September 11, 2024 • 15 mins
Todd Lutsky joins the show to explain the benefits of a revocable trust. Todd also takes calls from listeners about how they should navigate their revocable trusts.
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Episode Transcript
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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 Lutsky 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):
As promised, We're joined now by Todd Lutsky from the
law firm of Cushing and Dolan. Segment is Ask Todd.
We got the phone lines open so you can ask
Todd your estate planning questions. Eight eight eight two zero
five two two sixty three is the number to call.
Usually we can get through a few of these, so
make sure that you get calling early to get in
(00:48):
line and make sure Todd gets to your question. That
number again is eight eight eight two zero five two
two six three, and again you get to ask Todd
your questions about your eight plan at eight eight eight
two zero five two two six three. We do have
the phone lines open, so get calling and we will
get to your calls in just a little bit.
Speaker 3 (01:09):
But mister Todd Lutsky, how are you today?
Speaker 4 (01:11):
I am never better? How you doing struggling? Yeah, it's
always something with you.
Speaker 2 (01:15):
Wife got a little upset with me last night and
said that I have no sense of direction no, and
I was kind of like, where's this coming from? And
then I just got up and write. So it was, uh,
you know, kind of a tough night, but we're doing
better today. I want to talk to you a little
bit about revocable trusts. I know everyone likes to talk
(01:36):
about the irrevocable or irrevocable trusts, but basic revocable trust
what does it do? And what's what's the situation where
that is the right tool for a family to use
for their planning.
Speaker 4 (01:51):
Yeah, and naturally, I think that the last part of
that question is really the most important part is how
do we know what's right?
Speaker 1 (01:57):
Right?
Speaker 4 (01:57):
I mean that part of the thing is in the
guide we're given in a way this month there's seven trusts,
but there's a lot more than that in the real world. Right,
There's all kinds of trusts. And the job is not
just to determine how this trust works, but whether or
not it's the right trust for you, And we don't
always know. We have to ask a lot of individual
questions to find out. I know, I'm going to say,
(02:17):
if you're a family and you're maybe younger, let's say,
you know, thirties, forties, maybe fifties, and you have children
and you're concerned about you know, there might be miners,
and you want to control things for their benefit when
you're gone, but you want to stay in complete control
(02:38):
of your assets, And I would say revocable is probably
going to work for you right these are And I'm
not even worried about size of the estates so much.
Speaker 3 (02:45):
It's it's pretty much age.
Speaker 4 (02:47):
You know that's going to say, you know, I'm at
a point where I want to stay in control of
my assets. I want to avoid the probate. I want
to reduce or eliminate again federal or state death tax,
it depends. Federal is going to start coming into play
a lot more lately. I mean, as we get closer
and closer to January twenty twenty six, we're going to
(03:08):
start to see how federal becomes a bigger issue for
a lot more people. Never mind just your state, whatever
state you have there's about fifteen of them that have
a death tax, so you want to look at those
those numbers are much smaller. So I want to avoid
the probate. I want to stay in control. I want
to reduce my estate tax liability. But most importantly, I
(03:29):
got perhaps minor children or children in general, that I
want to make sure either they can't own the assets
if they're minor, so the trust will own it when
I die, or if they're older. I want to protect
it for future divorces, creditors, things for the children. I'd
say revocable trust would be would be right for that
segment of the population.
Speaker 2 (03:52):
When you talk about, hey, the downsides and things that
you're missing on that side, is it really the protection
from creditors that nursing home protection is the only thing
missing here? There are other things that you don't necessarily
get inside that wrapper of the revocable trust.
Speaker 3 (04:10):
Yeah, it's a fair question.
Speaker 4 (04:12):
I kind of did mention all the positives, and that's
because there really are no negatives. So when I say that,
I mean, I mean it right. This is a revocable trust.
It's your alter ego, and I think to your point, Chuck,
people ask me all the time they go. You know,
what is a trust It's like it's this thing that
they can't get their hands around. Right, it's a bunch
of paper like this. Right, it's a bunch of paper,
(04:33):
but it's an entity. But it's an entity you control.
You're the trustee under your Social Security number, You file
your own taxes, and you do everything you would do
with the assets inside there, just like they weren't inside there.
Speaker 3 (04:48):
So chuck no negative.
Speaker 2 (04:51):
Talking with Todd Lutsky from the law firm of Cushing
and Dolan. If you've got a question for Todd about
your estate plan, this is the chance to ask it.
We still have room on the phone lines here at
eight eight eight to zero five two two six three.
That is the number to call to ask Todd your
question about your estate plan. Again, that number is eight
(05:12):
eight eight to zero five two two six three. Still
a spot or two available, so uh do make sure
you call in if you have a question for Todd.
That number again is eight eight eight to zero five
two two six three. We're gonna take a quick break,
but after we come back, it's right to your questions
with Todd. That number one more time is eight eight
(05:33):
eight to zero five two two sixty three.
Speaker 1 (05:37):
Ask Todd with Todd Letsky every Wednesday at ten thirty
only here on the Financial Exchange Radio Network. Todd Letsky
answers your questions about a state and elder life planning
every Wednesday at ten thirty, right here on the Financial
Exchange Radio Network.
Speaker 2 (06:03):
All right, Tod, we've got callers lined up for you.
Let's go to gym in the car. Jim, you're on
with Tom Letsky. What's your question for him?
Speaker 5 (06:11):
Well, I uh, I had a trust, irrevocable trust put
together by Todd almost four years ago. And the question
I have, I'm gonna a house. It's virtually it has
no value, it's depreciated. It's almost a fully depreciated asset.
(06:34):
I'm entertaining swapping it out to a ten thirty one exchange. Yeah,
so I'll get rid of the house, probably get a
bank loan for the balance. Now my question is for
the new property coming in, does the clock, the five
year clock start again or do I still dealing with
(06:57):
the four foot the four years that I have from
the original.
Speaker 4 (07:00):
So great, great question. Let me just ask you one thing.
You plan on selling the house, getting money in the
trust and using the same money to buy another house.
Speaker 3 (07:08):
Correct, That is correct?
Speaker 4 (07:10):
Okay, because so the answer is if you do it
that way, you will not restart the clock, so you
will have one more year to go on the new
house being protected. So this is a great question because
it really shows the flexibility built into these trusts. One,
it's a Grand Tour trust. So because it's a Grand
(07:31):
Tour trust, you mentioned a minute ago that you wanted
to do this ten thirty one exchange. What that means
is you're selling property that has a lot of built
in gain and then you don't want to pay the
tax on that gain, so you're going to defer the
gain by replacing the property with like kind property. Can
(07:53):
you do it when it's in an irrevocable trust. Yes,
because it's a Grand Tour trust, and because grant our
trust means you're the owner for income tax purposes, so
you have all the same benefits you would as if
you owned it for income tax purposes. So great news.
You can do the ten thirty one exchange. You can
(08:15):
defer the gain and have it built into the new
property and when you buy and sell through the trust,
as long as the money comes in the trust and
goes back out of the trust to buy new property
that comes in the trust, you will not restart the
five year waiting period, and in one year the new
property will be protected from the cost of long term care.
(08:38):
So great question. I hope that helps a lot, and folks,
that is exactly why you want to get this guide.
This guide not only talks about Medicaid irrevocable trusts, which
is what Jim was talking about, but it adds seven
to six other trusts, from nominee realty trusts to revocable
trust that Chuck and I were talking about earlier, to
(08:59):
you know, special needs trust if you have a child,
or sole benefit trusts, life insurance trusts. It's really designed
to explain a lot of these trusts. And if you've
never done estate planning, this guide will help you figure
out what's right for you. If you've done planning and
you want to switch, might be helpful as well, So
(09:20):
call Get the Guide eight six six eight four eight
five six nine nine or Legal exchange Show dot com.
Demystifying the Top seven estate Planning Trusts eight sixty six
eight four eight five six nine nine or Legal exchange
Show dot com.
Speaker 2 (09:37):
Next up for you, Todd is Tom in Burlington, Tom,
what is your question for Todd Lunsky?
Speaker 6 (09:44):
Yes, good morning. I have a piece of rental property.
My father and I have it in a revocable trust
with both trustees. If he was to pass and I
sold it, would I be paying capital gains with the
whole property or.
Speaker 4 (09:56):
Just have So is this property when you say it's
in the revocable try trust? Is the revocable trust your
dad's revocable trust.
Speaker 6 (10:06):
We're both on it as trustee.
Speaker 4 (10:07):
No, no, no, no, But that doesn't matter. Who the trustee
is is irrelevant who owned the property, whose name was
on the property prior to it going into the revocable trust.
Speaker 6 (10:19):
It was an estate with my grandfather, and there was
a deed putting anything into this trust back well, when.
Speaker 3 (10:26):
Your grandfather died, did the property go to your dad?
Speaker 6 (10:31):
His dad and his sister and his sister signed off
and put it into this trust.
Speaker 4 (10:36):
So your dad got it one hundred percent. In other words,
it went to your dad and your and his sister.
Your sister gave it to your dad, and your dad
put it one hundred percent into this trust. Yes, if
that's how it went, you don't own any part of it. Okay,
which is good actually, because if you don't own any
(10:57):
part of it, even though you're the trustee on the trust,
when he dies, because it's a revocable trust, the assets
in there will be one hundred percent included in his
gross estate, not his probate estate. It'll avoid probate, but
it'll be included in his gross estate, thereby giving the
(11:20):
beneficiaries who get it upon his death. Let's assume it's
his kids and you're one of them. When you kids
get the property, you will get it with a brand
new basis equal to fair market value. Example, if the
house is worth a million on the date of death,
regardless of how much it was rented, and the basis
(11:42):
depreciated during life. When you kids get it, if it's
worth a million on the date of death, it's as
if you paid a million dollars for it. And then
if you sell it relatively close to death close after death,
there will be zero capital.
Speaker 3 (11:58):
Gains tax to be paid. So that answers your question. Todd,
I've got another one here for you.
Speaker 2 (12:03):
Let's see if we can get through this call from
Joyce in rent them. Joyce, We've only got a couple minutes,
so you've got to be quick. But what's your question
for Todd?
Speaker 7 (12:12):
Hey, I'll be real quick. My husband and I have
a revocable trust, and I wanted to know if we
should have checking accounts in the revocable trust in US
stocks also great question.
Speaker 4 (12:23):
Answer, quick answer, of course is yes they should be
in there. But let me explain a little bit about
why and how. So when you have a revocable trust,
and again, I know the guide talks about many trusts,
this is a revocable trust. So when you have a
revocable trust, there is almost nothing that shouldn't be in there.
(12:44):
Accept retirement accounts, okay, so your bank accounts, your rental
property like Tom had, or a primary residence like you
might have, should be retitled to the trust. And then yes,
your investment portfolio should also be titled to the trust.
Your bank accounts. Now, some people say, why bother putting
(13:07):
a you know, a small bank account into the trust.
Well you don't. You don't have to. Sometimes they say,
I don't want to change my checking account. I don't
want to get new checks. You know you can't. You
can't put those in the trust.
Speaker 3 (13:20):
You can.
Speaker 4 (13:21):
There's no downside to doing it right, if you want
to leave a small account out, you can, but there's
no downside. Everything is in your Social Security number. When
you retitle these to the trust. There's no separate tax return,
and you are one hundred percent in charge of what's
in there. Now, why am I stressing everything should go
in there, Because if it's not in there, you might
(13:44):
not be helping your estate tax liability situation, which is
likely one of the reasons.
Speaker 3 (13:50):
You have a revocable trust.
Speaker 4 (13:52):
In other words, on the first death, you want to
shelter assets so they're not taxed on the second death.
And if they're not in the trust to be sheltered,
then you're wasting some of your exemption. So if it's
just jointly owned, it goes to each other and you
waste sheltering it first ay taxes. So the more you
(14:13):
can put in a revocable trust likely the better. Sorry
for the long winded answer, but I hope that that
helps out.
Speaker 2 (14:19):
Mister Lutski. Thank you so much for joining us today.
We appreciate it.
Speaker 3 (14:23):
You're always always a pleasure. Thank you.
Speaker 1 (14:26):
This has been asked Odd 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 and three
nine three four thousand and one or visit Cushingdolan dot com.
The views expressed in this segment are solely those of
(14:46):
Cushing and Dolan Armstrong advisor. He 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. Cushing and Dolan
are experts in elder life planning and taxation. They know
that every families unique and that every estate plan must
be different. Early planning is crucial if you want to
stress free your retirement and trusts are oftentimes the document
(15:08):
of choice to help protect your assets, but with so
many kinds of trusts, you need to learn about which
one is right for your plan. Revocable and irrevocable trusts
are most common, but there are several differences, as well
as numerous tax implications with each. If you are ready
to start your planning or need to a fresh and
existing plan, Call Cushing and Dolan and ask for their
new guide called Dmistifying the Top seven Estate Planning Trusts.
(15:30):
Learn how to protect your assets and potentially eliminate your
estate taxes. Call eight six six eight four eight five
six ninety nine right now and ask for your guide today.
That's eight six six eight four eight five six nine nine,
or request it online at Legal exchange show dot com.
The proceeding was pay four and the US expressed are
sole le those of Cushing and Dolan. Cushing and Dolan
and or Armstrong Advisory may contact you offering legal or
(15:51):
investment services. Cushing and Dolan and Armstrong Advisory do not
endorse each 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 Lutsky 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):
As promised, We're joined now by Todd Lutsky from the
law firm of Cushing and Dolan. Segment is Ask Todd.
We got the phone lines open so you can ask
Todd your estate planning questions. Eight eight eight two zero
five two two sixty three is the number to call.
Usually we can get through a few of these, so
make sure that you get calling early to get in
(00:48):
line and make sure Todd gets to your question. That
number again is eight eight eight two zero five two
two six three, and again you get to ask Todd
your questions about your eight plan at eight eight eight
two zero five two two six three. We do have
the phone lines open, so get calling and we will
get to your calls in just a little bit.
Speaker 3 (01:09):
But mister Todd Lutsky, how are you today?
Speaker 4 (01:11):
I am never better? How you doing struggling? Yeah, it's
always something with you.
Speaker 2 (01:15):
Wife got a little upset with me last night and
said that I have no sense of direction no, and
I was kind of like, where's this coming from? And
then I just got up and write. So it was, uh,
you know, kind of a tough night, but we're doing
better today. I want to talk to you a little
bit about revocable trusts. I know everyone likes to talk
(01:36):
about the irrevocable or irrevocable trusts, but basic revocable trust
what does it do? And what's what's the situation where
that is the right tool for a family to use
for their planning.
Speaker 4 (01:51):
Yeah, and naturally, I think that the last part of
that question is really the most important part is how
do we know what's right?
Speaker 1 (01:57):
Right?
Speaker 4 (01:57):
I mean that part of the thing is in the
guide we're given in a way this month there's seven trusts,
but there's a lot more than that in the real world. Right,
There's all kinds of trusts. And the job is not
just to determine how this trust works, but whether or
not it's the right trust for you, And we don't
always know. We have to ask a lot of individual
questions to find out. I know, I'm going to say,
(02:17):
if you're a family and you're maybe younger, let's say,
you know, thirties, forties, maybe fifties, and you have children
and you're concerned about you know, there might be miners,
and you want to control things for their benefit when
you're gone, but you want to stay in complete control
(02:38):
of your assets, And I would say revocable is probably
going to work for you right these are And I'm
not even worried about size of the estates so much.
Speaker 3 (02:45):
It's it's pretty much age.
Speaker 4 (02:47):
You know that's going to say, you know, I'm at
a point where I want to stay in control of
my assets. I want to avoid the probate. I want
to reduce or eliminate again federal or state death tax,
it depends. Federal is going to start coming into play
a lot more lately. I mean, as we get closer
and closer to January twenty twenty six, we're going to
(03:08):
start to see how federal becomes a bigger issue for
a lot more people. Never mind just your state, whatever
state you have there's about fifteen of them that have
a death tax, so you want to look at those
those numbers are much smaller. So I want to avoid
the probate. I want to stay in control. I want
to reduce my estate tax liability. But most importantly, I
(03:29):
got perhaps minor children or children in general, that I
want to make sure either they can't own the assets
if they're minor, so the trust will own it when
I die, or if they're older. I want to protect
it for future divorces, creditors, things for the children. I'd
say revocable trust would be would be right for that
segment of the population.
Speaker 2 (03:52):
When you talk about, hey, the downsides and things that
you're missing on that side, is it really the protection
from creditors that nursing home protection is the only thing
missing here? There are other things that you don't necessarily
get inside that wrapper of the revocable trust.
Speaker 3 (04:10):
Yeah, it's a fair question.
Speaker 4 (04:12):
I kind of did mention all the positives, and that's
because there really are no negatives. So when I say that,
I mean, I mean it right. This is a revocable trust.
It's your alter ego, and I think to your point, Chuck,
people ask me all the time they go. You know,
what is a trust It's like it's this thing that
they can't get their hands around. Right, it's a bunch
of paper like this. Right, it's a bunch of paper,
(04:33):
but it's an entity. But it's an entity you control.
You're the trustee under your Social Security number, You file
your own taxes, and you do everything you would do
with the assets inside there, just like they weren't inside there.
Speaker 3 (04:48):
So chuck no negative.
Speaker 2 (04:51):
Talking with Todd Lutsky from the law firm of Cushing
and Dolan. If you've got a question for Todd about
your estate plan, this is the chance to ask it.
We still have room on the phone lines here at
eight eight eight to zero five two two six three.
That is the number to call to ask Todd your
question about your estate plan. Again, that number is eight
(05:12):
eight eight to zero five two two six three. Still
a spot or two available, so uh do make sure
you call in if you have a question for Todd.
That number again is eight eight eight to zero five
two two six three. We're gonna take a quick break,
but after we come back, it's right to your questions
with Todd. That number one more time is eight eight
(05:33):
eight to zero five two two sixty three.
Speaker 1 (05:37):
Ask Todd with Todd Letsky every Wednesday at ten thirty
only here on the Financial Exchange Radio Network. Todd Letsky
answers your questions about a state and elder life planning
every Wednesday at ten thirty, right here on the Financial
Exchange Radio Network.
Speaker 2 (06:03):
All right, Tod, we've got callers lined up for you.
Let's go to gym in the car. Jim, you're on
with Tom Letsky. What's your question for him?
Speaker 5 (06:11):
Well, I uh, I had a trust, irrevocable trust put
together by Todd almost four years ago. And the question
I have, I'm gonna a house. It's virtually it has
no value, it's depreciated. It's almost a fully depreciated asset.
(06:34):
I'm entertaining swapping it out to a ten thirty one exchange. Yeah,
so I'll get rid of the house, probably get a
bank loan for the balance. Now my question is for
the new property coming in, does the clock, the five
year clock start again or do I still dealing with
(06:57):
the four foot the four years that I have from
the original.
Speaker 4 (07:00):
So great, great question. Let me just ask you one thing.
You plan on selling the house, getting money in the
trust and using the same money to buy another house.
Speaker 3 (07:08):
Correct, That is correct?
Speaker 4 (07:10):
Okay, because so the answer is if you do it
that way, you will not restart the clock, so you
will have one more year to go on the new
house being protected. So this is a great question because
it really shows the flexibility built into these trusts. One,
it's a Grand Tour trust. So because it's a Grand
(07:31):
Tour trust, you mentioned a minute ago that you wanted
to do this ten thirty one exchange. What that means
is you're selling property that has a lot of built
in gain and then you don't want to pay the
tax on that gain, so you're going to defer the
gain by replacing the property with like kind property. Can
(07:53):
you do it when it's in an irrevocable trust. Yes,
because it's a Grand Tour trust, and because grant our
trust means you're the owner for income tax purposes, so
you have all the same benefits you would as if
you owned it for income tax purposes. So great news.
You can do the ten thirty one exchange. You can
(08:15):
defer the gain and have it built into the new
property and when you buy and sell through the trust,
as long as the money comes in the trust and
goes back out of the trust to buy new property
that comes in the trust, you will not restart the
five year waiting period, and in one year the new
property will be protected from the cost of long term care.
(08:38):
So great question. I hope that helps a lot, and folks,
that is exactly why you want to get this guide.
This guide not only talks about Medicaid irrevocable trusts, which
is what Jim was talking about, but it adds seven
to six other trusts, from nominee realty trusts to revocable
trust that Chuck and I were talking about earlier, to
(08:59):
you know, special needs trust if you have a child,
or sole benefit trusts, life insurance trusts. It's really designed
to explain a lot of these trusts. And if you've
never done estate planning, this guide will help you figure
out what's right for you. If you've done planning and
you want to switch, might be helpful as well, So
(09:20):
call Get the Guide eight six six eight four eight
five six nine nine or Legal exchange Show dot com.
Demystifying the Top seven estate Planning Trusts eight sixty six
eight four eight five six nine nine or Legal exchange
Show dot com.
Speaker 2 (09:37):
Next up for you, Todd is Tom in Burlington, Tom,
what is your question for Todd Lunsky?
Speaker 6 (09:44):
Yes, good morning. I have a piece of rental property.
My father and I have it in a revocable trust
with both trustees. If he was to pass and I
sold it, would I be paying capital gains with the
whole property or.
Speaker 4 (09:56):
Just have So is this property when you say it's
in the revocable try trust? Is the revocable trust your
dad's revocable trust.
Speaker 6 (10:06):
We're both on it as trustee.
Speaker 4 (10:07):
No, no, no, no, But that doesn't matter. Who the trustee
is is irrelevant who owned the property, whose name was
on the property prior to it going into the revocable trust.
Speaker 6 (10:19):
It was an estate with my grandfather, and there was
a deed putting anything into this trust back well, when.
Speaker 3 (10:26):
Your grandfather died, did the property go to your dad?
Speaker 6 (10:31):
His dad and his sister and his sister signed off
and put it into this trust.
Speaker 4 (10:36):
So your dad got it one hundred percent. In other words,
it went to your dad and your and his sister.
Your sister gave it to your dad, and your dad
put it one hundred percent into this trust. Yes, if
that's how it went, you don't own any part of it. Okay,
which is good actually, because if you don't own any
(10:57):
part of it, even though you're the trustee on the trust,
when he dies, because it's a revocable trust, the assets
in there will be one hundred percent included in his
gross estate, not his probate estate. It'll avoid probate, but
it'll be included in his gross estate, thereby giving the
(11:20):
beneficiaries who get it upon his death. Let's assume it's
his kids and you're one of them. When you kids
get the property, you will get it with a brand
new basis equal to fair market value. Example, if the
house is worth a million on the date of death,
regardless of how much it was rented, and the basis
(11:42):
depreciated during life. When you kids get it, if it's
worth a million on the date of death, it's as
if you paid a million dollars for it. And then
if you sell it relatively close to death close after death,
there will be zero capital.
Speaker 3 (11:58):
Gains tax to be paid. So that answers your question. Todd,
I've got another one here for you.
Speaker 2 (12:03):
Let's see if we can get through this call from
Joyce in rent them. Joyce, We've only got a couple minutes,
so you've got to be quick. But what's your question
for Todd?
Speaker 7 (12:12):
Hey, I'll be real quick. My husband and I have
a revocable trust, and I wanted to know if we
should have checking accounts in the revocable trust in US
stocks also great question.
Speaker 4 (12:23):
Answer, quick answer, of course is yes they should be
in there. But let me explain a little bit about
why and how. So when you have a revocable trust,
and again, I know the guide talks about many trusts,
this is a revocable trust. So when you have a
revocable trust, there is almost nothing that shouldn't be in there.
(12:44):
Accept retirement accounts, okay, so your bank accounts, your rental
property like Tom had, or a primary residence like you
might have, should be retitled to the trust. And then yes,
your investment portfolio should also be titled to the trust.
Your bank accounts. Now, some people say, why bother putting
(13:07):
a you know, a small bank account into the trust.
Well you don't. You don't have to. Sometimes they say,
I don't want to change my checking account. I don't
want to get new checks. You know you can't. You
can't put those in the trust.
Speaker 3 (13:20):
You can.
Speaker 4 (13:21):
There's no downside to doing it right, if you want
to leave a small account out, you can, but there's
no downside. Everything is in your Social Security number. When
you retitle these to the trust. There's no separate tax return,
and you are one hundred percent in charge of what's
in there. Now, why am I stressing everything should go
in there, Because if it's not in there, you might
(13:44):
not be helping your estate tax liability situation, which is
likely one of the reasons.
Speaker 3 (13:50):
You have a revocable trust.
Speaker 4 (13:52):
In other words, on the first death, you want to
shelter assets so they're not taxed on the second death.
And if they're not in the trust to be sheltered,
then you're wasting some of your exemption. So if it's
just jointly owned, it goes to each other and you
waste sheltering it first ay taxes. So the more you
(14:13):
can put in a revocable trust likely the better. Sorry
for the long winded answer, but I hope that that
helps out.
Speaker 2 (14:19):
Mister Lutski. Thank you so much for joining us today.
We appreciate it.
Speaker 3 (14:23):
You're always always a pleasure. Thank you.
Speaker 1 (14:26):
This has been asked Odd 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 and three
nine three four thousand and one or visit Cushingdolan dot com.
The views expressed in this segment are solely those of
(14:46):
Cushing and Dolan Armstrong advisor. He 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. Cushing and Dolan
are experts in elder life planning and taxation. They know
that every families unique and that every estate plan must
be different. Early planning is crucial if you want to
stress free your retirement and trusts are oftentimes the document
(15:08):
of choice to help protect your assets, but with so
many kinds of trusts, you need to learn about which
one is right for your plan. Revocable and irrevocable trusts
are most common, but there are several differences, as well
as numerous tax implications with each. If you are ready
to start your planning or need to a fresh and
existing plan, Call Cushing and Dolan and ask for their
new guide called Dmistifying the Top seven Estate Planning Trusts.
(15:30):
Learn how to protect your assets and potentially eliminate your
estate taxes. Call eight six six eight four eight five
six ninety nine right now and ask for your guide today.
That's eight six six eight four eight five six nine nine,
or request it online at Legal exchange show dot com.
The proceeding was pay four and the US expressed are
sole le those of Cushing and Dolan. Cushing and Dolan
and or Armstrong Advisory may contact you offering legal or
(15:51):
investment services. Cushing and Dolan and Armstrong Advisory do not
endorse each other and are not affiliated
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