Oct 12, 2017|
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. Hours. Welcome into the legal exchange with Todd let's he I'm season Harris I think until I could be ten guys in the group. And enjoying my time let's be apart and with aloft from Cushing and talent with a masters in taxation. Todd welcome how are you I'm never better and you I am great seeing you don't. We have lots on the list today excellent or some some new cases capital financing before we get to the cases I do wanna chat with the about. This Texas law we talked about this lot of state Susan are implementing. Laws that allow financial advisors like yourself. And banks and credit unions to stop transactions if they think they're going to be abusive to the elderly fraudulent to the elderly and disabled. Well that's the Texas existing law and tell you about the new Texas law that goes one step further but then again that's very important to help people in and protect against. Financial abuse. For the elderly. Next I want to take you down in Nebraska there's a Supreme Court decision near the deals with advancements we don't talk about this a lot. But it's important and how do you know what would you give somebody something. Is that an advancement on their inheritance if it is how do you adjust for it in your state planning documents and what evidence do you need to show. That you've actually treated something as an advancement. So the Supreme Court case in Nebraska deals with this issue. And I can also show you how these advancements are so helpful. In balancing the states even after you might have given somebody something that you think is treated as an advancement I know I've I've. Heard the questions asked many times tottering well you know and and Julius stay clean or a split up between my family but. I've given this one alone yeah. Do you expect to get paid back what. That's great we all feel absolutely up as well I think that's a great additional piece that fits right into that kind of a fact pattern. And then we go to Virginia and there's Supreme Court case in Virginia. That deals with espouses that owned joint accounts now they were kind of old and there are 95 Larry. And Lila was I don't know how old she was I'm guessing similar in age. And they filed for divorce but before the divorce was filed he took like 250000. Dollars out of a joint account. And it's interesting to see whether that was allowed to be done or not and whose money it is and I'll run through that whole thing and of course in that case they both ended up well I'll give you a fact pattern in more detail we get there but. And in those that those are the main target that we have for today. In France have a couple list questions from listeners Torre tied and folks we have a bringing new guy because it did they bring calmer do you believe that. October 09 ish and ongoing and it's scary. Winked at a but it roots. Taught me guy that he is written for the month of October in designing the perfect income only eerie vote Kabul tress and folks this guy is all about. Drafting making sure our that the trust you have for the trashed your thinking of creating. Has the right language in it you want to be we eerie a lot of different types of classes. If you have an irrevocable trust already. Todd is listed out all the various types of clauses that are red flags feel that you need to know what to look for. Because you do not want to find out when one of you is going into the nursing home that your trust does not work. Call for a free copy of Todd bringing new guy designing the perfect income only your evil you're evil global traps rate now. 866. 848569. Earning. That's 8668485699. You can also get a copy of this guy on our web site. Legal Eckstein showed dot com just click on the guides and articles tab and remember if you missed any of today's war our pasture as you can download podcasts. And listen you're leisure. Yeah that's it Susan Rice and it was scary and it's a scary that that years it was a lot of legal reference I get it it is trying to be doing now is going by fast. So yes I think that says so important that people understand these trusts and and how they work and really. What we've gone through over overs how they're drafted makes all the difference in the world you can't give wrong powers. To the trustee position or violate the rule and it's all about making sure the trust and finally the rules. So now. Let's head over to does Texas long wanted to chat about a minute. So the old rule says that banks credit unions. Financial planning outfits. Securities firms except. Are allowed to halt a transaction. If they believe that the transaction was going to defraud or more harm than a disabled and elderly person. In some adjacent to suspect I need to abuse. Financial abuse they can stop the transaction okay. Now I guess what wasn't addressed and that law. What's the liability. And so that new law that Texas said you can still do. Stop the transaction if you believe it is fraudulent or going to cause financial abuse to the elderly or disabled in some way. And you can rest assured that you'll be liable for litigation. Even if the transaction you stopped. Turned out to be a legitimate one. Meaning there was no fraud involved in this was something that they wanted done and you can't be held responsible you'll have immunity from that. Which at the end of the day I I didn't realize you even had to put that in there because I know there's so many other states. That have put this. Kind of rule in place and we've talked about a lot of them. Over the years I'm glad to see more and more states are doing it but. In my mind. If I felt that there was a risk of me being liable. Or or let's say users' news show financial advisor if you were gonna be liable. For. The potential halting of a transaction that really wasn't bad. Why would you ever stop right. So I think that's the difference now I know there's been some other laws that have been passed but maybe what they're saying is you can report. Wary quieter re pour the report that it and. I suspect. I need to elder abuse we would call our compliance department before we press transaction in game guidance from them. As to what was going on whether or not action should be processed but it must have been I would suspect didn't have access. If someone did that in it was a Agile a legitimate transaction in the he probably got. Someone went after them pork from a legal perspective. Well I and I think that's why this came about I would think it may be the difference too is this actually says you can halt the transaction without. Liability like in these other cases the more general laws that are out there saying you can report it. Without stopping so you might let it go away but you had to report it and they're reporting a difference yeah if it turns out to be nothing there's no liability because all you did was reported you didn't stop a transaction because. Think about you could miss a trait. I'm in it and he liability on in fact I read an article before I think investment means did a survey in financial advisors Ian and me. Said that. Don't call me in the exact figures amusing you but it was around 6061%. Of advisors. Have found themselves in the situation. Where they have. Thought our suspected that there was a fraudulent transaction where there was I need to elder abuse but of those advisors that suspected it. Only 56% of them reported. So I think though it could be because they're afraid of that lie becoming too well I think some of the general laws are you are now allowed to report it without liability however tech iron. To places that. Going out of the way to say you could halt the transaction will outline built out so I think that's actually I'd like that I think that's even better it's for protections for the client protection that. OK if you if you stop a transaction because you suspect that there is financial abuse. What if they're legitimately is and you got you got to allow you have to do what's right in the best interest of the cloning here you know. I know we're we're talking about the guy in drafting the trust don't mention the trust here because that also. Not that that's why it's designed and we've said it over and over it but trust does help you. Prevent financial abuse so let's use our child as trustee. And dad all of a sudden wants to make you know some kind of a withdrawal remember first and foremost. The trust prohibit the distribution of principle to the back to mom and act blue so. If they can't get it directly in the financial abused her. Kinky can't get it and I think that's really the way to look at these trusts they're not designed for that reason. But boy when I start looking at the laws at their passenger protect elder abuse. This trust were actually do it's a nice balance you know it's a nice checks and balances Q well can you got the childish trust me they can always ask questions and and so it's it's a good buffer and so folks these trusts are not just about protecting us from the nursing home I think they can actually provide. A wonderful elder abuse. Cushion in and device to prevent that as well. In mile folks how're you supposed to know what should and should not being your trust. You go to law school but fortunately for olive view Todd lucky our resident elder law expert here did. And he is put together a guy that deet tails all of their red flags that you need to look for. In your trust documents he's included in operations guide as part of this thing you can understand how these scary vocal bowl trust. Function on a day to day basis don't put off having your trust drafted and she need to take action and educate yourself. Call for your free copy right now 8668485699. 866848569. Marrying. You can also get a copy other web site legal exchange showed dot com just click on the guides and articles tab. And if you miss any of two days are any of our past shows you can download a podcast and a listen at your convenience. You are listening to Todd lets be a part in with the law firm of Cushing and Nolan I'm Susan Harris I think need to advise it on the Armstrong advisory group. We'll take a quick break and we'll be back with more on the legal exchange with Todd let ski. Securities opera 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 illegally exchange in the securities America companies are not affiliated. Planning for retirement can be a complicated process many factors need to be taken into account including how to protect dresses from probate. And in order to make sure that your process goes as smoothly as possible the need to deal with an expert Todd lets keep our partner with the law firm of Cushing in Dolan and host of the legal exchange radio program has been helping listeners like you for thirty plus years he knows how to prepare your trust and keep your assets safe. This month. On his written a brand new guide told designing the perfect income only irrevocable trust and it. You learn about strategies to undertake what preparing your trust as well as specific language that must be included in order to protect your assets from probate. That's right. The only way to get this guide is online so head illegal exchange showed dot com click on the guides and articles tab and download your guide that's legal exchange showed does come legally exchange show dot com. Are you financial advisor who lacks the formal succession plan you're not alone according to investment news 43%. To financial advisors are over the age of 55 and many have no contractual agreement to care for their clients once they retire hi this is very are strong and we might be interested in buying your practice you worked hard but now it's time to find a successor the -- -- advisory group is a regional firm and we are looking to grow our business through acquisition we will consider both our ace and transactional oriented firms with a solid stable of young advisors who put your client's needs first and provide them with -- service and attention to which -- become accustomed if you're interested in talking with us please call me at 803934001. That's 803934001. Or visit us online at Armstrong. Advisory group dot com securities offered to securities America incorporated members and SIPC and advisory services offered to securities America advisors incorporated Barry Armstrong representative Armstrong advisory group in the securities American companies are unaffiliated. George tune into the legal exchange which John let's do you 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 exchange a toddler he unseen in Paris a financial advisor to the Armstrong advisory group. Animal killing by Todd lets be a partner with the law firm of Cushing and talent with a masters in taxation. On today's show we have tides bring new ideas written for the month of October it's designing the perfect income only Maryville Coble trust. Folks the state seems to be scrutinizing every application for Medicaid however we've seen how they can work in protecting your assets. When they are drafted properly. Todd sky will help you have an ironclad that's the thing you know help you review your existing trust to make sure you don't have any language in the and they couldn't quite frankly. Make you play in useless call right now to request your copy of tides. Designing the perfect income only trust guide. 8668485699. That's 866848. 5699. If you prefer you can always download a copy or web site legal Eckstein showed dot com just click on the guides an. Articles. So Susan let's go to now to Nebraska. Supreme Court decision I wanna talk to about there and it deals with the advancement now I know. We don't talk about advancements a lot what are they part of the war. And advancement is when you think you've made a gift to somebody. And you wanna treat that as the Aron and inheritance chair and so then you would need to make adjustments. You would think to your state plan share what you do. It hasn't happened here because like I thought was kind of an interest in case. Sheila creates a trust. And then later on she decides to give Mary 200000 dollars along with some kind of a written acknowledgment. That says that that that gift should be Mary's inheritance I'm not sure what that means but that's what she sat kind of made. That about three years later. Sheila Reid does her entire trust with no mention of any advancement to marry. Sheila dies while of course Mary's. A beneficiary of the trust. And nothing says that Mary's post to be treating as gotten 200000 dollars are ready as an advancement or. Or that it was treated as her entire inheritance. That the writing wasn't clear. So. They other siblings or the other beneficiaries argued primaries. And they went to court. And initially they said yes sounds like Mary's out but the supreme court of the state reversed and said look. During year court a trial you're put on any written evidence. No exit its there was no. Oral testimony there was no witnesses. There's not enough here. To decide that this is an advancement. Or that Mary is not Mary's. While I thought that was uninteresting resolved. Now there was that writing that they referenced in the fact pattern that said this is Mary's inheritance. I don't know why that didn't come into court. That's certainly would have been at least eighty writing here to help Scholl the intent of the decedent. And that they were prepared. Like something went wrong somewhere in the in the in the process but nevertheless. So so that was the results so I wanna spend. A little time talking to fuel about advancements what they are why they work what what the purposes. So. In this case was it clear that it was an advancement. And she's still in or was it her entire inherit its. U you don't know so. Example how an advancement works and what it is let's say you have three children. And you in this case left gave 200000 dollars to marry. And she was one of the children. And it was an advancement and you wanted it to be treated. As an advancement. Well. What do what do you do you need a writing. You need to then like it Cushing handle on what we do is we say to them we have advancement language party built into our trusts. Every trust has. But we need a writing to triggered the advancement so that creator of the trust would then need to come to Watson's today. It's a she's diners they play and let us. The creator of the trust would come to us and say here's a writing please treat 200000. Dollars that I gave to my daughter Mary. As an advancement. Now I have what I need to attach it to the trust. That triggers. The advancement language in the trust to automatically adjust for the disposition of the assets. Upon the death of that don't know but that's little. Calculation on and explain to you here just sentiment. You know up folks talk of sky daddy is written for the month of October it's designing the perfect. Income only here evil global trust this guy we'll help peer review your existing trust and make sure. He don't have any language they can quite frankly make you plain useless. In if you don't have a trust now ready. This guy will educate you. On the language that must be in you're trust. And perhaps more importantly the language that absolutely must not be in your trust. Call right now to request your free copy of tides designing the perfect cup only eerie though global trust eight. 8668485699. That's 866. 848569. Iron in you can also get a copy on our website legal each teen showed dot com just click on the guides and. Articles so talk about this advancement language. In this case going back to that example right. Mom and dad have three kids they gave the 200000 to Mary they send me that little letters saying this is an advancement now. Before I give the act calculation why is the letter so important. One of the letter is important because there are many times where parents just give things to their children. And they don't ever intend to treat it as advancement ranks in fact more often than not. That gift is made with out the intention of it being so weak default to being not a not an advancement. You want it to be an advancement mom and dad you're gonna put together a one sentence little letter and senate. Will attach. Now Andy dance so how does it work. So now mom and dad die and we have this letter a triggering the advancement language or even amend the trust to put the you know put that. Language right in there. It basically says that. I've got maybe a million dollars in the trust him before they reach and it says divided now locate everything equally to my children and living. Where children and deceased leaving Egypt's. And I got three kids three buckets and put the million dollars and divide 333000. Each pocket. Oh wait. I gave 200000. Already. To Mary so that means advancement language means you better reach into the bucket trustee. And what 200000. In the other two siblings pockets first all okay so that kind of raises them up. To be on par with Mary so from the million dollars to and it goes into one to listen there's 600. Left in the bucket in the bucket to be shared three and you divide equally. And now everybody got something and that they're supposed to get everybody was equally treated. And and you know you're too. You do it mainly because of that if you truly want to treat people equally and you do not account for these big advancements ray you made during life you know so. So that's important. And the other reason you can use an advancement. It is even if you know let's say you haven't given anything away. By you know all I just happen to know that this particular house needs to go to mighty dog hair she needs a place to live so I went out very common. One child could be struggling. I want allocate the property located at ax in let's say it's. 300 grand. Or you know that's true. The daughter A okay. Well then what you put his language in there saying however what I'd like to do is I would like to make sure that everybody else is treated equally so what I wanna do is. Reach into the bucket and allocate. The fair market value on the date of death. Up that house. To the other kids first chair so again if I've got a house plus a million dollars of cash in there. The 300000. Dollar house would be allocated to marry in this case. And the other two siblings would first get 300000. Put in their pocket. And now Mary got the house which is where I wanted it to go and the other kids are not harmed by that result. Now everything that's left in the bucket it was equally three race. Works it's a great mechanism. For helping us keep things equal when parents want to start. Picking and choosing which assets go way air movement and mind you folks if you do wanna keep treat kids equally. There's no better way than just to say equally. Once you start picking and choosing assets. It can get very hairy in terms of being able to always do you may end up having to face the fact that it's simply will not be. Able to be made equal. In you have to accept it inequality. If you wanna accomplish that I think it's a great example in this case. About how these advancements I can be used and how it failed. In this case just not enough not enough writing. You know what folks if even thinking about getting trust planning but you've been putting it off because you don't understand how these here you go Coble trust operate. And indeed it DBs this Todd guide it is written for the month of October it's designing the perfect. Income only carry vote Coble trust includes important language that must be in your trust those troublesome provisions that you wanna make sure that are not. Included in your trust. In the end it shows you how these trust operate on a day to day basis in deet tails folks. Call right now for your free copy 8668485699. 8668485699. Weakened download this brand new guy on our website legal exchange showed dot com. You're listening to Todd lets see a partner with the law firm of Cushing in Dolan and Susan powers I think until advise would be Armstrong advisory group. We'll take a quick break and we'll be back with your listener questions on the legal exchange with Todd let's keep. Time now for Wall Street week in review a look back at the market's performance last week here is Susan powers and Michael Armstrong making this an update on what we know so far on tax reform on the personal pressures are still light on details but here's the major framework. On the personal side they're currently seven tax brackets 10152528. 3335. And 39 point 6% the proposed plan narrows that down to 1225. And 35%. Although we have no idea what income levels actually hit those brackets. In addition the plan would increase that standard deduction and the child tax credit. Eliminate the estate tax and Alternative Minimum Tax. Those last two tax cuts are the big ones the critics are using claim that this is largely cut for the wealthy in how about on the corporates. On the corporate side they went. Make the next tax rate no higher than 20%. And also movement at one time repatriation. Tax on feds funds held overseas corporations. Tax be relatively low and attempt to incentivize corporations to bring those funds back when nation's borders so then what exactly it the biggest stumbling blocks to getting this deal. Asked by the biggest hurdle will be on the deficit hawks according to initial assessment by the Tax Policy Center. The proposed tax reform would increase the budget deficit by 2.4 trillion dollars. With some estimates are higher you know one of the potential solutions this problem is going after deductions like the state and local taxes. More interest deductions help expenses and many others. The problem is you know you're gonna have a real battle trying to eliminate those with special interest groups. Okay thanks night. Folks if you have a question about the economy about your portfolio or anything else you can visit our website at Armstrong advisory group dot com. You've been listening to Wall Street week in review with Michael Armstrong no back to the legal exchange with time muskie and Susan powers. 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 he is time lets PN's Susan power. Yes welcome back top of the key questions from listeners for you. First question comes from wind in Holyoke math and Lindner writes. I have the durable power of attorney over a house. My sister is disabled in the house is now held in nominee reality trust with me as the trustee. Can I split the house into indeed with nineteen. Half undecided interest and hold the other half in the nominee trust for my system. A lot going on in the act and I think we get in need to train inflated yeah because first followed up this nominee realty trust which everybody understands and so I and I may not have all the answers in this fact pattern but let's see Susan if we can get to the bottom this. So the durable power of attorney so just because Linda has power of attorney over house. I'm not sure that even as is too much of an issue here is that a thing to do you have a durable high of attorney over person know you could have a power of attorney and power of attorney allowed you to make financial decisions right so you can sign names pay bills transfer property sign deeds. So a power of attorney does give her. The power to perhaps transfer. House says she probably has her sister's. Return she's our attorney for her sister yeah I can figure out who the power of attorney is for because I'm not sure I know. Who owns this house right right it says the house is now held in nominee trust with me. As the trustee. But who are the beneficiaries. Currently. On that nominee trust. Me that's what I don't know here okay. And and that's where the confusion comes in Linda with a lot of these nominee trust so for all of you listening this is something you could certainly take away. From this. This lesson. Is. You know when you set up a nominee realty trust here whoever is listed as the beneficiaries. Are the current owners. Varity old so if that beneficiaries says 50% by disabled sister are. And 50%. Linda. And Linda you already own half. And your sister already owns half OK which may or may not be causing a problem for your sister. And her ability to continue to get any disability benefits. That she might be getting because of her disability right because then this schedule beneficiaries that's not recorded anywhere it is not. So it's supposed to be private and and you need to go find out who that is so I don't know if Lynn just talking to us you know I'm assuming a flip has power of attorney. You know maybe it's over the sister I don't know if you know if if Linda and her husband may be set up this trust. It's hard to say says can I split the house into a deed with my name one half on divided interest and hold the other half and the nominee trust from my sister well. Again you might be listed as a half owner already wearing Linda so. If you are and you take your half out of this trust sure you caught. Shirt record you would need beneficiaries. To authorize it. So if you need to benefit so let's make a couple of assumption here is that Linda and her disabled sister are the beneficiaries. Ken Lindy used her power returning. For the disabled sister did get that house out of the tracks what's good point she cannot act under power of attorney. For a trustee of the trust in this case she the trustee not consist of the trust right. So she doesn't need the power of attorney to act as trustee. If low the sister is listed as a 50% owner in her name alone. Then. Linda. As power of attorney for the sister Leah could act on behalf of the sister because as beneficiary. Of that person. So what would be needed here Linda is if you both are 50% owners and you wanna take your 50% out. You need what is known as an authorization and direction. Of of beneficiaries. Directing yourself Linda as trustee to admit to distribution. And now who would sign that authorization and direction of beneficiaries would be the beneficiaries. Ray that would be you Linda. As 50% owner and US power of attorney for your sister her. To do the other beneficiary than she did facilitated on around essentially you can but Linda I don't know what we gained nine. You know it's in your name now really. It's still going to be in your name. Your half anyway so. I don't really think you're gaining anything by doing in in this case tied. Could she move that out and maybe put it into like a special needs trust her sisters half. But today she could but it would it's our ratings since it RD belongs to the sister. I don't know what. Kind of you know disqualification. That would carry any way for her government benefits that she's getting right now it could trigger something. It may may now she's getting SS DI it probably won't. SS the eyes Social Security disability income. Which is not asset based. It's income based and so that may work but I do agree that if she can do planning for the disabled child may be protected from the nursing home going forward. Look into getting it into one of these irrevocable Medicaid trust in getting it protected for future. Needs. I suspected this situation may have being created by Linda and her sisters parents who didn't realize that they could've created. In Erie vocal bull trust to a comedy this home. Which would not have impacted her disabled sister is. Government benefits that she hits like what do you tangled web we weave it is and you know what folks call to receive your copy. Of Todd died Eddie is written for the month of October it's designing the perfect income only theory though global trust. You can get your copy right now at 8668485699. That's 86684. Cookie. 569. You can also download a copy on our website at legally exchange showed dot com just click on the guides and articles tap. Todd next question comes from Steven in Nashua, New Hampshire and Steven writes Gerri lash out you mentioned a burial account. At a bank it would cover expenses during the week burial exec. How do we set this up in should be included in my trust in who controls. It's a great question. Say because I am burial accounts are are usually mentioned idea by us. It in connection with somebody who's going into the nursing home right away. Yeah it's not something you do ever in advance now so let's make that clear. So Stephen I don't know if that's what was so when you talk about including it in my trust and who controls it. Amid jump to the end of year question and say it's something we never do in advance okay. So no it's not ever port as verbiage in a trust. And and so I NY. While. I don't wanna take 10101210151000. Dollars which is what it good. Funeral these days Cox news. And give it to a funeral home. And get zero dollars of interest on that money. To run the risk of that funeral home. Going out of business a lot of people do that they put there they do their pre pay the funeral home and they. Because they don't want the hassle for their kids and they know all all OK I understand that but no I don't wanna be chasing for so I don't wanna give up the interest and income. And wanna give up the money I might need to live on. And I don't wanna Trace funeral home that went out of business now handled Fineman money and none of those reasons are are those are all reasons why would not. Doing in advance why don't like not need to do to advance. Because when somebody is is if you're just dying. They likely have money that will be money in the state to pay the funeral. You'll have to worry kids. Or if someone is going into the nursing home. Al there might not be money rain to pay the funeral right so if they went in the nursing home and gobbled up all the money before they died. Paying the nursing home because there was no trust planning done in advance. We'll let the kids might be out of pocket who would want so what you are allowed to do last minute. When somebody's entering in nursing home is take money 10151000. Dollars there's no limit. And go to the funeral home of your choice. Get that irrevocable contract that they'll give you. Check out all the boxes of everything that you want to find out what that totally is and write a check. And you're allowed to do that. And it won't create a five year waiting period and you'll ensure that there will be money there to pay the funeral so the kids aren't out of pocket. And it's a way of spending down money to get somebody eligible for Medicaid. I'm an hour I'm gonna have my kids playing a funeral crews from me. You were so. But if you have a question you'd like asked top one visit our website legally exchange showed dot com and click on the asked Todd tap. Maybe will be able to read your question on the air and hopefully his answer we'll stop you from being one of his next real life story. In the intact and Todd has written a guide for the month of October the it is a great place to educate yourself on what she it. And what absolutely should not be included in your eerie both Coble trust. If you already have good Erie a global trust this is it. Are you financial advisor who lacks a formal succession plan you're not alone according to investment news 43%. To financial advisors are over the age of 55 and many have no contractual agreement to care for their clients once they retire hi this is very are strong and we might be interested in buying your practice you worked hard but now it's time to find a successor the -- drug advisory group is a regional firm and we are looking to grow our business through acquisition we will consider both our ace and transactional oriented firms with a solid stable of young advisors who will put your client's needs first and provide them with -- service and attention to which -- become accustomed if you're interested in talking with us please call me at 803934001. That's 803934001. Or visit us online at Armstrong. Advisory group dot com securities offered to securities America incorporated member Finneran SIPC and advisory services are printer securities America advisors incorporated Barry Armstrong representative Armstrong advisory group in the securities America companies are unaffiliated. Planning for retirement can be a complicated process many factors need to be taken into account including how to protect your assets from pro ready to. And in order to make sure that your process goes as smoothly as possible the need to deal with an expert Todd lets. This month. And has written a brand new guide told designing the perfect income only irrevocable trust. And it you learn about strategies to undertake what preparing your trust as well as specific language that must be included in order to protect your assets from probate. That's right. The only way to get this guide is online so head illegal exchange showed dot com click on the guides and articles tab and download your guide that's legal exchange showed does come up legally exchange show dot com. You're listening to the legally exchanged we Susie powers and Todd let's game. Understanding how Texas can affect your state plan is critical to building a successful plan if you need help in this area told us right now and make an appointment. 866848569. Night that's 8668485699. Welcome back into Italy would change if I'm not I'm season parents I think into the sides of the arms advisory group. The apartment with a lot from Cushing and Allen with a masters in taxation. On today's show we had a brain you guys did Todd is written for the month of October it's designing the perfect income only eerie vote Kabul trapped. In this guide folks is a great educational piece includes information on important language that you or your eagle global trust must have. In it has problematic provisions that he wanted to make sure that your trust absolutely does not have. It also has. A ton of information. QNA. Of how these traffic actually operate on a day to day basis as well. Call right now at your request your free copy of tides designing the perfect trust guide. 8668485699. At 8668485699. If you prefer you can always get a copy download your copy on our web site. Legal exchange show dot com just click on the guides and articles tapped. So Susan let's Annika a strolled down the West Virginia it's going to be a long stroll along strolled around their supreme court of West Virginia comes out with a case. That's a right to withdraw money from a joint account is an all out. Nine this is it is and a and it is a fact pattern folks of the case but more importantly we're gonna expand. On just how joint accounts operate. Because I think mania if you have them. And may not ever have given it a second thought asked how they actually work so to do that and now it. So this is Lila and layer. Legal and Larry Larry 95 OK and Lila must be somewhere around that age and shortly before Lila filed for divorce. Wait. Yeah got divorced always 950 yes while all yet so. So shortly before Lee left filed for divorce puck not a perk out cities including death and I thought I don't know how old Leyland is but I'll become a manager and I'm assuming Lila was kind of old because. Shortly before legal filed for divorce Larry. Smart as a whip that he is. Went in took out a quarter million dollars from a joint account that Larry and Lila had together and put it in his name alone okay. And then the divorce was filed and then we let died. We let died before the end of the divorce shortly after Lila guide Larry died. What does this tell us. Bowlers I didn't know divorce will kill you. So please stay away from divorce. So in this case and now the question becomes a lead us the state saying wait a minute. That 250000. Dollars that Larry took should be part of the estate. You can't take act right. And so they went all the way up to the supreme court of West Virginia to get the correct answer apparently. And the Supreme Court said. Yeah he can take it. It's a joint account. Joint accounts are each other's assets. You both have the right to go in and take out the money if you wanna take it out that's how joint accounts work. And therefore. He took. He's allowed to do it and he's allowed to leave it. Anyway he wants to the so even now it's his estate even though he knew who he was gonna be filing for divorce and not calling each she'd filed not him constantly got wind of it she files Larry. At Larry at the and five year old sharper than ash after the attack is right and again unfortunately the divorced killed them both but but nevertheless. I think the lesson here is we need to spend a few minutes understanding. How joint accounts work. What the pitfalls of them are when they're set up prominent state creditor standpoint we lived standpoint. And really what access and what kind of up issues. No. People run into 'cause I'm gonna go on a limb and say I'll bet most of you listening. Joint account yeah I'm Sharon. In Hollywood this case with clarion Lila. Likely it is the second marriage if she is a separate state because some moments complaints of propping up her joint hits right. Because they would still get it I know it's probably a second marriage issue credit Ben even more important that you need to make sure that. You have your plane in place folks in you know what if you've been putting off. Two co procrastinate like Larry yeah ninety. 95. When they filed for divorce. And a call right now funny how these trusts operate on a gated babies has talked guide is written. Brand new for the month of October it's designing the perfect. Income only carried a global trust. You can get your copy right now. By calling 866848569. Earning. That's 8668485699. You can also download a copy on our website legal exchange showed dot com just click on the died and articles ten. So let's spend a minute now talking about these joint accounts you know because a lot of times even what the if you even when you have these trusts and plays that you're mentioning Susan. People still on tour so if you don't have an in place. Look at your accounts look at your brokerage account here's your CD RBR credit union years securities accounts. It's the other picture I'll betcha they come husband wife joint. In it so let's talk first about that and then the real problem. Joint with a non spouse re like a kit. So if it's jointly husband and wife it which don't have the problems so much of stealing. Except for in this case apparently everything but generally if you're married you know you're going to go use the money you're gonna live together and spend the money. But it it doesn't help from an estate planning standpoint. Because if one dies the surviving joint order kits at all. No taxes no probate sounds beautiful. Actor in the surviving spouse has at all and that could make a surviving spouses and state. Work for more than a million dollar exemption. And if it is worth more there could be a state estate tax at a bare minimum here in Massachusetts. War. In your state depending on what you're worth. Or federal if your high enough over the 50000049. I worry a little less about that but. But nevertheless the state estate tax could be giving you'll buy the pants when you own things jointly. Secondly. Even between husband and wives. Jointly Onassis provide no protection from the nursing home. So don't think that because it's joint and one spouse gets sick at half the money is protected from the nursing home because it is jointly owned. It's not doesn't work that way. You really need to set up easier vocal won't trust you really need to understand. How they're drafted how they're designed what the right paragraphs are that are in there. For you and stick the money in there. Daniel have a protected for each other are. Not half all yeah no matter who gets sick. And it will avoid probate and reduce estate taxes all at the same time. And how well probably the most common joint ownership the most common troublesome joint ownership which is one's spouse dies. Moms surviving boy dad yeah no matter in the eighth day. I'm an apartment child. One of my children on as a joint alone usually the one that lives closest ally via I had a call my client yesterday via that. Husband passed away I'm gonna put my son on my bank accounts he's got power of attorney but I want them on the air so it's convenient park. Said no. Good could call I mean it and here's why. And people do that again they don't mean to put. They don't mean to this inherit the other kids. And that's really what you're doing. I mean you're in it I know the one that's close by can pay the bills access the accounts and help out and I get it. But when you name one if you put two or three accounts all joined with this child in you have two or three other children. They're just inherited from from that because what will happen at death is that joint account will automatically pass to the surviving joint owner. To the exclusion of probate and the exclusion of the other kids and he doesn't have to share right. That's the rule so you you don't want now that what I would suggest is the power of attorney. Give the local child up power of attorney over the accounts now. He can access all the accounts without causing any dis inheritance to. To the other kids and not subjecting it to his creditors so that's the big problem even if it's the child whose names on it. Chart get to divorce could lose the money. Got you lose your money. At least half if your money. That child can region and take all the money and run away with it and steal from you mean it. It's too easy so don't do that I really think learning putting the assets in the trust is way better way to go. Folks. Don't put off doing your planning any longer just because you weren't sure how these Medicaid trust operate on a day to day basis to hide his. Included so much great information in his brain new guide that is written for the month of October. It's designing the perfect income only eerie vote about trust. It includes language that must to be in you're trusted includes that that problematic language that absolutely must not. Be included in your trust in it provides DTL the information on how these trusts operate on a day to day basis. Call right now for your free copy of his designing the perfect trust to guide he 866848569. Earning. That's 866. 84856. And nine earning. Visit our website legal exchange showed dot com out there you can download your free copy of this guy. You can also listen to our podcast if you missed any of cities or our passions. And you can also click on the asked Todd camp in Sydney your questions for Todd. That hopefully will stop you from being his next real life story. Todd lucky for a lot firmer Cushing in gallant thank you so not thank you Susan. I'm Susan parry is a financial advisor would be Armstrong advisory group we thank you for listening and will be back next week. On the legally exchange with Todd black ski. Securities opera 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 Cushing and on the Armstrong advisory group to legally exchange and the securities America companies are not affiliated. He spent the last thirty or forty years building your financial planning business he worked hard and your clients rely on you what about when you retire. 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