. Retirement
• 38:37
  Speaker 5: is a team effort, and this guide may show you
• 38:39
  Speaker 5: how to make the numbers work for both of you.
• 38:41
  Speaker 5: Call us right now at eight hundred three nine three
• 38:44
  Speaker 5: for zero zero one to get your free copy of
• 38:46
  Speaker 5: our new guide called Retirement Planning for Spouses. That's eight
• 38:50
  Speaker 5: hundred three nine three for zero zero one, or you
• 38:53
  Speaker 5: can request it online Armstrong Advisory dot com.
• 38:56
  Speaker 1: The proceeding was paid for by Armstrong Advisory Group, a
• 38:58
  Speaker 1: registered investment advisor in the ad or in any Armstrong
• 39:01
  Speaker 1: Guide a specific financial, legal, or tax advice. Consult your
• 39:03
  Speaker 1: own financial tax into state planning advisors before making any
• 39:06
  Speaker 1: investment decisions. Armstrong may contact you to offer investment advisory services.
• 39:10
  Speaker 1: When the holidays roll in and the cold settles over
• 39:12
  Speaker 1: New England, find your escape and the US Virgin Islands.
• 39:16
  Speaker 1: Trade the freezing tempts and gray skies for warm sun,
• 39:19
  Speaker 1: turquoise water, and that easy island energy you can feel
• 39:22
  Speaker 1: the second you land. This December through early January, Saint
• 39:25
  Speaker 1: Croix ignites with the Krucian Christmas Festival, a celebration over
• 39:28
  Speaker 1: a century old. Frederickstead comes alive with colorful parades, live
• 39:32
  Speaker 1: reggae and streets filled with the sights and flavors of
• 39:34
  Speaker 1: real Caribbean culture. It's the holiday season with a tropical beat.
• 39:38
  Speaker 1: From there, they explore Saint Thomas with its duty free
• 39:40
  Speaker 1: shopping and the legendary views at Magan's Bay. Or slow
• 39:44
  Speaker 1: down on Saint John, where quiet beaches and National park
• 39:46
  Speaker 1: trails make every day feel like your own private adventure.
• 39:49
  Speaker 1: Getting there could not be easier. No passport is needed,
• 39:52
  Speaker 1: and there's no money to exchange. Just pack light and
• 39:55
  Speaker 1: step out of the cold into pure sunshine. This holiday season,
• 39:58
  Speaker 1: let yourself fall naturally in them with the heartbeat of
• 40:00
  Speaker 1: the islands. Visit Americas, Caribbean Paradise, the US Virgin Islands.
• 40:05
  Speaker 1: Go to visit USBI dot com and book your trip today.
• 40:08
  Speaker 1: That's visit USBI dot com.
• 40:10
  Speaker 4: We're proud to announce that circle K is now the
• 40:12
  Speaker 4: official convenience store of the dav Department of Massachusetts. At
• 40:16
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• 40:41
  Speaker 1: Your tune to the legal exchange with Todd Lutsky. If
• 40:44
  Speaker 1: you are a loved one needs a nursing homestay, call
• 40:46
  Speaker 1: Todd right now at eight six six eight four eight
• 40:49
  Speaker 1: five six ninety nine and let him make sure your
• 40:51
  Speaker 1: assets are protected. That's eight sixty six eight for eight
• 40:54
  Speaker 1: five six nine nine, Or visit him online at Legal
• 40:57
  Speaker 1: Exchange show dot com.
• 41:01
  Speaker 2: Welcome back into the Legal Exchange with Todd Lutsky. I'm
• 41:04
  Speaker 2: Susan Powers, a financial advisor with the Armstrong Advisory Group,
• 41:07
  Speaker 2: and I'm joined of CAW of course by Todd Lutsky,
• 41:10
  Speaker 2: a partner with the law firm of Cushing and Dolan
• 41:13
  Speaker 2: with a master's in taxation. Todd, everybody hates paying taxes,
• 41:20
  Speaker 2: especially unnecessary taxes. Those are the worst kind. So there
• 41:25
  Speaker 2: are many techniques in this guide that people can use
• 41:29
  Speaker 2: to reduce their estate taxes. One of them is portability.
• 41:33
  Speaker 2: We don't talk an awful lot about portability, but let's
• 41:39
  Speaker 2: tell people what is portability.
• 41:42
  Speaker 3: So portability is the ability to not waste an exemption
• 41:50
  Speaker 3: federally only not waste an exemption when you die and
• 41:55
  Speaker 3: for some reason either a don't plan m like a
• 41:59
  Speaker 3: lot of people, everything just passes to the spouse, or
• 42:03
  Speaker 3: B plan but don't have enough assets to gobble up
• 42:08
  Speaker 3: the full exemption on the first death, leaving you excess. Okay,
• 42:14
  Speaker 3: That excess is what portability allows us to port over
• 42:20
  Speaker 3: to the surviving spouse.
• 42:22
  Speaker 2: So if you have a spouse that passes, they have
• 42:26
  Speaker 2: a five million dollar estate, the FED exemption is fifteen million,
• 42:31
  Speaker 2: So you're basically giving the surviving spouse a ten million
• 42:35
  Speaker 2: dollar coupon to add to their fifteen million corrected exemption.
• 42:38
  Speaker 3: Right. Assuming you have a joint revocable trust on the
• 42:41
  Speaker 3: first death, okay, and there's five million in there, you're right,
• 42:45
  Speaker 3: All five million of that regardless of who dies first,
• 42:49
  Speaker 3: which is the beauty of these joint trusts, All five
• 42:53
  Speaker 3: million of it is going to end up in that
• 42:56
  Speaker 3: remainder share. We talk about that in this guide, folks,
• 43:00
  Speaker 3: the remainder share and sheltered from future estate taxes, gobbling
• 43:07
  Speaker 3: up five million of the fifteen million dollar exemption.
• 43:11
  Speaker 2: Okay, So what if you don't have a joint revocable trust,
• 43:15
  Speaker 2: What if you haven't done planning and spouse dies.
• 43:17
  Speaker 3: Or if you have two separate trusts, you're cramming down
• 43:20
  Speaker 3: people do half as much, right, because you don't know who's
• 43:22
  Speaker 3: going to die first. Right, So this is why the
• 43:24
  Speaker 3: joint trust is so much better. Right, yeah, but you
• 43:27
  Speaker 3: can use portability if you have separate trust too. Oh
• 43:30
  Speaker 3: yeah yeah. So if you had separate trust and I
• 43:32
  Speaker 3: only cram down two and a half million, well then
• 43:34
  Speaker 3: I'd have a larger unused exemption. Yeah, it's called a
• 43:38
  Speaker 3: deceased spouse's unused exemption or di SU. So that piece
• 43:43
  Speaker 3: would be larger and you would be able to port
• 43:45
  Speaker 3: more over to the spouse.
• 43:48
  Speaker 2: So for those folks who have not done any planning,
• 43:52
  Speaker 2: does that mean they can't do anything with portability?
• 43:55
  Speaker 3: No? No, good question. So it's exactly that. If if
• 43:58
  Speaker 3: you come in and you say, geez, I lost my
• 44:00
  Speaker 3: spouse and everything was owned jointly, and now I own everything,
• 44:04
  Speaker 3: what can I do? Well, we can still file in
• 44:07
  Speaker 3: a state tax return even if one is not due, right,
• 44:11
  Speaker 3: I mean, even if you die with less than fifteen
• 44:14
  Speaker 3: million in January January that's the filing threshold in January one.
• 44:20
  Speaker 3: Even if I died with less than that, I'm not
• 44:24
  Speaker 3: required to file. But if you want portability, you want
• 44:29
  Speaker 3: to elect to port that unused exemption, get that coupon.
• 44:34
  Speaker 3: You need to file, okay, and the government gives you
• 44:38
  Speaker 3: five years to do that. Okay, okay, So you need
• 44:43
  Speaker 3: to file to elect to get it. So, in other words,
• 44:49
  Speaker 3: it's not automatic.
• 44:51
  Speaker 2: So you have to file that to get it. So
• 44:53
  Speaker 2: you said the government gives you five years. So if
• 44:55
  Speaker 2: someone's died four years and three hundred and sixty days ago,
• 45:00
  Speaker 2: someone surviving spouse could still file correct for that portability now,
• 45:05
  Speaker 2: so it's not too late to do it.
• 45:06
  Speaker 3: As long as they were under the fifteen. If you're
• 45:09
  Speaker 3: over that exemption amount, then you must file within nine
• 45:14
  Speaker 3: months of the day of death plus extension in order
• 45:17
  Speaker 3: to get portability. So there's a timing rule there. Pay
• 45:22
  Speaker 3: close attention to that, folks, Pay close attention to your
• 45:26
  Speaker 3: own estate plan. Get this guide Balancing Asset Protection and
• 45:30
  Speaker 3: Avoiding a State Taxes. It discusses this portability in detail.
• 45:35
  Speaker 3: It discusses the remainder share that we talked about for Barbara.
• 45:39
  Speaker 3: It discusses the marital share in more detail. How do
• 45:42
  Speaker 3: they actually shelter these assets for a state taxes? How
• 45:45
  Speaker 3: does that work for a revocable trust? How does it
• 45:49
  Speaker 3: work for an irrevocable medicaid trust. It's in here as well, folks.
• 45:54
  Speaker 3: There's something for everyone in this guide. It also lets
• 45:56
  Speaker 3: you calculate your state tax. It puts you gives you
• 45:59
  Speaker 3: the charts to calculate what texts you will owe when
• 46:03
  Speaker 3: you die. Call and get it end of the year
• 46:07
  Speaker 3: and month eight six six eight four eight five six
• 46:11
  Speaker 3: nine nine or Legal Exchange show dot com again eight
• 46:14
  Speaker 3: six six eight four eight five six nine nine or
• 46:18
  Speaker 3: Legal Exchange Show dot com.
• 46:20
  Speaker 2: So riddle me this, okay, joker Batman. If you can
• 46:25
  Speaker 2: elect portability up until five years after your spouse dies,
• 46:32
  Speaker 2: why do you need to plan in advance?
• 46:34
  Speaker 3: Great question. So the goal here is that you never
• 46:38
  Speaker 3: want to rely on it. Right, many people will forget
• 46:42
  Speaker 3: no one will use it. But remember, more importantly, you
• 46:45
  Speaker 3: want to cram down what you can on the first
• 46:48
  Speaker 3: death because one growth of your assets. Two who knows
• 46:53
  Speaker 3: what this exemption is going to look like when you die?
• 46:55
  Speaker 3: What if they lower it, what if they take it away?
• 46:57
  Speaker 3: What if they has been going up and down since
• 46:59
  Speaker 3: twenty eleven? Yeah, like, there's no tomorrow, so there's no
• 47:03
  Speaker 3: reason not to plan. Plus, you have a state problem.
• 47:08
  Speaker 2: Right, Oh, state a state tax.
• 47:10
  Speaker 3: We can't forget about state death tax. Right. So with
• 47:14
  Speaker 3: state death tax you need to plan. Why because there
• 47:18
  Speaker 3: is no portability for states.
• 47:21
  Speaker 2: And for most people, they's going to be subject to
• 47:25
  Speaker 2: that state of state tax, whereas federally, I mean there's
• 47:29
  Speaker 2: more people that are subject to state than federal. Let's
• 47:31
  Speaker 2: face it, you have thirty million dollars with the married
• 47:34
  Speaker 2: couple on federal.
• 47:35
  Speaker 3: True, And just to focus on that, if you don't
• 47:37
  Speaker 3: use it, you lose it kind of thing. Right, That's
• 47:39
  Speaker 3: what we were asking me before. What if nobody planned todd,
• 47:41
  Speaker 3: can they still get the exemption federally? Yes, not for state. Right,
• 47:47
  Speaker 3: So if you're worth four million in you die and
• 47:51
  Speaker 3: you don't plan, and everything goes to the spouse, your
• 47:55
  Speaker 3: two million when you died is gone, right, can't go
• 47:59
  Speaker 3: back and get it, and it doesn't.
• 48:01
  Speaker 2: Port There's that voluntary tax, right.
• 48:04
  Speaker 3: That's right, voluntary, involuntary if you did planning.
• 48:07
  Speaker 2: Yeah, so okay, so when we talk about those estate taxes,
• 48:12
  Speaker 2: it's not just about that the actual estate tax, because
• 48:17
  Speaker 2: there are other benefits you get when you do your
• 48:19
  Speaker 2: trust planning. Oh, like I think about like if you're
• 48:22
  Speaker 2: using inheritors trusts, right, and so you're skipping an entire
• 48:29
  Speaker 2: generation of taxation. You don't get that from a portability perspective. Right,
• 48:33
  Speaker 2: So there's future taxes you can avoid by having your
• 48:37
  Speaker 2: trust planning in place.
• 48:38
  Speaker 3: And I think you're asking that because how it relates
• 48:41
  Speaker 3: to portability, which is very important. So you're right, these trusts,
• 48:45
  Speaker 3: most of the time live on. You hear the words
• 48:48
  Speaker 3: dynasty trust thrown out there and things like that. These
• 48:51
  Speaker 3: trusts live on. They could go for multiple generations. Well,
• 48:56
  Speaker 3: if you've sheltered the asset and you allocate on the
• 49:00
  Speaker 3: date of death something called your generation skipping tax exemption,
• 49:05
  Speaker 3: which by the way, is the same as the federal
• 49:08
  Speaker 3: estate tax exemption, you allocate it to the trust as
• 49:12
  Speaker 3: long as you allocate a fifteen million dollar exemption, and
• 49:16
  Speaker 3: the assets that are in the trust are less than that,
• 49:19
  Speaker 3: no matter how much they grow in the future, they
• 49:22
  Speaker 3: will not be taxed in the successors kids, grandkids estate
• 49:27
  Speaker 3: unless it's taken out.
• 49:28
  Speaker 2: So when your kids die, it's not taxed on the
• 49:31
  Speaker 2: way to your grandkids, right.
• 49:32
  Speaker 3: Unless they took it out. But only to the extent
• 49:35
  Speaker 3: they take it out, it's not taxed. So that's called
• 49:38
  Speaker 3: generational building wealth tax free.
• 49:41
  Speaker 1: Right.
• 49:42
  Speaker 3: And the reason you do this, and the reason you plan,
• 49:44
  Speaker 3: as you said, Todd, why would I bother planning at all.
• 49:47
  Speaker 3: Here's another reason. This generation skipping tax exemption that I
• 49:52
  Speaker 3: speak of is not portable. So the federal estate tax
• 49:58
  Speaker 3: exemption portable, yeah, but the generation skipping tax exemption is not.
• 50:04
  Speaker 3: So you'll have to have your planning done in advance.
• 50:06
  Speaker 3: You got to use it or you lose it. So
• 50:09
  Speaker 3: there are those reasons too, So folks, so much to
• 50:12
  Speaker 3: think about. That's a good sort of beginner approach on portability.
• 50:18
  Speaker 3: Call and get the guide. There's much more on portability,
• 50:21
  Speaker 3: much more on estate generation skipping or remainder share and
• 50:25
  Speaker 3: marital share type assets and how they work. Call and
• 50:29
  Speaker 3: get it. End of the year eight six six, eight four,
• 50:33
  Speaker 3: eight five six nine to nine, or go to our
• 50:36
  Speaker 3: website Legal Exchange Show dot com and you can download
• 50:41
  Speaker 3: the guide right there.
• 50:43
  Speaker 2: Todd Lutsky from the law firm of Christine Dolan, thank
• 50:45
  Speaker 2: you so much.
• 50:46
  Speaker 3: Thank you, Susan. Always a pleasure.
• 50:48
  Speaker 2: I'm Susan Powers, a financial advisor with the Armstrong Advisory Group.
• 50:52
  Speaker 2: We thank you for joining us today and we'll be
• 50:54
  Speaker 2: back again next year on the Legal Exchange with Todd Luedsky.
• 51:00
  Speaker 1: If you're retired or getting close, now's the perfect time
• 51:02
  Speaker 1: to take a fresh look at your estate plan. Doing
• 51:04
  Speaker 1: your planning early can help you protect your assets and
• 51:07
  Speaker 1: keep more of your wealth in your family. Cushing and Dolan,
• 51:09
  Speaker 1: the leaders in elder lawn taxation, have put together a
• 51:12
  Speaker 1: new guide called Balancing, Asset Protection and Avoiding Estate Taxes,
• 51:15
  Speaker 1: and in it you'll learn how to secure your assets
• 51:17
  Speaker 1: if you ever need long term care, how to avoid
• 51:19
  Speaker 1: having everything tied up in probate, and how to get
• 51:21
  Speaker 1: a clearer picture of your estate tax exposure. The guide
• 51:24
  Speaker 1: also breaks down real options that may help you reduce
• 51:27
  Speaker 1: or even eliminate your estate taxes when you plan the
• 51:29
  Speaker 1: right way and plan early. Whether you have an existing
• 51:31
  Speaker 1: estate plan or starting from scratch, this guide makes it
• 51:34
  Speaker 1: easy to understand what steps could help you and your
• 51:36
  Speaker 1: family in the long run. To get your free copy,
• 51:38
  Speaker 1: call Cushing and Dolan at eight six six eight four
• 51:41
  Speaker 1: eight five six niney nine. That's eight six six eight
• 51:43
  Speaker 1: four eight five six nine nine, or you can request
• 51:46
  Speaker 1: it online at legal exchange show dot com. That's legal
• 51:49
  Speaker 1: exchange show dot com. The proceeding was paid for in
• 51:51
  Speaker 1: the use expressed or so legos of Cushing and Dolin,
• 51:53
  Speaker 1: Cushingan Dolan, and or Armstrong Advisory may contact you offering
• 51:55
  Speaker 1: legal or investment services. Cushing and Dolan and Armstrong Advisory
• 51:58
  Speaker 1: do not endorse each other and are not affiliated.
• 52:00
  Speaker 6: If the Armstrong Advisory Group understands retirement planning and when
• 52:03
  Speaker 6: it comes to married couples, it can be about more
• 52:05
  Speaker 6: than money. Hi, this is Mike Armstrong and our new
• 52:07
  Speaker 6: guide called Retirement Planning for Spouses tackles many issues that
• 52:11
  Speaker 6: couples face as they're preparing for later life. This guide
• 52:14
  Speaker 6: keeps things simple, focusing on important matters such as making
• 52:17
  Speaker 6: sure both partners understand where their money's coming from in retirement,
• 52:20
  Speaker 6: being aware of scams, how to stay organized if one
• 52:23
  Speaker 6: spouse outlives the other, and ways to handle gifts, donations
• 52:26
  Speaker 6: or legacy goals as a team. It's a straightforward look
• 52:29
  Speaker 6: at the steps every couple can take to feel confident
• 52:31
  Speaker 6: about retirement. Call the Armstrong Advisory Group right now at
• 52:34
  Speaker 6: eight hundred three nine three for zero zero one to
• 52:37
  Speaker 6: get your free copy of Retirement Planning for Spouses that's
• 52:40
  Speaker 6: eight hundred three nine three for zero zero one, or
• 52:43
  Speaker 6: you can request it online at Armstrong Advisory dot com.
• 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
• 52:59
  Speaker 1: advisory services. When the holidays roll in and the cold
• 53:02
  Speaker 1: settles over New England, find your escape and the US
• 53:05
  Speaker 1: Virgin Islands. Trade the freezing temps and gray skies for
• 53:08
  Speaker 1: warm sun, turquoise water, and that easy island energy. You
• 53:11
  Speaker 1: can feel the second u Land. This December through early January,
• 53:14
  Speaker 1: Saint Croix ignites with the Krucian Christmas Festival, a celebration
• 53:18
  Speaker 1: over a century old. Frederickstead comes alive with colorful parades,
• 53:21
  Speaker 1: live reggae, and streets filled with the sites and flavors
• 53:24
  Speaker 1: of real Caribbean culture. It's the holiday season with a
• 53:27
  Speaker 1: tropical beat. From there, explore Saint Thomas with its duty
• 53:30
  Speaker 1: free shopping and the legendary views at Magan's Bay. Or
• 53:33
  Speaker 1: slow down on Saint John, where quiet beaches and National
• 53:36
  Speaker 1: Park trails make every day feel like your own private adventure.
• 53:39
  Speaker 1: Getting there could not be easier. No passport is needed
• 53:42
  Speaker 1: and there's no money to exchange. Just pack light and
• 53:44
  Speaker 1: step out of the cold into pure sunshine. This holiday season,
• 53:48
  Speaker 1: let yourself fall naturally in rhythm with the heartbeat of
• 53:50
  Speaker 1: the islands. Visit America's Caribbean paradise, the US Virgin Islands.
• 53:54
  Speaker 1: Go to visit USBI dot com and book your trip today.
• 53:57
  Speaker 1: That's visit USBI dot com.