Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
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 six 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 (00:37):
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 (00:53):
I'm never better on you?
Speaker 2 (00:54):
I'm great, Thank you. What do you have for us?
This week?
Speaker 4 (00:57):
We're going to lead off with a real life store,
one that actually changed my entire seminar that I did
last week when I read this, when I had this
client walk in regarding life estates and how they own
life estates in two properties, second marriage, all three kids
own it, and it gets better. One's an attorney who's
(01:20):
a gambler, huge debts. How do we fix this? It
is a problem. So we're going to explain how we
fixed it. We're going to explain, you know, how life
estates work. It really brought life estates back to the
forefront and it's something that many many people have, and
I want them to understand the pros and cons of
(01:42):
what they actually have.
Speaker 3 (01:43):
So stay tuned for that for sure.
Speaker 4 (01:45):
And then a New York appellate course, a pellet court
case basically showing you how planning works. It does have
a no contest clause involved, but that's not really my
point here. This is a case they're not married, the
significant others one cared for the other one, and they
did a revocable trust to take care of a significant other. Folks,
(02:07):
trusts work. You'll see how this ends up in a
somewhat good way, but without the trust, it might not
have turned out that way. So, folks, that is the cases.
But that's my point, right the estate planning potholes is
the guide. There's so many things that you need to
understand on what to do and what not to do,
(02:30):
and this guide gives you those. So if you've done
your planning, it's going to tell you how to maybe
fix something that you've done wrong. If you haven't done
your planning, it might show you things to avoid, right
from don't rely on a will, don't rely on a
nominee realty trust. Don't think you don't have kids, you
don't need to plan. Don't think that fifteen years went
(02:51):
by them and I shouldn't look at my will or
I got divorced?
Speaker 3 (02:54):
What does that do? Folks?
Speaker 4 (02:56):
One thing after another, call and get the guide. Learn
how to get your estate plan in order 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 ninety nine or Legal Exchange Show dot Com.
And now let's head back to this real life situation.
(03:19):
So husband, wife come in. They're about seventy seven and
sixty seven, so it's a little age gap and back
in twenty fourteen, which is really important. Dates are important here.
They gifted the home to their three kids, two that
they had together, one that he had from a prior marriage.
They all get along great. And by the way, that's
(03:41):
the saving grace here. And they're cooperative, also the saving
grace here. And so what they did is they gave
the house to the to the children, and they reserved
a life estate. Then they also gifted their second home,
which is more of a vacation home, to the kids,
and again and reserved a life estate. As I said,
(04:03):
it turns out that one of the children has a
real bad gambling problem. And you know, the you know,
the father did the right thing, the mother did the
right thing. They tried to help him out. They gave
Hi one hundred and ten thousand dollars to get him
bail him out of some of his debts, and sure
enough he's right back at him. And so now we've
got this arrangement and we've got a child that's a gambler,
(04:24):
and they're worth in total about I don't know, call
it one point six in the real estate, maybe a
little bit more in money, but that's about it. And
they have no other planning in place really other than
perhaps a will.
Speaker 3 (04:39):
And so.
Speaker 4 (04:41):
They came in and said, you know, we were listening
to the show and we think we might have done
something wrong. It's not that you did it wrong, folks,
it's just I just feel like the advice you got.
I never blamed the client, you know, I'm sort of
blaming the lawyers for putting you in this position. So
let's just run through what they have and then we're
going to fix it. Right, Just just remember this, right.
(05:02):
So now, let's focus on the home first. Then I'll
tell you about the second property. So are there some
pros to what they did? Yeah, the home is at
least protected from the nursing home. It was done more
than five years ago, and it's going to avoid probate.
When they die, and when they ultimately passed, the kids
will get the property in the remainder interest in the
(05:23):
life estate will vest in the kids, and they will
get it with a full step up in basis, which
simply means if they sell the property after they die,
the kids will have very little to know capital gains tax.
Speaker 3 (05:37):
That's all good stuff.
Speaker 4 (05:38):
Yeah, and I agree, And I don't want to disturb
that because they're seventy seven and sixty seven and not
that that's really old. But you know, it's already protected
and you have.
Speaker 2 (05:47):
To plan for the older spouse though.
Speaker 3 (05:49):
Right, Yeah, a good point.
Speaker 4 (05:51):
But what are the problems here, Well, the problem is
that they cannot sell it. If they wanted to sell
it without the kids permission, that's the problem. And thankfully
the kids would give permission. But you know, if they
wanted to move, let's say they can't. And then you know,
depending on their age, even if they sold the property,
a large portion of the money and the gain would
(06:15):
go to the kids because their remainderment. Right, as a
life tenant, you own the present right to live there
in the hole. But when you sell it, you don't
get the whole.
Speaker 2 (06:24):
You only get a little bit.
Speaker 4 (06:25):
You only get a piece based on your age, right,
And so the older you are, the smaller you get.
Speaker 5 (06:31):
Right.
Speaker 4 (06:31):
So maybe they get twenty percent, maybe they get twenty
five percent. It depends on how old they are on
the day they sell it, okay, And so that can
result in adverse capital gains tax problems. Right, So if
let's just say seventy five percent of the gain goes
to the kids and twenty five percent of the gain
(06:51):
and proceeds go to the life tenant, well, life tenant
gets you know, they're married, they get a five hundred
thousand dollars capital gain exclusions. They're probably gonna have no tax.
The kids don't get that, so they're going to end
up paying more tax than they would have needed.
Speaker 2 (07:07):
To pay, right because they don't live there.
Speaker 4 (07:10):
Yeah, but that doesn't end the problems. Right now, they
got the money and if they want to buy a
new house.
Speaker 2 (07:18):
They got to get it back.
Speaker 4 (07:19):
They got to get it back because they don't have
enough money to get to buy the new house because
they only got twenty five percent of the proceeds. So
now you've got to ask the kids to give the
money back, which is not a great place to be ever. No,
and then if the kids do cooperate and give the
money back, then the kids have a gift tax problem
that they have to face.
Speaker 2 (07:39):
That's if there's no leans on his bank account, the
gambling sun. I mean there could be.
Speaker 3 (07:43):
There could be leans issues. There could be issues because
they could have.
Speaker 2 (07:47):
Leaned his bank accounts, not not They might not know
about that property, but they're going to know when it
comes into his bank account.
Speaker 4 (07:53):
Yeah, there's going to be issues, and that's why they
want to undo this, right and so now they don't
have it. And let's just take it one step further.
Let's say, you know, they don't have a big tax problem.
They use up some of their exemption. It's going to
affect them for mass the kids. But now mom and
dad got the property back. And now they got the
property back, and the question is they don't have but
they want to buy a new house. All the money's
(08:15):
all at risk for a nursing home all over again.
Speaker 3 (08:17):
Again not helpful.
Speaker 2 (08:20):
But if they had transferred it to a trust to
begin with.
Speaker 4 (08:23):
You wouldn't have had any of those problems. Right, So
if you compare this with a trust, they can sell it.
They don't need the kid's permission. They could just tell
the trustee to sell or remove the trustee. All the
money or a big chunk. Seventy five percent would go
to the trust. Twenty five percent would go to them.
They can use the seventy five percent in the trust
to buy another house in the trust, not restarting the
five year waiting period. No adverse capital gains tax problems,
(08:46):
because they would get the capital gain would show up
on their personal return. Because it's a grand tour trust,
they'd get to use the whole five hundred thousand dollars
of gain.
Speaker 2 (08:54):
No issues from any kid's creditors.
Speaker 4 (08:56):
No giving back, no issues for credit or protection, no
gift tax.
Speaker 3 (09:01):
Wow gets worse though.
Speaker 4 (09:03):
The second home, the life estates not protected at all ever,
because it's not your primary residence. So they think they
protected the second home from the nursing home, but they
haven't because the value of the life estate is at
risk because it's not a life estate in your primary residence.
The only reason the life estate's not at risk and
your primary residence is because it's your primary residence, right,
(09:25):
But the life estate in the second home already at risk.
Speaker 3 (09:30):
But we're able to fix it.
Speaker 4 (09:31):
They have cooperating kids, and so we're able to actually
have the remainder interest of both properties given to an
irrevocable trust that we're creating now for them. They will
keep the life estate in their home so as not
to restart that clock, and they will gift the life
estate in the balance in the other property to the trust,
and so it will be protected. There will be a
(09:52):
new five year waight just for the life estate peace.
But all around, we also preserved to step up in
basis win win for them creditors are off the table.
Everyone's going to feel better about this arrangement. So fixable,
but folks not the best to do. Seems like that's
a really big pothole. Get the guide and learn about
other potholes to avoid eight six six eight four eight
(10:16):
five six nine nine or Legal Exchange show dot com.
Speaker 2 (10:20):
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've got much
more to come when we return to the legally Exchange
with Todd Lutsky.
Speaker 1 (10:36):
Creating an estate plan can be a difficult process if
you aren't working with an expert who can make sure
your plan is secure. Cushing and Dolan can help. Call
them today at eight six six eight four eight five
six nine nine. Estate Planning is their business, and their
new monthly guide is called Detour a head estate planning
blunders to avoid. Don't put your assets at risk and
open yourself up to severe tax consequences, even if you
(10:58):
already have a plan this This guide may correct an
issue that could come back to haunt you in the
years to come. Proper estate planning is crucial to you
being able to enjoy your later years, and it may
be the difference between retiring comfortably or living under incredible
financial pressure. Call Cushing and Dolan right now at eight
sixty six eight four eight five six ninet nine and
get your free guide today that's eight six six eight
(11:21):
four eight five six nine nine, or request an online
from their website Legal exchange show dot com. The proceeding
was paid for and the us expressed are solely those
of Cushing and Dolin. Cushing and Dolan and or Armstrong
Advisory may contact your offering legal or investment services. Cushing
and Armstrong do not endorse each other and are not affiliated.
Speaker 6 (11:36):
Trust can play a key role in your financial strategy,
and understanding the different kinds and their purpose may help
you make the right decisions for your overall plan.
Speaker 3 (11:45):
HI.
Speaker 6 (11:45):
This is Chuck Zada from the Armstrong Advisory Group. Trusts
are utilized for a variety of reasons, but the most
basic use is to make settling in a state easier.
Trust have the ability to bypass probate, which can save
you significant time and money while allowing your assets to
be distributed directly to your beneficiaries. Our new guide this
month is called Trusts in your Financial Plan and you
can get it by calling eight hundred three nine three
(12:07):
for zero zero one. Learnt about trust and their possible
benefits to your financial strategy by requesting your free guide today.
That number again is eight hundred three nine three for
zero zero one, or request it online at Armstrong Advisory
dot com. That's Armstrong Advisory dot com.
Speaker 1 (12:23):
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 into state planning advisors before making
any investment decisions. Armstrong may contact you to offer investment
advisory services. The United States, Virgin Islands has consistently voted
one of the Topcribbean destinations, and recently two of their beaches,
(12:45):
Trunk Bay and Saint John and Magan's Bay and Saint Thomas.
We're voted at top ten best beach in the Caribbean
at the twenty twenty five Travelers Choice Best of the
Best awards, from the Pristine Beaches to its world class dining,
rich history, incredible golf and perfect weather. The USVII has
everything you need to make memories that will last a lifetime.
From the moment you arrive, you will fall naturally in
(13:07):
rhythm with the heartbeat of the islands. There's no money
to exchange, and travel from New England could not be easier.
Whether you're looking for a romantic getaway or a family vacation,
the US Virgin Islands is the perfect place for your
next adventure. Go to visit USVII dot com right now
for more information and to book your trip. The USVII
is Americas Caribbean Paradise. Go to visit USVII dot com today.
(13:32):
That's visit USVII dot com. You're listening to the Legal
Exchange with Todd Lutsky, an expert in elder life planning
and taxation. Need help with your estate plan Call Todd
right now and make an appointment eight sixty six eight
four eight five six ninety nine. That's eight sixty six
eight four eight five six ninety nine.
Speaker 2 (13:53):
Welcome back into the Legal Exchange with Todd Lutsky. I'm
Susan Powers, a financial advisor with the Armstrong Advice Group,
and I'm joined by Todd Letsky, a partner with the
law firm of Cushing and Dolan with a masters in taxation.
Where are we headed now, Todd.
Speaker 3 (14:09):
New York?
Speaker 4 (14:10):
How about that excellent New York Appellate Court not too
far away? So in this case, it's a no contest
clause case. But that isn't really why we're gonna tell
you about it. But let's go through the fact. So
Christine and Donald began a romantic relationship in two thousand
and four, two thousand and five, she became his full
(14:30):
time caregiver and continued in that role till his death
ten years later. So that's worth something, I would think.
So Donald had put together a revocable trust. This revocable
trust directed his daughter as trustee. Just to make things complicated,
her name is Chrissy, not to be confused with Christine,
(14:54):
who is the significant other, to pay income to Christine
and to give Christine title to the home. Okay, okay, Well,
the trust did have a no contest clauset and in
about two years later, Christie's lawyer sent a letter to
Christine indicating that the trust had some precatory language in
(15:16):
it and had insufficient assets to distribute anything to Christine. Well,
Christine didn't like that, so Christine requested a transfer of
the home, which she knew she was entitled to, yep,
and a copy of the trust. I just got to
learn what else I'm entitled to, so Christine. Christine sued
(15:37):
Chrissy for breach of fiduciary duty and the commingling of
the funds in the trust to unjustly enrich herself and
asked for a declaratory judgment and that she is entitled
to an income stream from the trust.
Speaker 3 (15:51):
Well, Chrissy moved to.
Speaker 4 (15:53):
Dismiss that, and as to her assertion to her being
entitled to a stream of income, and she indicated that
this triggered the no contest clause. Well, the court denied
the motion to dismiss, so Christie filed a summary judgment. Well,
Christine opposed the summary judgment, meaning there's no issue of
material fact, this case should go away. Christine opposed the
(16:16):
motion and then was seeking saying, look, all I'm trying
to do is construe and enforce the trust, not contest it.
Speaker 1 (16:23):
Yep.
Speaker 4 (16:24):
Well, the lower court ended up granting Chrissy's motions that
it violated the no contest clause. Really, so Christine appealed,
and the appellate court affirmed, and then Christine appealed all
the way up to the New York Court of Appeals
where they reversed, basically saying she wasn't trying to contest
the trust, just enforce it. Right again, This isn't a
(16:46):
no contest clause, folks, This is more than that. I
just want to explain that this ended up working. Right,
So you're now going to find out that Christine is
going to be taken care of here in case you
weren't able to follow the bouncing ball. Christine is going
to be taken care of here. And I believe also
the children will get taken care of here. But again,
(17:10):
that's what you want to happen when you do your
state plan. And I thought it was interesting here that
that you weren't even married, right, this is just a
significant other.
Speaker 2 (17:21):
But you don't have to leave things all for your kids.
You don't have whoever you want to, but have a plan, right.
Speaker 4 (17:27):
And I think that's what I want to mention, that
a state planning potholes to avoid, right, if you have
a second marriage, look at your plan, if you got divorced,
look at your plan if you're moving to another state
and changing residencies. You need to look at your plan.
These are potholes that you could run into. Don't rely
on a whale, don't rely on a nominee realty trust.
(17:48):
Don't think because I have no kids or I'm not
married like this case, that I don't need to do planning.
Planning works, needing even more so, and even more so
not planning is a pothole in and of itself, but
there's a lot of other ones as well. Folks, Please
call and get the guide. Learn what's right for you
if you've done your planning, and how to fix it
if you haven't done it. How to avoid these problems
(18:11):
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. What are we gonna learn from this? Yeah,
I'm glad the no contest clause was there.
Speaker 3 (18:29):
I mean it did.
Speaker 4 (18:30):
It did provide protection for sure, But let's let's walk
through this right. This is to me a great example
of how a trust, even for an unmarried or second
marriage situation, can provide for the significant other or a
second spouse while still protecting the kids. So here you
(18:52):
have a house that is going to a significant other. Well,
we'll talk about other options as we go through the segment,
but I mean, that's certainly an option. If that's what
you want to do, you can you can give it
to the to the significant other or to the second spouse.
In this case, that's what the trust ordered, give her
the house.
Speaker 3 (19:11):
Okay.
Speaker 4 (19:11):
In addition and uh and again she she did provide
care for ten years for this person, So again I
think she certainly earned it. And then they gave her
a stream of income in my head to help her
maintain the house that she just got. I think that
makes makes decent sense right now. And so to me
(19:36):
that that's a good, a good approach.
Speaker 3 (19:38):
Now. It it that.
Speaker 4 (19:41):
If that follows this, there will be principal left at
the end of the day, there will be principal left
for from the trust, presumably for the kids if you
follow this. This rule now, the no contest clause here,
I think served really to protect both parties, right.
Speaker 3 (19:58):
Think about it.
Speaker 4 (19:59):
If the kid sued saying, ah, we're going to try
and challenge the trust. We don't want the house going
to her, and we don't think the money should go
to her, well, then they would have probably lost everything
they would get, so that no contest clause works both ways,
right And then of course if she was to sue,
it would be the same thing. But in this case
(20:19):
it really protected the significant other. So the trust itself
really ensured that the significant other was taken care of,
which is exactly what the donor want. Now, a couple
of things, could you have done it differently? Could you
have provided more for your children and still provided for
(20:40):
the significant other? Yeah, I mean a couple of things
that other options that come to mind here for me
would be you know, maybe I would have put the
significant other on as a co trustee with the kid,
you know, because that at least allows the trustee the
significant other, to be more actively involved.
Speaker 2 (21:02):
And you'd have that transparency.
Speaker 4 (21:04):
You'd have the transparency. Good point, Susan, So what that
would be good? And again notice here nothing happened for
two years. The suit didn't come right until two years later.
So I'm like, I don't think it would have been
a two year delay for the significant other to start
either collecting the stream of income or get the house
right if she were.
Speaker 2 (21:24):
It seems like trustee.
Speaker 4 (21:25):
Oh, yeah, right, yeah, So to me, adding her as
a co trustee might be something that if you're thinking
about doing your planning, you might want to think about.
Speaker 2 (21:35):
And he could have, Todd if he wanted to. He
could have kept that house in trust for the significant
other to live there, but when she passes, it could
have ultimately gone to his children.
Speaker 3 (21:47):
Right, that was exactly my next point. Suit.
Speaker 2 (21:49):
That sounds like we've been doing this really twenty years
together or something.
Speaker 4 (21:52):
Read in my mind, I mean, that would be my
next point would be, did you have to actually give
her the house? No, you're exactly what you said, Susan
hold it in trust. And again, the stream of income
could have been used to maintain the property while she's
living there, even though.
Speaker 3 (22:08):
The property is owned in the trust.
Speaker 4 (22:10):
So now you've provided her with a place to live
and a mechanism to maintain the place to live without
giving her the place to live. Wow, that's awesome. And
and you know she couldn't sell it again if you
have co trustees, it would require both to sell it,
and if you did, the money would flow right into
(22:30):
the trust, not out to a significant other or a
second spouse.
Speaker 3 (22:35):
If that's the case. And in that regard.
Speaker 4 (22:38):
You could have then preserved the entire property because it
would say, like upon her death or her moving out
and doesn't want it anymore, or you know other trigger
events that you could put in there that when those
trigger events happen, the property then reverts back to his kids.
(22:58):
So his kids could have altimate. We got the property
and all the related appreciation while she enjoys a place
to live and a stream of income. Now the kids
hold off on the principle because they can't take the
principle because it was screw up the income. But then
when she passes all the principal would still be there,
right and they would get the house and the principle.
So there's no right or wrong answer here, folks. It's
(23:19):
just options, and I wanted to share those with you.
And when you're doing your planning, there are right wrong answers.
There's potholes to avoid, and that's what the guide's about.
So get the guide and learn how to avoid the
potholes when doing your estate plan, or maybe how to
update your estate plan for something that you didn't see
when you did it. Eight six six eight four eight
five six nine to nine.
Speaker 2 (23:40):
You've been listening to Todd Lutsky, a partner with the
law firm of Cushing in Dolan. I'm Susan Powers with
the Armstrong Advisory Group and Todd will be answering your
questions when we return to the legal exchange with Todd Lutsky.
Speaker 1 (23:54):
Creating an estate plan can be a difficult process if
you aren't working with an expert who can make sure
you're planning secure. Cushing and Dolan can help. Call them
today at eight six six eight four eight five six
nine nine. Estate planning is their business, and their new
monthly guide is called Detour a head estate planning blunders
to avoid. Don't put your assets at risk and open
yourself up to severe tax consequences. Even if you already
(24:17):
have a plan, this guide may correct an issue that
could come back to haunt you in the years to come.
Proper estate planning is crucial to you being able to
enjoy your later years, and it may be the difference
between retiring comfortably or living under incredible financial pressure. Call
Cushing and Dolan right now at eight sixty six eight
four eight five six ninet nine and get your free
guide today. That's eight six six eight four eight five
(24:40):
six nine nine or request an online from their website
Legal exchange show dot com. The proceeding was paid for
in The views expressed are solely those of Cushing and Dolan.
Cushing and Dolan ind or Armstrong Advisory may contact you
are offering legal or investment services. Cushing and Armstrong do
not endorse each other and are not affiliated.
Speaker 7 (24:55):
This is Michael Valila added of the Disabled American Veterans
Department of 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 our great
(25:16):
American heroes as well by making a donation today by
visiting dav five k dot Boston. That's dav five k
dot Boston.
Speaker 1 (25:26):
The United States Virgin Islands is consistently voted one of
the top Caribbean destinations, and recently two of their beaches,
Trunk Bay and Saint John and Magan's Bay and Saint Thomas.
We're voted at top ten best beach in the Caribbean
at the twenty twenty five Travelers Choice Best of the
best awards. From the pristine beaches to its world class dining,
rich history, incredible golf and perfect weather, the USVII has
(25:49):
everything you need to make memories that will last a lifetime.
From the moment you arrive, you will 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.
Whether you're looking for a romantic getaway or a family vacation,
the US Virgin Islands is the perfect place for your
next adventure. Go to visit USVII dot com right now
(26:11):
for more information and to book your trip. The USVII
is America's Caribbean paradise. Go to visit USVII dot com today.
That's visit USVII dot com.
Speaker 5 (26:25):
Hi, this is Mike Armstrong from the Armstrong Advisory Group.
A state and financial plan and go hand in hand,
and one of the most common ways to keep that
bond secure is with a trust. Our new guide called
Trusts and your Financial Plan, is available right now. In it,
we'll discuss the various types of trusts that exist and
how they might benefit your planning process. Trust provide a
number of different protections for your assets, including privacy control
(26:46):
and tax efficiency. If you're retired or nearing retirement and
have concerns about your financial strategy and whether or not
a trust may help, call us today at eight hundred
three nine three four zero zero one and ask for
your free guide called Trusts and your Financial Place. Learn
about how a trust could make a difference for you
and your family by calling eight hundred three nine three
four zero zero one. That number again is eight hundred
(27:07):
three nine three four zero zero one, or you can
request the guide from Armstrong Advisory dot Com.
Speaker 1 (27:12):
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 may contact you to offer investment advisory services.
You're listening to the Legal Exchange and it's time for
Ask Todd, the segment where Todd will answer your questions
(27:32):
about anything and everything that's included in the estate planning process.
Once again, here's Todd Lutsky and Susan Powers.
Speaker 2 (27:41):
Welcome back, Todd. We have a few questions from listeners
for you. First question comes from ed in Cranston, Cranston,
Rhode Island and ed Wrights. My daughter predeceased me, leaving
behind two children. I have one living son. Now I'd
like to make sure my daughter's children are taken care
of after I pass. Would it be best if I
leave my assets all to my son with the understanding
(28:05):
that he is to take care of his niece and nephew.
Or should I leave it for my son in law
for them?
Speaker 3 (28:11):
Hm? So let's let's see here.
Speaker 4 (28:14):
So we've got a person who passed leaving two kids,
which fine, we usually take care of that in our
in our documents, and is saying, would I leave my
assets to my son? You never want to just do that,
leaving assets to another person and relying on that person
to take care of somebody else's family members. I mean,
(28:38):
I mean they're related. I guess, yeah, uncle, But if
you leave it directly to the son, who I guess
would be the uncle here? One, it's now owned by
the Sun right, and the son might be married, and
the son could get divorced. And if the son gets divorced,
(29:01):
but you gave half of your assets to your son
that you didn't mean to give to your son because
you really wanted it to go to your niece, to
your grandchildren.
Speaker 3 (29:10):
You're going to lose half of that.
Speaker 2 (29:12):
And how about the other alternative were he's saying, should
I leave it for their dad? So his son in law.
Speaker 3 (29:18):
I'm a little confused there. What does he want to do?
Speaker 2 (29:19):
He wants to leave the grandchildren have a father, Their
mother died, but their father is still living.
Speaker 3 (29:25):
Oh yeah, no, we don't want that to a son
in law. So let's play out.
Speaker 4 (29:28):
Well, I wanted to finish the other course, right, So
not only could if the uncle has it, could the
uncle get divorced and lose the asset. The uncle could
have creditor problems, The uncle could do an estate plan
and when they just die suddenly and leave it to
his own kids, his spouse and his kids. So I mean,
it's just Oh and finally, if it's not bad enough yet,
(29:48):
if you leave it to the uncle, every time the
uncle uses the money to pay for something for the
niece or nephew, it's a gift and he could be
running into gift tax consequences depending on how much it is.
I mean, you are allowed to give nineteen thousand per
year per person without having to file a gift tax
(30:11):
return or report anything when you're.
Speaker 2 (30:12):
A college blows that out of the water.
Speaker 4 (30:14):
Yeah, So if that's a good point, if you're trying
to pay for college, that's going to be a taxable
gift from technically, I mean, I guess if he gave
it directly to the institution he could get around that.
But still it's complicated. Yeah, And the vice versa part
is do I leave it to their dad my.
Speaker 3 (30:36):
Son in law?
Speaker 4 (30:38):
Probably not. Again, I think the bigger problem you have
there is depending on how you know. When you lose
a child before you die, that person could be relatively young. Well,
that means that the spouse is relatively young, right, and
if the spouse is relatively young, you want the spouse
to go on with their life, and so likely they
will marry so.
Speaker 2 (30:57):
They could spend their inheritance on something their new family.
Speaker 4 (31:01):
They could die and leave their inheritance to someone else
or are more importantly, they could remarry and get divorced. Right,
and then you lose half of what you you know,
what you hoped was going to go to.
Speaker 3 (31:13):
And I get it.
Speaker 4 (31:13):
The son in law, it is their own kids, So
they do want to take care of the kids. But
things happen right to the father and so I wouldn't
do that.
Speaker 2 (31:22):
So how does it work if you you said you
make accommodations for this in your trust documents. How would
it work if if there were money left for them?
Speaker 4 (31:30):
And there's so many clients that call all the time
and say and I'm glad they call. I mean, but
they call and they'll say, oh my gosh, I just
had another child, grandchild born unexpectedly.
Speaker 3 (31:38):
I go, they're covered.
Speaker 4 (31:39):
I know, oh I just had I just lost my child,
And I want to you know, I want to change
the document, make sure it goes to the grandkids. You're covered, right,
you don't have to do that. So if someone died
and it was the property was in the trust and
it said equally to my two kids if living otherwise
their kids. So even though dad's still alive or the
(32:02):
creator the trust is still alive, when a child dies,
nothing happens. But then when the father the donor dies,
then it would just break down still into two buckets.
But the bucket for the child who's not living would
just flow down to buckets for that child's children. So
it would remain in trust and be protected. So, folks,
(32:23):
these are little potholes I guess that you need to
think about when you're doing your planning. So think about
them if you get divorced, if you do get remarried.
I if you you know you're gonna say, I only
have a will, I don't need to do anything, or
I can rely on a nominee realty trust. These are
all things that are potholes.
Speaker 3 (32:39):
Don't do it.
Speaker 4 (32:40):
Pull out your plan, look at it. If you've done
your planning, get the guide and see how you can
update your plan or what you might need to do
to update your plan. For folks that haven't done planning,
this will prevent you from making all those mistakes. 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
(33:04):
dot Com.
Speaker 2 (33:05):
Our last question comes from Deb in Middleborough, Mass and
Deb brights. My mother is aging and has some health
concerns and I'm going to be moving her into my home.
I would like to build an in law addition onto
my home and she wants to pay for it. What
should we consider in doing so? I don't want to
make any mistakes legally if she needs to ultimately go
into a nursing.
Speaker 4 (33:26):
Home, all right, So this one is a little more complicated. Obviously,
she wants to give money to the daughter to build that,
to build that, so that's a gift. I'm not worried
about the gift tax. She's not gonna have any problems there.
She can give away thirteen point nine million and not
pay a gift tax currently. But if you do that,
(33:48):
you create a five year waiting period for the nursing home,
which is what the daughter's worried about, right, But it
sounds like we're not giving the mother anything, So I
guess nothing would happen other than yeah, you'd have a
five year waiting period. Well that's not helpful because then
the daughter would have to private pay the nursing home.
So I think the way to fix it is probably
(34:08):
to have and again, mom living there really doesn't have
any rights to live there, So I want to make
sure she has a right to live there and that
the daughter can't just throw her out because they're having
a bad day. So I would suggest that they value
this property, figure out what this addition is going to
be worth. And then buy a life interest in the
(34:33):
daughter's house. So you actually say, instead of giving you
the money, which stops the five year problem, you purchase
an interest in the house. And the government has thought
of this, and so what they say is, if you
purchase a life interest in the house, now you the
person who purchased it, the mother must live there at
(34:55):
least for one year from.
Speaker 3 (34:57):
The day you purchased it.
Speaker 4 (34:59):
So stay out of the nursing home for one year
from the day you purchased this life estate. So you've
now converted a gift to a purchase. And when you
since it's not treated as a gift, you've converted the
five year waiting period for nursing home eligibility that goes
(35:19):
along with the gift to a one year waiting period.
It's great, which is great. Just live in the house,
which is what you want to do anyway.
Speaker 2 (35:27):
Yeah, are there any tax implications for the daughter then
if mom's buying part of her house. I think of
like when you sell your home, there's tax implications, right,
I mean.
Speaker 4 (35:35):
Arguably there there would be some capital gain perhaps that
could be created. And I don't believe you get the
one twenty one capital gains exclusion for selling a partial
interest to a related party. Okay, so there's little rules
that go along with that two hundred and fifty thousand
or five hundred thousand dollars capital gains exclusion for your house.
(35:58):
So yeah, there might be a little capital gain there,
but you know what, that's okay. I think at the
end of the day, you're getting a much better result
than you had before.
Speaker 2 (36:07):
Yeah, so then mom gets to stay. So if the
daughter gets divorced or changes jobs and they have to
sell the house for.
Speaker 3 (36:15):
Some reason, Yeah, that's a good point.
Speaker 2 (36:17):
Mom would get the value of that home back, her
purchase back.
Speaker 4 (36:20):
Well, so that's a great point. Again, we're doing the
life estate for a couple of reasons. Reduce the waiting period,
give mom a right to live there so she feels
protected and safe. But you're right, she wouldn't get every
penny back.
Speaker 3 (36:31):
Member.
Speaker 4 (36:32):
Life estates are valued based on the date of the
transaction and your age. Okay, So if it's five years later,
she's five years older. So when you go do the
calculation for the sale, she's going to get a smaller
piece at it, but she will get something. Folks, definitely
potholes involved here, call and learn how to avoid potholes
when doing your estate plan eight six six eight four
(36:55):
eight five six ninety nine, or go to our website
and you can download the there eight six six eight
four eight five six nine nine, or Legal Exchange Show
dot com.
Speaker 2 (37:08):
If you have a question you would like to ask Todd,
visit his website Legal Exchange Show dot com and click
on the ask Tod tab. Maybe I'll be able to
read your question on the air, and hopefully his answer
will stop you from becoming one of his next real
life stories. You've been listening to Todd Lutsky, a partner
with the law firm of Cushing and Dolan. I'm Susan Powers,
(37:29):
a financial advisor with the Armstrong Advisory Group. We'll be
back with more after this quick break on the Legal
Exchange with Todd Lutsky.
Speaker 1 (37:39):
Creating an estate plan can be a difficult process if
you aren't working with an expert who can make sure
your plan is secure. Cushing and Dolan can help. Call
them today at eight six six eight four eight five
six nine nine. Estate Planning is their business and their
new monthly guide is called Detour a Head Estate planning
blunders to avoid. Don't put your assets at risk and
open yourself up to severe consequences. Even if you already
(38:02):
have a plan, this guide may correct an issue that
could come back to haunt you in the years to come.
Proper estate planning is crucial to you being able to
enjoy your later years, and it may be the difference
between retiring comfortably or living under incredible financial pressure. Call
Cushing and Dolan right now at eight six six eight
four eight five six ninet nine and get your free
guide today that's eight six six eight four eight five
(38:24):
six nine nine, or requested online from their website Legal
exchange show dot com. The 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
are offering legal or investment services. Cushing and Armstrong do
not endorse each other and are not affiliated the United States.
Virgin Islands is consistently voted one of the top Caribbean destinations,
(38:45):
and recently two of their beaches, Trunk Bay and Saint
John and Magan's Bay and Saint Thomas, were voted at
top ten best beach in the Caribbean at the twenty
twenty five travelers Choice Best of the Best awards. From
the pristine beaches to its world class dining, rich history,
incredible golf and perfect weather, the USVII has everything you
need to make memories that will last a lifetime. From
(39:07):
the moment you arrive, you will 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. Whether
you're looking for a romantic getaway or a family vacation,
the US Virgin Islands is the perfect place for your
next adventure. Go to visit USVII dot com right now
for more information and to book your trip. The USVII
(39:29):
is Americas Caribbean Paradise. Go to visit USVII dot com today.
That's visit USVII dot com.
Speaker 6 (39:39):
Trust can play a key role in your financial strategy,
and understanding the different kinds and their purpose may help
you make the right decisions for your overall plan.
Speaker 1 (39:48):
Hi.
Speaker 6 (39:48):
This is Chuck Zada from the Armstrong Advisory Group. Trusts
are utilized for a variety of reasons, but the most
basic use is to make settling in a state easier.
Trust have the ability to bypass probate, which can save
you significant time and money while allowing your assets to
be distributed directly to your beneficiaries. Our new guide this
month is called Trusts in your Financial Plan and you
can get it by calling eight hundred three nine three
(40:10):
for zero zero one. Learnt about trust and their possible
benefits to your financial strategy by requesting your free guide today.
That number again is eight hundred three nine three for
zero zero one, or request it online at Armstrong Advisory
dot com. That's Armstrong Advisory dot com.
Speaker 1 (40:26):
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 into state planning advisors before making
any investment decisions. Armstrong make contact you to offer investment
advisory services. Your tune to the legal exchange with Todd Lutsky.
If you are a loved one needs a nursing homestay,
call Todd right now at eight six six eight four
(40:48):
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 online at
Legal Exchange Show dot com.
Speaker 2 (41:00):
Welcome back into the Legal Exchange with Todd Lutsky. I'm
Susan Powers, a financial advisor with the Armstrong Advisory Group,
and I'm joined, of course by Todd Lutsky, a partner
with the law firm of Cushing and Owen with a
master's in taxation. So, Todd, your guide is all about
avoiding these potholes and mistakes you want to try and
(41:20):
avoid when it comes to your estate planning. So last
week we were talking about some life events that really
warrant a review or a change to your documents. And
I want to keep going down that path because there
are a lot of things that can happen in life
that would warrant that. So I want to talk about
instead of the doom and gloom things, how about a
(41:41):
happy thing where you suddenly have an increased net worth. Okay,
so we can kind of make up our own facts
here in terms of where you were and where you
are now, what level of net worth? Kind of starting
at the basics, where do you have to be from
a net worth perspective to do any trust planning? Let's
(42:04):
start with that.
Speaker 4 (42:06):
It's a great question because I'm not always sure that
trust planning is based on money only, okay, because you
can't forget about the family. So let's think about a
young family who might have way less than the estate
tax exemption of two million in Massachusetts, and forget federal
it's way high. Right, you're just starting out. You might
(42:29):
just have a house with a mortgage, and you know,
small bank accountant on a beginning investment account in a
beginning for a one k maybe a little.
Speaker 2 (42:35):
Life insurance term life or something like that.
Speaker 4 (42:37):
Yeah, well, let's say you didn't even have that, just
to make the point crystal clear. You know, you're certainly
not worth a lot, so you're not needing a trust
at all really for tax avoidance at that point.
Speaker 3 (42:50):
Right, But you have.
Speaker 4 (42:51):
Two young kids. Oh well, if you have two miners
and you die, they can't own your house, they can't
own any of your assets. So I don't want some
guardian owning all my stuff. I'd rather have a trust
own my stuff and direct how those assets will be
held and used.
Speaker 2 (43:11):
For my children for the benefit of them.
Speaker 4 (43:13):
Right, And so then I need a trust regardless of
my net worth because I have minor children.
Speaker 3 (43:19):
But that's a good point. That's where you've got to
start though.
Speaker 4 (43:21):
You think about net worth mostly, but don't forget about
the family behind the estate plan. And even folks that
are older that, let's say are under two million, well
then they would need a trust maybe to avoid the
nursing home cost. So again not driven by taxes, which
is what we would always be thinking about.
Speaker 3 (43:40):
Right, that's the obvious question. That's why you asked it.
Speaker 4 (43:43):
And I'd say, well, maybe they don't need it for
tax purposes, but they need it to protect it from
the nursing home or even for them even if there's
not a nursing home concern. Maybe they've got great long
term care insurance and they don't have a tax problem
because they're under two million dollars, but they just want
to make sure the kids get it in a way,
in a manner, and maybe they want to skip a
(44:03):
generation get some stuff down to a grandkid.
Speaker 3 (44:05):
Maybe they want to protect it from divorces whatever.
Speaker 4 (44:08):
So again a trust is needed for the after you
die part of the trust life. So those would be
reasons to think about a trust anyway.
Speaker 2 (44:19):
Other than your net worth.
Speaker 3 (44:20):
But you're right from a network standpoint, I'll come back
to that.
Speaker 2 (44:23):
Yeah, where's the level where you have to do like
your basic plan your revocable trust plan irrevocable. Either one
will take care of the vast majority of folks. What
level of net worth do you get to where you
need more complex planning beyond just your basic right trust?
Speaker 4 (44:43):
So the basic trust, you're right, over four million in
Massachusetts at least, or over two million in Massachusetts if
you're married, you're going to need basic trusts to eliminate
and double if you're married, the exemption from two to four.
Other folks listening, check with your state and your exemption
and for your state, same idea, though double it for
your situation. Basic planning will eliminate the tax federally, You're right,
(45:07):
the tax exemptions fourteen million almost each, so twenty eight million. Well,
you start getting, you know, you start getting north of that,
I think, and you you're going to need more than
the basics, but you're gonna need the basics for that,
but definitely more than the basics when you get over that. So, folks, again,
these are great comments that Susan's making because they are potholes.
(45:29):
They are things to think about when you're doing your planning.
So don't rely on a will don't rely on a
nominee realty trust. Think about what happens if you don't
have kids, you still need to plan If you do
have kids, what about if you got a divorce. There's
so many things to think. I'm moving, changing residency, folks.
If you've done your planning, get the guide, learn how
you might need to know what to do for events
(45:51):
that come up. If you haven't done your planning, get
the guide and learn what not to do and get
started doing your planning eight six six eight four eight
five six nine nine or Legal Exchange Show dot com.
Avoiding potholes when doing your planning eight six six eight
four eight five six nine nine or Legal Exchange Show
(46:12):
dot com.
Speaker 2 (46:13):
So we have a network a federal estate tax exemption
of fourteen million. So if you're close to that point,
if you're over that point, when do you need to
do more complex estate planning? Do you think so?
Speaker 4 (46:27):
If you're married, you you know you have to think
about it. I mean, do I wait to get to
twenty eight million? Twenty eight million? You're you're going to
depending on how old you are at that point. Right,
if you're twenty eight million in year sixty, your twenty
eight million could double more than one.
Speaker 3 (46:40):
Time before you die.
Speaker 4 (46:42):
Right and again, remember you get older, you spend less
as your activities decline, so you really need to think
about that.
Speaker 3 (46:49):
So I don't know if there's a number.
Speaker 4 (46:51):
I mean, I would say a little under twenty eight
million anyway, you know, maybe twenty five million, again, depending
on how old you are.
Speaker 3 (46:57):
And and the goal is.
Speaker 4 (46:58):
Remember to get the assets out of the estate before
you lose your exemption.
Speaker 2 (47:03):
And how would you actually do that? Gift them away
to people?
Speaker 3 (47:06):
No? No, no, never.
Speaker 4 (47:07):
I would set if I'm married, I would set up
these spousal lifetime access trusts where you can actually enjoy
what you give away and control what you give away,
but yet have it outside your estate. First state tex
Per loophole. Yeah, it's really a phenomenal idea. Otherwise people
wouldn't do it. You know, if you tell somebody I'd
(47:28):
got to give away ten million dollars, they'd be like, well,
hold on.
Speaker 2 (47:30):
God, I don't want to give away my ten million dollars.
Speaker 4 (47:32):
I'm happy to have some fun with my life, right,
I'd like to keep it, so I don't want to
give it away. So my point here is that you
got to learn how to do these. And remember, the
point really is it's not about what you're doing today.
When you're talking about gifting and you're talking about what
that next step, next level of a state planning is.
(47:52):
It's not that, Okay, I'm moving ten million dollars into
these spousal lifetime access trusts today. Think about whole life.
It's what's that ten million going to become over the
next ten twenty years of my life. It's not today,
it's the growth after today. And the comfort you have
is you might say, well, Todd, we don't know what
(48:14):
the exemption is going to be. That's true, could go up,
could come down, right, But at that point, if you're
high enough in the estate planning world already, you won't
care because if you move it out of your estate
and it becomes twenty million or doubles one more time
to forty million, you're saying, I don't care who the
next president is or what the next administration in the
(48:36):
office does. We don't care why because this money will
never be federally or state estate taxed again, become tax
yess estate taxed. No, so have at it. Government, do
what you want. I'm not worried about it anymore, right,
a great feeling.
Speaker 2 (48:56):
So when you transfer assets into that, you must be
very specific about the type of assets that you're transferring
into that.
Speaker 4 (49:03):
Well, you need you need to think about that for sure.
I mean, I mean, you're if your assets are low basis,
you have to understand that you're trapping capital gain when
you make the transfer. But if you're making a transfer
knowing that I'm in a federal tax bracket for a
(49:23):
state taxes anyway, which is huge compared to forty percent. Yeah,
and here in Mass roughly ten percent. If you combine
the two, let's just call it fifty percent. Well, if
I'm in a fifty percent tax bracket on money that
I don't give away, I worry less about what assets
I'm giving away. I still want to make sure I
(49:44):
give away high basis if I can, because if I
give away low basis, I'm trapping twenty eight point eight
percent capital gain. If I keep it, I'm paying fifty
federal in state. So you have to understand that dynamic. Okay,
But again, if I'm only gifting to save ten percent
for the state m hm, then you have to really
(50:06):
think twice, because I don't want to trap twenty eight
percent capital gains tax to save ten percent mass death tax. Yeah,
lots of thinking. Lots of potholes could come up when
you're doing your estate planning, folks. That's just these have
basic estate planning potholes, but for more sophisticated you have
(50:27):
to also figure.
Speaker 3 (50:28):
Out where those potholes are.
Speaker 4 (50:30):
Learn how to do your estate plan and avoid all
of these potholes in your planning by getting the guide
eight six six eight four eight five six nine nine,
or go to our website Legal Exchange show dot com.
Speaker 2 (50:43):
Todd Lutsky from the law firm of Cushing in Dolan,
thank you so much.
Speaker 3 (50:47):
Thank you, Susan, always a pleasure.
Speaker 2 (50:48):
I'm Susan Powers, a financial advisor with the Armstrong Advisory Group.
We thank you for joining us today and we'll be
back again next week on the Legal Exchange with Todd Lutsky.
Speaker 1 (50:59):
Creating a mistate can be a difficult process if you
aren't working with an expert who can make sure your
plan is secure. Cushing and Dolan can help. Call them
today at eight six six eight four eight five six
nine nine. Estate planning is their business and their new
monthly guide is called Detour a head estate planning blunders
to avoid. Don't put your assets at risk and open
yourself up to severe tax consequences. Even if you already
(51:22):
have a plan, this guide may correct an issue that
could come back to haunt you in the years to come.
Proper estate planning is crucial to you being able to
enjoy your later years, and it may be the difference
between retiring comfortably or living under incredible financial pressure. Call
Cushing and Dolan right now at eight sixty six eight
four eight five six ninety nine and get your free
guide today. That's eight six six eight four eight five
(51:45):
six nine nine, or request an online from their website
Legal exchange show dot com. The proceeding is paid for
in The views expressed are solely those of Cushing and Dolin.
Cushing and Dolan and or Armstrong Advisory may contact you
are offering legal or investment services. Cushing and Armstrong do
not endorse each other and are not affiliated. HI.
Speaker 5 (52:00):
This is Mike Armstrong from the Armstrong Advisory Group. A
state and financial plan and go hand in hand, and
one of the most common ways to keep that bond
secure is with a trust. Our new guide called Trusts
in Your Financial Plan is available right now. In it,
we'll discuss the various types of trusts that exist and
how they might benefit your planning process. Trust provide a
number of different protections for your assets, including privacy control
(52:21):
and tax efficiency. If you're retired or nearing retirement and
have concerns about your financial strategy and whether or not
a trust may help, call us today at eight hundred
three nine three four zero zero one and ask for
your free guide called Trusts and your Financial Plan. Learn
about how a trust could make a difference for you
and your family by calling eight hundred three nine three
four zero zero one. That number again is eight hundred
(52:42):
three nine three four zero zero one, or you can
request the guide from Armstrong Advisory dot com.
Speaker 1 (52:47):
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 into state planning advisors before making
any investment decisions. Armstrong may contact you to offer investment
advisory services. The United States, Virgin Islands has consistently voted
one of the Topcribbean destinations, and recently two of their
(53:07):
beaches trunk Bay and Saint John and Magan's Bay and
Saint Thomas were voted at top ten best beach in
the Caribbean at the twenty twenty five Travelers Choice Best
of the Best awards. From the pristine beaches to its
world class dining, rich history, incredible golf and perfect weather,
the USVII has everything you need to make memories that
will last a lifetime. From the moment you arrive, you
(53:29):
will 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. Whether you're looking for a romantic
getaway or a family vacation, the US Virgin Islands is
the perfect place for your next adventure. Go to visit
USVII dot com right now for more information and to
book your trip. The USVII is America's Caribbean paradise. Go
(53:52):
to visit USVII dot com today. That's visit USVII dot com.
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 six 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 (00:37):
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 (00:53):
I'm never better on you?
Speaker 2 (00:54):
I'm great, Thank you. What do you have for us?
This week?
Speaker 4 (00:57):
We're going to lead off with a real life store,
one that actually changed my entire seminar that I did
last week when I read this, when I had this
client walk in regarding life estates and how they own
life estates in two properties, second marriage, all three kids
own it, and it gets better. One's an attorney who's
(01:20):
a gambler, huge debts. How do we fix this? It
is a problem. So we're going to explain how we
fixed it. We're going to explain, you know, how life
estates work. It really brought life estates back to the
forefront and it's something that many many people have, and
I want them to understand the pros and cons of
(01:42):
what they actually have.
Speaker 3 (01:43):
So stay tuned for that for sure.
Speaker 4 (01:45):
And then a New York appellate course, a pellet court
case basically showing you how planning works. It does have
a no contest clause involved, but that's not really my
point here. This is a case they're not married, the
significant others one cared for the other one, and they
did a revocable trust to take care of a significant other. Folks,
(02:07):
trusts work. You'll see how this ends up in a
somewhat good way, but without the trust, it might not
have turned out that way. So, folks, that is the cases.
But that's my point, right the estate planning potholes is
the guide. There's so many things that you need to
understand on what to do and what not to do,
(02:30):
and this guide gives you those. So if you've done
your planning, it's going to tell you how to maybe
fix something that you've done wrong. If you haven't done
your planning, it might show you things to avoid, right
from don't rely on a will, don't rely on a
nominee realty trust. Don't think you don't have kids, you
don't need to plan. Don't think that fifteen years went
(02:51):
by them and I shouldn't look at my will or
I got divorced?
Speaker 3 (02:54):
What does that do? Folks?
Speaker 4 (02:56):
One thing after another, call and get the guide. Learn
how to get your estate plan in order 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 ninety nine or Legal Exchange Show dot Com.
And now let's head back to this real life situation.
(03:19):
So husband, wife come in. They're about seventy seven and
sixty seven, so it's a little age gap and back
in twenty fourteen, which is really important. Dates are important here.
They gifted the home to their three kids, two that
they had together, one that he had from a prior marriage.
They all get along great. And by the way, that's
(03:41):
the saving grace here. And they're cooperative, also the saving
grace here. And so what they did is they gave
the house to the to the children, and they reserved
a life estate. Then they also gifted their second home,
which is more of a vacation home, to the kids,
and again and reserved a life estate. As I said,
(04:03):
it turns out that one of the children has a
real bad gambling problem. And you know, the you know,
the father did the right thing, the mother did the
right thing. They tried to help him out. They gave
Hi one hundred and ten thousand dollars to get him
bail him out of some of his debts, and sure
enough he's right back at him. And so now we've
got this arrangement and we've got a child that's a gambler,
(04:24):
and they're worth in total about I don't know, call
it one point six in the real estate, maybe a
little bit more in money, but that's about it. And
they have no other planning in place really other than
perhaps a will.
Speaker 3 (04:39):
And so.
Speaker 4 (04:41):
They came in and said, you know, we were listening
to the show and we think we might have done
something wrong. It's not that you did it wrong, folks,
it's just I just feel like the advice you got.
I never blamed the client, you know, I'm sort of
blaming the lawyers for putting you in this position. So
let's just run through what they have and then we're
going to fix it. Right, Just just remember this, right.
(05:02):
So now, let's focus on the home first. Then I'll
tell you about the second property. So are there some
pros to what they did? Yeah, the home is at
least protected from the nursing home. It was done more
than five years ago, and it's going to avoid probate.
When they die, and when they ultimately passed, the kids
will get the property in the remainder interest in the
(05:23):
life estate will vest in the kids, and they will
get it with a full step up in basis, which
simply means if they sell the property after they die,
the kids will have very little to know capital gains tax.
Speaker 3 (05:37):
That's all good stuff.
Speaker 4 (05:38):
Yeah, and I agree, And I don't want to disturb
that because they're seventy seven and sixty seven and not
that that's really old. But you know, it's already protected
and you have.
Speaker 2 (05:47):
To plan for the older spouse though.
Speaker 3 (05:49):
Right, Yeah, a good point.
Speaker 4 (05:51):
But what are the problems here, Well, the problem is
that they cannot sell it. If they wanted to sell
it without the kids permission, that's the problem. And thankfully
the kids would give permission. But you know, if they
wanted to move, let's say they can't. And then you know,
depending on their age, even if they sold the property,
a large portion of the money and the gain would
(06:15):
go to the kids because their remainderment. Right, as a
life tenant, you own the present right to live there
in the hole. But when you sell it, you don't
get the whole.
Speaker 2 (06:24):
You only get a little bit.
Speaker 4 (06:25):
You only get a piece based on your age, right,
And so the older you are, the smaller you get.
Speaker 5 (06:31):
Right.
Speaker 4 (06:31):
So maybe they get twenty percent, maybe they get twenty
five percent. It depends on how old they are on
the day they sell it, okay, And so that can
result in adverse capital gains tax problems. Right, So if
let's just say seventy five percent of the gain goes
to the kids and twenty five percent of the gain
(06:51):
and proceeds go to the life tenant, well, life tenant
gets you know, they're married, they get a five hundred
thousand dollars capital gain exclusions. They're probably gonna have no tax.
The kids don't get that, so they're going to end
up paying more tax than they would have needed.
Speaker 2 (07:07):
To pay, right because they don't live there.
Speaker 4 (07:10):
Yeah, but that doesn't end the problems. Right now, they
got the money and if they want to buy a
new house.
Speaker 2 (07:18):
They got to get it back.
Speaker 4 (07:19):
They got to get it back because they don't have
enough money to get to buy the new house because
they only got twenty five percent of the proceeds. So
now you've got to ask the kids to give the
money back, which is not a great place to be ever. No,
and then if the kids do cooperate and give the
money back, then the kids have a gift tax problem
that they have to face.
Speaker 2 (07:39):
That's if there's no leans on his bank account, the
gambling sun. I mean there could be.
Speaker 3 (07:43):
There could be leans issues. There could be issues because
they could have.
Speaker 2 (07:47):
Leaned his bank accounts, not not They might not know
about that property, but they're going to know when it
comes into his bank account.
Speaker 4 (07:53):
Yeah, there's going to be issues, and that's why they
want to undo this, right and so now they don't
have it. And let's just take it one step further.
Let's say, you know, they don't have a big tax problem.
They use up some of their exemption. It's going to
affect them for mass the kids. But now mom and
dad got the property back. And now they got the
property back, and the question is they don't have but
they want to buy a new house. All the money's
(08:15):
all at risk for a nursing home all over again.
Speaker 3 (08:17):
Again not helpful.
Speaker 2 (08:20):
But if they had transferred it to a trust to
begin with.
Speaker 4 (08:23):
You wouldn't have had any of those problems. Right, So
if you compare this with a trust, they can sell it.
They don't need the kid's permission. They could just tell
the trustee to sell or remove the trustee. All the
money or a big chunk. Seventy five percent would go
to the trust. Twenty five percent would go to them.
They can use the seventy five percent in the trust
to buy another house in the trust, not restarting the
five year waiting period. No adverse capital gains tax problems,
(08:46):
because they would get the capital gain would show up
on their personal return. Because it's a grand tour trust,
they'd get to use the whole five hundred thousand dollars
of gain.
Speaker 2 (08:54):
No issues from any kid's creditors.
Speaker 4 (08:56):
No giving back, no issues for credit or protection, no
gift tax.
Speaker 3 (09:01):
Wow gets worse though.
Speaker 4 (09:03):
The second home, the life estates not protected at all ever,
because it's not your primary residence. So they think they
protected the second home from the nursing home, but they
haven't because the value of the life estate is at
risk because it's not a life estate in your primary residence.
The only reason the life estate's not at risk and
your primary residence is because it's your primary residence, right,
(09:25):
But the life estate in the second home already at risk.
Speaker 3 (09:30):
But we're able to fix it.
Speaker 4 (09:31):
They have cooperating kids, and so we're able to actually
have the remainder interest of both properties given to an
irrevocable trust that we're creating now for them. They will
keep the life estate in their home so as not
to restart that clock, and they will gift the life
estate in the balance in the other property to the trust,
and so it will be protected. There will be a
(09:52):
new five year waight just for the life estate peace.
But all around, we also preserved to step up in
basis win win for them creditors are off the table.
Everyone's going to feel better about this arrangement. So fixable,
but folks not the best to do. Seems like that's
a really big pothole. Get the guide and learn about
other potholes to avoid eight six six eight four eight
(10:16):
five six nine nine or Legal Exchange show dot com.
Speaker 2 (10:20):
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've got much
more to come when we return to the legally Exchange
with Todd Lutsky.
Speaker 1 (10:36):
Creating an estate plan can be a difficult process if
you aren't working with an expert who can make sure
your plan is secure. Cushing and Dolan can help. Call
them today at eight six six eight four eight five
six nine nine. Estate Planning is their business, and their
new monthly guide is called Detour a head estate planning
blunders to avoid. Don't put your assets at risk and
open yourself up to severe tax consequences, even if you
(10:58):
already have a plan this This guide may correct an
issue that could come back to haunt you in the
years to come. Proper estate planning is crucial to you
being able to enjoy your later years, and it may
be the difference between retiring comfortably or living under incredible
financial pressure. Call Cushing and Dolan right now at eight
sixty six eight four eight five six ninet nine and
get your free guide today that's eight six six eight
(11:21):
four eight five six nine nine, or request an online
from their website Legal exchange show dot com. The proceeding
was paid for and the us expressed are solely those
of Cushing and Dolin. Cushing and Dolan and or Armstrong
Advisory may contact your offering legal or investment services. Cushing
and Armstrong do not endorse each other and are not affiliated.
Speaker 6 (11:36):
Trust can play a key role in your financial strategy,
and understanding the different kinds and their purpose may help
you make the right decisions for your overall plan.
Speaker 3 (11:45):
HI.
Speaker 6 (11:45):
This is Chuck Zada from the Armstrong Advisory Group. Trusts
are utilized for a variety of reasons, but the most
basic use is to make settling in a state easier.
Trust have the ability to bypass probate, which can save
you significant time and money while allowing your assets to
be distributed directly to your beneficiaries. Our new guide this
month is called Trusts in your Financial Plan and you
can get it by calling eight hundred three nine three
(12:07):
for zero zero one. Learnt about trust and their possible
benefits to your financial strategy by requesting your free guide today.
That number again is eight hundred three nine three for
zero zero one, or request it online at Armstrong Advisory
dot com. That's Armstrong Advisory dot com.
Speaker 1 (12:23):
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 into state planning advisors before making
any investment decisions. Armstrong may contact you to offer investment
advisory services. The United States, Virgin Islands has consistently voted
one of the Topcribbean destinations, and recently two of their beaches,
(12:45):
Trunk Bay and Saint John and Magan's Bay and Saint Thomas.
We're voted at top ten best beach in the Caribbean
at the twenty twenty five Travelers Choice Best of the
Best awards, from the Pristine Beaches to its world class dining,
rich history, incredible golf and perfect weather. The USVII has
everything you need to make memories that will last a lifetime.
From the moment you arrive, you will fall naturally in
(13:07):
rhythm with the heartbeat of the islands. There's no money
to exchange, and travel from New England could not be easier.
Whether you're looking for a romantic getaway or a family vacation,
the US Virgin Islands is the perfect place for your
next adventure. Go to visit USVII dot com right now
for more information and to book your trip. The USVII
is Americas Caribbean Paradise. Go to visit USVII dot com today.
(13:32):
That's visit USVII dot com. You're listening to the Legal
Exchange with Todd Lutsky, an expert in elder life planning
and taxation. Need help with your estate plan Call Todd
right now and make an appointment eight sixty six eight
four eight five six ninety nine. That's eight sixty six
eight four eight five six ninety nine.
Speaker 2 (13:53):
Welcome back into the Legal Exchange with Todd Lutsky. I'm
Susan Powers, a financial advisor with the Armstrong Advice Group,
and I'm joined by Todd Letsky, a partner with the
law firm of Cushing and Dolan with a masters in taxation.
Where are we headed now, Todd.
Speaker 3 (14:09):
New York?
Speaker 4 (14:10):
How about that excellent New York Appellate Court not too
far away? So in this case, it's a no contest
clause case. But that isn't really why we're gonna tell
you about it. But let's go through the fact. So
Christine and Donald began a romantic relationship in two thousand
and four, two thousand and five, she became his full
(14:30):
time caregiver and continued in that role till his death
ten years later. So that's worth something, I would think.
So Donald had put together a revocable trust. This revocable
trust directed his daughter as trustee. Just to make things complicated,
her name is Chrissy, not to be confused with Christine,
(14:54):
who is the significant other, to pay income to Christine
and to give Christine title to the home. Okay, okay, Well,
the trust did have a no contest clauset and in
about two years later, Christie's lawyer sent a letter to
Christine indicating that the trust had some precatory language in
(15:16):
it and had insufficient assets to distribute anything to Christine. Well,
Christine didn't like that, so Christine requested a transfer of
the home, which she knew she was entitled to, yep,
and a copy of the trust. I just got to
learn what else I'm entitled to, so Christine. Christine sued
(15:37):
Chrissy for breach of fiduciary duty and the commingling of
the funds in the trust to unjustly enrich herself and
asked for a declaratory judgment and that she is entitled
to an income stream from the trust.
Speaker 3 (15:51):
Well, Chrissy moved to.
Speaker 4 (15:53):
Dismiss that, and as to her assertion to her being
entitled to a stream of income, and she indicated that
this triggered the no contest clause. Well, the court denied
the motion to dismiss, so Christie filed a summary judgment. Well,
Christine opposed the summary judgment, meaning there's no issue of
material fact, this case should go away. Christine opposed the
(16:16):
motion and then was seeking saying, look, all I'm trying
to do is construe and enforce the trust, not contest it.
Speaker 1 (16:23):
Yep.
Speaker 4 (16:24):
Well, the lower court ended up granting Chrissy's motions that
it violated the no contest clause. Really, so Christine appealed,
and the appellate court affirmed, and then Christine appealed all
the way up to the New York Court of Appeals
where they reversed, basically saying she wasn't trying to contest
the trust, just enforce it. Right again, This isn't a
(16:46):
no contest clause, folks, This is more than that. I
just want to explain that this ended up working. Right,
So you're now going to find out that Christine is
going to be taken care of here in case you
weren't able to follow the bouncing ball. Christine is going
to be taken care of here. And I believe also
the children will get taken care of here. But again,
(17:10):
that's what you want to happen when you do your
state plan. And I thought it was interesting here that
that you weren't even married, right, this is just a
significant other.
Speaker 2 (17:21):
But you don't have to leave things all for your kids.
You don't have whoever you want to, but have a plan, right.
Speaker 4 (17:27):
And I think that's what I want to mention, that
a state planning potholes to avoid, right, if you have
a second marriage, look at your plan, if you got divorced,
look at your plan if you're moving to another state
and changing residencies. You need to look at your plan.
These are potholes that you could run into. Don't rely
on a whale, don't rely on a nominee realty trust.
(17:48):
Don't think because I have no kids or I'm not
married like this case, that I don't need to do planning.
Planning works, needing even more so, and even more so
not planning is a pothole in and of itself, but
there's a lot of other ones as well. Folks, Please
call and get the guide. Learn what's right for you
if you've done your planning, and how to fix it
if you haven't done it. How to avoid these problems
(18:11):
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. What are we gonna learn from this? Yeah,
I'm glad the no contest clause was there.
Speaker 3 (18:29):
I mean it did.
Speaker 4 (18:30):
It did provide protection for sure, But let's let's walk
through this right. This is to me a great example
of how a trust, even for an unmarried or second
marriage situation, can provide for the significant other or a
second spouse while still protecting the kids. So here you
(18:52):
have a house that is going to a significant other. Well,
we'll talk about other options as we go through the segment,
but I mean, that's certainly an option. If that's what
you want to do, you can you can give it
to the to the significant other or to the second spouse.
In this case, that's what the trust ordered, give her
the house.
Speaker 3 (19:11):
Okay.
Speaker 4 (19:11):
In addition and uh and again she she did provide
care for ten years for this person, So again I
think she certainly earned it. And then they gave her
a stream of income in my head to help her
maintain the house that she just got. I think that
makes makes decent sense right now. And so to me
(19:36):
that that's a good, a good approach.
Speaker 3 (19:38):
Now. It it that.
Speaker 4 (19:41):
If that follows this, there will be principal left at
the end of the day, there will be principal left
for from the trust, presumably for the kids if you
follow this. This rule now, the no contest clause here,
I think served really to protect both parties, right.
Speaker 3 (19:58):
Think about it.
Speaker 4 (19:59):
If the kid sued saying, ah, we're going to try
and challenge the trust. We don't want the house going
to her, and we don't think the money should go
to her, well, then they would have probably lost everything
they would get, so that no contest clause works both ways,
right And then of course if she was to sue,
it would be the same thing. But in this case
(20:19):
it really protected the significant other. So the trust itself
really ensured that the significant other was taken care of,
which is exactly what the donor want. Now, a couple
of things, could you have done it differently? Could you
have provided more for your children and still provided for
(20:40):
the significant other? Yeah, I mean a couple of things
that other options that come to mind here for me
would be you know, maybe I would have put the
significant other on as a co trustee with the kid,
you know, because that at least allows the trustee the
significant other, to be more actively involved.
Speaker 2 (21:02):
And you'd have that transparency.
Speaker 4 (21:04):
You'd have the transparency. Good point, Susan, So what that
would be good? And again notice here nothing happened for
two years. The suit didn't come right until two years later.
So I'm like, I don't think it would have been
a two year delay for the significant other to start
either collecting the stream of income or get the house
right if she were.
Speaker 2 (21:24):
It seems like trustee.
Speaker 4 (21:25):
Oh, yeah, right, yeah, So to me, adding her as
a co trustee might be something that if you're thinking
about doing your planning, you might want to think about.
Speaker 2 (21:35):
And he could have, Todd if he wanted to. He
could have kept that house in trust for the significant
other to live there, but when she passes, it could
have ultimately gone to his children.
Speaker 3 (21:47):
Right, that was exactly my next point. Suit.
Speaker 2 (21:49):
That sounds like we've been doing this really twenty years
together or something.
Speaker 4 (21:52):
Read in my mind, I mean, that would be my
next point would be, did you have to actually give
her the house? No, you're exactly what you said, Susan
hold it in trust. And again, the stream of income
could have been used to maintain the property while she's
living there, even though.
Speaker 3 (22:08):
The property is owned in the trust.
Speaker 4 (22:10):
So now you've provided her with a place to live
and a mechanism to maintain the place to live without
giving her the place to live. Wow, that's awesome. And
and you know she couldn't sell it again if you
have co trustees, it would require both to sell it,
and if you did, the money would flow right into
(22:30):
the trust, not out to a significant other or a
second spouse.
Speaker 3 (22:35):
If that's the case. And in that regard.
Speaker 4 (22:38):
You could have then preserved the entire property because it
would say, like upon her death or her moving out
and doesn't want it anymore, or you know other trigger
events that you could put in there that when those
trigger events happen, the property then reverts back to his kids.
(22:58):
So his kids could have altimate. We got the property
and all the related appreciation while she enjoys a place
to live and a stream of income. Now the kids
hold off on the principle because they can't take the
principle because it was screw up the income. But then
when she passes all the principal would still be there,
right and they would get the house and the principle.
So there's no right or wrong answer here, folks. It's
(23:19):
just options, and I wanted to share those with you.
And when you're doing your planning, there are right wrong answers.
There's potholes to avoid, and that's what the guide's about.
So get the guide and learn how to avoid the
potholes when doing your estate plan, or maybe how to
update your estate plan for something that you didn't see
when you did it. Eight six six eight four eight
five six nine to nine.
Speaker 2 (23:40):
You've been listening to Todd Lutsky, a partner with the
law firm of Cushing in Dolan. I'm Susan Powers with
the Armstrong Advisory Group and Todd will be answering your
questions when we return to the legal exchange with Todd Lutsky.
Speaker 1 (23:54):
Creating an estate plan can be a difficult process if
you aren't working with an expert who can make sure
you're planning secure. Cushing and Dolan can help. Call them
today at eight six six eight four eight five six
nine nine. Estate planning is their business, and their new
monthly guide is called Detour a head estate planning blunders
to avoid. Don't put your assets at risk and open
yourself up to severe tax consequences. Even if you already
(24:17):
have a plan, this guide may correct an issue that
could come back to haunt you in the years to come.
Proper estate planning is crucial to you being able to
enjoy your later years, and it may be the difference
between retiring comfortably or living under incredible financial pressure. Call
Cushing and Dolan right now at eight sixty six eight
four eight five six ninet nine and get your free
guide today. That's eight six six eight four eight five
(24:40):
six nine nine or request an online from their website
Legal exchange show dot com. The proceeding was paid for
in The views expressed are solely those of Cushing and Dolan.
Cushing and Dolan ind or Armstrong Advisory may contact you
are offering legal or investment services. Cushing and Armstrong do
not endorse each other and are not affiliated.
Speaker 7 (24:55):
This is Michael Valila added of the Disabled American Veterans
Department of 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 our great
(25:16):
American heroes as well by making a donation today by
visiting dav five k dot Boston. That's dav five k
dot Boston.
Speaker 1 (25:26):
The United States Virgin Islands is consistently voted one of
the top Caribbean destinations, and recently two of their beaches,
Trunk Bay and Saint John and Magan's Bay and Saint Thomas.
We're voted at top ten best beach in the Caribbean
at the twenty twenty five Travelers Choice Best of the
best awards. From the pristine beaches to its world class dining,
rich history, incredible golf and perfect weather, the USVII has
(25:49):
everything you need to make memories that will last a lifetime.
From the moment you arrive, you will 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.
Whether you're looking for a romantic getaway or a family vacation,
the US Virgin Islands is the perfect place for your
next adventure. Go to visit USVII dot com right now
(26:11):
for more information and to book your trip. The USVII
is America's Caribbean paradise. Go to visit USVII dot com today.
That's visit USVII dot com.
Speaker 5 (26:25):
Hi, this is Mike Armstrong from the Armstrong Advisory Group.
A state and financial plan and go hand in hand,
and one of the most common ways to keep that
bond secure is with a trust. Our new guide called
Trusts and your Financial Plan, is available right now. In it,
we'll discuss the various types of trusts that exist and
how they might benefit your planning process. Trust provide a
number of different protections for your assets, including privacy control
(26:46):
and tax efficiency. If you're retired or nearing retirement and
have concerns about your financial strategy and whether or not
a trust may help, call us today at eight hundred
three nine three four zero zero one and ask for
your free guide called Trusts and your Financial Place. Learn
about how a trust could make a difference for you
and your family by calling eight hundred three nine three
four zero zero one. That number again is eight hundred
(27:07):
three nine three four zero zero one, or you can
request the guide from Armstrong Advisory dot Com.
Speaker 1 (27:12):
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 may contact you to offer investment advisory services.
You're listening to the Legal Exchange and it's time for
Ask Todd, the segment where Todd will answer your questions
(27:32):
about anything and everything that's included in the estate planning process.
Once again, here's Todd Lutsky and Susan Powers.
Speaker 2 (27:41):
Welcome back, Todd. We have a few questions from listeners
for you. First question comes from ed in Cranston, Cranston,
Rhode Island and ed Wrights. My daughter predeceased me, leaving
behind two children. I have one living son. Now I'd
like to make sure my daughter's children are taken care
of after I pass. Would it be best if I
leave my assets all to my son with the understanding
(28:05):
that he is to take care of his niece and nephew.
Or should I leave it for my son in law
for them?
Speaker 3 (28:11):
Hm? So let's let's see here.
Speaker 4 (28:14):
So we've got a person who passed leaving two kids,
which fine, we usually take care of that in our
in our documents, and is saying, would I leave my
assets to my son? You never want to just do that,
leaving assets to another person and relying on that person
to take care of somebody else's family members. I mean,
(28:38):
I mean they're related. I guess, yeah, uncle, But if
you leave it directly to the son, who I guess
would be the uncle here? One, it's now owned by
the Sun right, and the son might be married, and
the son could get divorced. And if the son gets divorced,
(29:01):
but you gave half of your assets to your son
that you didn't mean to give to your son because
you really wanted it to go to your niece, to
your grandchildren.
Speaker 3 (29:10):
You're going to lose half of that.
Speaker 2 (29:12):
And how about the other alternative were he's saying, should
I leave it for their dad? So his son in law.
Speaker 3 (29:18):
I'm a little confused there. What does he want to do?
Speaker 2 (29:19):
He wants to leave the grandchildren have a father, Their
mother died, but their father is still living.
Speaker 3 (29:25):
Oh yeah, no, we don't want that to a son
in law. So let's play out.
Speaker 4 (29:28):
Well, I wanted to finish the other course, right, So
not only could if the uncle has it, could the
uncle get divorced and lose the asset. The uncle could
have creditor problems, The uncle could do an estate plan
and when they just die suddenly and leave it to
his own kids, his spouse and his kids. So I mean,
it's just Oh and finally, if it's not bad enough yet,
(29:48):
if you leave it to the uncle, every time the
uncle uses the money to pay for something for the
niece or nephew, it's a gift and he could be
running into gift tax consequences depending on how much it is.
I mean, you are allowed to give nineteen thousand per
year per person without having to file a gift tax
(30:11):
return or report anything when you're.
Speaker 2 (30:12):
A college blows that out of the water.
Speaker 4 (30:14):
Yeah, So if that's a good point, if you're trying
to pay for college, that's going to be a taxable
gift from technically, I mean, I guess if he gave
it directly to the institution he could get around that.
But still it's complicated. Yeah, And the vice versa part
is do I leave it to their dad my.
Speaker 3 (30:36):
Son in law?
Speaker 4 (30:38):
Probably not. Again, I think the bigger problem you have
there is depending on how you know. When you lose
a child before you die, that person could be relatively young. Well,
that means that the spouse is relatively young, right, and
if the spouse is relatively young, you want the spouse
to go on with their life, and so likely they
will marry so.
Speaker 2 (30:57):
They could spend their inheritance on something their new family.
Speaker 4 (31:01):
They could die and leave their inheritance to someone else
or are more importantly, they could remarry and get divorced. Right,
and then you lose half of what you you know,
what you hoped was going to go to.
Speaker 3 (31:13):
And I get it.
Speaker 4 (31:13):
The son in law, it is their own kids, So
they do want to take care of the kids. But
things happen right to the father and so I wouldn't
do that.
Speaker 2 (31:22):
So how does it work if you you said you
make accommodations for this in your trust documents. How would
it work if if there were money left for them?
Speaker 4 (31:30):
And there's so many clients that call all the time
and say and I'm glad they call. I mean, but
they call and they'll say, oh my gosh, I just
had another child, grandchild born unexpectedly.
Speaker 3 (31:38):
I go, they're covered.
Speaker 4 (31:39):
I know, oh I just had I just lost my child,
And I want to you know, I want to change
the document, make sure it goes to the grandkids. You're covered, right,
you don't have to do that. So if someone died
and it was the property was in the trust and
it said equally to my two kids if living otherwise
their kids. So even though dad's still alive or the
(32:02):
creator the trust is still alive, when a child dies,
nothing happens. But then when the father the donor dies,
then it would just break down still into two buckets.
But the bucket for the child who's not living would
just flow down to buckets for that child's children. So
it would remain in trust and be protected. So, folks,
(32:23):
these are little potholes I guess that you need to
think about when you're doing your planning. So think about
them if you get divorced, if you do get remarried.
I if you you know you're gonna say, I only
have a will, I don't need to do anything, or
I can rely on a nominee realty trust. These are
all things that are potholes.
Speaker 3 (32:39):
Don't do it.
Speaker 4 (32:40):
Pull out your plan, look at it. If you've done
your planning, get the guide and see how you can
update your plan or what you might need to do
to update your plan. For folks that haven't done planning,
this will prevent you from making all those mistakes. 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
(33:04):
dot Com.
Speaker 2 (33:05):
Our last question comes from Deb in Middleborough, Mass and
Deb brights. My mother is aging and has some health
concerns and I'm going to be moving her into my home.
I would like to build an in law addition onto
my home and she wants to pay for it. What
should we consider in doing so? I don't want to
make any mistakes legally if she needs to ultimately go
into a nursing.
Speaker 4 (33:26):
Home, all right, So this one is a little more complicated. Obviously,
she wants to give money to the daughter to build that,
to build that, so that's a gift. I'm not worried
about the gift tax. She's not gonna have any problems there.
She can give away thirteen point nine million and not
pay a gift tax currently. But if you do that,
(33:48):
you create a five year waiting period for the nursing home,
which is what the daughter's worried about, right, But it
sounds like we're not giving the mother anything, So I
guess nothing would happen other than yeah, you'd have a
five year waiting period. Well that's not helpful because then
the daughter would have to private pay the nursing home.
So I think the way to fix it is probably
(34:08):
to have and again, mom living there really doesn't have
any rights to live there, So I want to make
sure she has a right to live there and that
the daughter can't just throw her out because they're having
a bad day. So I would suggest that they value
this property, figure out what this addition is going to
be worth. And then buy a life interest in the
(34:33):
daughter's house. So you actually say, instead of giving you
the money, which stops the five year problem, you purchase
an interest in the house. And the government has thought
of this, and so what they say is, if you
purchase a life interest in the house, now you the
person who purchased it, the mother must live there at
(34:55):
least for one year from.
Speaker 3 (34:57):
The day you purchased it.
Speaker 4 (34:59):
So stay out of the nursing home for one year
from the day you purchased this life estate. So you've
now converted a gift to a purchase. And when you
since it's not treated as a gift, you've converted the
five year waiting period for nursing home eligibility that goes
(35:19):
along with the gift to a one year waiting period.
It's great, which is great. Just live in the house,
which is what you want to do anyway.
Speaker 2 (35:27):
Yeah, are there any tax implications for the daughter then
if mom's buying part of her house. I think of
like when you sell your home, there's tax implications, right,
I mean.
Speaker 4 (35:35):
Arguably there there would be some capital gain perhaps that
could be created. And I don't believe you get the
one twenty one capital gains exclusion for selling a partial
interest to a related party. Okay, so there's little rules
that go along with that two hundred and fifty thousand
or five hundred thousand dollars capital gains exclusion for your house.
(35:58):
So yeah, there might be a little capital gain there,
but you know what, that's okay. I think at the
end of the day, you're getting a much better result
than you had before.
Speaker 2 (36:07):
Yeah, so then mom gets to stay. So if the
daughter gets divorced or changes jobs and they have to
sell the house for.
Speaker 3 (36:15):
Some reason, Yeah, that's a good point.
Speaker 2 (36:17):
Mom would get the value of that home back, her
purchase back.
Speaker 4 (36:20):
Well, so that's a great point. Again, we're doing the
life estate for a couple of reasons. Reduce the waiting period,
give mom a right to live there so she feels
protected and safe. But you're right, she wouldn't get every
penny back.
Speaker 3 (36:31):
Member.
Speaker 4 (36:32):
Life estates are valued based on the date of the
transaction and your age. Okay, So if it's five years later,
she's five years older. So when you go do the
calculation for the sale, she's going to get a smaller
piece at it, but she will get something. Folks, definitely
potholes involved here, call and learn how to avoid potholes
when doing your estate plan eight six six eight four
(36:55):
eight five six ninety nine, or go to our website
and you can download the there eight six six eight
four eight five six nine nine, or Legal Exchange Show
dot com.
Speaker 2 (37:08):
If you have a question you would like to ask Todd,
visit his website Legal Exchange Show dot com and click
on the ask Tod tab. Maybe I'll be able to
read your question on the air, and hopefully his answer
will stop you from becoming one of his next real
life stories. You've been listening to Todd Lutsky, a partner
with the law firm of Cushing and Dolan. I'm Susan Powers,
(37:29):
a financial advisor with the Armstrong Advisory Group. We'll be
back with more after this quick break on the Legal
Exchange with Todd Lutsky.
Speaker 1 (37:39):
Creating an estate plan can be a difficult process if
you aren't working with an expert who can make sure
your plan is secure. Cushing and Dolan can help. Call
them today at eight six six eight four eight five
six nine nine. Estate Planning is their business and their
new monthly guide is called Detour a Head Estate planning
blunders to avoid. Don't put your assets at risk and
open yourself up to severe consequences. Even if you already
(38:02):
have a plan, this guide may correct an issue that
could come back to haunt you in the years to come.
Proper estate planning is crucial to you being able to
enjoy your later years, and it may be the difference
between retiring comfortably or living under incredible financial pressure. Call
Cushing and Dolan right now at eight six six eight
four eight five six ninet nine and get your free
guide today that's eight six six eight four eight five
(38:24):
six nine nine, or requested online from their website Legal
exchange show dot com. The 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
are offering legal or investment services. Cushing and Armstrong do
not endorse each other and are not affiliated the United States.
Virgin Islands is consistently voted one of the top Caribbean destinations,
(38:45):
and recently two of their beaches, Trunk Bay and Saint
John and Magan's Bay and Saint Thomas, were voted at
top ten best beach in the Caribbean at the twenty
twenty five travelers Choice Best of the Best awards. From
the pristine beaches to its world class dining, rich history,
incredible golf and perfect weather, the USVII has everything you
need to make memories that will last a lifetime. From
(39:07):
the moment you arrive, you will 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. Whether
you're looking for a romantic getaway or a family vacation,
the US Virgin Islands is the perfect place for your
next adventure. Go to visit USVII dot com right now
for more information and to book your trip. The USVII
(39:29):
is Americas Caribbean Paradise. Go to visit USVII dot com today.
That's visit USVII dot com.
Speaker 6 (39:39):
Trust can play a key role in your financial strategy,
and understanding the different kinds and their purpose may help
you make the right decisions for your overall plan.
Speaker 1 (39:48):
Hi.
Speaker 6 (39:48):
This is Chuck Zada from the Armstrong Advisory Group. Trusts
are utilized for a variety of reasons, but the most
basic use is to make settling in a state easier.
Trust have the ability to bypass probate, which can save
you significant time and money while allowing your assets to
be distributed directly to your beneficiaries. Our new guide this
month is called Trusts in your Financial Plan and you
can get it by calling eight hundred three nine three
(40:10):
for zero zero one. Learnt about trust and their possible
benefits to your financial strategy by requesting your free guide today.
That number again is eight hundred three nine three for
zero zero one, or request it online at Armstrong Advisory
dot com. That's Armstrong Advisory dot com.
Speaker 1 (40:26):
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 into state planning advisors before making
any investment decisions. Armstrong make contact you to offer investment
advisory services. Your tune to the legal exchange with Todd Lutsky.
If you are a loved one needs a nursing homestay,
call Todd right now at eight six six eight four
(40:48):
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 online at
Legal Exchange Show dot com.
Speaker 2 (41:00):
Welcome back into the Legal Exchange with Todd Lutsky. I'm
Susan Powers, a financial advisor with the Armstrong Advisory Group,
and I'm joined, of course by Todd Lutsky, a partner
with the law firm of Cushing and Owen with a
master's in taxation. So, Todd, your guide is all about
avoiding these potholes and mistakes you want to try and
(41:20):
avoid when it comes to your estate planning. So last
week we were talking about some life events that really
warrant a review or a change to your documents. And
I want to keep going down that path because there
are a lot of things that can happen in life
that would warrant that. So I want to talk about
instead of the doom and gloom things, how about a
(41:41):
happy thing where you suddenly have an increased net worth. Okay,
so we can kind of make up our own facts
here in terms of where you were and where you
are now, what level of net worth? Kind of starting
at the basics, where do you have to be from
a net worth perspective to do any trust planning? Let's
(42:04):
start with that.
Speaker 4 (42:06):
It's a great question because I'm not always sure that
trust planning is based on money only, okay, because you
can't forget about the family. So let's think about a
young family who might have way less than the estate
tax exemption of two million in Massachusetts, and forget federal
it's way high. Right, you're just starting out. You might
(42:29):
just have a house with a mortgage, and you know,
small bank accountant on a beginning investment account in a
beginning for a one k maybe a little.
Speaker 2 (42:35):
Life insurance term life or something like that.
Speaker 4 (42:37):
Yeah, well, let's say you didn't even have that, just
to make the point crystal clear. You know, you're certainly
not worth a lot, so you're not needing a trust
at all really for tax avoidance at that point.
Speaker 3 (42:50):
Right, But you have.
Speaker 4 (42:51):
Two young kids. Oh well, if you have two miners
and you die, they can't own your house, they can't
own any of your assets. So I don't want some
guardian owning all my stuff. I'd rather have a trust
own my stuff and direct how those assets will be
held and used.
Speaker 2 (43:11):
For my children for the benefit of them.
Speaker 4 (43:13):
Right, And so then I need a trust regardless of
my net worth because I have minor children.
Speaker 3 (43:19):
But that's a good point. That's where you've got to
start though.
Speaker 4 (43:21):
You think about net worth mostly, but don't forget about
the family behind the estate plan. And even folks that
are older that, let's say are under two million, well
then they would need a trust maybe to avoid the
nursing home cost. So again not driven by taxes, which
is what we would always be thinking about.
Speaker 3 (43:40):
Right, that's the obvious question. That's why you asked it.
Speaker 4 (43:43):
And I'd say, well, maybe they don't need it for
tax purposes, but they need it to protect it from
the nursing home or even for them even if there's
not a nursing home concern. Maybe they've got great long
term care insurance and they don't have a tax problem
because they're under two million dollars, but they just want
to make sure the kids get it in a way,
in a manner, and maybe they want to skip a
(44:03):
generation get some stuff down to a grandkid.
Speaker 3 (44:05):
Maybe they want to protect it from divorces whatever.
Speaker 4 (44:08):
So again a trust is needed for the after you
die part of the trust life. So those would be
reasons to think about a trust anyway.
Speaker 2 (44:19):
Other than your net worth.
Speaker 3 (44:20):
But you're right from a network standpoint, I'll come back
to that.
Speaker 2 (44:23):
Yeah, where's the level where you have to do like
your basic plan your revocable trust plan irrevocable. Either one
will take care of the vast majority of folks. What
level of net worth do you get to where you
need more complex planning beyond just your basic right trust?
Speaker 4 (44:43):
So the basic trust, you're right, over four million in
Massachusetts at least, or over two million in Massachusetts if
you're married, you're going to need basic trusts to eliminate
and double if you're married, the exemption from two to four.
Other folks listening, check with your state and your exemption
and for your state, same idea, though double it for
your situation. Basic planning will eliminate the tax federally, You're right,
(45:07):
the tax exemptions fourteen million almost each, so twenty eight million. Well,
you start getting, you know, you start getting north of that,
I think, and you you're going to need more than
the basics, but you're gonna need the basics for that,
but definitely more than the basics when you get over that. So, folks, again,
these are great comments that Susan's making because they are potholes.
(45:29):
They are things to think about when you're doing your planning.
So don't rely on a will don't rely on a
nominee realty trust. Think about what happens if you don't
have kids, you still need to plan If you do
have kids, what about if you got a divorce. There's
so many things to think. I'm moving, changing residency, folks.
If you've done your planning, get the guide, learn how
you might need to know what to do for events
(45:51):
that come up. If you haven't done your planning, get
the guide and learn what not to do and get
started doing your planning eight six six eight four eight
five six nine nine or Legal Exchange Show dot com.
Avoiding potholes when doing your planning eight six six eight
four eight five six nine nine or Legal Exchange Show
(46:12):
dot com.
Speaker 2 (46:13):
So we have a network a federal estate tax exemption
of fourteen million. So if you're close to that point,
if you're over that point, when do you need to
do more complex estate planning? Do you think so?
Speaker 4 (46:27):
If you're married, you you know you have to think
about it. I mean, do I wait to get to
twenty eight million? Twenty eight million? You're you're going to
depending on how old you are at that point. Right,
if you're twenty eight million in year sixty, your twenty
eight million could double more than one.
Speaker 3 (46:40):
Time before you die.
Speaker 4 (46:42):
Right and again, remember you get older, you spend less
as your activities decline, so you really need to think
about that.
Speaker 3 (46:49):
So I don't know if there's a number.
Speaker 4 (46:51):
I mean, I would say a little under twenty eight
million anyway, you know, maybe twenty five million, again, depending
on how old you are.
Speaker 3 (46:57):
And and the goal is.
Speaker 4 (46:58):
Remember to get the assets out of the estate before
you lose your exemption.
Speaker 2 (47:03):
And how would you actually do that? Gift them away
to people?
Speaker 3 (47:06):
No? No, no, never.
Speaker 4 (47:07):
I would set if I'm married, I would set up
these spousal lifetime access trusts where you can actually enjoy
what you give away and control what you give away,
but yet have it outside your estate. First state tex
Per loophole. Yeah, it's really a phenomenal idea. Otherwise people
wouldn't do it. You know, if you tell somebody I'd
(47:28):
got to give away ten million dollars, they'd be like, well,
hold on.
Speaker 2 (47:30):
God, I don't want to give away my ten million dollars.
Speaker 4 (47:32):
I'm happy to have some fun with my life, right,
I'd like to keep it, so I don't want to
give it away. So my point here is that you
got to learn how to do these. And remember, the
point really is it's not about what you're doing today.
When you're talking about gifting and you're talking about what
that next step, next level of a state planning is.
(47:52):
It's not that, Okay, I'm moving ten million dollars into
these spousal lifetime access trusts today. Think about whole life.
It's what's that ten million going to become over the
next ten twenty years of my life. It's not today,
it's the growth after today. And the comfort you have
is you might say, well, Todd, we don't know what
(48:14):
the exemption is going to be. That's true, could go up,
could come down, right, But at that point, if you're
high enough in the estate planning world already, you won't
care because if you move it out of your estate
and it becomes twenty million or doubles one more time
to forty million, you're saying, I don't care who the
next president is or what the next administration in the
(48:36):
office does. We don't care why because this money will
never be federally or state estate taxed again, become tax
yess estate taxed. No, so have at it. Government, do
what you want. I'm not worried about it anymore, right,
a great feeling.
Speaker 2 (48:56):
So when you transfer assets into that, you must be
very specific about the type of assets that you're transferring
into that.
Speaker 4 (49:03):
Well, you need you need to think about that for sure.
I mean, I mean, you're if your assets are low basis,
you have to understand that you're trapping capital gain when
you make the transfer. But if you're making a transfer
knowing that I'm in a federal tax bracket for a
(49:23):
state taxes anyway, which is huge compared to forty percent. Yeah,
and here in Mass roughly ten percent. If you combine
the two, let's just call it fifty percent. Well, if
I'm in a fifty percent tax bracket on money that
I don't give away, I worry less about what assets
I'm giving away. I still want to make sure I
(49:44):
give away high basis if I can, because if I
give away low basis, I'm trapping twenty eight point eight
percent capital gain. If I keep it, I'm paying fifty
federal in state. So you have to understand that dynamic. Okay,
But again, if I'm only gifting to save ten percent
for the state m hm, then you have to really
(50:06):
think twice, because I don't want to trap twenty eight
percent capital gains tax to save ten percent mass death tax. Yeah,
lots of thinking. Lots of potholes could come up when
you're doing your estate planning, folks. That's just these have
basic estate planning potholes, but for more sophisticated you have
(50:27):
to also figure.
Speaker 3 (50:28):
Out where those potholes are.
Speaker 4 (50:30):
Learn how to do your estate plan and avoid all
of these potholes in your planning by getting the guide
eight six six eight four eight five six nine nine,
or go to our website Legal Exchange show dot com.
Speaker 2 (50:43):
Todd Lutsky from the law firm of Cushing in Dolan,
thank you so much.
Speaker 3 (50:47):
Thank you, Susan, always a pleasure.
Speaker 2 (50:48):
I'm Susan Powers, a financial advisor with the Armstrong Advisory Group.
We thank you for joining us today and we'll be
back again next week on the Legal Exchange with Todd Lutsky.
Speaker 1 (50:59):
Creating a mistate can be a difficult process if you
aren't working with an expert who can make sure your
plan is secure. Cushing and Dolan can help. Call them
today at eight six six eight four eight five six
nine nine. Estate planning is their business and their new
monthly guide is called Detour a head estate planning blunders
to avoid. Don't put your assets at risk and open
yourself up to severe tax consequences. Even if you already
(51:22):
have a plan, this guide may correct an issue that
could come back to haunt you in the years to come.
Proper estate planning is crucial to you being able to
enjoy your later years, and it may be the difference
between retiring comfortably or living under incredible financial pressure. Call
Cushing and Dolan right now at eight sixty six eight
four eight five six ninety nine and get your free
guide today. That's eight six six eight four eight five
(51:45):
six nine nine, or request an online from their website
Legal exchange show dot com. The proceeding is paid for
in The views expressed are solely those of Cushing and Dolin.
Cushing and Dolan and or Armstrong Advisory may contact you
are offering legal or investment services. Cushing and Armstrong do
not endorse each other and are not affiliated. HI.
Speaker 5 (52:00):
This is Mike Armstrong from the Armstrong Advisory Group. A
state and financial plan and go hand in hand, and
one of the most common ways to keep that bond
secure is with a trust. Our new guide called Trusts
in Your Financial Plan is available right now. In it,
we'll discuss the various types of trusts that exist and
how they might benefit your planning process. Trust provide a
number of different protections for your assets, including privacy control
(52:21):
and tax efficiency. If you're retired or nearing retirement and
have concerns about your financial strategy and whether or not
a trust may help, call us today at eight hundred
three nine three four zero zero one and ask for
your free guide called Trusts and your Financial Plan. Learn
about how a trust could make a difference for you
and your family by calling eight hundred three nine three
four zero zero one. That number again is eight hundred
(52:42):
three nine three four zero zero one, or you can
request the guide from Armstrong Advisory dot com.
Speaker 1 (52:47):
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 into state planning advisors before making
any investment decisions. Armstrong may contact you to offer investment
advisory services. The United States, Virgin Islands has consistently voted
one of the Topcribbean destinations, and recently two of their
(53:07):
beaches trunk Bay and Saint John and Magan's Bay and
Saint Thomas were voted at top ten best beach in
the Caribbean at the twenty twenty five Travelers Choice Best
of the Best awards. From the pristine beaches to its
world class dining, rich history, incredible golf and perfect weather,
the USVII has everything you need to make memories that
will last a lifetime. From the moment you arrive, you
(53:29):
will 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. Whether you're looking for a romantic
getaway or a family vacation, the US Virgin Islands is
the perfect place for your next adventure. Go to visit
USVII dot com right now for more information and to
book your trip. The USVII is America's Caribbean paradise. Go
(53:52):
to visit USVII dot com today. That's visit USVII dot com.
Popular Podcasts
NFL Daily with Gregg Rosenthal
Gregg Rosenthal and a rotating crew of elite NFL Media co-hosts, including Patrick Claybon, Colleen Wolfe, Steve Wyche, Nick Shook and Jourdan Rodrigue of The Athletic get you caught up daily on all the NFL news and analysis you need to be smarter and funnier than your friends.
On Purpose with Jay Shetty
I’m Jay Shetty host of On Purpose the worlds #1 Mental Health podcast and I’m so grateful you found us. I started this podcast 5 years ago to invite you into conversations and workshops that are designed to help make you happier, healthier and more healed. I believe that when you (yes you) feel seen, heard and understood you’re able to deal with relationship struggles, work challenges and life’s ups and downs with more ease and grace. I interview experts, celebrities, thought leaders and athletes so that we can grow our mindset, build better habits and uncover a side of them we’ve never seen before. New episodes every Monday and Friday. Your support means the world to me and I don’t take it for granted — click the follow button and leave a review to help us spread the love with On Purpose. I can’t wait for you to listen to your first or 500th episode!
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com