October 29, 2025 • 15 mins
This week, Todd Lutsky examines when it is important to add gifting to your estate plan. Todd also takes calls from listeners about protecting assets in an irrevocable trust and sheltering assets from estate taxes.
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Episode Transcript
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Speaker 1 (00:01):
This is Ask Todd on the Financial Exchange Radio network.
If you have an existing estate plan or in the
market for one, Todd Letsky is here to answer your
questions and help you plan for a later life. Ask
Todd is presented by Cushing and Dolan, serving Massachusetts and
New England for more than thirty five years, helping families
with estate and tax planning, medicaid planning, and probate law.
(00:22):
Visit Cushingdolan dot com. Now here's Todd Lutsky.
Speaker 2 (00:28):
As promised, Todd Lutsky now joins us from the law
firm of Cushing and Dolan. We got phone lines open
because the segment is Ask Todd. It's your chance to
ask Todd your estate planning questions and he'll actually answer them. Yeah,
it's not just you asking, it's him answering as well.
Phone lines are wide open right now at eight eight
(00:49):
eight to zero five two two six three. That is
the number to call to ask Todd your estate planning
questions again. It's eight eight eight to zero five two
two six three. We can normally get through two to
three questions, so get calling early, get calling often to
make sure we get to your question for Todd again.
(01:10):
That number is eight eight eight two zero five two
two six three. Mister Lutsky, How are you doing today?
Speaker 3 (01:18):
I am doing just fine. How you been?
Speaker 4 (01:21):
Uh good?
Speaker 2 (01:21):
I had a busy day yesterday.
Speaker 3 (01:22):
Yeah, what are you doing?
Speaker 2 (01:23):
I was shopping for cherries and a new microphone stand.
Speaker 4 (01:27):
I don't know how cherry's and a microphone stand go together.
Bought it being bought a boom Huh, there you go.
Speaker 3 (01:32):
It was good.
Speaker 2 (01:33):
Todd want to talk to you a little bit about
gifting strategies. When is it appropriate to incorporate annual gifting
into an estate plan? What role can that fill? And
when do you start to see that talked about? Is
something that makes sense for someone?
Speaker 4 (01:49):
Yeah, I think that's fair question, because this gifting guide
really explains that.
Speaker 3 (01:54):
But I mean, just because we.
Speaker 4 (01:58):
Have this ability to gift away thirteen point nine million dollars, which,
by the way, that is our federal estate tax exemption.
You've heard us talk about that many times. It is
also our gift tax exemption.
Speaker 3 (02:11):
Right.
Speaker 4 (02:11):
You get to use up that exemption either by dying,
which is not usually on the to do list, or
by gifting before you lose it. That's when tax laws change.
Speaker 3 (02:21):
Right.
Speaker 4 (02:22):
So, But just because you can gift away thirteen point
nine million and pay no federal gift tax. And remember,
there's no state gift tax in any state except our neighbor.
Connecticut is the only one that I'm aware of that
has that. So otherwise you don't worry about state gift tax.
But I don't want to just gift because there's capital
gains taxes that you have to worry about, not just
(02:45):
death taxes.
Speaker 3 (02:46):
Right, So, if I'm going to gift.
Speaker 4 (02:48):
Away an asset, I first want to make sure that
I'm getting a federal estate tax benefit, meaning if I'm
under thirteen point nine million or married and double that exemption, right,
was that like twenty eight million in change? Almost, so
it's called twenty seven and change. I probably don't need
(03:12):
to gift to save federal estate taxes. And remember the
federal estate tax rate is forty percent of the amount
over the exemption. All right, Well, if I'm not saving that,
and I'm only saving the state estate tax, and I'll
just choose Massachusetts as an example, I'm only saving say
(03:32):
ten to twelve percent, and I end up giving away
assets that have capital gain built into them. I bought
a house a long time ago. You know the drill.
I got a rental property that I appreciated to zero
and now it's worth a million dollars. Well, I got
a million dollars of gain built into this property if
I give it away, and I'm not saving the forty percent,
(03:53):
and I'm only saving the twelve percent, but I trapped
almost thirty percent long term capital gain in that item
so that my children will pay that when they sell it.
Speaker 3 (04:04):
I'm not sure that's helpful, right.
Speaker 4 (04:06):
Twenty eight thirty percent versus ten percent not a good
math situation. So think about what you gift and why
you're gifting. If it's just to save a state taxes,
might want to double think it.
Speaker 2 (04:18):
Talking with Todd Lotsky from Cushing and Dolan still have
room on the phone lines at eight eight eight to
zero five two two six three. That is the number
to call to ask Todd your estate planning questions. We
are going to take a quick break right now, but
when we come back, it's going to be right to
your questions with Todd. Eight eight eight to zero five
(04:40):
two two sixty three is the number again, it is
eight eight eight to zero five two two sixty three.
Quick break. Then your Questions with Todd.
Speaker 1 (04:51):
Ask Todd with Todd Letsky every Wednesday at ten thirty
only here on the Financial Exchange Radio Network. You're listening
to Ask Todd with Todd Lunsky on the Financial Exchange
Radio Network.
Speaker 2 (05:12):
All right, let's get right to your Questions with Todd Lutsky.
First in the queue, we got Marty in Framingham. Marty,
what is your question for Todd?
Speaker 3 (05:24):
Marty? Are you there?
Speaker 5 (05:25):
Yes, yes, I am, Thank you for taking my call.
My home in Midfield had a fire. It was totaled,
although it was fully insured. It's going to cost me
about another two hundred thousand dollars to put build a
house back the way we want it. I've got the
money set aside that the insurance company is giving me,
(05:47):
but it's going to cost me another two hundred thousand
dollars of revocable money or other money to get the
house the way we want. The question is, I don't
want to interrupt the integrity of the irrevocable trust which
has been in been in for like seven to ten years.
(06:07):
So how do I fund it without interrupting that irrevocable trust.
Speaker 4 (06:12):
So it seems to me that since the insurance company
paid you. That means that when you set up the trust,
you told the insurance company to add the trust as
an additional insured. Correct, yes so, because so, because you
(06:33):
told the trust to add the or since you told
the insurance company to add the trust as an additional insured,
you should go back to the insurance company and tell
them to issue the check pay to the order of
the trust, not you, And that way it goes directly
into the trust, and there's no resetting the five year clock.
(06:53):
In other words, it should be no different than when
you sell a house. Right if the trust owned the
property and you decide to sell and buy another house,
which we all know you can do, out would go
the house to the buyer, and in would come a
check made payable to the trust, because the trust then
would receive the money, and then that money would not
(07:16):
receiving that money would not reset the clock. In other words,
if the house went in seven years ago, to take
your example, and now that house is one hundred percent
protected from the nursing home, and you sell the house
and get money in the trust, that money is one
hundred percent protected from the nursing home, and the buying
(07:37):
and selling does not reset the clock.
Speaker 3 (07:39):
Okay, that's crystal clear.
Speaker 4 (07:42):
However, in this case, if you've lost the house, which
is kind of like a sale, it's gone, and in
exchange for that being gone, the trust is going to
get paid what it's going to get paid the insurance.
So now in comes the money directly into the trust. Well, well,
there may be no house there anymore like a sale,
but there's money there. Well that money should not reset
(08:03):
the clock, and then you can use that money to
start paying the contractor to build the new property. Now
as to the additional two hundred thousand dollars that you need, well,
if that's not already in the trust like you have
maybe you put a portfolio in or an investment account
in or something like that. If that money is not
already in the trust, well then yeah, you're you're going
(08:26):
to have to contribute that money to the trust to
build the finished building the house. So worst case scenario here,
I see that there might be a new five year
look back period waiting, but only for the new addition,
only for the new two hundred thousand that you put
in the trust. So does that help a little, Yes, sir,
it does, So get that changed with the go get
(08:48):
that check reissued by the insurance company.
Speaker 3 (08:51):
That's what I would do.
Speaker 4 (08:52):
So hopefully that helps and folks, you know, I'm so
glad to hear that he did his planning and have
the house you know where it belongs. And but for
other folks that haven't done all their planning yet and
are thinking about just oh, I'll just do a quick fix,
I'll give away my assets, well you can. That's what
the law says. Might not be the right thing to do.
(09:14):
So there's a guide called making the most of gifting assets.
Sometimes you want to give things to irrevocable trusts rather
than children. Outright, you got to think about what kind
of asset I give a high basis asset versus a
low basis asset. Maybe for higher net worth people, we
want to give away a lot of assets. Well, I
don't want to give them away and not enjoy it.
I work my whole life for it. Well, spousal lifetime
(09:35):
access trust might be the way to give away assets
and retain some ability to control and enjoy what you
gave away. Right, think about pool trusts, think about special
needs trust So there's all kinds of ideas and ways
to gift or maybe not gift at all, and that
might be the right answer for a lot of people.
(09:56):
Call and get the guide. Folks, we're getting near the
end of the month. It's going to go back in
the 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.
Speaker 2 (10:14):
Got another one for you here. Let's go to Dan
in Florida. Dan, what is your question for Todd Lutsky?
Speaker 6 (10:21):
Todd, First of all, I'm a Massachusetts resident, okay, and
I'm trying to shell to my holdings from the mass tax.
Does an irrevocable trust do that?
Speaker 4 (10:36):
So it depends on the kind of irrevocable trust. So
let me explain. First of all, are you married?
Speaker 6 (10:45):
No, I was married, she passed away, okay.
Speaker 3 (10:49):
So how much are you worth in total? Round number?
Speaker 6 (10:54):
Four million?
Speaker 3 (10:55):
All right?
Speaker 4 (10:56):
And I'm assuming there was no planning done when your
wife passed.
Speaker 3 (11:02):
No trust?
Speaker 6 (11:03):
We both had, We both had revocable trusts.
Speaker 3 (11:07):
Wonderful.
Speaker 4 (11:08):
How much of the four million dollars was in your
wife's revocable trust when she died?
Speaker 6 (11:15):
None?
Speaker 4 (11:16):
Oh, So this is exactly what we talk about all
the time right on the radio. We tell people funding
a trust is so darn important, right. If you don't
fund a trust, it really is just a waste. It's
a bunch of paper doing nothing for you, which is
why we stress funding it. And I'm going to say,
(11:36):
obviously it's it's you know, water under the dam. I
get it, But at this point I just want to
help other people learn. So, because nothing was in that trust,
my hope for you Dan on this one was you
were going to tell me, oh, yeah, we managed to
put about two million dollars worth of assets in my
wife's trust. Well, if you had done that, I would
(11:57):
imagine that that trust is designed to hold a remains
share in emerital share, and then that two million dollars
would be tucked away in your wife's trust subject to
tax when she died. She has a two million dollar
estate tax exemption, so there's no tax to and then
when you die, you would only be taxed on what
(12:18):
you own in your trust, which would be the other
two million. And now, like magic, if you died, you're
under the two million because the assets tucked away in
your wife's trust would be sheltered from a state taxes
and not included in your estate when you die, even
though you would be controlling and enjoying perhaps what's in
(12:42):
that wife's trusts bucket. And then when you die, you're
under two million and lo and behold you pay Massachusetts
zero estate taxes. So, folks, that's for everybody who hasn't
done their planning yet, or have done their planning and
didn't fund one trust. Please learn from this call what
we can do in the future.
Speaker 3 (13:02):
Now.
Speaker 4 (13:02):
I turned to you, Dan, and I say, well, I mean,
you got four million dollars worth of stuff. At least
you got to step up in basis how long ago
did your mom died?
Speaker 1 (13:11):
Here?
Speaker 3 (13:12):
I'm sorry, your wife.
Speaker 4 (13:13):
Died two years ago, so it's not horrible. So two
years ago, you know you got if you own things
jointly when she died, and I'm assuming you did, right,
We didn't.
Speaker 6 (13:29):
You didn't own the second marriage. It was a second marriage,
and she had her preuss I had mine, I see.
Speaker 4 (13:36):
But nothing was in her trust. So how are the
assets owned? Did you we own? Everything was in her
name alone?
Speaker 6 (13:43):
Yes, she owned her own house. I owned a couple
of houses that they were both in my name and
her hers was in her name.
Speaker 4 (13:51):
And did her stuff go to her side of the family,
or did she take care of you with any of it.
Speaker 6 (13:57):
And went to her side of the family.
Speaker 4 (13:59):
Oh okay, So the four million you have is just
your assets?
Speaker 6 (14:03):
Yes, oh okay.
Speaker 4 (14:04):
So again the explanation is still very helpful for people.
But in your case, you're worth four million. You know, again,
we're thinking about do we need to make a gift? Well,
I don't know. You have to really analyze your assets.
We just did that example that maybe giving away assets
now just to save ten percent on the amount over
two million, or twelve percent on the amount over two
million might not be the most tax effiicient thing to do.
Speaker 3 (14:27):
But if you have cash CDs.
Speaker 4 (14:29):
You know, kicking around, and you want to set up
a gifting trust for your children and you don't mind
giving it away, that would be an easy fix because
there's no loss of a step up in basis with cash,
and that money can be tucked aside outside your estate
for a state tax purposes, thereby reducing your state tax liability.
But just sticking them in an irrevocable medicaid trust to
(14:51):
protect them from the nursing home would not reduce your
estate taxes, but might not be bad planning. For you
to protect your assets for your children. Sorry, right time,
but I hope that gives you a little something to
think about.
Speaker 2 (15:02):
Mister Lutsky, Thank you so much for the time today.
Speaker 3 (15:04):
Always a pleasure.
Speaker 1 (15:06):
This has been Asked Todd on the Financial Exchange Radio
network Ask Todd with Todd. Lutsky has been presented by
Cushing and Dolan, serving Massachusetts and New England for more
than thirty years, helping families with the state and tax planning,
Medicaid planning and probate law. Call eight hundred and three
ninety three, four thousand and one or visit Cushingdolan dot com.
The views expressed in this segment are solely those of
(15:27):
Cushing and Dolan. Armstrong Advisory does not provide any legal
or tax advice. Please consult with your legal or tax
advisor on such matters. Cushing and Armstrong do not endorse
each other and are not affiliated.
This is Ask Todd on the Financial Exchange Radio network.
If you have an existing estate plan or in the
market for one, Todd Letsky is here to answer your
questions and help you plan for a later life. Ask
Todd is presented by Cushing and Dolan, serving Massachusetts and
New England for more than thirty five years, helping families
with estate and tax planning, medicaid planning, and probate law.
(00:22):
Visit Cushingdolan dot com. Now here's Todd Lutsky.
Speaker 2 (00:28):
As promised, Todd Lutsky now joins us from the law
firm of Cushing and Dolan. We got phone lines open
because the segment is Ask Todd. It's your chance to
ask Todd your estate planning questions and he'll actually answer them. Yeah,
it's not just you asking, it's him answering as well.
Phone lines are wide open right now at eight eight
(00:49):
eight to zero five two two six three. That is
the number to call to ask Todd your estate planning
questions again. It's eight eight eight to zero five two
two six three. We can normally get through two to
three questions, so get calling early, get calling often to
make sure we get to your question for Todd again.
(01:10):
That number is eight eight eight two zero five two
two six three. Mister Lutsky, How are you doing today?
Speaker 3 (01:18):
I am doing just fine. How you been?
Speaker 4 (01:21):
Uh good?
Speaker 2 (01:21):
I had a busy day yesterday.
Speaker 3 (01:22):
Yeah, what are you doing?
Speaker 2 (01:23):
I was shopping for cherries and a new microphone stand.
Speaker 4 (01:27):
I don't know how cherry's and a microphone stand go together.
Bought it being bought a boom Huh, there you go.
Speaker 3 (01:32):
It was good.
Speaker 2 (01:33):
Todd want to talk to you a little bit about
gifting strategies. When is it appropriate to incorporate annual gifting
into an estate plan? What role can that fill? And
when do you start to see that talked about? Is
something that makes sense for someone?
Speaker 4 (01:49):
Yeah, I think that's fair question, because this gifting guide
really explains that.
Speaker 3 (01:54):
But I mean, just because we.
Speaker 4 (01:58):
Have this ability to gift away thirteen point nine million dollars, which,
by the way, that is our federal estate tax exemption.
You've heard us talk about that many times. It is
also our gift tax exemption.
Speaker 3 (02:11):
Right.
Speaker 4 (02:11):
You get to use up that exemption either by dying,
which is not usually on the to do list, or
by gifting before you lose it. That's when tax laws change.
Speaker 3 (02:21):
Right.
Speaker 4 (02:22):
So, But just because you can gift away thirteen point
nine million and pay no federal gift tax. And remember,
there's no state gift tax in any state except our neighbor.
Connecticut is the only one that I'm aware of that
has that. So otherwise you don't worry about state gift tax.
But I don't want to just gift because there's capital
gains taxes that you have to worry about, not just
(02:45):
death taxes.
Speaker 3 (02:46):
Right, So, if I'm going to gift.
Speaker 4 (02:48):
Away an asset, I first want to make sure that
I'm getting a federal estate tax benefit, meaning if I'm
under thirteen point nine million or married and double that exemption, right,
was that like twenty eight million in change? Almost, so
it's called twenty seven and change. I probably don't need
(03:12):
to gift to save federal estate taxes. And remember the
federal estate tax rate is forty percent of the amount
over the exemption. All right, Well, if I'm not saving that,
and I'm only saving the state estate tax, and I'll
just choose Massachusetts as an example, I'm only saving say
(03:32):
ten to twelve percent, and I end up giving away
assets that have capital gain built into them. I bought
a house a long time ago. You know the drill.
I got a rental property that I appreciated to zero
and now it's worth a million dollars. Well, I got
a million dollars of gain built into this property if
I give it away, and I'm not saving the forty percent,
(03:53):
and I'm only saving the twelve percent, but I trapped
almost thirty percent long term capital gain in that item
so that my children will pay that when they sell it.
Speaker 3 (04:04):
I'm not sure that's helpful, right.
Speaker 4 (04:06):
Twenty eight thirty percent versus ten percent not a good
math situation. So think about what you gift and why
you're gifting. If it's just to save a state taxes,
might want to double think it.
Speaker 2 (04:18):
Talking with Todd Lotsky from Cushing and Dolan still have
room on the phone lines at eight eight eight to
zero five two two six three. That is the number
to call to ask Todd your estate planning questions. We
are going to take a quick break right now, but
when we come back, it's going to be right to
your questions with Todd. Eight eight eight to zero five
(04:40):
two two sixty three is the number again, it is
eight eight eight to zero five two two sixty three.
Quick break. Then your Questions with Todd.
Speaker 1 (04:51):
Ask Todd with Todd Letsky every Wednesday at ten thirty
only here on the Financial Exchange Radio Network. You're listening
to Ask Todd with Todd Lunsky on the Financial Exchange
Radio Network.
Speaker 2 (05:12):
All right, let's get right to your Questions with Todd Lutsky.
First in the queue, we got Marty in Framingham. Marty,
what is your question for Todd?
Speaker 3 (05:24):
Marty? Are you there?
Speaker 5 (05:25):
Yes, yes, I am, Thank you for taking my call.
My home in Midfield had a fire. It was totaled,
although it was fully insured. It's going to cost me
about another two hundred thousand dollars to put build a
house back the way we want it. I've got the
money set aside that the insurance company is giving me,
(05:47):
but it's going to cost me another two hundred thousand
dollars of revocable money or other money to get the
house the way we want. The question is, I don't
want to interrupt the integrity of the irrevocable trust which
has been in been in for like seven to ten years.
(06:07):
So how do I fund it without interrupting that irrevocable trust.
Speaker 4 (06:12):
So it seems to me that since the insurance company
paid you. That means that when you set up the trust,
you told the insurance company to add the trust as
an additional insured. Correct, yes so, because so, because you
(06:33):
told the trust to add the or since you told
the insurance company to add the trust as an additional insured,
you should go back to the insurance company and tell
them to issue the check pay to the order of
the trust, not you, And that way it goes directly
into the trust, and there's no resetting the five year clock.
(06:53):
In other words, it should be no different than when
you sell a house. Right if the trust owned the
property and you decide to sell and buy another house,
which we all know you can do, out would go
the house to the buyer, and in would come a
check made payable to the trust, because the trust then
would receive the money, and then that money would not
(07:16):
receiving that money would not reset the clock. In other words,
if the house went in seven years ago, to take
your example, and now that house is one hundred percent
protected from the nursing home, and you sell the house
and get money in the trust, that money is one
hundred percent protected from the nursing home, and the buying
(07:37):
and selling does not reset the clock.
Speaker 3 (07:39):
Okay, that's crystal clear.
Speaker 4 (07:42):
However, in this case, if you've lost the house, which
is kind of like a sale, it's gone, and in
exchange for that being gone, the trust is going to
get paid what it's going to get paid the insurance.
So now in comes the money directly into the trust. Well, well,
there may be no house there anymore like a sale,
but there's money there. Well that money should not reset
(08:03):
the clock, and then you can use that money to
start paying the contractor to build the new property. Now
as to the additional two hundred thousand dollars that you need, well,
if that's not already in the trust like you have
maybe you put a portfolio in or an investment account
in or something like that. If that money is not
already in the trust, well then yeah, you're you're going
(08:26):
to have to contribute that money to the trust to
build the finished building the house. So worst case scenario here,
I see that there might be a new five year
look back period waiting, but only for the new addition,
only for the new two hundred thousand that you put
in the trust. So does that help a little, Yes, sir,
it does, So get that changed with the go get
(08:48):
that check reissued by the insurance company.
Speaker 3 (08:51):
That's what I would do.
Speaker 4 (08:52):
So hopefully that helps and folks, you know, I'm so
glad to hear that he did his planning and have
the house you know where it belongs. And but for
other folks that haven't done all their planning yet and
are thinking about just oh, I'll just do a quick fix,
I'll give away my assets, well you can. That's what
the law says. Might not be the right thing to do.
(09:14):
So there's a guide called making the most of gifting assets.
Sometimes you want to give things to irrevocable trusts rather
than children. Outright, you got to think about what kind
of asset I give a high basis asset versus a
low basis asset. Maybe for higher net worth people, we
want to give away a lot of assets. Well, I
don't want to give them away and not enjoy it.
I work my whole life for it. Well, spousal lifetime
(09:35):
access trust might be the way to give away assets
and retain some ability to control and enjoy what you
gave away. Right, think about pool trusts, think about special
needs trust So there's all kinds of ideas and ways
to gift or maybe not gift at all, and that
might be the right answer for a lot of people.
(09:56):
Call and get the guide. Folks, we're getting near the
end of the month. It's going to go back in
the 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.
Speaker 2 (10:14):
Got another one for you here. Let's go to Dan
in Florida. Dan, what is your question for Todd Lutsky?
Speaker 6 (10:21):
Todd, First of all, I'm a Massachusetts resident, okay, and
I'm trying to shell to my holdings from the mass tax.
Does an irrevocable trust do that?
Speaker 4 (10:36):
So it depends on the kind of irrevocable trust. So
let me explain. First of all, are you married?
Speaker 6 (10:45):
No, I was married, she passed away, okay.
Speaker 3 (10:49):
So how much are you worth in total? Round number?
Speaker 6 (10:54):
Four million?
Speaker 3 (10:55):
All right?
Speaker 4 (10:56):
And I'm assuming there was no planning done when your
wife passed.
Speaker 3 (11:02):
No trust?
Speaker 6 (11:03):
We both had, We both had revocable trusts.
Speaker 3 (11:07):
Wonderful.
Speaker 4 (11:08):
How much of the four million dollars was in your
wife's revocable trust when she died?
Speaker 6 (11:15):
None?
Speaker 4 (11:16):
Oh, So this is exactly what we talk about all
the time right on the radio. We tell people funding
a trust is so darn important, right. If you don't
fund a trust, it really is just a waste. It's
a bunch of paper doing nothing for you, which is
why we stress funding it. And I'm going to say,
(11:36):
obviously it's it's you know, water under the dam. I
get it, But at this point I just want to
help other people learn. So, because nothing was in that trust,
my hope for you Dan on this one was you
were going to tell me, oh, yeah, we managed to
put about two million dollars worth of assets in my
wife's trust. Well, if you had done that, I would
(11:57):
imagine that that trust is designed to hold a remains
share in emerital share, and then that two million dollars
would be tucked away in your wife's trust subject to
tax when she died. She has a two million dollar
estate tax exemption, so there's no tax to and then
when you die, you would only be taxed on what
(12:18):
you own in your trust, which would be the other
two million. And now, like magic, if you died, you're
under the two million because the assets tucked away in
your wife's trust would be sheltered from a state taxes
and not included in your estate when you die, even
though you would be controlling and enjoying perhaps what's in
(12:42):
that wife's trusts bucket. And then when you die, you're
under two million and lo and behold you pay Massachusetts
zero estate taxes. So, folks, that's for everybody who hasn't
done their planning yet, or have done their planning and
didn't fund one trust. Please learn from this call what
we can do in the future.
Speaker 3 (13:02):
Now.
Speaker 4 (13:02):
I turned to you, Dan, and I say, well, I mean,
you got four million dollars worth of stuff. At least
you got to step up in basis how long ago
did your mom died?
Speaker 1 (13:11):
Here?
Speaker 3 (13:12):
I'm sorry, your wife.
Speaker 4 (13:13):
Died two years ago, so it's not horrible. So two
years ago, you know you got if you own things
jointly when she died, and I'm assuming you did, right,
We didn't.
Speaker 6 (13:29):
You didn't own the second marriage. It was a second marriage,
and she had her preuss I had mine, I see.
Speaker 4 (13:36):
But nothing was in her trust. So how are the
assets owned? Did you we own? Everything was in her
name alone?
Speaker 6 (13:43):
Yes, she owned her own house. I owned a couple
of houses that they were both in my name and
her hers was in her name.
Speaker 4 (13:51):
And did her stuff go to her side of the family,
or did she take care of you with any of it.
Speaker 6 (13:57):
And went to her side of the family.
Speaker 4 (13:59):
Oh okay, So the four million you have is just
your assets?
Speaker 6 (14:03):
Yes, oh okay.
Speaker 4 (14:04):
So again the explanation is still very helpful for people.
But in your case, you're worth four million. You know, again,
we're thinking about do we need to make a gift? Well,
I don't know. You have to really analyze your assets.
We just did that example that maybe giving away assets
now just to save ten percent on the amount over
two million, or twelve percent on the amount over two
million might not be the most tax effiicient thing to do.
Speaker 3 (14:27):
But if you have cash CDs.
Speaker 4 (14:29):
You know, kicking around, and you want to set up
a gifting trust for your children and you don't mind
giving it away, that would be an easy fix because
there's no loss of a step up in basis with cash,
and that money can be tucked aside outside your estate
for a state tax purposes, thereby reducing your state tax liability.
But just sticking them in an irrevocable medicaid trust to
(14:51):
protect them from the nursing home would not reduce your
estate taxes, but might not be bad planning. For you
to protect your assets for your children. Sorry, right time,
but I hope that gives you a little something to
think about.
Speaker 2 (15:02):
Mister Lutsky, Thank you so much for the time today.
Speaker 3 (15:04):
Always a pleasure.
Speaker 1 (15:06):
This has been Asked Todd on the Financial Exchange Radio
network Ask Todd with Todd. Lutsky has been presented by
Cushing and Dolan, serving Massachusetts and New England for more
than thirty years, helping families with the state and tax planning,
Medicaid planning and probate law. Call eight hundred and three
ninety three, four thousand and one or visit Cushingdolan dot com.
The views expressed in this segment are solely those of
(15:27):
Cushing and Dolan. Armstrong Advisory does not provide any legal
or tax advice. Please consult with your legal or tax
advisor on such matters. Cushing and Armstrong do not endorse
each other and are not affiliated.
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