Jan 8, 2017|
A show about every day people just like you who have run into legal problems or encountered legal issues because of circumstances that they either didn't plan for, or were subjected to.
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
These are the real life stories of the legal exchange with Susan powers of the Armstrong advisory group and Todd let's keep from the low for a month pushing and Romans Susan Intel and have been helping people understand and react to legal issues that they're faced with every day and they're here to help you to. Be a part of the show by emailing your story this Susan powers that Armstrong advisory group dot com that Susan powers at Armstrong advisory group dot com. Now here are your host John let's team and season throwers. Welcoming significantly stories of the only thing I'm seeing empowered that they need to advise it would be Armstrong advisory group. And I'm joined by Todd that he apart in the law firm of Cushing and talent. With a masters in taxation. Todd welcome our you are never better and you seem great they are happy new year happy new year to year. Can't believe we're starting in new year and guess what I don't I still have stories. But the story is never end no they don't end and we have new stories in new guide the new questions from listeners so let's let's look. At some of the things that ran into one was the first was a across the nation story which is exactly great and that's what we're doing whether god. Had met these folks about 2014. What about one point five million just never got around to. Until the end of last year. And now they're ready to go and explain the plan but it's a happy story actually but it says it does help you understand how fast time gets away from. Especially when you're dealing with a five year waiting period. Next after that I've got you know a story where a husband wife in 2008. Has homework about 400 in 300 money went to a lawyer and came away with a regal Coble trust. Open they'd get their house to all four kids and all four people retained the state. Sure it happened. But I'm gonna explain in worked out all the nuances and all the problems that go along with that. And then finally. I have a situation where a husband and wife had four rental properties each worked about a million dollars. Owned them their whole lives fully depreciated. No money. Just realist. And it was an irrevocable trust but they really wanted to get all the property right now to the children don't care. That's what they wanted to while why now is right and I'll tell you where we came down on that decision. And you know what folks Todd has written a brain knew guide for the month in Kenya right brain you guide authority here 2017. It is complaining for procrastinators guy in this guy is going to show you. What can beat down in the last minute to protect your real estate including your primary residence. Your vacation property that rental property as well and I assume our investment accounts you're bank accounts those three. Retirement accounts. Everything they can be done last minute he's also included some very important information. On personal care contract that will be critical. If you are paying it not one to care for you in your home. In unique go to to a nursing home on the road you need to make sure you have a personal care contract in place. You can call to get your free copy of this breed new procrastinate. Guy. 866848569. At 86684. C 5699. We can always download a copy on our web site legal exchange showed dot com. Just click on the guy and articles tab in keep in mind if you missed any of two days or any of our past you and you can always download a copy. Excuse me download our podcasts and listen to art can be like downloaded copy many copies like don't put off don't procrastinate goes down. So PepsiCo pits to pull it. So let's go about this procrastinating story in let's explain why in howl procrastinating. You know is. And can be a problem again in this situation it was husband and wife had met with me back in twenty fourteen. Can't believe it's RE twenty send them right to think about right and turned out to their state was worth about one point five million it and I had proposed to your row applicable trusts because they're goals were. To try and protect assets from the nursing home. We needed to because they were over the one point five million and over the one million dollar estate tax exemption from Massachusetts. I think it's important that we remember that here we are in twenty us seventeen but. The state many of the state exemptions haven't changed. So especially around New England. It's it's it's just took just take a quick look at him there one point five million in Rhode Island. I mean is. Equal to the Fed at five million for an Indy which is the new federal number Connecticut stuck at two million. And Mexico and New Hampshire still doesn't have a tax free be that there so. It's a very good place to go. And so. We are recommended that to trust to help double the Massachusetts a state tax exemption of a million thereby eliminating there. Federal or their their Massachusetts state tax. Iran have to reduced to nursing home risks eliminate the nursing home risks. And of course ultimately date they had a lot of ideas about divorce proofing in protecting for the children. And that was proposed in 2014. They came back in in December of 2016. Instead were rated rated ago. And and it was never any reason they were not upset about the presentation it. And that cost none of that was the probably always wanna wondering you know yell went but. When help ya and I do something wrong that it was not clear it was too expensive evil what was you know the issue. No listen to this life just sort of got in the way things came up one thing after another and you know when there's children in and whatnot as. They just basically said we we just. It kept yeah and again we don't push people but I thought it was important for them to understand. OK let's do it in and that and the happy part of this story is. They're all right and we're going to be able to go ahead and do this planning anyway so it's not really hurt them. But a fewer older. And you give up three years. Of a five year waiting period. I mean that's pretty important. So just see how so if you think you're not gonna plan because you're worried about the five year rule I can tell you that five years gold. By really fast. Yeah I think you're always better off. Having started you're planning you know it's it's it amazes me time I actually. Met with a couple this week the client that started their process early last year yeah. And they signed the air trust documents with the attorney. This week. Year later a whole year later I think it was maybe. February junior every last year that they that would ban so we did that we did have paperwork to fund their trust on the same days so. Life does get in the way but now with this situation where you're talking about. Their Lockheed that they didn't end up in a nursing home based on the assets what would they have Don if someone had happened to gone and yeah. I mean it would have been a lot harder last minute to try and save these assets because you know when one goes in yet you can say house but. At least as a married couple there's more things that can be done. Last minute and as a single person in we would have any what do state house and probably just bought an annuity. For the healthy spouse for all the access in the house itself tight and that's pretty much. For the most part it's the biggest asset for a lot of our Klein. Yes in for Aaron and if they're married couple house isn't for. Well that's true and and and I get a as part of though overall thinking. Remember if the goal is ultimately to protect that largest asset for your children. And when one spouse gets sick Earl K does that help the spouses living there. The spouse gets. Different. Now totally on the property. Property. You know news is sort of subject to estate recovery. For benefits that you might receive byes this state. So I don't love that approach I don't love last minute planning but at least it's a way of dodging the bullet and you know the other thing I need to tell you about these folks is. Even though they procrastinated they actually came around and did the right thing. They didn't say you know I'm gonna take a shortcut in gift my house to my kids amber last month. I'll about the negatives and the problems with gifting your house to your children what they do. Hate to shortcut. They said you know what step up. And do the planning the right way he in a lot of people think they can do this on your own you know while the legal and medical don't do anything your style Italian out and and you know. Dick so by not gifting it in by putting in the trust they can just now go about their lives there I mean we know all the benefits of the trust that just quickly. They can live in the house they can pay their bills they can sell that house when they wanna salad they don't have asked the kids permission they don't have any adverse. Tax consequences. Dated date ultimately they'll reduce their state tax liability. Everything in the trust will avoid probate. And. They love the fact that they're going to be now control the distribution to their children and grandchildren and divorced preferred creditor protected. From them you would have none of those benefits if you just gave Italy its right or children's case. Plus you would have lots of adverse. Gift and estate and income tax consequences going so. Kudos to them for not just taken a short cut right after putting off. The planning and eventually pretty a year they did it eventually you need to do your Kenny as well in May be you're in a situation where. You've done cleaning and you have your housing trust but what's left outside debenture. Though facets or maybe at three tie announced that the U put into attracts. This guy that Todd is written it's brain knew the month of January it's cleaning procrastinate is it's going to show you what can be done last minute. To protect those liquid assets to protect those retirement accounts if you've done now planning a show you how to protect your primary rent residents. Your vacation property that rental property. Educate yourself and there is likely something that can be tendency here after a last minute. Call right now for your free copy for top of tides pleading for procrastinators guide the number is 866848569. Earning. At 866. 8485699. Or download a copy on our web site. Legal exchange showed dot com just click on the guides at articles tab. You're listening to Todd let's eat a lot from Cushing and Alan I'm Susan powers of financial advisor with the Armstrong advisory group. We're gonna take a quick break but we'll be right back here in the relay stories of the legally exchange. Securities offered for securities America member finreg SIPC advisory services are with the securities America advisors think securities America and its representatives do not provide legal advice therefore it's important to consult with your legal advisor regarding your specific situation she named all the Armstrong advisory group real life stories of the legal exchange and securities America companies are not affiliated. If you're thinking about retirement soon it's time to make some big decisions do you know if you should roll over your employer sponsored retirement plan into an IRA how about changing your investments to an income focused portfolio do you know win the optimal time to collector Social Security is hi this is very Armstrong and there's so much to consider before you stop working my firm the Armstrong advisory group has put together a 2017 retirement guide -- can help and it's yours by calling 803934001. You worked your whole life saving towards retirement doesn't make sense to get professional advice to make it last call us right now at 803934001. That's 803934001. Or download a copy from our website at financial exchange showed dot com. Securities offered to securities America incorporated members in SAP C and advisory services are for the securities America advisors incorporated Barry Armstrong representative Armstrong advisory group in the securities America companies are unaffiliated representatives of securities America do not offer legal or tax advice always seek the advice of a professional familiar with the laws in your state according to Genworth the average cost of a private room at a nursing home in New England is 126. Now. If you were a loved one are faced with an unexpected nursing home stay and you haven't done your planning before you write that check pick up the phone and call 8668485699. It's an expert advice from the law firm of Cushing and Dolan which has been helping families just like George protect their assets for more than thirty year. They have put together a brand new guide for Tony seventeen called planning for procrastinators. You can not put off this call any longer get your free guide today you can learn how to protect your assets 8668485699. That's 8668485699. Or download the guide right now from our website legal exchange showed dot com. You're listening to the real life stories of the legally exchanged we Susie powers and Todd let's keep Susan until they've been helping people solve their legal problems were. Years and they can do for you tune. Be a part of the show by emailing us your story and Susan powers at Armstrong advisory group dot com that's Susie powers at Armstrong advisory group judge Joseph. Welcome back into their relay stories of her legally change I'm Susan Paris thing into it size it would be Armstrong advisory group. And judging by Todd let's key partner with the law firm of Cushing in Dolan with a masters in taxation. On today show we have tides bring you guide for the month of January. It's nursing complaining for procrastinators. In it's a complete guide it will help you understand. How to protect your real estate including your primary residence your vacation properties your rental properties. As well as your liquid assets like you're investment accounts you bank account to brokerage accounts. In Eden last minute those three payment accounts what can be done to save those assets. Call right now to receive a copy of tides bring new guidance at 866. 8485699. At 8668485699. If you prefer you can always download a copy on our web site. Legal exchange showed dot com just click on the guides and articles tab. So Susan let's take a look at this next situation. We had a husband wife come in the apparently told me that in 2008. That. They went to an attorney and had a home worth about 400000 dollars and they had about 300000 dollars kicking around investments Luke. And they walked out of that office in 2008. With a revote Coble trust estate plan. In place OK although. OK I mean that's fine if that's what they want to do that doesn't make it wrong. They they want to protect nursing home or anything at that point it's what I kind of thought and then they continued on and they said so we did do though is an addition to that we actually deed in our house. To the kids. And all four of them retained a life estate. So I'm. A little per month daddy in the kids. Yet you should the kids slipping a little critical yet of your I'm gonna coming out it doesn't make sense to me because. On the one hand I don't mind if somebody does revoke trust planning if that's what they wanna do it and that's what we do. An end but that's inconsistent. With Keating house to the children in retaining for life the states. On which could kick can't do anyway but Alex I'll explain the life estate debacle in a minute. The inconsistency. That I see here is. You know. Did leading house to the children the only reason they could've wanted to do. Would have been to protect it from the nursing home. I can't think of any other reason Adobe. Q now maybe to avoid probate but but they want to hold it anymore so I guess that's certainly avoids probate. Let it it certainly wouldn't have been prominent state tax standpoint. The first thing you look at folks when you're thinking about estate planning is. Look at your net worth there at 700000. That are less than him in folks appear in the less than a million world. Doesn't mean you don't plan. But you certainly don't have to give away assets. To reduce taxes right he's in pain and you're not gonna pay any federally with the exemption up over five million. And you're not gonna pay anything even in the lowest New England state here in Massachusetts. At a million and. So what how any help from any attorney. Just passing away. You would not need to make that gift of the house to the kids to save taxes. So the only reason I could think. That they would've wanted to make the gifted kids. We're bent to protect it from the cost of nursing home care right. Well. If the law that did the revote global trust for them in no way also helped them prepare the deed to the children. The question I have are that question that's being bait here is. Why wouldn't that attorney seawall instead of DD in the house of the children protected from the nursing home why don't we just bag here the revoke Coble trust. And set up an irrevocable trust me and put the house there. To meet that's a wage better approach. To protecting it from the nursing home and it keeps mom and dad in control. Whereas. The ways this is done they're certainly not in control. No there's not you know Lotta Lotta people put off complaining because they think they're gonna be giving up control. When they use these eerie Vogel traveling when you give it away you hit how much can truly have that we you don't own it anymore. You know what folks you need to get your cleaning plays we understand it life gets in the way sometime and you may find yourself in this situation we air. You're having to write those checks to the nursing home whether it's yourself for a loved one. Pretend 12151000. Dollars a month it does not take very long. Whom publisher spouse when your paying a 140000. Plus a year for nursing home care. Call for tides bring you guided he's written for the month of January it's planning for procrastinators. It will show you how to protect your real estate your liquid assets all last minute folks. Call for your free copy right now 8668485699. That's 8668485699. Our download a copy on our web site legal exchange showed dot com just click on the guide and. Articles ten. And and so when I look at this. And I say OK you'll if they had just done an irrevocable trust. They wouldn't be worried about really anything house would have been rejected that could have even put some of the money in the trust. They didn't in this case the monies in the revoke public trust so it's not. Protect that at all at least re avoiding probate. But it's not protected at all and they kind of lived in the house they could've paid their bills they cut and went on what their life really uneventful. And not worry. About the kids who now have an interest in this property. And in fact. I'm not even sure it's protected from the nursing home the way they would like. Let's play out the string again the only reason I could think that they put the house in the kid's name must protect it from the nursing home. But they've really to even accomplished. Because. If one spouse get sick. Well. That's spouse. As long as the other spouse is still living in the house. At least the house is not not at risk for the nurse. Let's say one spouse dies the other spouse now owns 50%. Wouldn't write because that's half the quarter of the spouse that died. Went to that. Spouse that slip right they were joint asked to each other god so then now surviving spouse owns half and the two kids own a quarter each. There's a 100%. Well if that. Surviving spouse gets sick and goes in the nursing home. The house is at risk so they even accomplish that I shouldn't say the house is at risk have to house right but there's no risk Iraq. But still as it didn't really protect it because now they're gonna lean on that house even though they may be able to get on Medicaid stale. You'll be lean on the house. Whereas if it was in the trust. There would be only right in there would be no wondering about the kids who now on the property and how their creditors could get it to be no worries about any of that. A 'cause that would be in the trust so I really don't understand. This whole recommendation. From this other lawyer back in oh wait. State wasted all this time I you block nine year. In years so you know I I was a little troubled by that. But at the end of the day think about what else we have going on here now. They they came back and they said all of the other reason. We wanted to do this is because we wanted our children to have the right to live there the rest of their lives. And I said to myself. I don't even know how your children who had no legal interest in the property prior to you giving them half. Can reserve a life estate today that there are now know. And and so. I said well. They don't really have a life estate even if you granted them a life estate and you can do that. When you both died. They would be they'll remainder men. And they would be the life Tenet. And so the remainder interest in the life tenant interest would merge. And there would be no life for state. So that ability to say I have the right to live there and no one can kick me out which is I think what they were going forms of the kids don't fight. Really didn't get accomplished if you know. So let's go back to the trust idea and not only do they parents have all the bells and whistles in the benefits. Of the irrevocable trust and the protection. They can dictate exactly what happens that property. And then they young and healthy enough to fix this now tie yeah the good news is they they are probably going to be easily make the 5 o'clock. But you know. This trust is going to be so wonderful for them to say here kids here's how you live there here's how you pay your bills if you wanna live there. Control the whole thing in the code of their creditors hands. Divorce preferred for the kids get it all the way down to another generation if they want to home run. It's it's all of Herman folksy you know maybe you've been thinking about doing your cleaning for some time now but he'd been putting it off. And putting it off well Todd has written a guide for you. He's got his guide to cleaning for procrastinators. It's going to show you how to protect your assets whether it's real estate or liquid assets. Last minute from the nursing home he's also included important information in here maybe here at home when you wanna pay your loved ones to care for you in your home. If you going to a nursing home the money you've given them if you don't have a personal care contract in place. Is going to be considered a disqualifying. Transfer from Medicaid purposes. Educate yourself find out what can be done to save your assets. Call right now for your free copy of tides bring you guide 8668485699. That's 8668485699. If you prefer you can always download a copy on our web site. Legal exchange showed dot com just click on the guides and articles tad. While you're out there you can also download our podcasts and listened to today show as well as our passions. At York convenience you're listening to Todd let's keep in the law firm of Cushing and Alan. I'm Susan powers of financial advisor with the Armstrong advisory group will be back in just a few minutes here in the real life stories. Other legally exchange. Well it's certainly a deal to develop your asset protection claim in advance life tends to get in the way. If you were a loved one are faced with an unexpected nursing home stay and you haven't done your planning before you write that check pick up the phone and call 8668485699. It's an expert advice from the law firm of Cushing and Dolan which has been helping families just like George protect their assets for more than thirty years. They've put together a brand new guide for Tony seventeen called planning for procrastinators. You can not put off this call any longer did your free guide today you can learn how to protect your assets 8668485699. That's 8668485699. Or download the guide right now from our website legal exchange showed dot com. The holidays -- over the new year is underway and now is a perfect time to reset your schedule and its priorities it's amazing how much you can accomplish by taking a few minutes to look at the big picture and part of that for me was reviewing my insurance -- hi this is Jason -- of the financial exchange radio network -- if you're like me and needed to reset on your insurance policies I want you to call the insurer -- agency one call provided me with multiple quotes from several of the top insurance carriers I wound up with a revised homeowner's policy in a brand new auto policy that included coverage of a third car -- my older daughter because lord knows she didn't want to wait around anymore to borrow -- call insure a match today -- -- -- 99 matched that 844 and 99 match and through their Massachusetts division in charter let them -- present you with information that is bound to help -- I saved over -- thousand dollars a year -- minute deal and I know they'll try to do the same for you call today at 844 and 99 match that's 84499. Match or visit them online -- insure a match dot com. You're listening to the legal exchange and its time for. Ask. The segment where time will answer your questions about anything and everything that's included in the estate planning process. Once again here's Todd lets PN's Susan powers. Welcome back time have a few questions from listeners for you. First question comes from Jerry in Kennedy kitten Jerry writes I have two daughters and while neither of them are married one is in the process of adopting a child. And the other thinks of her partner's children has her own. Even though she is not adopted them can include them in my at steeply in what if they adopt more children down the road can include them. As well. So let's assume. That. Jerry is doing an irrevocable trust okay. Just because people wonder about changing irrevocable trusts and you know on my you don't Stockton that I lose all this control and the answer is going to be you know no we haven't lost and it controls a split put cherry and an irrevocable trust. So the answer is that. Any. Of his children. That adopt. Any children. Are considered. His. Natural. Grandchildren OK so legally adopt legally adopted so let's play a string let's say that two partners got together. And one of the partners had children already. Before they married. Okay. That child of. Non daughter partner and the in law right. Is considered a step child to Jerry okay. And not included in the estates are not legally agreeing child because his daughter didn't legally adopt her stepchild correct got. Correct so that's the difference that's what you need to think about if you're listening folks and you've got the second marriage situations. Or partner situations. You need to you know think about who came at the mayor age with children. They are stepped children on the last the mayor aide to a person adopts. OK okay so they would be out and likely they would not be included later. You wouldn't it would add them in later. In an irrevocable trusts okay but if Jerry wanted to include them now because he cried and beginning at stroke. But you wouldn't be able to include them later which is very different. Then if. They get married. And either though children that were brought to the marriage are adopted. By. His daughter who. Whether it. If they were stepped children that are adopted or whether they go out together and adopt a child a tank and even later adopt another child. It would all be included already because they were in the defined class of. Children grandchildren. Accent. So no problem and their children. Would be include OK so. So that's whether they are married or not if they have legally adopted a child could batter legally adopted child is included in the plan as hard in the skis Jerry's issue that's because we have language and it comes back to how these trusts are drafted folks. We try to think of everything and over the years she can't do it the first time we draft but over the years we've. Feel that we've got our trust to a point where we've covered just about every situation. And and in fact we have language that defines child children issued to include. Legally adopted still live there legally adopted and you don't want them included do you need to specifically. Exclude them you do. Okay too so anybody so like you might say. That they adopted the step kids and you're saying listen. I don't know he stepped kids from Jack right I'm not really close to them and I don't want them treated as migrant children I don't want them treated as getting assets from the state in the event my child dies before me and we leave it to that child's children. If that child's children is one of the adopted kids car and not rain at the specifically. Just inherit though is. Adopted children because they would be treated in the same would go is if you had children and you want to specifically exclude. Same thing idea. It's got to write it in if you want them out okay fine rated and if you want. Ray in if you want them out so that's interesting you know they then the reason behind that Todd is that so that down the road you know. Mom in gag creed distressing even if it's the first marriage situation they create distrust and dad passes away and and mom gets remarried you know she's not able to. Bring in the pool boy as a new beneficiary or to bring in someone who's not part of that original theme that you want flexibility. Which we provide in these theoretical trust but you don't want to watch. Flexibility right so it's kind of a balance checks and balances OK you know what folks if you of January year cleaning good for you if you have not you are probably among big pool of the experience copper crass and ears that are out there. And you may be feast with a situation where you need to start writing and able checks to the nursing home. Or maybe you're writing checks to a loved one to care for you in your home. Todd guide his guy did Platt procrastinating. Is bring you for the month of January you can get your copy of this guy it will show you what can be done to protect your assets last minute. You can get your free copy of this bring new guide at 8668485699. That's 866848569. Inning. If you prefer you can always download a copy or web site legal exchange showed dot com just click. On the guides and articles cabinet he missed any of today's or any past use he can also download our podcasts and listen at your convenience. Tied last question comes from Don in Charl math Ian Don writes. I'd like completely acids to my church and a few other charities. Do I need to designate them when I draft I trust or can I determine that at a later date. Can I change my mind if I want. Two down on the ground. You know again I'm gonna assume within irrevocable trust because folks if you have a regal Coble trust the answer is yes to August you can change any time you want anyway you need. How do you want. So there's no limitations on the regional Kabul for a spot by the same token. We don't have any protection from the costume national kind of the trade off. However. The irrevocable trust I don't wanna make it sound like you you know when you're talking about a trade off that somehow. York giving up atomic control. Richard. And and flexibility. Must be and with our trusts at Cushing and Dolan is. Part of the equation flexibility. Sort I mean in this case. He might set it up today that says I leave all my assets to three different charities. And then down the road years from now he might say you know. Wanna add to charities in the week. Right chair absolutely can do that. And we have power in the trust that says that don't ore reserves a special power of appointment during his life. So that. Exercise through his will. He can change that trust assets among a class consisting whether an equal or unequal amounts. Among a class consisting and it generally says. Children and grandchildren you know nieces nephews siblings and charities OK Sony is. It might have a class of people as well I don't know what doesn't sound like it but. It will certainly have that charitable peace there. In keeping chain setting tempting you might you might change your mining you know I have a client who. Who recently updated her beneficiaries could see how a lot of work done in a hospital and she said you know what. They treated me really well and I wanna make sure that they can get some of my money when I leave it behind so. You can update at any time you can kind of move in I would now. In fact the other thing I might add for Don here is you know I don't know if he does in fact have any nieces or nephews maybe he doesn't have any children. But you know may be heat he has you know some siblings and nieces and nephews who. He may or may not want to get some assets in the future vision my advice is never took just leave it completely. You know. Narrowed down to just cherries. That class that we carve out when we drafted documents and all this comes out when we're talking declined trying to learn about there. Their family dynamics and their assets and their wishes and not just you know running in drafting on the right. I probably would have advised him to Saint Louis let's just include in that power of appointment. The class consisting of your nieces nephews and siblings of all generations. And charities. That way you might start out with a three charities and you might come back later and say you know I want to add to get rid of one. Changed the percentages of the charities get so that there's money left over to go equally to my nieces and nephews and then. If you included them in the class in the beginning rank so I think that flexibility needs to be drafted in the documents just so you're never. You know completely stuck. Estimated a way to get the assets out. Yeah one of it would distribute to them so they can be given back to you in case you don't make the five your way. Keep your options open folks. If you had a question you'd like to ask Todd saying carry you to visit our website can this year are I'm gonna continue to giveaway tides even televised he must be happy times. Our web site is legal Eckstein showed got conned you click on the asked Todd tab in the EP. We'll be able to read your question on the air and hopefully. His answer we'll stop you from being one in his next real life story. Why you are out there I would encourage you to download tides bring new article that he's written. For the month of January it's nursing her complaining for procrastinators. And you may be among those folks who have done complaining that maybe you have really we tie Ayman ascent. Or other liquid assets outside of your trust or maybe just haven't started yet his guide we'll show you how to protect all of those assets. Last minute real estate liquid investments investment accounts you name it he has covered it in this guide. Call right now for your free copy at 866. 8485699. That's 866848. 5699. There again you can always download on our web site. Legal exchange showed dot com just click on the guides and articles avenue also find our podcasts out there as well. You're listening to Todd pluck it from the law firm of Cushing in Dolan I'm Susan powers from the Armstrong advisory group. Reagan and take a quick break and will be right back he or in the relay stories of the legally changed. The. Holidays are over the new year is under way and now is a perfect time to reset your schedule and its priorities it's amazing how much you can accomplish by taking a few minutes to look at the big picture and part of that for me was reviewing my insurance -- hi this is Jason Wolfe of the financial exchange radio network if you're like me and needed to reset on your insurance policies I want you to call the insurer matching agency one call provided me with multiple quotes from several of the top insurance carriers I wound up with a revised homeowner's policy in a brand new auto policy that included coverage of a third car -- my older daughter because lord knows she didn't want to wait around anymore to borrow mine call insure a match today at 844 or 99 matched that 844 and 99 match and through their Massachusetts division and charter let them -- present you with information that is bound to help you I saved over a thousand dollars a year in minute deal and I know they'll try to do the same for you call today at 844 and 99 match that's 84499. Match or visit them online at insure a match dot com. According to Jen whereas the average customer private room at a nursing home in New England is 126. Now. Well it's certainly a deal to develop your asset protection claim in advance life tends to get in the way. If you were a loved one are faced with an unexpected nursing home stay and you haven't done your planning before you write that check pick up the phone and call 8668485699. It's an expert advice from the law firm of Cushing and Dolan which has been helping families just like George protect their assets for more than thirty year. They've put together a brand new guide for Tony seventeen called claiming for procrastinators. You can not put off this call any longer get your free guide today you can learn how to protect your assets 8668485699. That's 8668485699. Or download the guide right now from our website legal exchange showed dot com. You've got Susan powers of the Armstrong advisory group and Todd lets you from the love remove Cushing Dolan on the relay stories of the legal exchange they can help you the way they've helped so many others call 8668485699. And then make an appointment. That's 866848569. Well. Come back into the tailings stories we're privileged and I'm Susan how is the thing into a guy's going to be Armstrong advisory group. M doing by Todd let's keep apart with a lot firmer Cushing in dealing with a masters in taxation. On today's show we have tides bring you guide it is written for the month of January. It's nursing home cleaning for procrastinators. In at the guide it is going to show you how to protect your real estate and you illiquid assets last minute. Including information on many techniques like pooled trust personal care contracts in Mickey annuities. You call to get your free copy of this bringing new guide. Maybe you've already done your cleaning haven't made the five year look back this guy is gonna show you what needs to be done. Call right now for your free copy it eats 66. 845699. That's 8668485699. Or if you prefer you can always download a copy on our web site legal exchange show dot com. Just click on the guides and. Articles ten. So you know Susan it's funny because I know procrastination happens you know we need to know how to do things you know last minute and that they might mean something they can be done. Yeah I think it's it's critically important. But its interest thing because. Often times are our real life stories tie in to procrastinate should we had that in the beginning this one actually ties into last month's guide. Giving. Nothing good can ever come from giving away your assets right but the strange thing about this situation was. That they had actually stepped up to the plate and had done their planning. In advance and point the individual was a little more. And had 41. Million dollar rental properties okay four million dollars in realist. And almost no money. Living off the rent pitcher might eat comfortably I'm. Like cake so that's a sounds great. And they've been renting these properties are he's a survivor has been renting these properties is a lot. And for whatever reason. You know decided. I just wanted to give these properties to children even though they are already in an irrevocable trust. That many years ago OK so wasn't an issue with not making five you'll look back now five years has already passed. And so. I'm like okay. I don't quite understand. Why you want Anna why give this like they were into that to give it away so. Remember folks when it started explaining to you in our guide last month about. Don't give away your assets has nothing good can happen in this is a prime example. Of somebody who wants to do something that really nothing good can happen and I think you might be surprised the position that I talk. So I said. Well at least explain what I see as the problem here. I suspect that these four million dollar properties have 08. Why do they have zero basis all because you've been renting them for a long time. More than 27 and a half years which is though depreciation. Life. A for these commerce these residential building that's when he came right off the value of the building over an item on a time to offset them hearing you rent okay. Exactly the of them right applause at the Rand dollar for dollar it's a free expect action and yes for deduction no money out of pocket. And I said so so you now because of that and because of the growth. Your basis is zero the group so I said if you give this to the children. Then you'll have a carry over basis. And you will be trapping. Let's just go with a straight 30% and I think that's conservative because depreciation recapture. Component. Would be taxed at ordinary income. But let's forget that let's do a conservative 30%. Tax so you're looking at 300000. Dollars. Tactics. Might not gain. It gained as a million. Ray because there's zero basis. If the kids sell this property during their lapses in the capital gains tax that you're giving your kids is 300000. Times of four. Because you got four buildings right so you're now subjecting your children to 1200000. Dollars. In actual tax if they sell the property during their life. All were an old fashioned type currently in. My kids are here all know ward their telling me we're never gonna sell. Well I am. Like you're saying that but I have news Korea I have no idea you have no idea what life is gonna bring down the road it may require you to sell. Yeah be stuck but this game. I'll tell you more to come on this young bad things to come. You know why you don't know what's down there rooting you might be finding yourself thinking you know lot should've done my cleaning but he never got around to it. And now a year feast with yourself. Spouse a loved one apparent. Going into the nursing home when you have to start writing those Johnny checks every month. There are things that can be done last minute to protect those assets and tides bring new guided he's written for the month of January. His guide to cleaning for procrastinators. Can help you understand what your options are. Call right now fear free copy 88668485699. That's 8668485699. Or download a copy on our website legal exchange shoot dot com just click on the guides and articles tapped. So that's your capital gain that side of the equation which is huge. Shoot that's a 1200000. Dollars rule why do we why don't we wanted to show how committed your vote Coble trust it's our Eddie. Protected we don't care about that we don't wanna have to pay Massachusetts a state tax on weed out. I said OK while you're worth four million dollars or single person the Massachusetts a state tax on four million dollars is about 300000. Why would I not want to give Massachusetts 300000 dollars if I dying owning these properties instead of giving them away. Does result in 300000 dollars going to mess but gives the children a brand new basis equal to a million dollars in each property. And thereby eliminating. One point two million in capital gains tax that I'm creating unnecessarily. By making this gift. I don't even understand how they can even logically have this conversation they're paying 900000 more by giving it away to be like let's stop you right bad idea rate of didn't stop there. And they said Ronald. The kids that we're never gonna sell that we don't care will have to worry about realizing that gain ever and we're gonna save 300000 dollars and we're not gonna pay one point two but you said that. He's relying on income from the properties and he's gonna give his these properties which is not his ankle anymore my next question and I said. Okay now you have no rental income mom and dad arm our dad in this case. How you can pay your bills all the kids take Jeremy I just now. Well I can't comment on that angle fine if you wanna put yourself and that kind of situation really debacle I suppose that's your call. I I don't like it I would never want to help you do that. But I said one more thing I turn to the children and I said well. I get everything you're saying you're never gonna sell it he's you know you're gonna save 300000 dollars don't worry about taking care dad all that said. A turn for the kids and I said did you know. If you would now we're gonna do you say you're gonna do which is rent this property the rest of your life. You have zero basis. If you had to step up in basis and you chose to rent the property the rest of your life. Which by the way if you didn't at least you reduce your capital gains tax liability you have the option to sell. But let's say you didn't and you rented the property the rest your life you would have beat 36000. Dollar approximate deduction per year. Times four times 1027 and a half years. Just so you know that would save you approximately. 300000. Dollars. In income tax. Her building. Perk buildings over 27. And a half years out irbil so that's. Almost one point two million dollars and income tax savings. Even if you don't sell one. Why would you want to give up. I. And so at the end of the day I finally said look. We just use do you justice I said if you really want this done you are really gonna need a different attorney has again I'm not gonna help you. Do this in somehow this spells nothing but trouble for me and I just can't justify putting you and your family. In a situation. With I see nothing but negatives. Outlaws who here nevermind creditor issues in divorce issues. For your kids he you're gonna need another lawyer yet you know what folks. Out there should be and who do yourself a steep cleaning here. Educate yourself if here in this situation where you've got eleven going into a nursing home. There are things that can be done to see those assets last minute whether it's the year primary residence vacation property rental property. Your investment accounts the bank accounts the retirement accounts can even be protected last minute. Advance planning is ideal we promoted all day every day but we know that life gets in the way and sometimes. Last minute cleaning is required. Todd Skype will tell you what your options are you can get your copy of this brain you died cleaning for procrastinators. By calling right now to 8668485699. That's 866848. 5699. If you prefer you can always download a copy on our web site legal exchange showed dot com just click on the guides and articles tab and while you're out there. If you have a question you would like to ask Todd you click on the asked Todd tab. Hopefully his question and his answer to your question. We'll stop you from being one of his next real life stories. Todd let's keep a lot from Cushing in Dillon thank you so much officers and always a pleasure thank you we thank you offer a listening and we will be back again next week on the real life stories of the legally exchange. Securities offered to securities America into member finreg SIPC advisory services are with the securities America advisors think securities America and its representatives do not provide legal advice therefore it's important to consult with your legal advisor regarding your specific situation she named all the Armstrong advisory group real life stories of the legal exchange and securities America companies are not affiliated. If you're thinking about retirement soon it's time to make some big decisions do you know if you should roll over your employer sponsored retirement plan into an IRA how about changing your investments to an income focused portfolio do you know when the optimal time to collect her Social Security is hi this is very Armstrong and there's so much to consider before you stop working my firm the Armstrong advisory group has put together a 2017 retirement guide to can help and it's yours by calling 803934001. You worked your whole life saving towards retirement doesn't make sense to get professional advice to make it last. If you were a loved one are faced with an unexpected nursing home stay and you haven't done your planning before you write that check pick up the phone and call 8668485699. It's an expert advice from the law firm of Cushing and Dolan which has been helping families just like George protect their assets for more than thirty years. They've put together a brand new guide for Tony seventeen called claiming for procrastinators. You can not put off this call any longer did your free guide today you can learn how to protect your assets 8668485699. That's 8668485699. Or download the guide right now from our web site legal exchange showed dot com.