The Legal Exchange: Sunday Edition - Sunday, January 12, 2024

Episode Transcript

Speaker 1 (00:00):
This is the Legal Exchange with Todd Lutsky from the
law firm of Cushing and Dolan and Susan Powers of
the Armstrong Advisory Group. Each week, Todd and Susan will
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, or have a
question about another issue that may affect your future, call

(00:21):
eight sixty six eight four eight five six ninety nine
to make an appointment. That's eight sixty six eight four
eight five six ninety nine. Operators are standing by. Now
Here are your hosts, Todd Lutsky and Susan Powers.

Speaker 2 (00:38):
Welcome into the Legal Exchange with Todd Lutsky. I'm Susan Powers,
a financial advisor with the Armstrong Advisory Group, and I'm
joined by Todd Lutsky, a partner with the law firm
of Cushing and Dolan with a master's in taxation. Welcome Todd.
How are you today?

Speaker 3 (00:52):
I'm never better in you.

Speaker 2 (00:54):
I'm great, Thank you. What do you have for us today?

Speaker 3 (00:57):
Well, I've got a couple of actually one real life
story and then the other one is an actual fair hearing
decision that I had to go to, So no real cases,
but I think these sometimes are even better than Kate.
So the first one deals with, you know, things not
to do with a vacation home when you're faced with

(01:19):
entering a nursing home last minute. And this couple that
came in had had a home and a vacation home
and not a lot of money and just mom was
the surviving spouse heading into a nursing home and they
wondered what to do. So I'm going to explain what
they almost did and then what you shouldn't do, and

(01:40):
tell you how they can get eligible for medicaid even
though there's about a million eight of property available, So
stay tuned for that. The second thing is one that
I actually ended up having to attend a fair hearing
on again, another last minute kind of technique where you know,
a couple that had a home located across the border

(02:02):
in Maine, just across the border in Maine, and they
had ended up coming down to live with the sun
just to try to take care of dad, and then
they got sick, and you know, can you save the
house and does it being located in Maine, have a
problem with saving a primary residence for a married couple.
So how do you save a primary residence for a
married couple last minute? And how do you protect other

(02:28):
assets last minute? Really that's the gist of these cases.
But folks, that's exactly what this guide is about, this
month long term care planning for the procrastinator. And I
don't mean it by saying just the procrastinator. It's somebody
who has done planning but has assets outside the estate,
outside the trust, and are faced with nursing home care.

(02:50):
How do we protect those and assets that you if
you've never done planning, all your assets are outside the trust,
how do we protect these things last minute when there's
no planning done. So it's really something for everyone when
you're faced with this situation. It deals with the home,
the vacation home, money, and they're all treated differently. So

(03:11):
learn the lesson is, don't apply on your own call
and get the guide eight six six eight four eight
five six ninety nine or Legal Exchange Show dot com
again eight six six eight four eight five six ninety
nine or Legal Exchange Show dot com. Now Real life

(03:33):
story mom surviving spouse, she comes, the kids come in.
She had a home and a vacation home. The vacation
home was on the cape. There wasn't a lot of
other assets kicking around now, so she's an example of
real estate rich and cash not so much. And so
the kids came and explained that, you know, mom now
needs a nursing home care and the overall they've been

(03:56):
helping Mom with a lot of the expenses maintaining the
home and the vacation home and whatnot, which makes sense
because you know they're they're probably going to get it,
and she always wanted to pass it to them. Unfortunately,
they never did any planning, you know, and their goal
was obviously to keep her at home, so that's probably
why there wasn't any implanning done. So with no advanced planning,

(04:20):
all they really had was a will, a health care proxy,
and a power of attorney. And you're wondering, okay, you
know what, what can we do now? So the health
is bad and can we ultimately save the house because
the kids don't have enough money, well, they could help
with bills, they don't have enough money to pay for
her care.

Speaker 2 (04:39):
Right so expensive and so the home was.

Speaker 3 (04:43):
Worked about eight fifty and the vacation home was worthd
about a million. What do we do well, tips and lessons? Right,
this is what we're going to learn first. Obviously, planning
in advance is way better than not planning it. So
if they had wanted to pass this to their children

(05:03):
or she did, you know, if they had just put
this in one of the irrevocable trusts that we've talked
about many times on the radio, and did it more
than five years ago, then these two pieces of property
would be completely off the table, avoiding probate and ready
to go to the family when she passes, and we

(05:23):
wouldn't have this issue at all. We just apply for
medicaid because it sounds like she's probably otherwise financially eligible
for it, So okay, can't do that, So not just
a lesson, So what do we do? We don't have
a time to talk about both. The home we'll talk
about later on in other examples, but the home, just
to be clear, is really simple in this case. As

(05:46):
long as she checks the box that she intends to
return home, it will be non countable but leanable.

Speaker 2 (05:53):
So even if she can't physically return home realistically, just
checking that box with her intent, that's all it takes.

Speaker 3 (06:01):
It all it takes, but it will be leaned, but
we don't care. We just want to get it not
to make us not countable for medicaid, to make us
not ineligible for medicaid. So we'll come back to that
because we're going to talk about a lien in a minute,
and how a lien is really your friend. So that
that kind of leaves us with the vacation home, which
you don't have those kind of rules with the vacation home.

(06:22):
It's just purely at risk. So the only thing you
can really do with the vacation home is you don't
want to give it away. You don't want to sell
it right and have a big capital gain. You rent
it if you convert it to a rental property. The rule,
the simple general rule is if the property is generating

(06:45):
income essential to self support, it becomes a non countable
asset but leanable, but lean So they're gonna put a
lien on it to try and recover when you pass
what they paid on mom's behalf, what the state paid
on mom's behalf. Now, how does that work? Well, what

(07:08):
about the rent? Okay, Well, now you're going to be
getting rent. Well, if you get rent, you can actually
use the rent to maintain the property, so now the
kids aren't out of pocket. They can pay the real
estate taxes, the upkeep, the maintenance, and only the net rent.

Speaker 2 (07:24):
So you can still take care of everything you need
to take care of, right, got it.

Speaker 3 (07:29):
And only the net rent goes to the nursing home.
But of course the net the rent also helps reduce
the lean. So either way, this is really helpful. So
if they just wanted, if the kids just wanted to
keep maintaining the property like they're doing anyway, and use
all the rent for the nursing home, that's okay too. Okay,
so that's really helpful. But like I said, there's going

(07:51):
to be this lean. How does that work? And why
is the lean really your friend? The lean is your
friend because one, by renting at the house is now
non countable, so we can apply for medicaid and get approved. Okay,
that's number one. Why that's important is because the nursing
home runs about fifteen grand a month.

Speaker 2 (08:09):
On average if you're private paying right.

Speaker 3 (08:12):
Your private pain. The medicaid rate, on the other hand,
is about seven grand a month. Well that's not bad.
Let's play out the string. She's got Social Security and
pension of about three grand a month, rent two grand
a month. She's got five grand a month coming in
that she can pay towards the nursing home. And if
she's on Medicaid, the total cost of the nursing home

(08:33):
per month is only seven grand. Right, so seven minus
five is two. And even if you run the numbers
to say the average stay in the nursing home is
three years, two times thirty six months is seventy two grand.

Speaker 1 (08:49):
Right.

Speaker 3 (08:50):
Well, I've got a million dollar vacation home. At the
end of three years, I owe seventy two thousand dollars
back to the state.

Speaker 2 (08:56):
Take that all day, every day, Take it all day
every day.

Speaker 3 (08:59):
I'm happy with that, right, Because now the kids one
have gotten Mama Medicaid two protected both properties. Three have
to pay the state back seventy two thousand dollars, which
they can either a mortgage. Yep, here's a seventy two
thousand dollars mortgage over thirty years is nothing, pay it back, right,

(09:20):
And so most importantly they've kept the house, and they've
got the house with a step up in cost basis.
So if they had sold it during life to pay
for the nursing home, which you never want to do
last minute. They would have had a big capital gain
on this property, has a huge gain on it because
long and long ago, and so now they sell it.

(09:42):
If they wanted to sell it, there's no capital gain
because they got to step up in basis. They could
still sell it and make out by keeping all the money.
So win, win, win all the way around. The lesson here,
folks is, don't apply for medicaid on your own. Learn
what these last minute techniques are, and most importantly, reach
out to a lawyer if you're faced with going into

(10:04):
a nursing home and help have that lawyer help you
through this medicaid process because it's these little unknowns that
allow you to protect assets last minute. So call and
get the guide eight sixty six eight four eight five
six ninety nine or Legal Exchange show dot com.

Speaker 2 (10:24):
You've been listening to Todd Lutsky, a partner with the
law firm of Cushing and Dolan. I'm Susan Powers, a
financial advisor with the Armstrong Advisory Group. We have lots
more to come when we return to the Legal Exchange
with Todd Lutsky.

Speaker 1 (10:39):
The average monthly cost for a private room in New
England could double by twenty forty. So if you're not
prepared to handle the increased costs of nursing home care,
your assets may be at risk. Call Cushing and Dolan
today and request their new guide called Long Term Care
Planning for Procrastinators. It'll help you understand how to protect
your assets and allow you to enjoy your later years
and unexpected to nursing home stay could significantly reduce your

(11:02):
wealth and prosperity. Call Cushing and Dolan right now at
eight six six eight four eight five six ninety nine
and get your free guide called Long Term Care Planning
for Procrastinators. Don't put off today what you might really
need to do tomorrow. Call eight sixty six eight four
eight five six ninety nine. That's eight six six eight
four eight five six nine nine. Or you can request

(11:22):
the guide online by visiting Legal Exchange Show dot com.
That's Legal Exchange Show dot com. The proceeding was paid
for in the use expressed are solely those of Cushing
and Doolan. Cushing and Dolan, Indoor, I'm Strong Advisory may
contact you offering legal or investment services. Cushingan, Dolan and
Armstrong Advisory do not endorse each other and are not affiliated.
The calendar is turned and the cold is here to stay.

(11:42):
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to the US Virgin Islands. BacT now and take advantage
of a special promotion to Saint Croix, the experience a
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(12:03):
Croix is known for its incredible history and spectacular architecture,
along with world class cuisine, incredible golf courses, and a
wide variety of water sports. From the moment you arrive,
you'll fall naturally in rhythm with the heartbeat of the islands.
There's no money to exchange, and travel from New England
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(12:23):
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Speaker 4 (12:39):
As technology continues to evolve, financial frauds and scams are
becoming more regular and pose a serious threat to your finances. Hi,
this is Mike Armstrong from the Armstrong Advisory Group, and
understanding how to identify these scams can reduce your risk
of becoming a victim. Our new guide is called seven
Common Financial Frauds and Scams, where we offer information that
may help you become more aware of these issues and

(13:01):
allow you to take the necessary precautions to avoid a
big problem from identity theft to Ponzi schemes and ransom attacks.
The new guide will focus your attention on practical tips
to protect your financial health. Call eight hundred three nine
three four zero zero one and request your free guide today.
That number again is eight hundred three nine three four
zero zero one, and ask for your free copy of

(13:21):
seven Common Financial Frauds and Scams at eight hundred three
nine three for zero zero one.

Speaker 1 (13:26):
The proceeding was paid for by Armstrong Advisory Group, a
registered investment advisor. Nothing in the ad or in any
Armstrong guide to specific financial, legal or tax advice cansult
your own financial tax into state planning advisors before making
any investment decisions. Armstrong make contact you to offer investment
advisory services.

Speaker 5 (13:40):
This is Michael Valila, added one of the Disabled American
Veterans Department in Massachusetts. We focus on the people returning
from service, not their specific illness or injury. Our number
one goal is to make sure our veterans have the
necessary services they need, be it physical, emotional, or financial,
so that their transition can be seamless. You can help

(14:00):
our great American heroes as well by making a donation
today by visiting dav five k dot Boston. That's dav
five k dot Boston.

Speaker 6 (14:10):
This is Tucker Silva and I'm joined today by state
planning attorney Todd Lutsky from the law firm of Cushing
and Dolan with your financial exchange. A quick tip of
the day, and we're talking about last minute nursing home
lessons that can help save your assets. What can be
done last minute to save your home and your liquid
assets when one spouse is entering the nursing home.

Speaker 3 (14:30):
So with a married couple, you do have more options
than as a single person. But with a married couple,
your home is not at risk because the community spouse
living in the home is allowed to keep. The home
doesn't matter the value as long as they're living there.
It's not countable and non leanable. They also give the
healthy spouse about one hundred and thirty five thousand dollars
to keep. It's not a lot when you think of

(14:50):
the big picture, but all the rest of the morning
would be at risk. But at least a quick, last
minute way of protecting all those other dollars all over
and above that one hundred and thirty five thousand dollars
would be to basically transfer the assets, those excess assets
to the community spouse, which by the way, is not
a disqualifying transfer, so no five year waiting period. And
then once that community spouse gets those assets, depending on

(15:13):
their age, they can buy what is known as a
Medicaid qualifying annuity. These are special annuities. They convert the
excess assets into an income stream and then it's no
longer an asset. Keeping the community spouse over assets, then
the community spouse and the six spouse are under assets
and they're eligible for Medicaid.

Speaker 6 (15:31):
Cushing and Dolan has written a brand new guide especially
for those of you who have put off doing your
planning and are now faced with a last minute nursing
home situation. Request this brand new guide from Cushing in
Dolan at eight six six eight four eight five six
nine nine. It's called Long Term Care Planning for Procrastinators
eight six six eight four eight five six nine nine,

(15:54):
Or if you prefer, you can simply go to their
website Legal Exchange Show dot com and request it there.

Speaker 1 (16:00):
Proceeding was paid for and the views expressed are solely
those of Cushing and Dolan. Cushing and Dolan and or
Armstrong Advisory may contact you offering legal or investment services.
Cushing and Armstrong do not endorse each other and are
not affiliated. Is Ask Todd on the Financial Exchange Radio Network.
If you have an existing estate planner or in the
market for one, Todd Lutsky is here to answer your
questions and help you plan for later life. Ask Todd

(16:21):
is presented by Cushing and Dolan, serving Massachusetts and New
England for more than thirty five years, helping families with
estate and tax planning, Medicaid planning, and probate law. Visit
Cushingdolan dot com. Now Here's Todd Lutsky.

Speaker 7 (16:35):
Todd Lotsky from the law firm of Cushing and Dolan
joins us now on the show for Ask Todd. This
is your chance to ask Todd your estate planning questions.
First one of these that we've done in twenty twenty five.
So we got the phone line open for you. Eight
eight eight two zero five two two six three. Mister Lotsky,
how are you doing today?

Speaker 3 (16:57):
I am doing great. Hope you're enjoying the new year.

Speaker 7 (17:00):
How are you doing fantastic as well? I saw someone
did you see the story about the guy who got
arrested for stealing the balloons?

Speaker 3 (17:07):
Arrested for stealing balloons? Now what happened to Well, police
held him for a while and then let him go.

Speaker 7 (17:12):
So what are you gonna do? But in any case, Todd,
let's talk a little bit about planning as it relates
to long term care costs. Specifically, I want to talk
about the five year lookback period. When did that five
year lookback period for Medicaid planning go into effect originally?

Speaker 3 (17:32):
Oh, it's just this really takes us back a while.
It initially was three years, and many people remember it
as three years, but there was always some confusion with
that even back in two thousand and six, I believe
the Deficit Reduction Act came out and made every trance
for five years. Now, Remember what people didn't realize was

(17:55):
before two thousand and six, the book back period for
transferring assets directly to family members individuals was three years,
but it was always five years transferring assets to a trust. Now,
since two thousand and six, it's five years whether you

(18:16):
transfer the asset directly to an individual or to a trust.
That was really the big change. But you know, we
always got to keep in mind that five years is
five years. And now again I never thought it was
a great idea to just give things to a child anyway,
So I would never have done it to avoid the
five year waiting period, even when you could and it

(18:38):
was three years, just because there's so many negatives from
taxes to control to you know, just overall probate issues,
nursing homes, I wouldn't do it. Then I would use
a trust. So I would have used a trust all
the time. So there's the difference between the five and

(18:58):
the three. And what has changed over time.

Speaker 7 (19:02):
Doud In talking about that and how it's evolved over time,
is there any sense that that look back period may
evolve further to you know, will it get shorter or longer?
Is that not really something that is being discussed as
any kind of legislation at this point.

Speaker 3 (19:17):
So the good news is that I haven't seen really
any new legislation, even you know, committees discussing the change,
so so that that is a positive. I think I
did see a while back where they were thinking about
making it seven years, although it hasn't really gone anywhere.

(19:39):
But that said, I want people to understand, you know,
sort of how it works too, because many people will say, well,
what if I do it now and then they change
it later? Am I grandfathered in? That's sort of a
follow up question. You get all the time, right, and

(19:59):
the good news and history as our guide. Of course,
you never really know what the government will do or
can do, but history as our guide anyway, No, get
your clock running now, lock in your five year waiting period,
and not worry about the change, because the change that

(20:19):
has occurred has always been proactive, not retroactive. And I
can go back to the twenty sixteen, twenty I'm sorry,
twenty twenty six, twenty I'm sorry, two thousand and six
law change when the Deficit Reduction Act did change from

(20:40):
three years to five years. I can tell you how
busy we were, you know, getting things done before the
law change. Why because the people who did it were
grandfathered in with the three when it went to five.
So if you do your five now and lock it
in and they change it to seven or ten down
the road mode, you will have grandfathered yourself in, or

(21:03):
likely will have. So that's a little history and points
on the five year look back.

Speaker 7 (21:09):
To take a quick break here when we come back
right to your questions with Todd Lutsky. That phone number
again to call into the show and ask Todd your
questions is eight eight eight two zero five two two
six three.

Speaker 3 (21:20):
One more time.

Speaker 7 (21:22):
That's eight eight eight two zero five two two six three.
Your questions with Todd are next.

Speaker 1 (21:29):
Ask Todd with Todd Lutsky every Wednesday at ten thirty
only here on the Financial Exchange Radio Network. The average
monthly cost for a private room in New England could
double by twenty forty So if you're not prepared to
handle the increased costs of nursing home care, your assets
may be at risk. Call Cushing and Dolan today and
request their new guide called Long Term Care Planning for Procrastinators.

(21:53):
It'll help you understand how to protect your assets and
allow you to enjoy your later years. An unexpected nursing
homestay could signal deificantly reduce your wealth and prosperity. Call
Cushing and Dolan right now at eight six six eight
four eight five six ninety nine and get your free
guide called Long Term Care Planning for Procrastinators. Don't put
off today what you might really need to do tomorrow.

(22:13):
Call eight sixty six eight four eight five six ninety nine.
That's eight six six eight four eight five six ninety nine,
or you can request the guide online by visiting Legal
exchange Show dot com. That's Legal exchange show dot com.
The proceeding was paid for in the use expressed are
solely those of Cushing and Dolan. Cushing and Dolan, Indoor
I'm Strong Advisory may contact you offering legal or investment services.

(22:34):
Cushing and Dolan and Armstrong Advisory do not endorse each
other and are not affiliated. The calendar is turned and
the cold is here to stay, So now is the
perfect time to plan that getaway to the US Virgin
Islands back now and take advantage of a special promotion
to Saint Croix. Experience a vibe like no other and
receive a two hundred and fifty dollars per person airfare
credit and a free hotel night when you book a

(22:56):
five night minimum stay with any participating hotel before June thirtieth,
twenty twenty five. Saint Croix is known for its incredible
history and spectacular architecture, along with world class cuisine, incredible
golf courses, and a wide variety of water sports. From
the moment you arrive, you'll fall naturally in rhythm with
the heartbeat of the islands. There's no money to exchange,

(23:16):
and travel from New England could not be easier. America's
Caribbean Paradise is waiting for you the experience a vibe
like no other on the island of Saint Croix. Go
to visit USVII dot com and use the code Vibe
twenty twenty five for more information and book your trip today.
That's visit USVII dot com and code Vibe twenty twenty five.

Speaker 7 (23:38):
Hi, this is Chuck and Mike from the Armstrong Advisory
Group and we have a guide available this month titled
seven common financial Frauds and scams, Mike, The big one
that people tend to focus on, and it's an important one,
is identity theft. Well, ITT's first to find what identity
theft is.

Speaker 4 (23:54):
Yeah, Well, I think it's also fairly misunderstood because some
people have it a vision of, you know, a big
criminal ripping off your identity, and it's not usually done
that way. But identity theft is using someone's social Security
number or identifying their bank account numbers to be able
to imitate them and therefore gain access to their funds

(24:14):
in some way, shape or form.

Speaker 7 (24:16):
And there are some things that people can start to
do in order to potentially protect themselves against identity theft,
but it's a hard one because there's so many different
potential entry points.

Speaker 4 (24:25):
Well, there's been so many data breaches too, Right, if
you work for the federal government, your information has been breached.
If you have ever had anything through experience, you've been
breached at some point in the past.

Speaker 3 (24:34):
And so if somebody.

Speaker 4 (24:35):
Really wants to buy your social Security number, it's unfortunately
not terribly difficult to do. But obviously storing documents in
a safe place so they can't be misplaced, being careful
and not using things like public Wi Fi is a
big one to avoid using and then skimming. Credit card
information is very common these days, and so to the
extent you're able to not swipe a credit card instead

(24:57):
use the pay to touch That can help things along
when it comes to avoiding this.

Speaker 7 (25:00):
Our guide is titled the Seven Common Financial Frauds and
Scams and the way to request it is by calling
eight hundred three nine three for zero zero one. Again,
it's the seven Common Financial Frauds and Scams and the
way to request the guide is by calling eight hundred
three nine three for zero zero one.

Speaker 1 (25:21):
The proceeding was paid for by Armstrong Advisory Group, a
registered investment advisor. Nothing in the ad or in any
Armstrong guide a specific financial, legal, or tax advice. Consult
your own financial, tax, and estate planning advisors before making
any investment decisions. Armstrong may contact you to offer investment
advisory services. Todd Lensky answers your questions about a state
and elder life planning every Wednesday at ten thirty right

(25:41):
here on the Financial Exchange Radio Network.

Speaker 3 (25:48):
All right, time for your questions with Todd.

Speaker 7 (25:49):
We still do have a little bit more room on
the phone line, so give us call it eight eight
eight to zero five two two sixty three. If you
got a question for Todd again, that is eight eight
eight two zero five two two sixty three. Let's go
to Mary in Salem. Mary, you are on with Todd Lutsky.

Speaker 8 (26:09):
Good morning, Trod.

Speaker 9 (26:11):
Kind of in a pickle. My husband has dementia. He
currently is in the hospital, and he's rapidly declined within
the last three months or so. He's always been manageable.
I don't have an estate I don't have an estate plan.
Is there anything that I can do at this point

(26:34):
to protect my house? We have a two family with
a mortgage, and I just don't know where to turn.

Speaker 3 (26:46):
Let me ask you a couple of follow up questions. Uh, So, one,
you've got the two family, and is there other like
a lot of like IRA money or investment money or
bank money kicking around.

Speaker 9 (27:01):
About one hundred and twenty thousand.

Speaker 3 (27:03):
In total dollars?

Speaker 9 (27:06):
Correct?

Speaker 3 (27:07):
Okay, So the two assets are one hundred and twenty
and the two family, and again no advanced planning was done.
My final question is, and again it sounds like he
is perhaps declining rapidly and maybe you're not able to
handle him anymore. When you made the comment not able
to handle him anymore? Do you mean that when he

(27:30):
gets discharged from the hospital, do you think he's coming
home or do you think he's going to end up
in a long term care facility?

Speaker 9 (27:39):
Well, I don't have the funds for a long term
camp facility.

Speaker 3 (27:45):
That isn't what I asked you.

Speaker 9 (27:47):
Do you think come home?

Speaker 3 (27:49):
But if and so, the way I'm sort of asking
this is is if it's not safe for him to
come home and not easy for you to deal with him,
because again, they could get violent, they could I understand
the different things that happen when they get the dementia.
You know, if it's technically not safe for him to

(28:11):
come home and he had to go to a nursing home,
if he's qualified for a nursing home now meaning he's
he's old enough, I mean, he's sick enough to go
to a nursing home. You don't have to worry about pain.
That's why you're calling, right, So don't worry about the
cost because looking at the assets you have, he would

(28:33):
be eligible for Medicaid right away and you wouldn't have
to pay. So that said, do you think the nursing
home is the family decision the right thing for him,
or is he still coming home?

Speaker 9 (28:48):
Well, that's still to be determined by the doctors. I
guess at this point I thought of long term here,
and I had because I didn't think that he would
do well.

Speaker 3 (29:03):
Okay, So once you decide the family, the doctors, your
health decisions are are played out, and if it becomes
the best interest for him is a nursing home for him,
the family, for everybody, and that's the recommendation, then yes

(29:23):
we can do last minute planning, which is really what
this guide is all about, right, It's all about people
like yourself that end up facing a nursing home admission
and really haven't done much planning. And so in your case,
you have a primary residence that you live in. Correct,

(29:44):
Is that correct?

Speaker 9 (29:45):
With the most that's correct?

Speaker 3 (29:47):
With the mortgage, that's fine, no problem. You are allowed
to keep your primary residence as long as you live there.
There's no value limitation and there's no lean that will
be attached to it, and you can continue to pay
all your bills. That leaves US one hundred and twenty

(30:08):
thousand dollars. In order to become eligible for Medicaid, you
are not allowed to have more than approximately one hundred
and fifty thousand dollars and he's not allowed to have
more than two. Wow, home run you only have one
hundred and twenty. So you are now financially and if
he's medically eligible for Medicaid right away naturally just because

(30:35):
of the type of assets that you happen to have.
Now this doesn't know obviously doesn't work for everybody, but
it works for you. So you still need to go
through the Medicaid application process. You still need to figure out,
you know, go through that whole process, which I would
not do alone. I would hire a lawyer to do that.
But at least if you have the lawyer, you now

(30:56):
know the knowledge that that you're that he's immediately eligible
for Medicaid even though no advanced planning was done, So
that at least hopefully helps you understand that. You know,
if the doctors come back and tell you, yeah, you know,
we just don't think it's safe to return him home.

(31:17):
You can obviously take him home against medical advice. You're
allowed to do that. But if they come back and
tell you that and they feel like and you agree
that the best place for him is a long term
care facility. Please know you can do it and you
can afford it because you're not going to pay. So
hopefully that helps a little. And if you if you
need help, please don't go alone when you're applying for medicaid.

(31:39):
And folks, quite frankly, that's a lot, that's that's a call.
That is exactly what this guy. This month brand new
guide for the month that we're giving away is long
Term Care Planning for the Procrastinator. And I say that,
but you know what, it's also about people who have

(32:00):
done planning but inevitably still have assets outside the trust,
like large iras or money they left outside the trust
or whatnot. So we can do things last minute for
someone who's done no planning, or someone who's done planning
but still has assets they need to protect when they're
faced with going in a nursing home. So this guide
really is for everyone in those situations. It helps you

(32:23):
understand how to protect real estate, vacation homes, rental properties,
you know, excess dollars. There's different rules for these different
kinds of assets. So call and get the guide. Long
Term Care Planning for Procrastinators eight six six eight four
eight five six nine to nine or Legal Exchange Show

(32:46):
dot com. Don't apply for medicaid on your own. It
generally results in loss of assets eight six six eight
four eight five six nine nine or Legal Exchange Show
dot com. Todd, I've got another one for you here.

Speaker 7 (33:03):
We got to be quick just because we're getting close
to wrapping up, but we got Dan and Florida on
the line.

Speaker 3 (33:08):
Dan, what's your question for Todd?

Speaker 8 (33:10):
Hey, Yeah, I have a revocable trust and my wife
passed away. Should I get a nigh revocable trust? Or
should I get an LLC? And I'm seventy.

Speaker 3 (33:21):
Four so LLCs are really for rental properties. And how
much is how much are you worth in the trust
and out of the trust?

Speaker 8 (33:32):
I don't know, probably three million. I own two other
piece three other pieces of property other than.

Speaker 3 (33:39):
My own, Okay, so let's say three million in total? Right? Yeah,
So if that's the case, you know, you do want
to take a look at the trust that you had,
that your wife had, and technically some of those assets
that are in there are probably protected from future estate taxes,
so we don't want to disturb that, right, I would

(34:01):
need to read the trust you going forward. You I
assume you have your own revocable trust. Yes, yes, yes, yes,
so LLCs are great for rental properties, so yes, I'd
want to explore rental property protection for you with an LLC.
But then at the same time, we would want to
think about protecting assets from the nursing home. So if

(34:23):
that's a concern for you at this point in seventy
four is a great age you might want to, you know,
change your trust the assets that you have and put
them in an irrevocable medicaid trust and get it protected
and potentially change the make a change to your wife's

(34:44):
trust to protect those assets without involving screwing up the
nursing The state tax planning lots to think about for you.
I think you ought to reach out to an attorney
and get some guidance because I think, yes, some planning
is in order for you. Go forward.

Speaker 7 (35:01):
Mister Lutsky, Thank you so much for joining us today.

Speaker 3 (35:04):
Thank you, folks, always a pleasure.

Speaker 1 (35:07):
This has been Aske Todd on the Financial Exchange Radio network.
Ask Todd with Todd Lutsky has been presented by Cushing
and Dolan, serving Massachusetts and New England for more than
thirty years, helping families with the state and tax planning,
Medicaid planning and probate law. Call eight hundred three nine
three four thousand and one or visit Cushingdolan dot com.
The views expressed in this segment are solely those of

(35:27):
Cushing and Dolan. Armstrong Advisory does not provide any legal
or tax advice. Please consult with your legal or tax
advisor on such matters. Cushing and Armstrong do not endorse
each other and are not affiliated. The average monthly cost
for a private room in New England could double by
twenty forty, so if you're not prepared to handle the
increased costs of nursing home care, your assets may be
at risk. Call Cushing and Dolan today and request their

(35:48):
new guide called Long Term Care Planning for Procrastinators. It'll
help you understand how to protect your assets and allow
you to enjoy your later years. An unexpected nursing home
state could significantly reduce your wealth and prosper Call Cushing
and Dolan right now at eight six six eight four
eight five six nine nine and get your free guide
called Long Term Care Planning for Procrastinators. Don't put off

(36:09):
today what you might really need to do tomorrow. Call
eight sixty six eight four eight five six ninety nine.
That's eight six six eight four eight five six ninety nine.
Or you can request the guide online by visiting Legal
exchange show dot com. That's Legal exchange show dot com.
The proceeding was paid for in the use Express are
solely those of Cushing and Dolan, Crishiingan, Dolan, Indoor i'm

(36:29):
Strong Advisory may contact you offering legal or investment services. Cushiingan,
Dolan and Armstrong Advisory do not endorse each other and
are not affiliated. The calendar is turned and the cold
is here to stay, So now is the perfect time
to plan that getaway to the US Virgin Islands. Back
now and take advantage of a special promotion to Saint Croix.
They experience a vibe like no other and receive a
two hundred and fifty dollars per person airfare credit and

(36:52):
a free hotel night when you book a five night
minimum stay with any participating hotel before June thirtieth, twenty
twenty five. Saint Croix is known for its incredible history
and spectacular architecture, along with world class cuisine, incredible golf courses,
and a wide variety of water sports. From the moment
you arrive, you'll fall naturally in rhythm with the heartbeat
of the islands. There's no money to exchange, and travel

(37:15):
from New England could not be easier. America's Caribbean paradise
is waiting for you the experience a vibe like no
other on the island of Saint Croix. Go to visit
USVII dot com and use the code Vibe twenty twenty
five for more information and book your trip today. That's
visit USVII dot com and code Vibe twenty twenty five.

Speaker 4 (37:36):
With digital technology continuously evolving, hackers are coming up with
incredibly elaborate schemes to commit fraud, which could put your
financial well being at risk. HI this is Mike Armstrong
from the Armstrong Advisory Group, and in today's landscape, it's
critically important that you beware of the potential dangers that exist.
Our new guide is called seven Common Financial Frauds and
Scams and its purpose is to help you understand what

(37:58):
steps you can take to avoid becoming a victim. Whether
it's identity theft, inheritance scams, or Ponzi schemes. This guide
can educate you about these risks, giving you the chance
to make any necessary changes to your overall financial strategy.
Call us today at eight hundred three nine three four
zero zero one and request our new guide called seven
Common Financial Frauds and Scams. That number once again eight

(38:20):
hundred thirty nine three four zero zero one.

Speaker 1 (38:23):
The proceeding was paid for by Armstrong Advisory Group, a
registered investment advisor. Nothing in the ad or in any
Armstrong Guide specific financial, legal or tax advice. Consult your
own financial tax into state planning advisors before making any
investment decisions. Armstrong make contact you to offer investment advisory services.

Speaker 6 (38:36):
This is Tarker Silva and I'm joined today by state
planning attorney Todd Lutsky from the law firm of Cushing
and Dolin with your financial exchange legal quick tip of
the day, and today we're talking about last minute nursing
home lessons that can help save your assets. Todd, more
and more people are providing in home care for their
loved ones. Is there anything a care provider can do

(38:57):
that would be beneficial to them or the family?

Speaker 3 (38:59):
So if if you're already providing care for an individual
at home, and more and more people, as you said,
are in fact doing that. The best thing to do
is to set up a personal care contract.

Speaker 1 (39:09):
Right.

Speaker 3 (39:10):
A personal care contract is something that allows you to
get paid by your family member and as long as
you report it on your income tax return and prepare
a personal care contract. Make sure you get an elder
law lawyer to help you prepare that contract, because it's
got to be done right. But if you do those
two things, get the contract and provide the care and
put the income on your income tax return. The transfers

(39:32):
are non disqualifying transfers, so even if you don't make
the five years, those dollars that you're moving will not
need to be returned and they will be protected. Also,
while you're doing that, set up the trust and get
the five year clock started. Put some assets in because
you just never know if you're gonna make it or not,
and you always want to have that five year clock
running to protect your assets.

Speaker 6 (39:53):
Cushing and Dolan has written a brand new guide especially
for those of you who have put off doing your
planning and are now fit with a last minute nursing
home situation for quest. This brand new guide from Cushing A. Dolan,
it's called long Term Care Planning for Procrasternators. You can
call eight sixty six eight four eight five six nine nine,
or you can simply request it from their website Legal

(40:15):
exchange show dot com. Once again, simply call eight six
six eight four eight five six nine nine, or get
it from their website at Legal exchange show dot com.

Speaker 1 (40:25):
The proceeding was paid for and the views expressed are
solely those of Cushing and Dolan. Cushing and Dolan Indoor
Armstrong Advisory may contact you offering legal or investment services.
Cushing and Armstrong do not endorse each other and are
not affiliated. If you are a loved one needs a
nursing homestay, call Todd right now at eight six six
eight four eight five six nine nine and let him
make sure your assets are protected. That's eight six six
eight four eight five six nine nine, or visit him

(40:48):
online at Legal exchange show dot com.

Speaker 2 (40:52):
Welcome back into the legal exchange with Todd Lusky. I'm
Susan Powers, a financial advisor the Armstrong Advisory Group, and
I'm joined, of course by Todd Lutsky, a partner with
a law firm of Cushing and Dolan with a master's
in taxation. So Todd we talk a lot about saving
the primary residence. We've talked about the vacation home. We've

(41:13):
talked about saving the money. What do you do if
someone's going into a nursing home and they own a business,
maybe you know, one spouse is going in and the
other spouse is still working with that you know, family
business or something. If someone owns a business, how is
that treated in the eyes of the nursing home.

Speaker 3 (41:35):
Yeah, so again we're saying there was no should we
do it if there was planning done or there's no.

Speaker 2 (41:40):
Plan no, no planning, lastman, And we'll talk about the best
way with the advanced planning for sure.

Speaker 3 (41:46):
Okay, So we'll come back to that. But yeah, it
would seem to me that there's a rule that says
property generating income essential to self support is non countable.
They don't define property. It would seemed to me that
a business is property, okay, and that you should be

(42:06):
able to fit into this category.

Speaker 2 (42:09):
So similar to the vacation home that you rented to
get it to be essential to self support.

Speaker 3 (42:16):
Right, if you if you create real estate and make
it a rental property, now it's arguably and arguably that
could be a business. You could be managing real estate. Yeah,
so so that that converts the rental property into a
non countable asset. Here though we actually have an LLC

(42:37):
or we don't do we know if it's a company.

Speaker 2 (42:39):
Or it's just a general question.

Speaker 3 (42:41):
Okay, So if it's a general company and you're the
it would have to be a company because a DBA
probably you know you you're the owner of the company.
I would I have never really done this because arguably
most of the time people don't you know, when they
go to a nursing home. They're long retired, right, and

(43:02):
they're not really working. So I don't want you to
think that it's something that comes up all the time.
But it's a fair question because there could be a
difference in age and they're running the company. And now
let's say husband gets sick and wife's going to run
the company.

Speaker 8 (43:15):
That's fine.

Speaker 3 (43:16):
So as long as it's a company and it's generating
income essentral to self support, which clearly it would be,
I would believe that that I would argue anyway that
that asset is a non countable asset. Now it's probably leanable,
you know, I would imagine it's leanable, but at least
it's not going to prevent the husband and our example

(43:38):
from applying and getting approved for Medicaid. There might be
other assets, but yeah, this won't be okay.

Speaker 2 (43:45):
So I think about those family businesses todd where maybe
mom and dad own the company, still maybe the kids
are running it and you know, they're all involved. So
looking at it from the perspective of hey, mom and
dad are aging. Now we know that if they go
to the nursing home, either one of them, this business

(44:06):
is going to be at risk. What's the best way
to do your planning in advance to protect that business?
Because now you're not just talking about your own income,
You're talking about the income of your family as well,
your kids and their livelihood.

Speaker 3 (44:19):
And you may yeah, like you said, you may have
kids that are actually in the business and are hoping
to get it down the road so they can continue
the business.

Speaker 2 (44:28):
Or it could be a big real estate portfolio. Like
you said, you're managing it.

Speaker 1 (44:31):
And so I.

Speaker 3 (44:33):
Would take the position that you when you're doing the planning,
the trust planning, and let's just say it's like an LLC,
we would take the shares of the company and put
them inside the trust.

Speaker 2 (44:48):
Okay, In that way.

Speaker 3 (44:49):
The trustee or multiple trusts one for husband, one for wife,
and the trustees of the trust then would be kind
of in control of that entity. However, the managers who
don't even have to be owners. The managers could still
be mom and dad, okay, and they can run the company.

(45:10):
They can make the decisions, pay the bills. They just
can't agree to sell it. Obviously the shareholders were, but
they would control the trustee on the trust. And now
the five year clock has gone.

Speaker 2 (45:19):
Okay.

Speaker 3 (45:21):
This is great for advanced planning, but it doesn't exist
all the time when it comes to entering a nursing home.
Sometimes you've done your planning and there's assets outside. Sometimes
you've not done your planning and all the assets are
outside of a trust and need to be protected. So
this guide really is for everybody faced with long term

(45:42):
care effort. It tells you how to protect real estate, businesses, money, life, insurance,
rental properties, and each asset has its own characteristics and
they're different for married and single people. Folks. Get the guide,
learn what you can do minute to protect your assets,
and the lesson learned is do not apply for medicaid

(46:04):
on your own. Get the guide. Eight sixty six eight
four eight five six nine nine or Legal Exchange Show
dot com again eight six six eight four eight five
six nine nine or Legal Exchange Show dot com.

Speaker 2 (46:20):
So very often, you know, we get those last minute
planning scenarios because people have put off their planning. But
when you mentioned the LLC, it started me thinking down
the path of how many clients we have mutual clients
that own rental properties and they're going into do their planning.
So what do you typically recommend Because a lot of

(46:41):
people have that one building or a couple buildings of
rental property and they want to protect that. But can
we talk about, you know, the benefits of that LLC
and how that works into if you're trying to do
airyvocable trust planning as well.

Speaker 3 (46:58):
Yeah, and I think that's fair. When you mentioned business before,
I was thinking, you know, business business.

Speaker 2 (47:02):
I was thinking business business too. But I think this
it's very common for the rental property.

Speaker 3 (47:08):
Yeah. I think you're very accurate there that a lot
of the LLCs that we run into might be ones
that simply own rental property and that's a business perfectly okay,
and so it would be treated the same way. So
here's what we would do. If we're meeting them, and
let's say they haven't done any planning at all, we
would first recommend that the rental properties be placed in

(47:30):
an LLC.

Speaker 2 (47:31):
And what's the benefit of doing that.

Speaker 3 (47:34):
So by putting the rental properties in an LLC, if
there's a lawsuit filed against them because the tenant slipped
and fell or the ice or you know already someone
got hurt fell off the balcony, their lawsuit would be
against the company, not them personally, which is huge because

(47:57):
they might have eras and investment accounts and a whole
and other personal assets that they would like not to
have you exposed to this creditor. And so now they
would sue the company and they can only get the
asset in that.

Speaker 2 (48:12):
LLC, got it, And they don't really want the building.
They want the insurance payout, you know, they want the dollars.

Speaker 3 (48:19):
That's that's absolutely right, you know, they want the money.
And so the good news is they would sue the entity,
and I would, as you said, Susan, I would make
sure that they've got umbrella insurance and things like that.
So they don't want the building.

Speaker 2 (48:34):
So let me ask you this then, because we do
run into a lot of people who are just starting
thinking about doing their planning, but they already have an LLC.
So do you keep that same LLC and use that
in conjunction with a new very vocable trust that you're doing, Like,
are you going to upset their apple cart and change
all sorts of things when it comes to the LLC.

Speaker 3 (48:56):
Yeah, so good news. No, we wouldn't upset their apple cart.
And yes, if their LLC is in existence and it's
got an operating agreement everything else, we tend to keep it. Yes,
And whether we keep the existing one or we create
a new one because they didn't have one, we would
either way take the shares of the LLC and transfer

(49:19):
the shares into the irrevocable trusts so that they can
be you know, get the five year clock running and
not only avoid probate and shelter for estate taxes, but
also protect the business from ever being considered accountable, leanable,
or anything because the ownership would be in the trust.

Speaker 2 (49:40):
And then they continue operating, you know, bringing on new clients,
collecting rents, kicking people out, the whole thing the same
way they were as before.

Speaker 3 (49:50):
Yep, And they could pay the bills, collect the rent,
it would just flow through. First, it would flow into
the LLC, and then the excess rent after they pay
all the bills can flow into the trust. And since
the trust is an income only trust, they simply flow
the rent rental income out into their personal account and
they move forward and they continue to live off the rent.
And as a grant to our trust, it will not

(50:12):
pay tax at the higher trust levels. It will pay
tax at their levels. Folks. That's the great advanced planning.
But you're going to run into times when you go
into the nursing home and there are going to be
assets outside of any trust, or if no trust was
in place, they're going to be there to need to
be protected. Last minute get the guide eight sixty six

(50:34):
eight four eight five six ninety nine or Legal Exchange
show dot com.

Speaker 2 (50:39):
Todd Letsky from the law firm of Cushing and Dolan,
thank you so.

Speaker 3 (50:42):
Much, Thank you always a pleasure.

Speaker 2 (50:45):
I'm Susan Powers of Financial Advice with the Armstrong Advisory Group.
We'll be back again next week on the Legal Exchange
with Todd LUTs Key.

Speaker 1 (50:54):
The average monthly cost for a private room in New
England could double by twenty forty so If you're not
prepared to handle the increased costs of nursing home care,
your assets may be at risk. Call Cushing and Dolan
today and request their new guide called long Term Care
Planning for Procrastinators. It'll help you understand how to protect
your assets and allow you to enjoy your later years.
And unexpected nursing home stay could significantly reduce your wealth

(51:17):
and prosperity. Call Cushing and Dolan right now at eight
six six eight four eight five six ninety nine and
get your free guide called Long Term Care Planning for Procrastinators.
Don't put off today what you might really need to
do tomorrow. Call eight sixty six eight four eight five
six ninety nine. That's eight six six eight four eight
five six nine nine. Or you can request the guide

(51:37):
online by visiting Legal Exchange Show dot com. That's Legal
exchange Show dot com. The proceeding was paid for in
the use expressed are solely those of Cushing and Dolan.
Cushing and Dolan, indoor i'm Strong Advisory may contact you
offering legal or investment services. Cushing and Dolan and Armstrong
Advisory do not endorse each other and are not affiliated.
The calendar is turned and the cold is here to stay.
So now is the perfect time to plan that getaway

(51:59):
to the US Virgin Islands. Back now and take advantage
of a special promotion to Saint Croix the experience of
vibe like no other, and receive a two hundred and
fifty dollars per person airfare credit and a free hotel
night when you book a five night minimum stay with
any participating hotel before June thirtieth, twenty twenty five. Saint
Croix is known for its incredible history and spectacular architecture,

(52:21):
along with world class cuisine, incredible golf courses, and a
wide variety of water sports. From the moment you arrive,
you'll fall naturally in rhythm with the heartbeat of the islands.
There's no money to exchange, and travel from New England
could not be easier. America's Caribbean Paradise is waiting for
you the experience a vibe like no other on the
island of Saint Croix. Go to visit USVII dot com

(52:43):
and use the code Vibe twenty twenty five for more
information and book your trip today. That's visit USVII dot
com and code Vibe twenty twenty five.

Speaker 4 (52:54):
With digital technology continuously evolving, hackers are coming up with
incredibly elaborate schemes to commit fraud, which could put your
financial well being at risk.

Speaker 8 (53:03):
HI.

Speaker 4 (53:03):
This is Mike Armstrong from the Armstrong Advisory Group, and
in today's landscape, it's critically important that you beware of
the potential dangers that exist. Our new guide is called
seven Common Financial Frauds and Scams, and its purpose is
to help you understand what steps you can take to
avoid becoming a victim. Whether it's identity theft, inheritance scams,
or Ponzi schemes. This guide can educate you about these risks,

(53:24):
giving you the chance to make any necessary changes to
your overall financial strategy.

Speaker 3 (53:29):
Call us today at eight.

Speaker 4 (53:30):
Hundred three nine three four zero zero one and request
our new guide called seven Common Financial Frauds and Scams.
That number once again eight hundred thirty nine three four
zero zero one.

Speaker 1 (53:40):
The proceeding was paid for by Armstrong Advisory Group, a
registered investment advisor. Nothing in the ad or in any
Armstrong guide. A specific financial, legal or tax advice cansult
your own financial tax into state planning advisors before making
any investment decisions Armstrong make contact you to offer investment
advisory services.