Real Life Stories 3-5-17
Mar 5, 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 just from the love for love Cushing and Tillman Susan and John have been helping people understand and react to legal issues that they're faced with every day and they're here to help you to. If you have a story to share contact us on our web site legal exchange show does come up that's legal exchange showed does come. Now here are your posts Todd let's Keith and Susan powers. Welcome into the real life stories of the legal team I'm Susan Harris I think until it sides of the arms and advisory group. And in doing by Todd let's be a part in with a lot from Cushing and talent with a masters in taxation. Todd welcome how are you I'm never better and you I am great thank you do a month Newmont. New guide new guy new new new stories new stories. New events and ready I am. Got this one interest in one where somebody. Once they came and they want to figure out how to rent. One room in their house yeah. Through air being beat those Britain backed bread and breakfast places. And was concerned about liability. So we're gonna talk about that obviously bill and expand the tent rental properties in general and help people understand what liabilities. Are involved and what kind of tax ramifications are involved. Depending on how you owned the property that you are yeah. So lots of good stuff there. Actually just informational story not a bad story to because someone tried to plan before they did it asks the question re always ask. So next. We have. A daughter who had to move out of her house to move in with mom has moms care needed today she started getting worse and worse. In so daughter quit her job moved in in one's health is still declining and he daughters wondering you know. What you know can she get paid for what she's been doing it's been years already that she's been helping in. What happens if mom goes in the national mom's not on Medicaid yet but has a lot of money into. Very import lots of people I'd bet listening share are in that situation. And growing. Next and finally. We had a husband wife come in. Second mayor age in about a ten year age difference 75 for the husband 65 for the wife. No kids for the wife two kids and two grandkids for the husband who do you start to see the problems. Second mayor age difference in age. You know worried about planning worried about after death we'll talk about Alda and I'm sure there's a lot of people in that Xerox and as well. Everyone is different feeling dynamic we also have. A couple of questions from listeners for you here and it's a new month so there is a brain knew guy. That Todd has written for the month of march it's the difference is between. We vocal ability Erie will Kabul transcendent probably should be the similarities between re vocal in your eagle well. This is more similarities than differences that this guy DT Els how both trust will help you avoid probate both trust we'll help PD bloodline leaning. Both kinds of trusts will help you to reduce and potentially. Even eliminate estate taxes every year vehemently. They won't all protect the nursing home though so get this guy this detailed comprehensive guide. In its gonna give you a great way to make sense of your estate cleaning options. In determine what type of trust is right for you in your specific the only dynamic. Call right now to get your free copy of tides bring your guide at 86684. He. By 699. That's 8668485699. If keeper car. Guys download a copy. On our web site legal exchange showed dot com just click on the guys' articles tab. If you missed any of today's or any of our passion he clearly download our podcast and listen I. York in the Sosa is in let's talk about this air the NB. Rental situation. Folks anybody who's renting needs to understand how renting works in come ownership taxes. Liability. All the postings come and that's whether it's a quick thing like air being in B or if it's a rental property any of the long term stuff. Handling so are being pieces in the navy and yes could it be an app or you can log on name website you can and stay people's private homes. For a night two nights a week a month in different lengths of time or it's not a whole pile then it's someone's tighter residents typically. So it may not be even a two family in majors no just beat them on eBay could rent a room in the home they could rent a whole home now. So it could be any kind of. But sound nevertheless like it's their primary residence. Yeah Lotta times it would be. So let's focus on how that would work now the ability if you're doing a game in two days three days here and there. Probably is less because there's not as much traffic Horry is often times they're renting it. But still you never know Unita. In case there's to slip and caller somebody gets hurt on the property that you invited in you you're gonna get suit in there are some people that do this consistently they'll rent out their their plates over and over and over again throughout the course of the years of and it could not yet and it's the same as as as a rental and all the same risks you're right Susan wood would apply. So when we're talking about regular rental properties not this air being B idea. We always recommend owning it in a limited liability company. Now if you own it in an LLC so I take my two family my three family rental property and I'm renting constantly and you and I throw that into an LLC. That is way better for me. From a liability standpoint one why is that when somebody gets hurt on the property they will now sue the owner of the property. And the owner of the property is the general lots key LLC. And not. Pot not on Todd personally. I don't know I'm a shareholder. In a company and the company owns the building. Now that is wonderful Susan that's exactly right because if I owned it personally or a few listeners. Only your rental properties in your own name. Then the liability will be yours and they will sue you personally sir your wife personally. And they will go after all your personal assets re in addition. To the rental property and whereas when it's in the LLC. And the lawsuit comes. They sued the LLC. And not you personally because it limits your ability nice nice clear title and Ernie must not a Muppet that act exactly no way we have done that we're not that creative. And so. The the answer is that that track is a good way of owning it now either from attacks perspective. Right. And might burdened somehow by having this LLC in place. Now if it was a single member LLC. You're the only owner the only shareholder. You don't even need to file an income tax return. So would a husband and might be considered a single member now that would be a multi member OK but if you had a joint revoke a bowl or a joint irrevocable trust as the shareholder of the LLC. That would be a single member okay so no. Separate tax return no separate tax returns everything is disregarded from an income tax perspective and it flows right on your personal return to tax neutral. Tax neutral beautiful. But even if it was a multi member LLC. And the shares are owned in revoke double trusts or irrevocable trust which is appropriate for the guy that we're giving away today. You would need to finally form 1065 income tax return. It's still income tax neutral it pays zero tax okay so still to complete flow through kicks out Kate one has led to the owners. And then they pick it up on their personal. Income tax return so is there a downside. Owning in a healthy in Massachusetts costs 500 bucks a year and a half and and you get a tax deductible against Iran okay. But there is a downside for this air B&B person zone now all of that just so I can get back to this air BNP question folks. If you have 82 family home and you live in one. And rent out the bottom live in the top rent out the bottom or. You live in the entire holding your renting out the single rooms. In the air being via area. You might say great let's put this in an LLC ray. Here's the one downside. If HR primary residence. Right and that's what this sounds. If that your primary residence and you put in the LLC yes you will get all of the creditor protection in an income tax neutrality. Of the LLC we. Now it's not your primary residence anymore. It's a commercial property. And if you go to sell your primary residence even though you've been you've now not owned and used it as your primary residence for two of the last five years. You lose your capital gains tax exclusion. Associated with the sale of your house so if you're married you lose a 500000. Dollar capital gains exclusion. Or 8250000. Dollar capital gains exclusion if you happen to be single to that's not good. Now so people that have the two families and or that air B&B you might wanna consider. Lots of sort of umbrella insurance coverage. And by the way even with the rental properties that are in the LLC. I still recommend that you have umbrella coverage and it really helps the creditor to go away. Yet this is why you don't wanna trying do these things on your on their lot of people had their say on its gonna pee in LLC at my house then and on my own human thing rent out around. Yes they aren't tax implications the inadvertent tax implications. It's an expert advise folks fortunately for you know. Todd who is my president go to expert on all things elderly aren't estate planning has written every new guide for the month of march it's the differences between. Revoke Kabul in irrevocable trust in talks about. All the benefits of having revoke a ball in all the benefits of having your revote Coble trust to you can make a decision. On what type of clean and makes sense for you and your family. Call right now to get your free copy of this brain new guide at 866. 8485699. At 866. 8485699. Or download a copy on our web site. Legal Eckstein showed dot com just click on the guides and articles camp to download your copy. You're listening to Todd black ski apart in a lot from Cushing in Dolan I'm Susan power is a financial advise would be arms on advisory group. We'll take a quick break and we'll be right back he or in the real life stories of the legally exchanged. Securities offered to securities America member finreg SIPC advisory services are with the securities America advisors think securities America and its representatives to not provide legal advice therefore it's important to consult with your legal advisor regarding your specific situation -- on the Armstrong advisory group real life stories of the legal exchange and securities America companies are not affiliated. Your financial strategy has to include a thoughtful insurance plan. Insurance exists to protect your assets. Our friends of the insure a match agency can prepare personalized plan that gets you the best coverage at the best price call insure a match at 84499. Match let's before for 99 match many of our listeners don't know home and one or two cars that describes zero. You're the perfect candidate for free consultation to make sure your property and family are safe and properly covered. We'll also dig out all the discounts preferred customers like you can qualify for. Call insure a match to compare multiple rates in carriers at 844 and 99 match let's 84499. Match insure a match works with the leading carriers in the industry like our bella Plymouth rock and more. Their license for all types of insurance can save you time stressed the money. Well today 844 of 99 match or go online and ensure a match dived. Your team into the real life stories of the legal exchange with Susan powers of the Armstrong advisory group and Todd let's keep from the law firm of Cushing and buildings if you have a legally shoot you like just to discuss on the show send us an email and we may read your story on the air contact us through our website at legal exchange showed does come up that's legal exchange show dot com. Welcome back into their real life stories of the legally exchange I'm season parents of financial advisor with the arms and advisory group. Injuring of course by Todd black ski park with a lot from of Cushing and Alan. With a masters in taxation. On today's show we have tides bring you guys that he is written for the month of march enable cancer probably the most common question that Todd receives throughout the course of his work week. Which is what the difference between revoke global in your evil Coble trust. I think we probably should have named this guide what are the similarities between the two types of trust because they will both. Help you avoid probate they will both help you reduce and potentially even eliminate your steep taxes. They both can insure the here assets date in your bloodline. Where the you are concerned about perhaps protecting assets from the nursing home army be preserving them for a special needs child. Maybe you have concerns about divorce whooping. You can accomplish all of this but she need in a steep clean and this guy is gonna show you. What the differences are so you can determine what type of plane is right for you and your family. Call break navigate your free copy of this brand new guy and 8668485699. At 866. 8485699. If you prefer you can always download a copy on our web site. Legal exchange showed dot com just click on the guides that are those ten. And you know Susan you listed so many similarities I do have to throw in the one difference. Of course irrevocable protects it from the nursing home and revote Campbell doesn't. And I also want to let you know that there are many kinds of irrevocable trust yes that's important to clean and that this one is really talking about the Medicaid Europe and nursing home death try to understand that there's there's a lot of different kinds but. You write more similarities than differences for this kind of comparison. Having said that let's get on to the next topic. And this is where the daughter had come and and she had moved out of her house. And was. I know going in to take care of of long. Who's getting you know more and more needing more and more care when she actually then quit her job as mom's hair went down in moved in full time and was taking care of her. And time had gone buying in mom is not on Medicaid mom is not in the nursing home mom is still at home. Lot of you out there are probably faced with this forty something million caregivers. Personal cared about either doing it or. Thinking about moving in are only partially moved in our you know in this process somewhere. She's now in it full time. And again quit her job and they're some money in the bank here for mom. And but she's starting to wonder you know off months care continues to go down and she needs nursing home care one what's gonna happen. And true. Should she have been getting paid. All these for all the time that she spent already. Doing this this care giving. Folks. That's the picture that's the fact pattern. You know who you are if you're in that situation and you know whether or not you're getting they're getting paid or not lose your loved one providing care for another loved ones that's the difference. Between an agency. Yet providing care for a family member. A loved one providing care for a loved one. And wanting to get hate and lies there difference why does that make a difference because I explained to her that yes you can get. But you need aid personal care contract in place. If you don't have that care contract in place and mom just starts write new checks. Those checks are going to be deemed. Gifts. Because you need to change this. Up premise or the basis that assumption. That. What you're doing is for love and affection not for money. Into personal care contract. Takes clintons is that really he and and says look this is now a business deal. I'm not doing this for love and affection. And you have the personal care contract in place you itemize out that type of work you're doing. You put down the hours that you're putting in there in the contract. You list that term of the contract. You list in the contract how you're gonna get paid. You know bimonthly. Every week once a month. You list the hour Erica hourly rate that you're getting within acceptable hourly every time. You know seventeen to twenty bucks an hour and somewhere in that range probably would be at an acceptable range for a non professional. This is a loved the daughter in this case providing the care. Those are the things that you wanna put in the contract. And to put the icing on the cake to really clintons this transaction. Make sure the person receiving the money that care provide our. Reports that income on there income tax return. We've been because it is earned income and you know what folks Todd is included information about how to protect your assets in Indian. From potential nursing home expenses he's just include a lot of information about the differences between we evoke a bowling Erie book Coble trust this is a reunion guide to these written. For the month of march you can call to get your free copy right now. At 866. 848. 5699. 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 cap. So hot in this case is the daughter hasn't been getting paid can she back track. Get paid for what she's already done. I'm gonna say no and say it's too much of a risk if you start doing that I you can't go back and say I was doing it and you can do. Lump sum contracts that's OK you can say listen starting today I plan on working this far. For the rest her life and this is I'm gonna do and maybe take a lump sum. That's OK I don't lawful then do what you can do it but can go back OK in go back. But you may go appoints Susan when you were just discussing the guide. And how advanced planning is different this is not advance planning to do. This is for all you folks who are helping your loved one and realized your loved one hasn't done any advanced planning. Remember the daughter here said there's money in the bank. So she can get paid right but what I hear is there's money in the bank and if she gets sick and goes in the nursing home that money's going to be at risk group. And see so I think the distinction here is had she done some advanced planning. There would be less of the need to be taking the money for payment rate put it into the trust get the five year clock going. Don't worry about that money. So this is more of a last minute approaching Todd day bulb will she be able to issue lived there long enough that if mom does go into the nursing home that maybe they can transfer that. Home to the daughter she's the caretaker child I think that's also an option on if you. You know I don't know exactly how long it's been but but if she hasn't lived there for two years provided care for two years. And not just care but care to the extent that it's nursing home level care. What I mean by that is that doctor's note that you need to get reviewed must state that you know. Sally was providing care. In which consisted of the following. Me being toilet team. Transferring. Cooking those activities in dealing at least two of those activities of daily living needs to show up. In that doctor's note. And then you ask that you you can say if there is if there's a house anyway and on money. But house you can transfer that house to the caretaker chopped assuming there is a house and she's living in the house. But not the money news. Just the house many important to do the unions planning then writing so why are we going through this discussion then about the personal care contract while the personal care contract will help us deal what the money. Because right now even if we were to sit down and say let's get a trust in place 'cause mom's not in the nursing home yet. She may go in she may not make five years. So between now and five years if the clock is running wind not hate Donner. You could be 345000. A month depending on the number of hours. Daughter is a working in presumably if she's a living there it's 24/7. You're on call if she gets up in the middle of the night. So. That that idea of paying under a personal care contract in reporting it as income means. That there is no five year waiting period associated with the transfer of money from mom to daughter. Because it's not a gift it's payment for services for fair market value services rendered and sold. If mom doesn't make it the full five years at least whatever money has moved. Under the personal care contract that daughter could keep in yet to keep a log of everything on his while to real ending it this is an actual job it is. And it won't disqualify you for the five year waiting period so. That's the person but again that the the up a caretaker child exception is an option for the house best case scenario though. You know learn about advanced planning revote bubble verses irrevocable trusts and you know get your plan in place but some good last minute tips. Yeah and you know it looks maybe you've been thinking about putting together in a state plane and you know what tape they trust is right for you mean you don't knowing you wanna know. What's the difference between every vocal Bellini revoke oval tracks. Tides bring it guide that he's written for the month of march is going to give you a complete understanding about not just the differences. But the similarities between the two used to you can determine what type of trust is right for you and your family. You can call right now for your free copy of this brain and guide at 866. 8485699. That's 8668485699. If you prefer you can always download a copy on our website legally exchange show dot com. Just click on the guides and articles have been if you missed any of today's show you can download a podcast. And listen at your convenience. You're listening to Todd black ski apart in with a lot from Cushing and Alan. I'm Susan powers a financial advisor with the Armstrong advisory group we have Euro listener questions coming up next when we return on the relay stories of the legally exchange est. An asset protection planning can be overwhelming where do you start and how do you know what type of trust is right for you hi this is very are strong and I'd like to talk to you about the law firm of Cushing handle and they've been creating a state plans for folks in New England for more than thirty years and they can help you too with all the different types of trusts available I can understand the confusion when it comes to a state planning do you need to revoke global trust do you need an irrevocable trust and what's the difference you -- an expert advice and Cushing and dollars put together a free guide -- will help you decide the best plan for you and your family you can receive this free guide the differences between revoke global and irrevocable trust by calling 8668485699. They can even show you how it's possible to eliminate your state taxes while at the same time protecting your assets from creditors in the long term care expenses caller right now and get this free guide 8668485699. That's 8668485699. Or download it right now from their website legal exchange showed dot com. It's not too late to get a great grade and home mortgage leader bank specializes in a wide variety of purchase and refinance loans at some of the most competitive rates in New England a dedicated loan officer will work with you every step of the way and their local decision making means of faster closing calling 8776917. B 900 that's 8776917900. Or visit leader bank dot com member FDIC equal housing lender and MLS number 449250. Subject to credit approval leader banked a step ahead. This is a special announcement for a landlords chasing down only rent payments and making trips to the bank to deposit checks take a hassle out of round date with easy grant leader banks all mine rent collection tool he -- automatically deducts tenant's rent and deposited into your account visit WWW duds he ran dot net to learn more we Z rent your payments for each unit received regularly on the same day every month tenants pay nothing in the first six months or free throw landlords visit WWW dogs he ran dot meant to learn more or call 7816418691. 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. Look at that China is a couple questions from listeners when you first question comes from Kenya in New Hampshire and being out right. I am an agent under a durable power of attorney for a friend with a challenging form of dementia. I can no longer service her agent and she has no other friends willing to do it what are my options. So. Daniel this this is a tough question I mean it sounds to me like you're really her helper news. And and as the power of attorney you know what just so people understand what that means you can do a lot of things for. You can pay your bills you can access your accounts you can you know make sure all the expenses are Manhattan. I things for X better. You know I guess the question that's being begged here. Is she's she's got this challenging form of dementia is she competent to live on her own and act on her own without a power of attorney I don't know who. If I'm gonna assume the answer to that is no she really needs. Somebody to do with these things for her otherwise she's gonna find herself. Not paying a bail out on the street who knows why. Then I think you can certainly resign you EPO there's no law that makes you. Forces you to remain her power of attorney but what I might suggest that you do for her if there's nobody else around. And in fact you know that her dementia has her at a level where she is really considered incompetent we've been. Then you should go to court and get a guardianship. And you know the guardianship. Will allow the court to appoint. A guardian add light and for her to someone else to answer right and that person now. Can be responsible. To see if she has dementia and you resign as power of attorney. And she's not competent. She can't turn around tomorrow and go to law lawyer and say you know hey Todd what you draft me up a new power of attorney and I'll grant that power of attorney ten someone else that I tell me. Can she doesn't have the capacity to sign it so if she doesn't. If she does certainly maybe she should go do she should go find somebody else that she wants to do. But if if she doesn't have that capacity then Daniel you should probably you know initiate some some kind of a guardianship proceeding. For her and let the court appoint a guardian for her who will now take over that responsibility. That you were doing. In you know it's it's so important we do I think we kind of gloss over at bees then. Lesser of the doctor is the simple documents like our returning and a health care proxy. But they're so important because I remember you talking about a story of a Finley who's mom didn't have a power returning in place didn't have health care proxy. She was in the nursing home in the need to go to court to getting guardianship. To reduce some last minute think that this I was living with her and taking care right there and a transfer how sadly now caretaker child in it it I mean it's the time consuming process and and mom ended up passing away in the time that they weren't able to do this morning we're. Complete the transaction and prevent the lean from. Being asserted on the house because mom died at the house still earning him. And so because of that the that the property Godlington and she had had to deal with the Medicaid you know situation. So. So yeah I think it's very important that we these these as you call Susan as I call smaller documents should not be ignored and Danielle yearning yearning great position here to prevent this guardianship from happening and so. I guess my comment to you is to the extent you can do and I think you should do it but. Once you give up that power of attorney and guardian is in place you won't be it would get another partner Ernie. Now ought to be constant court. Dealing with the court on a regular basis to do everything. What at least. Something can be done. Could be that she's moving away and she's not physically able she's not going to be G graph the close and in usually tied you have your primary power tourney and they have a back up yeah I want to forget you have nova Canadian skiing out what the back up in this case could event. Could many I don't know all the overall facts but certainly very important to have health care proxies powers of attorney living Los. In place and it's only when there isn't the ability to get one or you don't have anybody that you really trust to a point I guess I have to go to guard Tutan. And. Plan plan plan. Yet you do need to playing you know what start educating yourself tots written a brain knew guide for the month of march it's revote Kabul vs eerie book public trust and it goes old car. All of the differences all of these similarities between these two types of trust. Maybe year concern where is nursing home protection me be just wanna have your thinly avoid probate. Maybe you want to make sure you have those treaties here is in place to take care of these by the insular health care. Decisions maybe you want to protect your kids' inheritance from future divorces. You can accomplish all of that but you need to have an estate plan in place in order to do that. This guy will help you get started in making sense of your ST cleaning options. You call for your free copy right now at 8668485699. At 8668485699. If you prefer you can always download a copy. On our web site legally exchange show dot com just click on the guides and articles. Todd our last question comes from bill in Wear him man that's in bill writes my sister was named executor of our parents well. It has been three years since their parents passed away in my sister has not moved to probate the well. Does it will have to be pro Beattie within a certain length of time or can she dragging it out for. Now that's a great question first of all this dead and a message here is let's avoid probably yes I mean folks this is this is exactly why. We want to stay away from probably nobody really understands the process anyway in all these procedures you have to go through and now lawyers need to get involved and move this thing along with the right. Whereas if you've done your trust via a revoke a bull horn irrevocable trust which is we're trying to educate you folks on what the new guide. Is. It impaired because if the assets are in there whether you said Susan there's more similarities than differences. Whether there in the revoke a bowl or the are vulnerable trust. They will nevertheless avoid probate. And then this question that bill has regarding how long probe they will be dragged out it's a moot point. Because there is probably just look at the terms of the trust and do what it says. If it says divide it and pay enough. Wash your hands to it paid out walk away. No probate court no dragging anything out OK and if the trustee doesn't respond you consume the trustee for breach of fiduciary duty move it right. Carries so. I like it better but pale that's not. Your situation. Your situation Billy you've got this will. That apparently. Has even been filed. And and then three years and three years so. My question bill is that well if the answer first but will supposed to be filed within thirty days of the date of death. Well yeah now there's an ET. Cannot filing it within thirty days real. I. Don't go to jail obviously there's going to be any penalties. But it's supposed to be filed within thirty days of the date of death. So the answer your question quickly bill is that notion can't drag out forever should be right now in fact. You know you wanna move in and file a claim against the estate to get her removed its British issue the one that's going to be listed as the executive she's yet she's named as the exact hitter so. You know you the first thing you'd wanna do is when they file the whale they have to petition the court to get her appointment just 'cause she's listed in the will. As executor. She's not it secular. She can't do anything she can't go access account that was in the deceit its name. She campaign bill she can do anything with the money that's in the name of the decedent. Until she's actually appointed by the court. So her and not doing this isn't empowering her. Really you need to file the whale an up and petitioned the court to get appointed executor and it's that petitioning the court. To get appointed executive that requires notice to be sent to bill and all the heirs at law. And bill you that would have the chance to object to her being executive and say here's your chance yet she's been dragging their feet for three years I think he hasn't that case I think is a great case as to why this person should be secular maybe you can get yourself pointed. Executor but that opportunity to do that will exist. So maybe it's time you file an action and move forward and push her along maybe get her removed as executive. And how about that trust is there a certain earned timed it things need to be held to be paid out in like that it's all based on the terms of the trust no statutory closet no go to probate is look at the track it's what you'd determined before you got what you want to trust that you want to trust to last another generation did you wanted to pay out when the kids reach a certain a each. Did you divorced proof that what did you send him so you can kinda control what the trust what it is and how your document collier asked its gates yeah. So I think this is a very important. Question for the bigger question I have is I wonder what's in the state ray whose pain in the real estate tax bills whose pain you know if there's property there was maintaining. Lots of questions. If you have a question you would like to ask Todd visit our website legally exchange showed dot com and click on the ask Todd tab. Maybe will be able to read your question on the air and hopefully. Hitting into will stop you from becoming his next real life story. In the meantime if he'd been thinking about creating an estate plan for yourself. Do your family at fever in start by educating your cells Todd Skype is written for the month of march its brand new. It's the differences between revoke a bull in Erie vote Coble trust. In this guy is going to give you the understating the you'd need. So you can determine what type of trust is right for you in New York keenly based knowing your individual family dynamic. Call for your free copy right now 8668485699. That's 8668485699. Or you can always download a copy on our website legally exchange showed dot com. Just click on the guides and articles have in if you missed any of today's show you can download our podcasts. And listen nag your convenience. You're listening to Todd black ski a partner with the law from of Cushing in Dolan. I'm Susan powers of financial advisor would be Armstrong advisory group are gonna take a quick break and we'll be right act here on the real life stories of the legally exchange. Hi this is very Armstrong did you know that the federal funds rate set by the Federal Reserve influences all other common interest rates the federal funds rate is the rate that banks use to charge one another to borrow money and while it's one of the lowest rates in existence it is rising observers expect additional rate increases in 2017 the Armstrong advisory group has written a free guide to inform you of the challenges that exists while investing in a rising interest rate environment if you have questions about how these rising interest rates might affect your financial strategy call 803934001. To get this free guide -- -- at our website financial exchange showed dot com if you have over 400000 dollars in invest more assets you can set up an appointment for a free consultation with one of our advisors who can help you navigate this new rising interest rate environment that's 803934001803934001. Terry suffered a securities America incorporated members in SIPC and advisory services are with the securities America advisors incorporated Barry Armstrong representative Armstrong advisory group the securities America companies are unaffiliated. State an asset protection planning can be overwhelming where do you start and how do you know what type of trust is great for you hi this is very are strong and I'd like to talk to you about the law firm of Cushing handle and they've been creating a state plans for folks in New England for more than thirty years and they can help you too -- all the different types of -- available I can understand the confusion when it comes to a state planning do you need to revoke global trust do you need an irrevocable trust and what's the difference you needs an expert advice and -- -- dollars put together a free guide it will help you decide the best plan for you and your family you can receive this free guide the differences between revoke global and irrevocable trust by calling 8668485699. They can even show you how it's possible to eliminate your state taxes while at the same time protecting your assets from creditors in the long term care expenses caller right now and get this free -- 8668485699. That's 8668485699. Or download it right now from their 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 for years and they can do through June 2. Be a part of the show by emailing us your story on our website at legal exchange showed dot com that's legal exchange show time job. Welcome back into the relay stories of legal exchange I'm Susan powers of financial advice to would be Armstrong advisory group. To think of course by conflict ski. Apart with a lot from Cushing and Allen with a masters in taxation. On K shall we have tides bring your guy that he is written for the month of march. It's the differences between revoke double in Erie able global traffic. In this guy will help you decide what type of trust is right for you in your fame he. It discusses the various factors that need to be considered wind figuring out what you would like to accomplished. It talks about protecting your home in your money it discusses the best way to leave assets to your children. Including the option of divorce proofing their inheritance. He end it DT on the income and estate tax issues of both the revoke a ball in your evo cobol. In Arcadia will take care folks it talks about how you can potentially even the mini. And state taxes for your premium on your. Com right now for this bring new guy that Todd has written the differences between revoke ball in Erie local trusts. 86684. 5699. At 866. 8485699. If you prefer you can always download a copy. On our web site Beagle exchange showed dot com just click on the guides and articles. All right Susan here's the last situation. Great husband wife coming in folks. This is a second marriage situation so all of you that are in second marriage. Either situations or even. You know relationships where you have a significant other and you're not married you know these are the kinds of situations that that require tax planning member last month we did the top ten reasons don't estate plan. This is a reason to do when a state plan that doesn't rate necessarily. BP due to taxes right it's your the only behind the EST you've got to NC need to think about that so if it's a fifty year out there listening to us as this and you're in that situation this is for you. We got everything we've got a husband wife we got second marriage they've been together thirty years but married only ten Newton. He's got two kids in two grand kids she's got no kids. Really. No real thing and even maybe some cousins that she's close to but no siblings and nieces and nephews I mean so really. You know not a lot on her side of the ledger. And a big age difference when he 75 she 65. And soul again when you have all these things and the estate is just north of a million. Lot but just north of a million so there's a little bit of an estate tax issue here wouldn't as well and there's one other little fact I wanna throw and she brought 90% of the assets to the marriage now. He has a nice pension their living on it and that's helpful whose others you know there's some give and take habit but she's really. Brought the house in the assets that you. To the marriage. And so the concern really was when where when where there is is in oh geez I'm really nervous about having to say something. To money. Husband second husband for her first marriage and and I don't wanna offend him that I really don't want all these assets to go to his kids right. And she was really nervous. About that part of the meeting and so folks I want to realize if you're in a second marriage situation. That you don't need to be worried about that. It is natural. For anyone that's in a second marriage situation two realized that. The one who doesn't have the kids yet. Maybe they're close to those kids maybe you're so close that they feel like they're their kids that's great those those are nice issues to have and we don't have to worry and obviously that's. Not finish. When you have a situation where I'm too close with your children and Hampshire after thirty years he's got an old. Re already eaten and there should be no worry. To took telling the other spouse that you know what. I really want to take care of fuel. And that makes sense they wanna take care of each other. But when we're both gone. I don't necessarily want the assets to go to your children in broached the topic. When you heard meeting with them. If you ask about that feeling in league and it at that impacts. Your recommendation leave it to the lawyer right let the lawyer Beagle won the bad I'd be happy yes in fact that's what I do when you're in the situation you going to do it in the first thing they went to second marriages say look folks. I'm gonna have to ask you some seemingly very difficult questions. And generally once I say that they're like and I'll ask away. Usually they're okay. Can you half to and so I explained in the situation and you know and the biggest issue of course is. You know protecting these assets from the nursing on she 65 he's 75 she's like tot. If if he goes in the nursing home and you take all my assets. -- because even though 90% of them came from car they aren't risk a 100% because of him because they're married because they marry plane that tee and a minute you know what folks if you're concerned about protecting assets from the nursing home may be eerie vocal trust is the right solution for you how do you know. You can Colin request a copy of tides brainy guy Beattie is written for the month of march it's the difference is between revoke double in the very valuable trust. In this guy discusses protecting your home team and your money from long term care expensive. You can call in get your copy of this brainy guy at 8668485699. That's 8668485699. If you prefer you can always download a copy on our web site. We exchange showed dot com just click on the guides and. Articles ten so let's explain the difference here right because how these folks and again they've been together thirty years married only ten ray while. Ten years ago if you chose not to get married and I actually joked about it I said why you have such a good thing don't want to sugar up again and memories. But I understand so so they got married. And and bite if you were married and so if you're listening in your one of these significant other situations. Where year together but not married. You're not worried if you get sick and I was in the nursing home at least your assets. Held the significant other's assets one. You're not at risk. Corrosion Mary. But once you're married all the assets become available no matter whose name is on the account and then. Or at saw piece of property in this case or the realistic. So yeah I explain to of that obviously irrevocable trust planning is important here. Because I'm sure she's also concerned because they'd been together for so long. That okay if she doesn't want to leave her assets to his kids. In cheap PD ceases him I'm sure she yelled at doesn't want her cousins or whoever she's leaving his money to. To kick her husband out of the house that he's been living in that she probably wants to accommodate. For him for the rest of his life. Exactly right Susan and that's exactly what they wanna do so that irrevocable trust we'll do. We'll set it up by explain that says upon the death of one that trust continues. Surviving spouse doesn't own them money or the assets that are in there. There can be a trustee appointed area moral point that cousin who and that was okay with a spouse. And now the trustee can use the assets for the benefit of the healthy spouse. And even if that help the spouse gets sick in the future these assets will not go to the nursing home for the healthy spouse if I or the surviving spouse if one spouse has died. There will be language in there that says that surviving spouse can continue to live in the home provided they pay for the maintenance upkeep and expenses. That's certainly reasonable. And and so everything that that taking care of each other is in place. And it's protected from the nursing home for bowl then which is important yen has even though is an age difference either one can get sick. And then I talked about. How to preserve. That dispositive provisions. Upon the death of one spouse which means one in England. Because normally there's language that's when we set up the trust that says it all on the death of both what do we wanna do. Well you know we don't mind giving some to his kids so maybe we put a third of the his kids and a third to charity and a third to cut my cousins so that you know. That's kind of a nice gesture and everybody is taking care. You know but if she dies first she doesn't want him to change those wishes me. And so you can't we allow limited powers of appointment to be drafted into these trusts and they're called Testa Metairie powers of appointment. That you can give to the other spouse that allows them as the surviving spouse to change the document. But in this case we won't give it out on a first marriage means yeah we don't care on the first marriage and so. In this case I explained that we just won't put that paragraph in there. Four after one of you guy. Securities offered to securities America member finreg SIPC advisory services are with the securities America advisors think securities America and its representatives do not provide legal advice therefore it's important to consult with your legal advisor regarding your specific situation she named all the Armstrong advisory group real life stories of the legal exchange and securities America companies are not affiliated. Hi this is very Armstrong did you know that the federal funds rate set by the Federal Reserve influences all other common interest rates the federal funds rate is the rate that banks use to charge one another to borrow money and while it's one of the lowest rates in existence it is rising observers expect additional rate increases in 2017 the Armstrong advisory group has written a free guide to inform you of the challenges that exists while investing in a rising interest rate environment if you have questions about how these rising interest rates might affect your financial strategy call 803934001. To get this free guide -- -- at our website financial exchange showed dot com if you have over 400000 dollars in invest more assets you can set up an appointment for a free consultation with one of our advisors who can help you navigate this new rising interest rate environment that's 803934001803934001. 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