Mar 11, 2017|
We focus on educating the public on estate, gift and income tax planning matters, asset protection and Medicaid eligibility matters as well as advanced Medicaid planning and the preservation of assets through the use of Medicaid irrevocable grantor income only trust.
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
This is the legal exchange which John let's keep from the low for a look Cushing and Dolan and Susan powers of the Armstrong advisory group. Each week Todd and Susan we'll discuss many topics including estate planning how to avoid probate and protecting your money from a nursing home. If you need assistance in any of these areas for have a question about another issue that may affect your future. Call 8668485699. To make an appointment that's 8668485699. Operators are standing by now here are your host Don let's game and the season for hours. Welcome into the legally changed it Todd lucky I don't see impact I think need to advise him with the arms don't three group. I'm doing by Todd let's be apart in the law firm of Cushing named Nolan. With a masters in taxation. Hot welcome how are you. And never better feel a little under the weather and other than that I think media and a little better yet I have been a little bit and don't let it affect your performance today on an outing onion we will try not to have a couple things interestingly enough Treasury Secretary treasury munching. Has issued her they are issued the proposal. On Howell the new budget is going to be and I want you to know what it's gonna do for the entitlement programs. Song I'll tell you about that. And then we wanted to it is that time a year right. April 15. We're not there yet I know until March but we're not gonna wait to the last minute we're gonna prepare our tax returns in advance. And in doing so. I'm gonna help you understand how to prepare those 1041. Trust income tax returns that you all have done last year because yeah I'll stop crust dating last year remember we all did our tax aisle that are. Our irrevocable trusts us together so this might be your first year in preparing those returns. So I wanna give you some tips and advice on how to do or what to look foreign and so far I'm Jamaican expert. And I also have a case. That deals with. Late filed at state tax returns and how to avoid the penalty out and really all about not doing it on your own. Think we've been down that road before with Medicaid applications while it works the same. With filing a state tax returns when someone dies we've got a case that a New York I'm torn North Carolina North Carolina appellate court case. Another undue influence claimant tortuous interference claim I love that he seemed to be popping up in little rule of thumb on this one folks. Please don't sue under undue influence. Under a whale when the person is still living probably not a good idea and not some some. If we have time. There's another will that was drafted that that was drafted him properly and it's all about drafting and forget to we will not we got to guide we got asked time got more than. I'm gonna get to all the only target to all of those that you stop talking so we can trying it to most of it we also folks if you have not every quest did Todd has written a brain to guide. For the month of march its regal couple verses Erie vault Coble trust. In it's a complete guide to understanding the differences into similarities between re Vogel in Erie vote global trust and they think has probably the most common question. That you get tied is what is the difference between the two types of trust in fortunately for all of you folks. Todd has put his expertise on paper for you and he described all the difference is I think are probably more similarities than differences turn between these two trust so it talks about the various factors he need to consider. When you're determining what type of trust is right for you Ian your feet and he talks about protecting your home and your money. The best way to lead after its two children including the option of divorce whooping their inherent in it he kills the income and estate tax issues of both the Ricoh global. In your evil Coble trust in it outlined how not only can you reduce the heat and potentially eliminate your estate taxes. You can call right now to receive your free copy of this breed new guy. At 866. 8485699. 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 and articles tab. If you missed any of today's or any of our past huge you can always download a podcast and listen at your convenience. Thank you Susan. I'm just gonna make a quick announcement for its secretary treasury. Munson who basically said that upcoming budget which needs to be submitted. Actually this is a statement made eight. Will not cut Social Security. Medicare. And Medicaid. While they'll arrest the new entitlement programs are going to be spared. As what they said so. Let's say yeah and and then they also said of course they're gonna continue to keep tax cuts in for the middle class as say. You know a big part of the budget. Well we'll just see how they define middle class on. And I just saw this and I thought it was important to at least make an announcement I want everybody known case you'd see that secretary treasury make that announcement so I want to know. Now taxes tax returns which I spent some time that we do. So folks if you haven't irrevocable trust one of these that we talked about a lot to protect assets from the cost of long term care and now it was done last year. And it's time this year file a tax return when he first of all find out whether we even need to file one or not ray right our member. If the only item you put in the trust. Is your home. We have a lot of people give primary residence a lot of it was the biggest asset or you put your home in May be a vacation home in and you never. He'll ranked. OK just your vacation right. Those are two items that tend to go in and sometimes climbed say would want to put any money in those are biggest assets we just wanna protect notes we fine. While folks. If that's what you did in you do it with me anyway. I would not have assigned a tax identification number for that trust miner number one. Because there is no income being generated by the trust okay. So if there is no income being generated by the trust because you or in one of those categories. Then you do not need to file the 1041 income tax return. OK now I spent a little bit time on that because. I Tyson in the outset I would not have obtained a tax identification number for you if we knew. That's all you plan on putting it. Because if you are in fact we're thinking about putting in. You know I'll brokerage account. In addition. To the real estate home in the vacation home. Well then I would have got to a tax ID them are even savings account anything it's gonna generate any kind of income correct that's correct so. I would've gotten you a tax ID numbers and because you said we're gonna be putting money now what do you got the tax ID number. But she never really got around to putting the money and you just put the real estate and in here we are in 2017. You set the trust up in 2016. And there was no income aren't. Do you still need to file. The answer would be no you don't need to fund because there was no income generated by that trust assets okay. However. If you have that ten if you have the tax ID number and you don't find all. You're ultimately gonna get a letter from the IRS. Saying. Where's the tax return associated with this number okay in what he do that then you need to send back. That letter with a letter attached to it indicating to them that there was no income earned by the trust. Therefore there was no need to file a tax return okay. You could see why I say I don't get tax ID numbers for people and I know they're not have any income producing assets in the trust. We don't need that extra hurdle share. So folks that's a little bit about whether or not you need to fine now. What if you put the two family house and if it's a two family homes that you put in and you live in one unit and rent the other unit. But she retained a light for state in the deep. No income for the trust known beatify. The life estate retained in the deed which is over the whole property is okay on one deed. Even though to to family means that you collect all the income no need to file. Rice says they're not making their checks payable to the area of the global trust in this case they're still making him cable T you are exactly right Tuesday comes directly to the lifetime. And that's only if it's at two feeling where you live in one of the units. And you retain elect a state unlike the case that the key he still let's take it to your next level what if it is a. Rental property. Whether it's one you Ridder multi units if you don't live there and you don't have a life estate and that property. It's in the trust well now that trust as rental and OK and you must file form 1041. Or if you put your brokerage account in there or your bank account and you wanna have that. Account protected from the nursing home. It's gonna be generating those nasty 1090 nines so there will be income and. If you have in common venue need to file it's a form 1041. That gets filed. Make sure in the upper left hand corner you check the box grant tort trust. So look there and make sure it's checked if your accountant is doing it. And there is no taxes due at the trust level. Even though you're not an expert at 1040 ones when you get the tax return prepared by your accountant he hears the tip all you need to know. If you look at that front page of that tax return on the right hand side is all the columns were the numbers go yeah. If there's any numbers in any of those columns are in any of those spaces. Especially in the tax due line. Then it is done wrong. Send it back to the accountant before you sign it or before the trustee signs it's gone wrong and zero taxes at the trust level. On these grand tort 1041. Tax returns. Everything just gets picked up on your personal return you know what we're gonna come back to this topic only returned. Sure because I have a couple of questions I've gotten from clients an ad I'd like to declare act violent. In the meantime folks page twelve of Todd skied it is written for the month of march the revoke Kabul vs Yury vocal tracks page twelve deet tails all of the car responding income tax considerations. In how these two these. Two types of trust are treated. When your filing your tax returns. You can call to get a copy of tides bring new guide right now. At 8668485699. That's 8668485699. Or you can download a copy on our web site. Legal exchange showed dot com just click on the guides and articles tab. And you can download your free copy of tides bring you guide the differences between revote Kabul in Erie book global trust. You're listening to Todd black ski apartment with the law firm Cushing in Dolan. I'm Susan powers of financial advisor to the Armstrong advisory group will take a quick break we'll be right back on the legal exchange with Todd black ski. Securities offered through securities America ink member and that SIPC an advisory services offered through securities America advisors thank securities America in its representatives to not provide legal advice therefore it is important to consult with your legal advisor regarding your specific situation pushing in on the Armstrong advisory group to legally exchange in the 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 were downloaded 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 there securities America advisors incorporated Barry Armstrong representative Armstrong advisory group the securities America companies are unaffiliated. Or financial strategy has to include a thoughtful insurance plan. Insurance exist to protect your assets. Our friends at the insure a match agency can prepare personalized plan that gets you the best coverage at the best price. We'll also dig out all the discounts preferred customers like you can qualify for. Call insure a match to compare multiple rates and carriers and 844 and 99 match let's 8449. B nine match insure a match works with a leading carriers in the industry Laker bella Plymouth rock and more. Their license for all types of insurance can save you time stress the money. With just one phone call and one relationship. Called today 84499. Match or go online and insure a match dot com. Tune into the legal exchange we've done let's do and Susan powers if you're dealing with a loved one who may need nursing home care. Don't delay Coleman at 8668485699. And let us help guide you through the process while protecting your assets that's 8668485699. Welcome back into the legally changed with Todd let's keep. Nine season Paris a financial advisor with the Armstrong advisory group and I'm doing by Todd let's ski a partner with a lot from a Cushing in dealing with a masters in taxation. On today's show we have tides bring you that it is written for the month of march. It's the differences between revoke a bowl and you're able Kabul tracks. This guy has been updated with all the 2017 information in terms of taxes in these trusts is well. It's going to help do you decide what type of trust is right for you in your family. Based on your own goals and objectives in York the only dynamic you call to get a free copy of this pre new guy at 866. 84. 5699. 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 guide that articles tab and you can download a copy. Well Todd and going back to my least favorite subject taxes hate taxes these are income taxes of these are not estate taxes is we all have to pay. I hate income tax that we all I'm not dead yet I don't care about its objectives right now I got that I and I'm living this nightmare self. Couple questions for you that I have gotten from clients who have done on through the process of doing their trust cleaning and they now have. The eerie vocal atrocity just kinda go through and you know we do. We do arrow review. Attacked their tax status and went welcoming frank and how they mete out. They filed yet. And I came across a client who. Created their trust in 20152015. Did not file separate tax return. Add it all come in their paths just detached everything to their 1040 because they were working with the CPA. Who was familiar with the process and the green tort traps. So now it's 2016. And I say OK did you bring your last year's taxes with you. Right and they only have the one and I say where you're trust tax returns because I wanted to seat last rightful or B how is sending out. What what what it was actually crickets in the round chore so what do you do you. When you should have filed a trust tax return but she didn't now you know now. You know you have to go all or by. I think it's a great question and does remind me of another question what target tournament but you know. I think first of all folks if if you're listening in your finding yourself. To be in that category. Don't pan am OK and and here's why. As I said when you when your checking to see whether the trust tax return is done right or not. And certainly you're no expert to look at know whether it's done right or not. And I simply told you that if there's any numbers on the tax return has gone wrong. Which means you don't pay taxes at the trust level anyway OK it's information on file at the entity. And and it flows through to where. To your personal return so the fact that. The individual that you're referring to in 2015. Did not violate trust tax return. But nevertheless sounds to me like they picked it up. On their personal income tax return yes they definitely have those ten canines and their trust. Attached so they pay taxes on what they should and and not only did they file their personal tax return on time they paid their taxes on time they paid their taxes at the appropriate. Rate. Meaning on their return on their personal return. So there's no IRS problem here you don't need to worry about failure Tut paid and failure by L and all these interest and penalty charges. Why because the taxes were paid and they were paid at the right level of the individual level. So that's all good should you go back nevertheless some file the tax return yes. It should be amended tax for amended it should just be that the tax return for the trust filed. It will show that yes it's late but any interest and penalties are doomed for failure to file and failure to pay our only on. Penalties there they're calculated on the amount of tax that was due. That is under no. Right at that it's at this trust level there is no taxes do so there would be no. Failure to file penalty or failure to take a pay cut you filed your personal return and you paid. So good news is say your 1040 is basically zeroes across the border 41 attempt when he excuse me to trust actually turned. You check in on that green and toward tax box yeah zeroes across the board. Then how does that information give me 1041 G10 forty. There's little letter that's generated when you prepare that return okay has all the numbers on interest dividends gains rants. Okay and you just pick up those numbers. Right on your personal return it's kind of like at 1099 from your trusty yourself right OK and I might also add that it does not matter. Whether or not you actually distribute the money out of the trust somebody people say. Well I put my brokerage account and I never touch that money at just stays in there as long as it's earned just like anywhere else. It showed you the 1099 is issued you gotta pay taxes on let me take it out or not still shows up on your personal return. I would expect a little magic wand action from you being able to get rid of those taxes completely because you know I love Lou Paul so it work in on that part of it. In the meantime folks until Todd discovered how we can actually eliminate our income taxes in addition to our estate taxes. Call to get your copy of his brain new guy that he is written for the month of march it's the difference is between revoke a ball in theory vote Coble trust. In the guide out Bahrain's how you can reduce your estate taxes how you can eliminate here's C taxes. And how the income taxes are handled on both of these types of tracks call to get your free copy right now 866. 8485699. That's 8668485699. Or download a copy and our web site. Legally exchange showed dot com just click on the guides an. Articles tab so. Right along those lines a perfect segue of failure to file is the case we had. Where there was a late filed. State tax return you can. Now a member state tax returns when their large could generate a lot of tax liabilities share and turns up that the executor who was a person. In this case it's as a Pennsylvania court case. The executive or failed to file the estate tax return. On time. But relied on a tax professionals. Advice. Okay never was really advised about the deadline to file the estate tax return. So then they got around to filing at the interest and penalties that were due yeah. Not to tax paying the interest and penalties that would do for file jointly. I'll these Sony advice of their professional. 197868. Dollars. Folks that's a big mistake. K so. Be mindful write that one we always say don't do stuff on Iran right this is a prime example of don't to stuff on year old. When someone dies now it's different than the trust tax return that we just talked about a minute that's an intent and certainly this is an estate tax turn it's a once in all. Lifetime. I think actually final one time. But in this case they were able to go to court and say that eat in order to waive the interest and the penalties and on the tree can never actually waive interest. Can definitely waive penalties. Was to show. That the failure to do something was under reasonable cause and not willful neglect one that's sort of that the difference. And they satisfied that rule here. Because they said look. I'm an executive on an individual on the person I relied on advice of a professional. And was. Led astray. I would think that professional would be on the. While it cut that it's certainly certainly get it we would be better would be better for everybody and and I think that's what it comes down to an end somehow there might have been a miscommunication and the migrants a misunderstanding whatever was. And I'm not sure that it was willful on anybody's part rainy weather it be the accountant or the the individual the pre tax professional or the executive. So there was that the good news is there a way around. How long. Nine months after the date someone and that's hard and fast rule so even if. They dying gene you are you have to file that return by September even though the tax years not all done right. Okay has nothing to do with the tax here OK it's a complete. You'd die in June. Nine months later it's do. Now has nothing to do it the income tax in it speaking in an extension on that or is it your (%expletive) you can get an extension to file but not usually pay. Right so you got you hey you might be at a file some kind of administrator returned it. Generally speaking it should be hard and fast deadline everybody should mean it I'll pay your bills move on. My point is that there's so much involved in the east between portability elections. Understanding funding America's share in the remainder share for state tax purposes you don't wanna do this on your world. Have one hell yeah I used your guideline folks if someone dies if you have a spouse that guys apparent that guys love when that dies. Something usually needs to be done either way unique gift pick up the phone. Excuse me and get some expert advice just I know what needs to be down. Todd is giving you some expert advice with his guy that he's written for the month of march. It's the most common question he entered folks what is the difference between a re vote global. In the carry local contrast. There are more similarities than differences in to hide his DT of them in this comprehensive guide. Get your copy break now 8668485699. 8668485699. Or download a copy on our web site legal exchange showed dot com just click on the guides and articles tab and you can download your copy. A re vote global verses you're able Coble trust right now. You're listening to Todd let's keep from Cushing and only kind season powers Toney Armstrong advisory group we're going to take a quick break and we'll be right hacked. Here in the legally exchange at Todd black ski. Your financial strategy has to include a thoughtful insurance plan. Insurance exist to protect your assets our friends at the insure a match agency can prepare personalized plan that gets you the best coverage of 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 you 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 84499. Match let's 84499. Match insure a match works with the leading carriers in the industry like our bella Plymouth rock and more. It's just one phone call and one relationship. Well today 844 of 99 match or go online and ensure a match dot com. Hi this is very Armstrong here's -- -- that you might not be aware of Americans spent over seven billion dollars a year on toothpaste and -- -- 47%. 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The segment where time will enter 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 Todd a couple of questions from homelessness for you today. First question comes from Antonio in Massachusetts inning Antonio writes my parents own reside in the two feeling home. The second floor has been vacant for several years from listening to the show we understand that one's primary residence is not at risk if there's a healthy spouse at home. When one spouse goes in to a nursing home. In a multifamily property does that refer to the entire building or just the unique you live and and finally if feeling moves into the second floor with the entire home be considered a primary residence if it's utilized easy single in me to. As a great question because I loved the loophole angle he's looking for here in Lebanon. All I like loopholes to an in and you know what I think in this case that it it it's not us it's it's a loophole put it actually works. And I know I I think in this case and a lot of people have these two family homes we've got to be aware of that share. And and didn't get the interesting part here is I don't think it matters. Who's living. In that bottom unit. Let's say they live in the top unit. And doesn't really matter who's living in the bottom Munich because it's one deed. One building. And that's their home so did they own the entire building I yeah so does it matter if they're collecting rent or not and that's second unit. I'd does not matter whether they're collecting rent it does not matter whether or not Antonio moves his Stanley in there. I think it's a primary residence for the full dwelling whether Antonio moves his family in or not. At the bottom part of the question. And and so because it's the primary residence and we should just but the caveat out there that you're right. Antonio if one of your parents goes in the nursing home and you've done no planning in advance you not set up one of these irrevocable trusts. Then. That house would be non accountable as long as the other parent is living there the whole house okay because it's one property. It's not condominium guys to write one property. So that's because there is a healthy spouse at home what if one parent passes away and then you've got. A single individual so let's say dad passes away mom goes into the nursing home. In the meantime Antonio is living in the other unit. So on the take this and break it down even more than that let's forget the fact Antonio's moved in for a second let's just say why this is not great planning. Yes you're right Antonio that if one spouse gets sick the other spouse can live there and they won't take the entire house even though to to family. Now he dodges a bullet. Raise your point Susan now we've got us we've got a healthy spouse living there who could become not healthy and and now when they're healthy spouse goes in the nursing home and there's no spouse living there now the house will be leaned. It may still be non accountable but they will put a lien on it they won't let the first spouse goes in but they will. When that survivor the help he spouses who goes in so now it becomes not that it accountable but Lee Campbell so now it's subject to being taken. And sold and used the proceeds used to pay back the nursing home for money spent when that healthy spouse. Is on Medicaid still in this case if in Tony are losing with his family and he's caring for mom. Would they be able to have perhaps qualify and that caretaker child exemption. So that's what it becomes. Better OK so if in fact there's been no planning done. That goes in the nursing home we dodged the bullet because the entire house is non accountable because mom is living room then Antonio moves it. And there's still no other advance planning down they never got around to doing a trust and any kind. Now Antonio nose in and mom's health begins to fail and Antonio finds himself providing care. And he lives there for two years and provides nursing home level care for the next two years. Meaning providing either toiling bathing cooking transferring the activities of daily living tattoo of though is feeding. Two of those activities of daily living. And you get a note from the doctor saying that in fact what you were doing. Then if that. Mom and a healthy spouse mom in this case ends up going in the nursing home. Then Antonio could qualify as the caretaker child that we can transfer the entire house Antonio. Without a five year waiting period. Now that's a lot of convoluted ways of protecting this house. Yet and that's the sun and moon and the stars are all lining up to work out for you better option and a I gains cleaning the I think you're right Susan I think the better thing to do here is to do some advance planning and not play this game. Although it's important for people who haven't done that app and are faced with that situation right now so it's it's good information that way. In Tony ally urge you to request a copy of tides bring it guide it is written for the month of march. It's revoke global verses you're able Coble trust in this guy is gonna show you. Hike your parents can actually do that inning in Indians to get that clock started to keep you cannot rely on. These last minute techniques that work today that might not be available down the road when your parents come to that situation. Call to get your free copy right now at 8668485699. That's 8668485699. If you prefer you can download a copy on our web site legal exchange channel dot com. Just click on the guides and articles ten. Todd our next resting comes from Janet in South Boston she writes. My father passed away a few years ago in my parents had not done Iranian state planning before he died. Is there any way to reduce my mother's estate now to eliminate her estate taxes she is worth around one and a half million in isn't feeling. Well I am so that failing health part leads me to believe that you know you could make tips now and try to get things out of the state. To bring down the value of the state for state tax purposes but. And generally when I see these facts right you know one point five million dollar est four month. And I'm thinking that probably a good chunk of that state his house. I had a gas share. So maybe you've got obviously assumption maybe 800000 dollar home. With a low basis. So that means there's capital gains built into that home. And maybe they've got some CDs or some stocks and bonds right the point I'm making is yes you can make gifts. Well you're lifting. To bring down the value of your state farm mass purposes remember we don't need to worry about it for federal. Because the federal exemption is way higher than the one point five million so you look at this case and you say I take a federal idea off the table. Federal taxes. But from Massachusetts what's the tax while if you die with one point five million dollars in York ant state. The tax would be about 6065. Current tank. Well that's OK but if I've got an 800000 dollar home. That they probably by forty years ago yeah. For you know like point share. And even if they put some money into it over the years what's it put a 100000 into it and so let's say their entire cost basis is a hundred grand and so and then father died in and it was. Few years ago so we kind of know the value of the property was probably similar. To what it is today so let's say it was worth 800 when. When dad died which is what it's worth today although it probably fair assumption. That means that the basis is half stepped up assuming they owned jointly OK so let's say the basis is now 400000 for mom who. Which is helpful. But still I'm going to be giving away that asset to trying to bring down the value of the state. I've now given away a basis of 400000 dollars when it's worth 800 in the kids sell it after mom dies for. 800 right what do we have. We have a 400000 dollar gain yes because the kids would have the 400000 dollar basis that mom hat wouldn't. While 400000. Times 30% of 120000. Dollars of capital gains tax. Rainy by dying owning it Massachusetts tax state tax is only 64. Yes like them better than 120 I like it better. And by dying owning it we're gonna preserve the step up and base is completely eliminating the capital gains tax for the children. And paying the Massachusetts state tax won't pick your poison rain which is better so I think at the end of the day you'd you yes you can make gifts. But it would probably need to be cash. So if mom is pat is mom is not doing well and you have a couple 100000 dollars of cash kicking around and you wanna give that away. There's no. Federal gift tax 'cause you have a five million dollar exemption there's no Massachusetts gift taxes. So you would. Give it away. And now the state is down to one point to the tax is better it's about forty. And so it's helpful just be careful what it. Is that you give away yet seen a lot pick up a phony gets an expert advice because you don't wanna giveaways something it's an inadvertently create a bigger attacks do. When it comes time to pay the piper here folks if you had a question you would like to ask god I'm happy to give away his free legal rights. Visit our website at legally exchange shoot dot com and click on the house Todd have. Mean he will be able to read your question on the air and hopefully he is intervals stop you from being one of his next real life stories. In the meantime if you have not done so already. Call to get your free copy of his brain new guide the differences between revoke a ball in your evil global trust. This guy is gonna help you decide what type of trust is right for you injure annaly. It will show you how to avoid probate how to reduced or eliminated state taxes. How to keep those acid in your bloodline in how to protect your assets including your home Ian your money. From long term carry expenses. You can get your free copy of this right now. By calling 866. 8485699. At 8668485699. Or download a copy or web site. Legal exchange showed dot com click on the guides and articles have you ever podcasts out there if you missed any of today's issue as well. You're listening to Todd black ski apart in with the law firm of Cushing and Alan I'm Susan powers of financial advisor with the Armstrong advisory group. We'll be back in just a few minutes here on the legally exchange with Todd black ski. 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A state 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 -- all the different types of -- available I can understand the confusion when it comes to a state planning do you need to -- global trust do you need an irrevocable trust and what's the difference you -- an expert advice 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 and 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. 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 a pastor 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. You're listening to the legally exchanged we Susie powers and Todd let's game. Understand and help taxes can affect your estate plan is critical to building a successful plan if you need help in this area told us right now and make an appointment. 86684856. No night that's 8668485699. Welcome back into the league in exchange for Todd let's see I'm Susan Harris a financial advisor with the Armstrong advisory group. I'm doing like public ski a partner with the law firm of Cushing and Dolan with a masters in taxation. On today's show we have tides bring it guided he's written for the month of march. It's the difference is between re vocal in Erie able global trust it discusses how various actors and determine what type of plane is right for you. It we'll show you how to protect your assets including your home your vacation property your rental property your investment accounts your bank accounts. It is in here it needs to be protected. It discusses the best way to leave assets to your children including the option of divorce proofing their inheritance. And how to accommodate for special needs children or green and child then. You can get your copy of this bring you guide by calling 866848. 5699. That's 8668485699. If you prefer you can always download a copy on their web site. Legally exchange showed dot com just click on the guy it's an art. And sisters and let's talk a little bit let's go around and knew your card to North Carolina there's an appellate court case down there that that we spent a little bit time on in May be well. Will explore these differences between the re vocal in their vote would trust a little bit more. But this case is interest in because it's an undue influence case it's a breach of fight do jury duty case it's a tortuous interference case. This. Individual that the mother lets say. I changed her will. And transferred some assets. In favor of her son and daughter in law. Which I do find a little awkward little strange but nevertheless that's what she didn't. Well thought daughter then said all wait a minute I'm gonna file an action. And say you know what there is tortuous interference of an inheritance here there's a fight breech of I do she airy duty here. And there is a not so breach of fiduciary duty and undue influence so things that dot I was out basically appears carry that weight or. Significantly reduced in this son in the dot online or in team okay where in favor. And so she files this client. And as it goes up to the appellate court because I guess the superior court said that you can't do it and the appellate court agreed. So she's saying that the sun influenced mom to change the way things are laugh you out and you need to translate that tortuous thing you said well that mean I influencing. Mom and that's almost like a court you know like maybe. Somehow interfering with moms judgment. And making mom do something that. She wouldn't have otherwise done OK I. So it's like a tortuous interference my dear I tort is very different than yours so thank you and yet you think that could highlight our cooking tortilla. And so in this case the the the answer is that that. The court came back and said while while listen their it's not the tortuous interference. Of an inheritance is not right yet. Because mom still living. Wow so Z you can't it's not right. To be litigated. Number one. In the other two there's no breach of by judiciary duty or unduly influence here yet either because you are arguing about only and expect. Acted inheritance. Didn't get it yet. And and the point being folks as well mom is still living here. More might spend the money on her older. Mom might decide to a gift money to charity on her own. My light to any number of things with these assets that would mom might go to when nursing home and lose all the assets to a nursing home before she dies. Daughter of the court is saying. You really don't have a claim yet because you don't know for sure whether you would get these dollars that you're upset about. Anyway I think by bringing this claim she may have ensured that she will not getting these dollars because it now with me. Many beneficiaries to you again I think that's where you are here I think you really need to say you know. Folks think about whether or not gonna bring the action that is on their own our other attorney helped them. I don't they came at me my first comment to them look we can determine what your rights are now. And we can also may be idea as to whether or not he should even be bringing this action right it to me yeah I think you're right Susan you they've sealed their fate. In terms of whether or not they're gonna be getting money. In the future the daughter in this case and you know what folks. Your individual the only dynamic is one of the important factors in determining. What type of trust is right for you do you want to protect your kids from themselves 'cause their dad with money. Do you wanna protect your kids' inheritance from potential future divorces because you don't like that code taken daughter in law. Maybe you're concerned about protecting your assets from long term care expenses you don't wanna impoverished your spouse. Maybe just wanna have kids avoid probate meaty eliminate estate taxes. There are so many reasons to create in this state clean and in Todd guide is written for the month of march. It's a great resource for you to determine what type of plane is right for you in your feeling. You call right now to receive your free copy of this bringing new guide. At 866. Eight for eat 5699. 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 tab. You know tied it it brings to mind a question. A lot of people have these misconceptions about how these remarkable trust work lean and if someone has put their assets into your evil global trust. In the daughter comes back and pulls the Cheney against us saying I'm in a finalist at because your leading money to ward did to Billy. And his wife and to me. Mom or dad did they even have the option of saying all right Susie you're now out. You know a lot of total failure you're saying this this action is brought not because it's challenging whale. Yeah challenging track will not even a chest during their life there I like that it's if mom and dad they weighed in at CUC we don't like your attitude. Can they now uncle back in change how they've left things in near Erie palpable trapped selects. Let's compare the revoke evil and they are yeah let's just to both here I think that that makes the most sense. The answer is what the revoke of trust you could certainly change it so let me just play out the facts you're saying that. And this is a really interesting and technical distinction in making Susan. Because somebody bringing an action against a whale like we just talked about in the news at hand. Remember a will does not even speak. Until you're dead right so will doesn't have any power to your dad. Whereas a trust is a living trust is and it's working. Right now so you actually would have a better chance. At bringing the action. When your living against the trust that you already created has the right that's speaks in right now it has validity right now. And so let's play out that string now understand difference if it's a revoke of trust and the daughter suit saying hand looked at that. Trust document it did and I noticed that I'm cut out or that I'm. You know reduced and the amount of benefits and I'm going to be getting. Well certainly the I think you run the same result it's a revoke a bull and because it's revoke W really only have an expected inheritance it's not yours yet mom can change her mind any time she wants. And she did and so she can revoke the trust or revoke it but change. Change how she's leaving things move things around postings around yeah and I think that's an important distinction because now you have the irrevocable trust you still can do that. Same thing you can then create the irrevocable trust and even though it's irrevocable. You retain what is known at least in these Medicaid irrevocable trust there there's many kinds of irrevocable trusts this one is Medicaid irrevocable trusts. In these trusts you retain a limited special power of appointment war. In English the ability to change the beneficiaries. Of the trust but limited. To a class consisting of whom every you define. Generally it's children of all generations and charities OK or nieces and nephews are siblings right you can't add somebody different. To that class can put a globally in the later on after husband that's right a so you can't add somebody who's which you don't care you can still change it among the group that you named and that's where you want anyway that's what you do any so the answers you got even under that scenario you could come back and change the irrevocable trusts and provide. Not only good protection from these lawsuits but just flexibility in general right forget that that tortuous interference just think about the fact that. You may have set up an irrevocable trust and and and life goes on and you say cheese I've got. Way more grandchildren now than I had before and I would like to leave 10% to my grandchildren. You can do that even with the irrevocable certainly can do what the rev a couple or you can change your. Todd has created this guy that will answer your question of what the difference between the two type of trust. There are differences but there are a lot of similarities. In this guide DTL exactly how they operate in what type of trust. Is right for you call to get your free copy of this spring sky at 866. 8485699. At 8668485699. If you prefer you can always download a copy and our web site legally exchange showed dot com just click on the guides an article tab. In if you have a question you would like to ask Todd. Couldn't ask tied tab and hopefully we'll be able to read your question on the air and sea view from being one of his next real life stories. Todd let's keep from a lot from of Cushing and Dylan thank you so much always a pleasure thank you I and Susan Harris a financial advisor with the Armstrong advisory group we thank you for listening today and we will be back again next week. On the legally exchange with Todd. Let's keep. Securities offered through securities America ink member and that SIPC an advisory services offered through securities America advisors think securities America in its representatives to not provide legal advice therefore it is important to consult with your legal advisor regarding your specific situation Cushing and on the Armstrong advisory group to legally exchange in the 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 were downloaded 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 8039340018039340012. 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State -- 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 -- -- they've been creating a state plans for folks in New England for more than thirty years and they can help you -- -- all the different types of -- available I can understand the confusion when it comes to a state planning do you need to -- global trust do you need an irrevocable trust and what's the difference -- 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 -- 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 and long term care expenses caller right now and get this free -- 8668485699. That's 86684856990. Or download it right now from their website legal exchange showed dot com.