October 9, 2024 • 16 mins
Todd Lutsky joins the show to share his insight on naming beneficiaries in your IRA. Todd also takes calls from listeners about their estate planning needs.
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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 later life. Ask Todd
is presented by Cushing and Dolan, serving Massachusetts and New
England for more than thirty five years, helping families with
a state and tax planning, medicaid planning, and probate law.
(00:22):
Visit Cushingdolan dot com. Now here's Todd Lutsky.
Speaker 2 (00:27):
And we are now joined by mister Todd Lutsky from
the law firm of Cushing and Dolan. We call the
segment Ask Todd is your chance to ask Todd your
questions about your state plan. Phone number here eight eight
eight two zero five two two sixty three. That is
the studio line to get in line to ask Todd
(00:51):
your questions again. Normally we can get through two to
three calls, so do get call on KIS. Last week
we had four fourth person didn't get hurt and it
was very, very very sad, So we we want to
make sure that we get to you if possible again.
Speaker 3 (01:04):
Eight eight eight to zero five two two six three.
Speaker 2 (01:07):
That is the number to call to speak now with
Todd Lutsky one more time. It is eight eight eight
to zero five two two six three. Mister Loutsky, how
are you today?
Speaker 4 (01:19):
I am never better? How how are you doing?
Speaker 5 (01:21):
Uh?
Speaker 3 (01:21):
Tough day yesterday?
Speaker 4 (01:22):
Yeah, what happened?
Speaker 3 (01:23):
Got fired from the pasta factory.
Speaker 4 (01:25):
It's a pasta factory. Yeah.
Speaker 3 (01:26):
Why why is that made of fucilly mistakes?
Speaker 4 (01:30):
Of silly mistakes? Yeah, I get it.
Speaker 3 (01:32):
It was a tough tough day, but we're bouncing back. Todd.
Speaker 2 (01:36):
Let's talk a little bit about, uh, naming beneficiaries on
iras specifically. Yeah, that's a niche topic, but I think
there's some some meat in this niche here.
Speaker 4 (01:46):
Oh yeah, a lot of meat.
Speaker 2 (01:48):
Historically, the guidance that I've heard on irays and naming
beneficiaries has been name individuals as beneficiaries on irays, don't
name trust or a states. Does that fit with kind
of what the historical pattern has been.
Speaker 6 (02:03):
Yeah, And I think starting with the historical pattern makes
a lot of sense because for a very very long time,
you know, the primary beneficiary rule of thumb, and even
today a lot the primary beneficiary or the rule of
thumb is surviving spouse. Yeah, that's what you would go with,
you know, generally, and then over time, and it's been
(02:26):
going on now for a while, that that if you've
done your estate plan and you still would name the
surviving spouse the primary beneficiary, but your contingent beneficiary might
be your family revocable trust if you know, if you
want to ensure that the assets ultimately flow through a trust,
(02:50):
and when you would do that is is if you
if your revocable trust has language in it that says
I want to protect my children from future divorces and
future creditors and you know, maybe they're not great with
money or whatever reason you're holding assets in the trust.
Remember when I say assets in the trust, all of
(03:10):
your other estate planning assets are in the trust already,
but not your era.
Speaker 4 (03:15):
But let's say you have, you know, a.
Speaker 6 (03:17):
Million dollar IRA, Well you might not want to say,
you know, and I've got my trust over here with
another couple million in it of assets protected for my kids.
I got a million dollar IRA not in there. Maybe
I don't want to list the kids as the contingent
beneficiary because then it will what come out to them
directly over ten years. I get it. That's the new rule.
(03:40):
But the point is it's coming out to them, not protected,
not sheltered from creditors, not you know. And so if
you're saying, you know what, I really want to make
sure that those assets find their way to the protection
of the trust for the kids, then the contingent beneficiary
should be the trust.
Speaker 4 (04:00):
Okay.
Speaker 6 (04:00):
So that's been sort of the evolution, and that's for
people who've done revocable trust planning, never mind irrevocable trust.
Speaker 2 (04:07):
Talking with Todd Lutsky from the law firm of Cushing
and Dolan. If you've got a question that you'd like
to ask Todd during this segment here studio line is
open at eight eight eight to zero five two two
six three. That number again is eight eight eight two
zero five two two sixty three. In order to chat
with mister Todd Lutsky one more time, it's eight eight
(04:29):
eight to zero five two two six three. Todd, is
there anything that you can do in terms of beneficiaries
or contingent beneficiaries on iras that impacts how they're viewed
from a medicaid perspective where you're still kind of in
a tough spot with that, and there's not much you
can do well.
Speaker 6 (04:46):
It is a tough spot generally, but now with the
Secure Act two point zero that I believe came out
in about twenty twenty two, seemingly getting to be long ago.
But you can name the estate the beneficiary, but there's
a lot of rules you got to follow. You would
generally do it only if you're a married couple number one,
(05:10):
and you'd kind of want to be seventy three to
do it. And then by naming the estate the beneficiary,
which is remember as you said, the iras are assets
I cannot protect in advance from the nursing home generally,
but if you qualify, you can name the estate the
beneficiary and then you can protect these assets from nursing
(05:32):
homes for the surviving spouse. And the real key is
without a five year waiting period.
Speaker 2 (05:39):
Huge talking with Todd Leutski from the law firm of
Cushing and Dolan. Again, if you've got a question for Todd,
studio line is open at eight eight eight to zero
five two, two six three. Still have a little bit
of open space there on those lines, So please if
you got a question for Todd, this is your chance
to ask him that question again. Eight eight eight to
zero five two two sixty three. We're gonna go to
(06:01):
a quick break here, but it's right to your questions
when we return. That number again is eight eight eight
two zero five two two sixty three.
Speaker 1 (06:11):
Ask Todd with Todd Lutsky every Wednesday at ten thirty
only here on the Financial Exchange Radio Network. You're listening
to Ask Todd with Todd Lutsky on the Financial Exchange
Radio Network.
Speaker 2 (06:30):
All right, Todd, we got college lined up for you.
Let's get to him with Paul in Sandwich kicking things off. Paul,
you're on with Tod Lutsky.
Speaker 1 (06:36):
Heany, good morning?
Speaker 7 (06:37):
How are you good morning? Can you help me understand
if I set up in the irrevocable trust and the
beneficiaries are my children who are who are married? What
you know? God forbid that the marriages don't last. But
in this day and age, a lot of marriages don't last.
(06:58):
What rights did the spouse or expouses have?
Speaker 6 (07:03):
So this is a great question because it applies, and
I want to answer it for a lot of listeners.
I'm going to expand the answer to include not only revocable,
not only irrevocable trust, which is what.
Speaker 4 (07:13):
You asked for. Paul, but revocable trust.
Speaker 6 (07:16):
So I don't care if you've done revocable trust planning
or you've done irrevocable trust planning. You know, I always
tell people you add, you know, sheltering assets for estate
taxes and probate avoidance. All that is is important, but
that's kind of the noise, right. The family behind the
estate plan is really why we're doing this, and that
is when you pass away, you can actually control the
(07:39):
assets as to how they get to the beneficiaries, in
this case protection from future divorces. And so you put
language in the document that does that, and basically, in
a nutshell to answer your question is they will have
no right to the assets when the divorce comes. So
I'll just tell you how it works quickly. You put
(08:00):
language in that says if it said I divide my
assets equally to my kids and I give it to them, well,
then you can imagine that five years later, after you're dead,
when the divorce comes, whatever you gave your children is
now going to be gone. There is going to be
cut in half on a good day subject to that divorce.
And it does happen by not giving it to them.
(08:20):
And I'm going to sort of put the pen back
here into the trust bucket and hold it. If you
hold it in trust, you put language in there that
says things like, you know, your kids can be trustee.
Your kids can have the power to appoint a disinterested
trustee and even remove and replace the disinterested trustee. So
(08:40):
no problem there. But language says that when distributions come out,
the only job the disinterested trustee has is to authorize
distributions to that kid or to that to that kid's kids,
your grandkids. And so your child as general trustee is
doing everything and the disinterested trustee is doing very little.
But you know, every time the child says, you know,
(09:02):
we're going on a family vacation, we're taking a family trip,
we need a car, you know whatever, the disinterested trustee
authorizes the distribution. Now, the child, five years after your
dead gets a divorce and the surviving the soon to
be ex spouse says, I want half of what's in
that trust we've been taking money out of over the
last five years. And your child says, that's a really
(09:25):
great idea, But you got asked the disinterested trustee.
Speaker 4 (09:28):
Oh see how that works.
Speaker 6 (09:30):
It's protected, and it's not just protected because the disinterested
trustee can say no, think about it from an ownership perspective.
From an ownership perspective, the individual your child never owned
what's in that trust, So if they don't own it,
it's really not a marital asset to begin with. So
you simply tell the other side that it's not a
(09:51):
marital asset, so you know, no, it's not available. So
really provide some great protection. And that can be in
a revoke trust or an irrevocable trust, because remember, once
you die, all trusts are irrevocable. Now, folks speaking of that,
that's one way to protect assets. One of the assets
(10:13):
that's tough to protect is an IRA. And that's why
we're doing a guide in this case to go to
Paul's situation. By naming the trust the beneficiary of the
IRA the trust, at least then it would be protected
from these future divorces that I just discussed. So naming
the kid outright might not be the way to go
for everyone.
Speaker 4 (10:33):
In addition, folks.
Speaker 6 (10:34):
That specifically want to add nursing home protection to their
estate planning and are married, and there's a lot of
other restrictions. You can learn how to name your es
state the beneficiary of the IRA, which, as Chucker mentioned earlier,
is very much outside the norm. It will avoid It
will allow you to shelter assets these iras from the
(10:56):
state taxes. It will allow you to not have any
adverse income taxes, and without a five year waiting period,
can protect it from the nursing home. But you need
a couple it with a testament of trust. Get the guide, folks,
learn how to do it with your IRA eight sixty
six eight four eight five six ninety nine or Legal
(11:17):
Exchange Show dot com again eight six six eight four
eight five six ninety nine or Legal Exchange Show dot com.
Speaker 2 (11:25):
Todd, I've got another caller for you here. Let's go
to Jerry in the hunt. Jerry, what is your question
for Todd?
Speaker 5 (11:32):
My question is I own a lot of real estate
and everything's in LLCs. So each individual warehouse or buildings
I own are in LLC. So now I'm at fifty
four years old, and now I get to get a trust.
Uh huh, every rookable trust, some type of trust, a
team together that can put this together. Unfortunately, I'm I'm
(11:53):
either between ten million dollars in real estate or over
on the assessed values. I could be up to ten sure,
so I don't know how to number one tax defer
it some of the situation that I have put everything
in the trust because I'm at fifty four years old
now and are you married sixty and sixty years? I'm married,
(12:14):
I have five kids. So I really I've been listening
to you guys for a while. I really think that
you're the right choice. I just need a team of
you know, tax lawyers and everybody else they can put
this together. And well, I don't know nothing about it.
I just know that I do real estate and I
collect rent.
Speaker 6 (12:33):
And that's why I can tell you certainly that we
have you know, pick you needed a lawyer of some
of for sure, you need an estate planning attorney with
that kind of an estate and married in five kids,
so who you pick up to you? But but certainly
one you need one two, yes, an estate plan to
help you shelter. And again, remember folks, the federal estate
(12:54):
tax exemption is going to drop to about seven million
in a year and a half or so, so you
know ten million, and you're looking at fifty percent of
state tax on the amount over prefer federal and states.
So there's a lot of money right there. I love, Jerry,
the fact that you have iras. I'm sorry that you
have LLC's in place for your real estate, right that
is really a great, a great idea. But now you
(13:16):
need to take the shares of the LLC and put
them into probably a revocable trust, whether you can get
away with a joint or not.
Speaker 4 (13:23):
Would really need.
Speaker 6 (13:24):
To sit down and learn about the size of your estate,
whether we need one trust or two. So we'd take
the LLC shares, put them in there. You would always
be able to then, and we put your other assets
in there, and I will look at your LLC's and
see if there's a way to you know, you know,
sort of fine tune how you own those a little bit.
But yes, I think an estate plan is in order
(13:44):
to get your shares in there, to get your other
assets in there, and then structure it to reduce, really
eliminate your federalistate tax completely and then significantly reduce your
mass tax while also providing for your family and maybe
even whether in a state this large, protecting those five
kids from their future divorces and creditors, et cetera.
Speaker 4 (14:04):
I would certainly want to do that, Todd.
Speaker 3 (14:06):
I've got one more for you. Let's go to Peter
and Worcester.
Speaker 2 (14:08):
Peter, we've only got about a minute and a half,
so we got a speed run this one a little bit.
Speaker 3 (14:11):
What's your question for Todd?
Speaker 8 (14:13):
All right, Tod, thanks for thinking. Nicole. Hey, listen, I
set up to trust about five years ago. I'm retired
state eployee. I'm retired police.
Speaker 4 (14:23):
Is it an irrevocable trust.
Speaker 8 (14:25):
It's a it's a revocable truck god trust.
Speaker 4 (14:27):
Go ahead.
Speaker 8 (14:28):
My two daughters a twenty three and twenty six, and
I'm looking at right now. Haven't looked at again. I
have a four to fifty seven with the state that
I started way back when in the eighties.
Speaker 4 (14:38):
Yep.
Speaker 8 (14:39):
There's probably about a million bucks in there. Yeah, and
that's going through.
Speaker 4 (14:43):
What's the question? Get right to the question. What's the question?
Speaker 8 (14:45):
Okay, here's here's what I want to do. I was
thinking about making my oldest daughter the trustee. And I
don't know if that's a good idea.
Speaker 6 (14:53):
Okay, well it can be when you you mean, when
are you married. I'm not so when you pass away.
I don't want the trustee to be your daughter. Now
you should be the trustee because it's a revocable trust,
and then you could you when you die, you certainly
can have your daughter as trustee.
Speaker 4 (15:13):
That's not not a problem.
Speaker 6 (15:14):
Ever, if, on the other hand, based on as you
get older you want to do irrevocable trust planning, it's
also not a problem to have your daughters trustee. But
you know you don't have to have a daughter as trustee,
so you need to think about that. So if that's
the question, no real problem there. Todd, thanks so much
for joining us today. We appreciate it.
Speaker 4 (15:33):
Thank you always a pleasure.
Speaker 1 (15:35):
This has been asked Odd on the Financial Exchange Radio network.
Ask Todd with Todd Ledskey has been presented by Cushing
and Dolan, serving Massachusetts and New England for more than
thirty years, helping families with a state and tax planning,
Medicaid planning, and probate law. Call eight hundred three nine
three four thousand and one or visit Cushingdolan dot com.
The views expressed in this segment are solely those of
(15:56):
Cushing and Dolan Armstrong Advisory. He does not provide any
legal or tax advice. Please can sell with your illegal
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 later life. Ask Todd
is presented by Cushing and Dolan, serving Massachusetts and New
England for more than thirty five years, helping families with
a state and tax planning, medicaid planning, and probate law.
(00:22):
Visit Cushingdolan dot com. Now here's Todd Lutsky.
Speaker 2 (00:27):
And we are now joined by mister Todd Lutsky from
the law firm of Cushing and Dolan. We call the
segment Ask Todd is your chance to ask Todd your
questions about your state plan. Phone number here eight eight
eight two zero five two two sixty three. That is
the studio line to get in line to ask Todd
(00:51):
your questions again. Normally we can get through two to
three calls, so do get call on KIS. Last week
we had four fourth person didn't get hurt and it
was very, very very sad, So we we want to
make sure that we get to you if possible again.
Speaker 3 (01:04):
Eight eight eight to zero five two two six three.
Speaker 2 (01:07):
That is the number to call to speak now with
Todd Lutsky one more time. It is eight eight eight
to zero five two two six three. Mister Loutsky, how
are you today?
Speaker 4 (01:19):
I am never better? How how are you doing?
Speaker 5 (01:21):
Uh?
Speaker 3 (01:21):
Tough day yesterday?
Speaker 4 (01:22):
Yeah, what happened?
Speaker 3 (01:23):
Got fired from the pasta factory.
Speaker 4 (01:25):
It's a pasta factory. Yeah.
Speaker 3 (01:26):
Why why is that made of fucilly mistakes?
Speaker 4 (01:30):
Of silly mistakes? Yeah, I get it.
Speaker 3 (01:32):
It was a tough tough day, but we're bouncing back. Todd.
Speaker 2 (01:36):
Let's talk a little bit about, uh, naming beneficiaries on
iras specifically. Yeah, that's a niche topic, but I think
there's some some meat in this niche here.
Speaker 4 (01:46):
Oh yeah, a lot of meat.
Speaker 2 (01:48):
Historically, the guidance that I've heard on irays and naming
beneficiaries has been name individuals as beneficiaries on irays, don't
name trust or a states. Does that fit with kind
of what the historical pattern has been.
Speaker 6 (02:03):
Yeah, And I think starting with the historical pattern makes
a lot of sense because for a very very long time,
you know, the primary beneficiary rule of thumb, and even
today a lot the primary beneficiary or the rule of
thumb is surviving spouse. Yeah, that's what you would go with,
you know, generally, and then over time, and it's been
(02:26):
going on now for a while, that that if you've
done your estate plan and you still would name the
surviving spouse the primary beneficiary, but your contingent beneficiary might
be your family revocable trust if you know, if you
want to ensure that the assets ultimately flow through a trust,
(02:50):
and when you would do that is is if you
if your revocable trust has language in it that says
I want to protect my children from future divorces and
future creditors and you know, maybe they're not great with
money or whatever reason you're holding assets in the trust.
Remember when I say assets in the trust, all of
(03:10):
your other estate planning assets are in the trust already,
but not your era.
Speaker 4 (03:15):
But let's say you have, you know, a.
Speaker 6 (03:17):
Million dollar IRA, Well you might not want to say,
you know, and I've got my trust over here with
another couple million in it of assets protected for my kids.
I got a million dollar IRA not in there. Maybe
I don't want to list the kids as the contingent
beneficiary because then it will what come out to them
directly over ten years. I get it. That's the new rule.
(03:40):
But the point is it's coming out to them, not protected,
not sheltered from creditors, not you know. And so if
you're saying, you know what, I really want to make
sure that those assets find their way to the protection
of the trust for the kids, then the contingent beneficiary
should be the trust.
Speaker 4 (04:00):
Okay.
Speaker 6 (04:00):
So that's been sort of the evolution, and that's for
people who've done revocable trust planning, never mind irrevocable trust.
Speaker 2 (04:07):
Talking with Todd Lutsky from the law firm of Cushing
and Dolan. If you've got a question that you'd like
to ask Todd during this segment here studio line is
open at eight eight eight to zero five two two
six three. That number again is eight eight eight two
zero five two two sixty three. In order to chat
with mister Todd Lutsky one more time, it's eight eight
(04:29):
eight to zero five two two six three. Todd, is
there anything that you can do in terms of beneficiaries
or contingent beneficiaries on iras that impacts how they're viewed
from a medicaid perspective where you're still kind of in
a tough spot with that, and there's not much you
can do well.
Speaker 6 (04:46):
It is a tough spot generally, but now with the
Secure Act two point zero that I believe came out
in about twenty twenty two, seemingly getting to be long ago.
But you can name the estate the beneficiary, but there's
a lot of rules you got to follow. You would
generally do it only if you're a married couple number one,
(05:10):
and you'd kind of want to be seventy three to
do it. And then by naming the estate the beneficiary,
which is remember as you said, the iras are assets
I cannot protect in advance from the nursing home generally,
but if you qualify, you can name the estate the
beneficiary and then you can protect these assets from nursing
(05:32):
homes for the surviving spouse. And the real key is
without a five year waiting period.
Speaker 2 (05:39):
Huge talking with Todd Leutski from the law firm of
Cushing and Dolan. Again, if you've got a question for Todd,
studio line is open at eight eight eight to zero
five two, two six three. Still have a little bit
of open space there on those lines, So please if
you got a question for Todd, this is your chance
to ask him that question again. Eight eight eight to
zero five two two sixty three. We're gonna go to
(06:01):
a quick break here, but it's right to your questions
when we return. That number again is eight eight eight
two zero five two two sixty three.
Speaker 1 (06:11):
Ask Todd with Todd Lutsky every Wednesday at ten thirty
only here on the Financial Exchange Radio Network. You're listening
to Ask Todd with Todd Lutsky on the Financial Exchange
Radio Network.
Speaker 2 (06:30):
All right, Todd, we got college lined up for you.
Let's get to him with Paul in Sandwich kicking things off. Paul,
you're on with Tod Lutsky.
Speaker 1 (06:36):
Heany, good morning?
Speaker 7 (06:37):
How are you good morning? Can you help me understand
if I set up in the irrevocable trust and the
beneficiaries are my children who are who are married? What
you know? God forbid that the marriages don't last. But
in this day and age, a lot of marriages don't last.
(06:58):
What rights did the spouse or expouses have?
Speaker 6 (07:03):
So this is a great question because it applies, and
I want to answer it for a lot of listeners.
I'm going to expand the answer to include not only revocable,
not only irrevocable trust, which is what.
Speaker 4 (07:13):
You asked for. Paul, but revocable trust.
Speaker 6 (07:16):
So I don't care if you've done revocable trust planning
or you've done irrevocable trust planning. You know, I always
tell people you add, you know, sheltering assets for estate
taxes and probate avoidance. All that is is important, but
that's kind of the noise, right. The family behind the
estate plan is really why we're doing this, and that
is when you pass away, you can actually control the
(07:39):
assets as to how they get to the beneficiaries, in
this case protection from future divorces. And so you put
language in the document that does that, and basically, in
a nutshell to answer your question is they will have
no right to the assets when the divorce comes. So
I'll just tell you how it works quickly. You put
(08:00):
language in that says if it said I divide my
assets equally to my kids and I give it to them, well,
then you can imagine that five years later, after you're dead,
when the divorce comes, whatever you gave your children is
now going to be gone. There is going to be
cut in half on a good day subject to that divorce.
And it does happen by not giving it to them.
(08:20):
And I'm going to sort of put the pen back
here into the trust bucket and hold it. If you
hold it in trust, you put language in there that
says things like, you know, your kids can be trustee.
Your kids can have the power to appoint a disinterested
trustee and even remove and replace the disinterested trustee. So
(08:40):
no problem there. But language says that when distributions come out,
the only job the disinterested trustee has is to authorize
distributions to that kid or to that to that kid's kids,
your grandkids. And so your child as general trustee is
doing everything and the disinterested trustee is doing very little.
But you know, every time the child says, you know,
(09:02):
we're going on a family vacation, we're taking a family trip,
we need a car, you know whatever, the disinterested trustee
authorizes the distribution. Now, the child, five years after your
dead gets a divorce and the surviving the soon to
be ex spouse says, I want half of what's in
that trust we've been taking money out of over the
last five years. And your child says, that's a really
(09:25):
great idea, But you got asked the disinterested trustee.
Speaker 4 (09:28):
Oh see how that works.
Speaker 6 (09:30):
It's protected, and it's not just protected because the disinterested
trustee can say no, think about it from an ownership perspective.
From an ownership perspective, the individual your child never owned
what's in that trust, So if they don't own it,
it's really not a marital asset to begin with. So
you simply tell the other side that it's not a
(09:51):
marital asset, so you know, no, it's not available. So
really provide some great protection. And that can be in
a revoke trust or an irrevocable trust, because remember, once
you die, all trusts are irrevocable. Now, folks speaking of that,
that's one way to protect assets. One of the assets
(10:13):
that's tough to protect is an IRA. And that's why
we're doing a guide in this case to go to
Paul's situation. By naming the trust the beneficiary of the
IRA the trust, at least then it would be protected
from these future divorces that I just discussed. So naming
the kid outright might not be the way to go
for everyone.
Speaker 4 (10:33):
In addition, folks.
Speaker 6 (10:34):
That specifically want to add nursing home protection to their
estate planning and are married, and there's a lot of
other restrictions. You can learn how to name your es
state the beneficiary of the IRA, which, as Chucker mentioned earlier,
is very much outside the norm. It will avoid It
will allow you to shelter assets these iras from the
(10:56):
state taxes. It will allow you to not have any
adverse income taxes, and without a five year waiting period,
can protect it from the nursing home. But you need
a couple it with a testament of trust. Get the guide, folks,
learn how to do it with your IRA eight sixty
six eight four eight five six ninety nine or Legal
(11:17):
Exchange Show dot com again eight six six eight four
eight five six ninety nine or Legal Exchange Show dot com.
Speaker 2 (11:25):
Todd, I've got another caller for you here. Let's go
to Jerry in the hunt. Jerry, what is your question
for Todd?
Speaker 5 (11:32):
My question is I own a lot of real estate
and everything's in LLCs. So each individual warehouse or buildings
I own are in LLC. So now I'm at fifty
four years old, and now I get to get a trust.
Uh huh, every rookable trust, some type of trust, a
team together that can put this together. Unfortunately, I'm I'm
(11:53):
either between ten million dollars in real estate or over
on the assessed values. I could be up to ten sure,
so I don't know how to number one tax defer
it some of the situation that I have put everything
in the trust because I'm at fifty four years old
now and are you married sixty and sixty years? I'm married,
(12:14):
I have five kids. So I really I've been listening
to you guys for a while. I really think that
you're the right choice. I just need a team of
you know, tax lawyers and everybody else they can put
this together. And well, I don't know nothing about it.
I just know that I do real estate and I
collect rent.
Speaker 6 (12:33):
And that's why I can tell you certainly that we
have you know, pick you needed a lawyer of some
of for sure, you need an estate planning attorney with
that kind of an estate and married in five kids,
so who you pick up to you? But but certainly
one you need one two, yes, an estate plan to
help you shelter. And again, remember folks, the federal estate
(12:54):
tax exemption is going to drop to about seven million
in a year and a half or so, so you
know ten million, and you're looking at fifty percent of
state tax on the amount over prefer federal and states.
So there's a lot of money right there. I love, Jerry,
the fact that you have iras. I'm sorry that you
have LLC's in place for your real estate, right that
is really a great, a great idea. But now you
(13:16):
need to take the shares of the LLC and put
them into probably a revocable trust, whether you can get
away with a joint or not.
Speaker 4 (13:23):
Would really need.
Speaker 6 (13:24):
To sit down and learn about the size of your estate,
whether we need one trust or two. So we'd take
the LLC shares, put them in there. You would always
be able to then, and we put your other assets
in there, and I will look at your LLC's and
see if there's a way to you know, you know,
sort of fine tune how you own those a little bit.
But yes, I think an estate plan is in order
(13:44):
to get your shares in there, to get your other
assets in there, and then structure it to reduce, really
eliminate your federalistate tax completely and then significantly reduce your
mass tax while also providing for your family and maybe
even whether in a state this large, protecting those five
kids from their future divorces and creditors, et cetera.
Speaker 4 (14:04):
I would certainly want to do that, Todd.
Speaker 3 (14:06):
I've got one more for you. Let's go to Peter
and Worcester.
Speaker 2 (14:08):
Peter, we've only got about a minute and a half,
so we got a speed run this one a little bit.
Speaker 3 (14:11):
What's your question for Todd?
Speaker 8 (14:13):
All right, Tod, thanks for thinking. Nicole. Hey, listen, I
set up to trust about five years ago. I'm retired
state eployee. I'm retired police.
Speaker 4 (14:23):
Is it an irrevocable trust.
Speaker 8 (14:25):
It's a it's a revocable truck god trust.
Speaker 4 (14:27):
Go ahead.
Speaker 8 (14:28):
My two daughters a twenty three and twenty six, and
I'm looking at right now. Haven't looked at again. I
have a four to fifty seven with the state that
I started way back when in the eighties.
Speaker 4 (14:38):
Yep.
Speaker 8 (14:39):
There's probably about a million bucks in there. Yeah, and
that's going through.
Speaker 4 (14:43):
What's the question? Get right to the question. What's the question?
Speaker 8 (14:45):
Okay, here's here's what I want to do. I was
thinking about making my oldest daughter the trustee. And I
don't know if that's a good idea.
Speaker 6 (14:53):
Okay, well it can be when you you mean, when
are you married. I'm not so when you pass away.
I don't want the trustee to be your daughter. Now
you should be the trustee because it's a revocable trust,
and then you could you when you die, you certainly
can have your daughter as trustee.
Speaker 4 (15:13):
That's not not a problem.
Speaker 6 (15:14):
Ever, if, on the other hand, based on as you
get older you want to do irrevocable trust planning, it's
also not a problem to have your daughters trustee. But
you know you don't have to have a daughter as trustee,
so you need to think about that. So if that's
the question, no real problem there. Todd, thanks so much
for joining us today. We appreciate it.
Speaker 4 (15:33):
Thank you always a pleasure.
Speaker 1 (15:35):
This has been asked Odd on the Financial Exchange Radio network.
Ask Todd with Todd Ledskey has been presented by Cushing
and Dolan, serving Massachusetts and New England for more than
thirty years, helping families with a state and tax planning,
Medicaid planning, and probate law. Call eight hundred three nine
three four thousand and one or visit Cushingdolan dot com.
The views expressed in this segment are solely those of
(15:56):
Cushing and Dolan Armstrong Advisory. He does not provide any
legal or tax advice. Please can sell with your illegal
or tax advisor on such matters. Cushing and Armstrong do
not endorse each other and are not affiliated
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