August 14, 2024 • 15 mins
On this weeks edition of Ask Todd, Todd Lutsky explains the benefits of a medicaid trust, how to plan after a parent is in a nursing home, and understanding the due-on clause on a revocable trust.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
This is Ask Todd on the Financial Exchange Radio Network.
If you have an existing estate plan or in the
market for one, Todd Letsky is here to answer your
questions and help you plan for a later life. Ask
Todd is presented by Cushing and Dolan, serving Massachusetts and
New England for more than thirty five years, helping families
with a state and tax planning, medicaid planning, and probate law.
(00:22):
Visit Cushingdolan dot com. Now here's Todd Lutsky.
Speaker 2 (00:27):
And we are now joined by Todd Lutsky from the
law firm of Cushing and Dolan. The segment it's called
Ask Todd because you get to ask Todd your estate
planning questions. We've got the phone lines open at eight
eight eight two zero five two two sixty three. That
is the number to call to ask Todd your estate
planning questions. Last week we couldn't get to everyone. So
(00:49):
if you were one of the people last week who
was trying to call and you couldn't get your question answered,
eight eight eight two zero five two two sixty three
is the number. If you want to get in line
early to make sure that you're able to ask Todd
your question today. That number again is eight eight eight
two zero five two two six three. We do have
(01:09):
space on the phone lines, and so again make sure
you call eight eight eight two zero five two two
sixty three to ask Todd Lutsky your questions. Mister Lutsky,
how are you doing today?
Speaker 3 (01:22):
I'm doing great? And should I ask how you're doing?
I'm okay? Yeah, what happened?
Speaker 2 (01:27):
I got into a fight with a baby frog yesterday?
Speaker 3 (01:31):
Yeah? How'd that work out? Well?
Speaker 2 (01:32):
It was a tad polarizing, Yeah, it sure would be,
you know, so it didn't go great. But Todd, I
want to talk a little bit about UH medicaid irrevocable
trust today. And let's say that someone has an irrevocable
trust that is built for the purpose of qualifying assets
for Medicaid. Okay, what can and can't they do with
(01:54):
the assets that are placed in said irrevocable trust?
Speaker 3 (01:57):
Should we just try to pick on both or like
in undo, you want to do like real estate or money?
Should we both start with money? Money's good, that's what
you work on, So we'll do money.
Speaker 2 (02:09):
Let's start with money.
Speaker 3 (02:10):
So let's say you put the money in the trust, right,
and again, folks, and it's very important. The way Chuck
described this is that it's the kind of irrevocable trust
that we do to protect from the nursing homes. Because
there are many kinds of irrevocable trusts. I want to
put that out there first, that so many people hear
the word irrevocable and think rigid and flexible. I can't
(02:31):
change it, I can't do anything. There are those kinds.
This isn't one of them. And that's why Chuck was
trying to make it clear that this is for medicaid
protection purposes. Now that said, what can you put in, Well,
you can put in real estate. You can't put in
money rental properties, not iras. So let's say we put
(02:53):
your investment portfolio and let's call it half a million dollars. Okay,
we got half a million dollars in the try. If
it wasn't in the trust, you would be managing and
investing that money. I would imagine that's what people do.
If it's in the trust, you would be managing and
investing that money just like you do today. Okay, Well,
(03:13):
once that money is managed and invested, And again when
I say that, I mean you can call your broker.
You can talk to your financial advisor even if you're
not the trustee. You're allowed to do that. Okay, that's
called limited trading authority, so no problem. Okay. Well, then
this money after you do all of this is generating
interest and dividends. So well that's income. I want my income. Well,
(03:36):
the trust gives you the income, just like it would
give you the income today. So if you didn't do
your planning and you had the money sitting in your
brokerage account, you'd get the income. Okay, well that makes sense.
So far, so good. Well, at the end of the
year you get a nasty ten ninety nine that says
this is how much income you earned, and you get
to put that on your tax return today. Well, if
(03:58):
you have it in one of these medicaid trust which
we design specifically as grand tour trusts, which means for
income tax purposes, you're considered the owner, well then you
get to put that money on your income tax return.
And yes, you get to put it on your income
tax return, your own personal income tax return at your
(04:21):
own personal rates, just like you would if you didn't
have the trust. Even if you don't take the money out,
I mean think about it so many times. Today you've
got your portfolio, but you don't take any money out,
it's just growing. You still got to pay taxes on it.
Same deal here. The only difference is this trust will
have an ID number when you open up that account.
(04:44):
It's like a Social Security number for a trust. And
then this trust will file its income tax return based
on that ID number. But because it's a grand tour trust,
the form is ten forty one. But because it's a
grand tor trust, it will not report any income. It
will kick out a letter to you, the owner, and
(05:06):
you'll put the numbers on your tax return, just like before.
So sounds to me like very little change, even with
an irrevocable trust.
Speaker 2 (05:15):
Talking with Todd Lutski from the law firm of Cushing
and Dolan. If you have a question that you'd like
to ask Todd about your estate plan, the studio line
here is eight eight eight to zero five two two
sixty three. That is the number to call to ask
Todd your questions about your estate plan. Again, it is
eight eight eight two zero five two two six three.
(05:38):
We're gonna take a quick break right now, but when
we come back, we're gonna get right to your questions
with Todd. That number is eight eight eight to zero
five two two sixty three. One more time, it's eight
eight eight two zero five two two sixty three your
questions when we come back.
Speaker 1 (05:55):
This is your home for the most comprehensive coverage of
the economy and the trends on Wall Street Face. He's
the Financial Exchange Radio Network. The Financial Exchange streams live
on YouTube. Like our page and stay up to date
on breaking business news All morning long Face is the
Financial Exchange Radio Network.
Speaker 2 (06:19):
As promised, it's time to get right to your calls
with Todd Lutsky. First in the queue, we've got Michael
from West Roxbury. Michael, what's your question for Tom Letsky?
Speaker 4 (06:31):
Yes, I have a last minute problem that I I
sure he can give me some good revolutionship. Basically, my
mother is already in and there with no free planning, okay,
and we have been there for.
Speaker 5 (06:47):
Over a year, gone to wall of her cash boy,
and now we have the house that's been sold.
Speaker 3 (06:56):
The house has already been sold. Correct, this is one
mistake after another yesterday. So how much money did you
get for the house?
Speaker 5 (07:10):
Five sixty I think we cleared.
Speaker 3 (07:13):
And and how old is your mom.
Speaker 5 (07:17):
She's eighty three, eighty three, So.
Speaker 3 (07:23):
So basically at this point, you're saying, please, can I
stop paying fifteen thousand dollars a month to the nursing home?
And how can I get eligible for medicaid? Is really
the only thing that I see and and last minute
planning can be done. Of course, we all wish you
would have done the last you know, a year ago, folks,
And this is important for everybody. This isn't this isn't
(07:44):
necessarily you know, to just pick on this situation. This
is important for everybody to learn from this that that
if you're in the nursing home and you're writing that check,
don't just write the check right call somebody right away.
Because a year ago we probably could have stopped this.
So we would have taken whatever money they had a
(08:04):
year ago, and if they probably spent a good one
hundred and fifty thousand dollars I'm guessing on the nursing home,
so we would have taken that one hundred and fifty
a year ago, bought a Medicaid annuity for it, converting
it to an income stream. Assuming there's no community spouse
and it's just your mom, then we would have gotten
rid of that, getting her down to two thousand dollars
(08:26):
and having a primary residence. It's non coountable in the
form of a primary residence, and so she would have
been eligible for medicaid a year ago. She'd have been
eligible for Medicaid a whole year ago, and we would
have stopped or slowed the bleeding. Now, the fact that
that didn't happen and we're faced with the money already
(08:48):
being spent and now we're selling a house. If the
house wasn't sold and you had called prior to selling
the house, even though you spent one hundred and fifty
for a year in the nursing home, I would have said,
don't sell the house. Let's either rent it or just
maintain it if the children know they're going to get it,
and you'd be eligible for Medicaid because a house primary
(09:09):
residence non countable for Medicaid eligibility. Yes, it's leanable, but
it's non countable. So it's a huge savings. But since
it's been sold and we're now left with just money,
and there's plenty of people who have just money when
they're entering a nursing home, we're back to this idea
of buying an annuity for an eighty three year old person.
(09:29):
They are a special designed Medicaid annuity. You need to
seek out help from an elder law attorney to do this,
don't just try to buy it on your own, and
apply for Medicaid. I can tell you that we can
get your mum eligible for Medicaid pretty much right away
and slow the bleeding. When I say slow the bleeding,
(09:49):
I mean it will go from a approximately fifteen thousand
dollars a month nursing home bill to a full pay
sixty five hundred dollars a month approximately nursing home bill,
of which is offset by Social Security and the annuity payment,
so the state will be paying a little. So that's
a really big help. I hope that gets you at
(10:12):
least thinking about what the next steps are for you
and folks, one of the things I think that we
should talk about is, you know, here there's no planning
done and it does happen. I get it. There's not
something you can do all the time. But the guide
we're giving away this month is unlocking the power of
Medicaid irrevocable trusts, and it really describes for you how
(10:34):
they work. And if Mike's mom had done the planning
in advance, or anybody not picking on Mike's mom, But
if instead they put that house in the trust five
years ago, that house would be all protected. We wouldn't
be worried about any of this at this point. And
while putting it in there, learn how the trust works,
and you'll see how much control you keep, because I
(10:56):
think you'll find that there's way more control over these
trusts than not. And if you've never done a trust
and you want to learn how they work, this guide
is for you eight six 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 and you can get
(11:17):
the guide.
Speaker 2 (11:18):
Todd, I've got another caller for you here. Let's go
to Dave in Worcester. Dave, you're on with Todd Lutsky.
Speaker 3 (11:26):
Come on, Todd, Hi, David.
Speaker 6 (11:29):
My question is concerning a property owned that are revocable
trust with a mortgage attached to it.
Speaker 3 (11:36):
You said you said revocable trust, correct, yes, revocable trust, okay,
and it's got a mortgage. I'm with you.
Speaker 6 (11:43):
Uh, mortgage is don't paid for about ten fifteen years.
My question was concerning the duon clause. Is there, uh, say,
the the owner of the trust expires the beneficiaries to
receive that property. What has to happen as far as
the duon clauses concerned. Is there some sort of language
(12:04):
that can be put into the trust to pay the
mortgage on their on their demise so or.
Speaker 3 (12:12):
Is the person currently still living?
Speaker 6 (12:15):
Yes?
Speaker 3 (12:15):
Okay, so I can address this so now, because the property,
I think it's important for people to understand the difference
between revocable and irrevocable. So in this case it's in
a revocable trust. The initial setting up of the document
putting the property, even though it's encumbered in a revocable trust,
has no bearing on the duon sale clause. And that's
(12:38):
what Dave was referring to. It's a duon sale duan
transfer clause. All mortgages have these because they didn't lend
to the person you're giving it to. They lent to you,
so you then would would have to be the one
that would be on the note. Now putting it into
a revocable trust no impact. However, as Dave indicated, what
(12:58):
happens when the creator, the donor of the revocable trust dies, Well,
the revocable trust becomes irrevocable right away, and that technically
you're now if you read the document, it probably says
the property located in the trust or the assets in
the trust need to be divided and paid out let's
(13:21):
just say equally to the kids. Well, if it says
divide and paid out equally to the kids, what do
we have. We have a transfer, We have the property
coming out of the trust to the kids. That will
trigger the do on sale clause, the d on transfer clause.
Having the bank call the note. Now, they might not
(13:41):
know right away, and there might be language in the
trust that allows you to pay this bill. I don't
know if it's in there or it's not in there.
But technically, if you're getting the money in the trust,
just take the money and pay the mortgage. But the
bank's going to learn about the death and they're gonna
call it. So your best bet is simply to go
to the bank and ask TSK them can we strike
(14:01):
up a deal to assume the mortgage and they will
tell you. Obviously, we're in a high rate environment now,
so are a higher rate environment. They'll let you know
what the story is. But yeah, hard to deal with. Uh,
there's no way around the do on sale Claus.
Speaker 2 (14:15):
Mister Lutsky, thank you so much for joining us today.
We appreciate it always the pleasure.
Speaker 1 (14:21):
This has been ASKEDDD on the Financial Exchange Radio network
Aske Todd with Todd Ludsky 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
(14:41):
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. Helmeer Life planning can
be overwhelming, so make sure you're prepared or you can
make costly mistakes that affect your overall plan. Irrevocable trust
so the most common t of trust that folks use
for financial protection and while they can be complicated to create.
(15:04):
They help keep your assets safe because they contain specific
protections that many of us need, like the possibility of
eliminating your estate taxes. Cushing and Dolan are experts in
elder lawn taxation, and they can devise a plan that
covers you in every area where issues can rise. Their
new guide is called Unlocking the Power of Irrevocable Medicaid Trusts.
Learn more about how these trusts can benefit your family
(15:27):
by calling eight sixty six eight four eight five six
ninety nine right now. That's eight sixty six eight four
eight five six nine nine, or you can request the
guide right now by visiting Legal exchange show dot com.
The proceeding was paid for and the views expressed are
solely those of Cushing and Dolan. Cushing and Doolan and
or Armstrong Advisory may contact you offering legal or investment services.
Cushing and Dolan and Armstrong Advisory do not endorse each
(15:49):
other and are not affiliated
This is Ask Todd on the Financial Exchange Radio Network.
If you have an existing estate plan or in the
market for one, Todd Letsky is here to answer your
questions and help you plan for a later life. Ask
Todd is presented by Cushing and Dolan, serving Massachusetts and
New England for more than thirty five years, helping families
with a state and tax planning, medicaid planning, and probate law.
(00:22):
Visit Cushingdolan dot com. Now here's Todd Lutsky.
Speaker 2 (00:27):
And we are now joined by Todd Lutsky from the
law firm of Cushing and Dolan. The segment it's called
Ask Todd because you get to ask Todd your estate
planning questions. We've got the phone lines open at eight
eight eight two zero five two two sixty three. That
is the number to call to ask Todd your estate
planning questions. Last week we couldn't get to everyone. So
(00:49):
if you were one of the people last week who
was trying to call and you couldn't get your question answered,
eight eight eight two zero five two two sixty three
is the number. If you want to get in line
early to make sure that you're able to ask Todd
your question today. That number again is eight eight eight
two zero five two two six three. We do have
(01:09):
space on the phone lines, and so again make sure
you call eight eight eight two zero five two two
sixty three to ask Todd Lutsky your questions. Mister Lutsky,
how are you doing today?
Speaker 3 (01:22):
I'm doing great? And should I ask how you're doing?
I'm okay? Yeah, what happened?
Speaker 2 (01:27):
I got into a fight with a baby frog yesterday?
Speaker 3 (01:31):
Yeah? How'd that work out? Well?
Speaker 2 (01:32):
It was a tad polarizing, Yeah, it sure would be,
you know, so it didn't go great. But Todd, I
want to talk a little bit about UH medicaid irrevocable
trust today. And let's say that someone has an irrevocable
trust that is built for the purpose of qualifying assets
for Medicaid. Okay, what can and can't they do with
(01:54):
the assets that are placed in said irrevocable trust?
Speaker 3 (01:57):
Should we just try to pick on both or like
in undo, you want to do like real estate or money?
Should we both start with money? Money's good, that's what
you work on, So we'll do money.
Speaker 2 (02:09):
Let's start with money.
Speaker 3 (02:10):
So let's say you put the money in the trust, right,
and again, folks, and it's very important. The way Chuck
described this is that it's the kind of irrevocable trust
that we do to protect from the nursing homes. Because
there are many kinds of irrevocable trusts. I want to
put that out there first, that so many people hear
the word irrevocable and think rigid and flexible. I can't
(02:31):
change it, I can't do anything. There are those kinds.
This isn't one of them. And that's why Chuck was
trying to make it clear that this is for medicaid
protection purposes. Now that said, what can you put in, Well,
you can put in real estate. You can't put in
money rental properties, not iras. So let's say we put
(02:53):
your investment portfolio and let's call it half a million dollars. Okay,
we got half a million dollars in the try. If
it wasn't in the trust, you would be managing and
investing that money. I would imagine that's what people do.
If it's in the trust, you would be managing and
investing that money just like you do today. Okay, Well,
(03:13):
once that money is managed and invested, And again when
I say that, I mean you can call your broker.
You can talk to your financial advisor even if you're
not the trustee. You're allowed to do that. Okay, that's
called limited trading authority, so no problem. Okay. Well, then
this money after you do all of this is generating
interest and dividends. So well that's income. I want my income. Well,
(03:36):
the trust gives you the income, just like it would
give you the income today. So if you didn't do
your planning and you had the money sitting in your
brokerage account, you'd get the income. Okay, well that makes sense.
So far, so good. Well, at the end of the
year you get a nasty ten ninety nine that says
this is how much income you earned, and you get
to put that on your tax return today. Well, if
(03:58):
you have it in one of these medicaid trust which
we design specifically as grand tour trusts, which means for
income tax purposes, you're considered the owner, well then you
get to put that money on your income tax return.
And yes, you get to put it on your income
tax return, your own personal income tax return at your
(04:21):
own personal rates, just like you would if you didn't
have the trust. Even if you don't take the money out,
I mean think about it so many times. Today you've
got your portfolio, but you don't take any money out,
it's just growing. You still got to pay taxes on it.
Same deal here. The only difference is this trust will
have an ID number when you open up that account.
(04:44):
It's like a Social Security number for a trust. And
then this trust will file its income tax return based
on that ID number. But because it's a grand tour trust,
the form is ten forty one. But because it's a
grand tor trust, it will not report any income. It
will kick out a letter to you, the owner, and
(05:06):
you'll put the numbers on your tax return, just like before.
So sounds to me like very little change, even with
an irrevocable trust.
Speaker 2 (05:15):
Talking with Todd Lutski from the law firm of Cushing
and Dolan. If you have a question that you'd like
to ask Todd about your estate plan, the studio line
here is eight eight eight to zero five two two
sixty three. That is the number to call to ask
Todd your questions about your estate plan. Again, it is
eight eight eight two zero five two two six three.
(05:38):
We're gonna take a quick break right now, but when
we come back, we're gonna get right to your questions
with Todd. That number is eight eight eight to zero
five two two sixty three. One more time, it's eight
eight eight two zero five two two sixty three your
questions when we come back.
Speaker 1 (05:55):
This is your home for the most comprehensive coverage of
the economy and the trends on Wall Street Face. He's
the Financial Exchange Radio Network. The Financial Exchange streams live
on YouTube. Like our page and stay up to date
on breaking business news All morning long Face is the
Financial Exchange Radio Network.
Speaker 2 (06:19):
As promised, it's time to get right to your calls
with Todd Lutsky. First in the queue, we've got Michael
from West Roxbury. Michael, what's your question for Tom Letsky?
Speaker 4 (06:31):
Yes, I have a last minute problem that I I
sure he can give me some good revolutionship. Basically, my
mother is already in and there with no free planning, okay,
and we have been there for.
Speaker 5 (06:47):
Over a year, gone to wall of her cash boy,
and now we have the house that's been sold.
Speaker 3 (06:56):
The house has already been sold. Correct, this is one
mistake after another yesterday. So how much money did you
get for the house?
Speaker 5 (07:10):
Five sixty I think we cleared.
Speaker 3 (07:13):
And and how old is your mom.
Speaker 5 (07:17):
She's eighty three, eighty three, So.
Speaker 3 (07:23):
So basically at this point, you're saying, please, can I
stop paying fifteen thousand dollars a month to the nursing home?
And how can I get eligible for medicaid? Is really
the only thing that I see and and last minute
planning can be done. Of course, we all wish you
would have done the last you know, a year ago, folks,
And this is important for everybody. This isn't this isn't
(07:44):
necessarily you know, to just pick on this situation. This
is important for everybody to learn from this that that
if you're in the nursing home and you're writing that check,
don't just write the check right call somebody right away.
Because a year ago we probably could have stopped this.
So we would have taken whatever money they had a
(08:04):
year ago, and if they probably spent a good one
hundred and fifty thousand dollars I'm guessing on the nursing home,
so we would have taken that one hundred and fifty
a year ago, bought a Medicaid annuity for it, converting
it to an income stream. Assuming there's no community spouse
and it's just your mom, then we would have gotten
rid of that, getting her down to two thousand dollars
(08:26):
and having a primary residence. It's non coountable in the
form of a primary residence, and so she would have
been eligible for medicaid a year ago. She'd have been
eligible for Medicaid a whole year ago, and we would
have stopped or slowed the bleeding. Now, the fact that
that didn't happen and we're faced with the money already
(08:48):
being spent and now we're selling a house. If the
house wasn't sold and you had called prior to selling
the house, even though you spent one hundred and fifty
for a year in the nursing home, I would have said,
don't sell the house. Let's either rent it or just
maintain it if the children know they're going to get it,
and you'd be eligible for Medicaid because a house primary
(09:09):
residence non countable for Medicaid eligibility. Yes, it's leanable, but
it's non countable. So it's a huge savings. But since
it's been sold and we're now left with just money,
and there's plenty of people who have just money when
they're entering a nursing home, we're back to this idea
of buying an annuity for an eighty three year old person.
(09:29):
They are a special designed Medicaid annuity. You need to
seek out help from an elder law attorney to do this,
don't just try to buy it on your own, and
apply for Medicaid. I can tell you that we can
get your mum eligible for Medicaid pretty much right away
and slow the bleeding. When I say slow the bleeding,
(09:49):
I mean it will go from a approximately fifteen thousand
dollars a month nursing home bill to a full pay
sixty five hundred dollars a month approximately nursing home bill,
of which is offset by Social Security and the annuity payment,
so the state will be paying a little. So that's
a really big help. I hope that gets you at
(10:12):
least thinking about what the next steps are for you
and folks, one of the things I think that we
should talk about is, you know, here there's no planning
done and it does happen. I get it. There's not
something you can do all the time. But the guide
we're giving away this month is unlocking the power of
Medicaid irrevocable trusts, and it really describes for you how
(10:34):
they work. And if Mike's mom had done the planning
in advance, or anybody not picking on Mike's mom, But
if instead they put that house in the trust five
years ago, that house would be all protected. We wouldn't
be worried about any of this at this point. And
while putting it in there, learn how the trust works,
and you'll see how much control you keep, because I
(10:56):
think you'll find that there's way more control over these
trusts than not. And if you've never done a trust
and you want to learn how they work, this guide
is for you eight six 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 and you can get
(11:17):
the guide.
Speaker 2 (11:18):
Todd, I've got another caller for you here. Let's go
to Dave in Worcester. Dave, you're on with Todd Lutsky.
Speaker 3 (11:26):
Come on, Todd, Hi, David.
Speaker 6 (11:29):
My question is concerning a property owned that are revocable
trust with a mortgage attached to it.
Speaker 3 (11:36):
You said you said revocable trust, correct, yes, revocable trust, okay,
and it's got a mortgage. I'm with you.
Speaker 6 (11:43):
Uh, mortgage is don't paid for about ten fifteen years.
My question was concerning the duon clause. Is there, uh, say,
the the owner of the trust expires the beneficiaries to
receive that property. What has to happen as far as
the duon clauses concerned. Is there some sort of language
(12:04):
that can be put into the trust to pay the
mortgage on their on their demise so or.
Speaker 3 (12:12):
Is the person currently still living?
Speaker 6 (12:15):
Yes?
Speaker 3 (12:15):
Okay, so I can address this so now, because the property,
I think it's important for people to understand the difference
between revocable and irrevocable. So in this case it's in
a revocable trust. The initial setting up of the document
putting the property, even though it's encumbered in a revocable trust,
has no bearing on the duon sale clause. And that's
(12:38):
what Dave was referring to. It's a duon sale duan
transfer clause. All mortgages have these because they didn't lend
to the person you're giving it to. They lent to you,
so you then would would have to be the one
that would be on the note. Now putting it into
a revocable trust no impact. However, as Dave indicated, what
(12:58):
happens when the creator, the donor of the revocable trust dies, Well,
the revocable trust becomes irrevocable right away, and that technically
you're now if you read the document, it probably says
the property located in the trust or the assets in
the trust need to be divided and paid out let's
(13:21):
just say equally to the kids. Well, if it says
divide and paid out equally to the kids, what do
we have. We have a transfer, We have the property
coming out of the trust to the kids. That will
trigger the do on sale clause, the d on transfer clause.
Having the bank call the note. Now, they might not
(13:41):
know right away, and there might be language in the
trust that allows you to pay this bill. I don't
know if it's in there or it's not in there.
But technically, if you're getting the money in the trust,
just take the money and pay the mortgage. But the
bank's going to learn about the death and they're gonna
call it. So your best bet is simply to go
to the bank and ask TSK them can we strike
(14:01):
up a deal to assume the mortgage and they will
tell you. Obviously, we're in a high rate environment now,
so are a higher rate environment. They'll let you know
what the story is. But yeah, hard to deal with. Uh,
there's no way around the do on sale Claus.
Speaker 2 (14:15):
Mister Lutsky, thank you so much for joining us today.
We appreciate it always the pleasure.
Speaker 1 (14:21):
This has been ASKEDDD on the Financial Exchange Radio network
Aske Todd with Todd Ludsky 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
(14:41):
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. Helmeer Life planning can
be overwhelming, so make sure you're prepared or you can
make costly mistakes that affect your overall plan. Irrevocable trust
so the most common t of trust that folks use
for financial protection and while they can be complicated to create.
(15:04):
They help keep your assets safe because they contain specific
protections that many of us need, like the possibility of
eliminating your estate taxes. Cushing and Dolan are experts in
elder lawn taxation, and they can devise a plan that
covers you in every area where issues can rise. Their
new guide is called Unlocking the Power of Irrevocable Medicaid Trusts.
Learn more about how these trusts can benefit your family
(15:27):
by calling eight sixty six eight four eight five six
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eight five six nine nine, or you can request the
guide right now by visiting Legal exchange show dot com.
The proceeding was paid for and the views expressed are
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(15:49):
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