July 16, 2025 • 16 mins
This week, Todd Lutsky explains how to ensure your property is protected when detirmining medicaid eligibility. Todd also shares his insight on selling rental property in a trust, swapping properties in a trust, and purchasing a home with cash.
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Episode Transcript
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Speaker 1 (00:01):
This is Ask Todd on the Financial Exchange Radio network.
If you have an existing estate plan or in the
market for one, Todd Lutsky is here to answer your
questions and help you plan for a later life. Ask
Todd is presented by Cushing and Dolan, serving Massachusetts and
New England for more than thirty five years, helping families
with a state and tax planning, Medicaid planning, and probate law.
(00:22):
Visit Cushingdolan dot com. Now here's Todd Lutsky.
Speaker 2 (00:28):
And we are now joined by Todd Lutsky from the
law firm of Cushing and Dolan. We got the phone
lines open because the segment is Ask Todd, where you
get to Ask Todd your estate planning questions live on air.
Speaker 3 (00:41):
Right now.
Speaker 2 (00:42):
Eight eight eight two zero five two two sixty three
is the number. We do have limited space on the phone.
In fact, we got someone calling right now, so if
you got a question for Todd, get in line by
calling eight eight eight to zero five two two sixty
three so we can get to your estate plan questions.
That number again is eight eight eight two zero five
(01:05):
two two six three. Mister Latsky, how are you doing today?
Speaker 3 (01:10):
I'm good I'm afraid to ask you though.
Speaker 2 (01:12):
I'm doing great. Actually, I finally I got I got
a new side hustle.
Speaker 3 (01:18):
Oh yeah, side gig.
Speaker 2 (01:19):
I'm getting paid to do a sleep study. Oh yeah,
it's actually my dream job.
Speaker 3 (01:24):
I would think.
Speaker 2 (01:24):
So, yeah, that's pretty good, Tod, I want to talk
a little bit about last minute medicaid situations or I
guess qualifying for medicaid in kind of a last minute situation.
Speaker 3 (01:35):
Sure, I would.
Speaker 2 (01:36):
Say, someone is heading into a nursing home. Is there
anything that can be done in order to protect real
estate assets in that type of emergency situation?
Speaker 4 (01:48):
So do you want to talk about any real estate
or do you want to talk because there's different you know.
Speaker 2 (01:53):
On my list here I had primary vacation in rental,
all with question marks after them.
Speaker 3 (01:58):
Okay, so should we pick one?
Speaker 2 (02:00):
Start with primary residents?
Speaker 4 (02:01):
So primary residence is the most important one. Most people
have it, after all, and it's treated differently for a
married couple versus single people. So quite frankly, for a
married couple, if you have gotten sick and you're faced
with one spouse going in the nursing home, as long
as the healthy spouse is living in that home and
(02:26):
it is the primary residence.
Speaker 3 (02:28):
Of the healthy spouse.
Speaker 4 (02:30):
And it is located in Massachusetts, then it is considered
non countable period hard stop. You do not need to
show it as an asset, and it is non leanable,
meaning doesn't matter how long your spouse stays in the
nursing home, when that spouse passes away, assuming of course
(02:51):
they pass away, in order that there will be no
estate recovery for the state to get paid back. Now,
you don't want to leave the house that way. So
if that was the only asset and you got eligible
for medicaid after making that, the house was probably owned jointly, right,
don't leave it that way because if you die out
(03:13):
of order, then that jointly held house would end up
in the hands of these six spouse who's in the
nursing home.
Speaker 3 (03:18):
And that's different. So we don't love that.
Speaker 4 (03:20):
So change it, put it in the healthy spouse's name
on their own, and then of course do planning for
the healthy spouse after eligibility. I promised you that we
talk about it also for a single person. If you're single,
it's a little different. Primary residents located in Massachusetts and
you had been living there before you went to the
nursing home, and you went directly to the nursing home
(03:43):
from the house, then you need to check a box.
Believe it or not that the house is someplace you
intend to return home to, even though you may never
be able to do that doesn't matter. It's a subjective intent.
Then it would be non countable, provided, however, that it
(04:03):
is not exceeding this dollar amount, which by the way,
is changing under the new BBB Act, but for now
it's approximately one million, thirty three thousand dollars in Massachusetts,
and it seems to be index for inflation. If it
exceeds that value, then you're denied Medicaid hard stop. If
(04:25):
it doesn't, then you're gonna be non countable. So you
can get on Medicaid, which is great, much lower rate,
but it's leanable, so when you die there'll be a
payback to the state, but at a much lower rate.
So it's still a win better than right. In the
big check talk.
Speaker 2 (04:43):
With Tod Lootski from the law firm of Kushiingan Dolan.
We do still have room on the phone lines at
eight eight eight two zero five two two sixty three.
So if you've got questions about estate planning. This is
your chance to ask them. That phone number again is
eight eight eight to z zero five two two six three.
We're gonna take a quick break here, but when we
(05:05):
come back it's going to be right to your questions
with Todd again. We still have just a little bit
of room there, so get calling so you can ask
Todd your questions. That number is eight eight eight to
zero five two two sixty three. One more time eight
eight eight to zero five two two sixty three.
Speaker 1 (05:22):
Ask Todd with Todd Lutsky every Wednesday at ten thirty
only here on the Financial Exchange Radio Network. Summer's here
in New England and it's the perfect time to trade
the daily routine for something extraordinary. Say hello to the
US Virgin Islands, America's Caribbean paradise. Explore the vibrant history
(05:44):
and flavor of Saint Croix. Lounge on the stunning beaches
of Saint Thomas, or find your piece on the quiet
shores of Saint John. From the moment you arrive, you'll
feel it. You're naturally in rhythm with the heartbeat of
the islands. There's no passport needed, no currency to exchange,
just warm weather, clear blue water, and unforgettable experiences waiting
(06:05):
for you. Whether you're planning a romantic escape, a family adventure,
or a little of both, this is the summer to
make it happen. Go to visit usvii dot com to
learn more and start planning. That's visit USVII dot com.
Your island getaway is closer than you think. The US
Virgin Islands where summer never ends. Book your trip today
(06:26):
at visit usvii dot com. Changes to medicaid occur almost
every year, and if you are not informed, your assets
could be at risk, especially if you or your spouse
need nursing home care. Cushing and Dolan are experts in
elder law, and their new guide is called Last Minute
Medicaid Eligibility. It'll help you understand the Medicaid process, which
(06:47):
is critically important if you're retired or getting close to retiring.
The guide has important information regarding numerous strategies that can
protect your assets from the nursing home. It could be
your primary home, a vacation home, or any rental property
you may own. You've worked hard to achieve wealth, so
don't take chances when it comes to protecting it. Get
your copy of Cushing and Dolan's brand new guide called
Last Minute Medicaid Eligibility. Call right now eight six six
(07:10):
eight four eight five six nine nine. That's eight six
six eight four eight five six nine nine, or you
can request it online by visiting Legal Exchange Show dot com.
That's Legal exchange show dot com. The proceeding was paid
for in the views ex best are solely those of
Cushing and Dolan. Cushing and Dolan and or Armstrong Advisory
may contact you offering legal or investment services. Cushing and
Dolan and Armstrong Advisory do not endorse each other and
(07:30):
are not affiliated.
Speaker 2 (07:31):
Artificial intelligence isn't just the future, it's already shaping how
people think about their money. HI, this is Chuck Zada
from the Armstrong Advisory Group. We've put together a new
guide called AI in your Financial Plan. In it, we
explore the ways that AI is being used in financial technology,
from apps the tracks spending to tools that can help
identify trends. It's a rapidly changing space, and this guide
(07:54):
is designed to help you understand some of the potential
benefits and risks that AI may. Want to learn more,
call eight hundred three nine three for zero zero one
and request your free copy of AI and your financial
plan that's eight hundred three nine three for zero zero one,
or visit Armstrong Advisory dot com.
Speaker 1 (08:16):
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, and estate planning advisors before making
any investment decisions. Armstrong may contact you to offer investment
advisory services.
Speaker 5 (08:36):
Here at the Massachusetts Department of Elementary and Secondary Education,
we are committed to all students not only attending, but
succeeding at school. Your presence is powerful. Share why you
attend at DOE dot m ass dot edu.
Speaker 6 (08:55):
Sponsored by the Massachusetts Department of Elementary and Secondary Education.
Let's talk LDL d L d L d ld LDL
aka bad cholesterol. The higher your LDL cholesterol, the higher
your risk of a heart attacker stroke. Your health matters.
Know your number. Talk to your doctor and get your
(09:16):
cholesterol checked and learn how to help lower your LDL
bad cholesterol. Because your health is in your hands. Find
out more at heart dot org slash LDL.
Speaker 1 (09:36):
You're listening to ask Todd with Todd Lutsky on the
Financial Exchange Radio Network.
Speaker 2 (09:51):
All right, let's get right to your questions with Todd Lotsky.
First up, we got Gene in Medway. Gene, you're on
with Todd.
Speaker 7 (09:59):
Hello, so thank you very much. Hi Todd. About ten
years ago, you helped my husband and me set up
two irrevocable trust We put our assets in those. My
husband died in twenty twenty and you helped me again
to do the legal work required, and my husband's trust
(10:21):
then became remainders share. Yes, now we're selling the property
in Virginia. Okay, it's been a rental for over forty
years and we're now so we're selling it. My son
is the trustee, so he's handling everything for me. We
have a buyer, we have a settlement date. I had
(10:44):
never changed the deed to read that the trust was
a remainder share. Does that matter.
Speaker 4 (10:53):
It's not going to prevent the sale. Let's put it
that way. It's not going to prevent the sale. But
you know, it may or may not depending on the
size of the estate, which I cannot answer without pulling
your file and looking at it. It may or may
not matter. Have you ever rented this property over the
years since twenty twenty.
Speaker 7 (11:10):
It's still rented. Yes, okay, so the rental contract ends
at the end of July.
Speaker 4 (11:16):
Yeah, so you know it, it's probably not going to
be an issue number one. It's just that you might
want to just retitle it now to the remainder share
and then dad it out of the remainder share or
sell it, you know, from the remainder share, so you
could deposit the money into the remainder share under a
new tax ID number, which if we opened up the
remainder share, we would have got you that new tax
(11:37):
ID number long ago, because you've probably been receiving the
rent and depositing it in a bank account in that trust.
Speaker 3 (11:44):
Right, correct. Yeah, so you're probably doing everything right. You
have to understand.
Speaker 4 (11:48):
Without the file in front of me, it sounds like
you're doing it right and it's definitely going to be
able to be sold. But you might want to just
call in and just talk to me off air a
little bit so I can have the details of exactly
what you're doing in front of me. But it does
sound like it'll be okay, all right, So I hope
that helps a little and give us a ring. Thanks
for that call, and I'm glad to see and folks,
(12:09):
that does show you how flexible these trusts are. They
live on and they work really well. But lots of
times people don't have time to do planning and they're
stuck with this last minute situation where they enter a
nursing home. That's what this guide is about this month.
It's all about taking care of assets last minute. Whether
it's a house that we talked about earlier with Chuck,
(12:31):
or a piece of rental property or a vacation home.
They're treated differently life insurance four to oh one k's
bank accounts that are jointly held, whether a spouse or
a non spouse, how are they treated versus investment accounts.
All these answers are in the guide Last Minute countable
non countable assets, and even how to avoid the five
(12:53):
year waiting period for certain limited situations. My question, my
comment to you is just don't write the check, folks.
If you're faced with nursing home care, get this guide.
Learn what you can do last minute to protect these
assets before you write the check. Eight six six eight
four eight five six nine nine or legal Exchange show
(13:16):
dot Com again eight six six eight, four, eight, five, six,
nine nine or Legal Exchange show dot com and you
can download the guide right there.
Speaker 2 (13:26):
Todd, we get another one here for you. Let's go
to Eric in Springfield. Eric, what's your question for Tom Lunsky?
Speaker 8 (13:32):
Good morning, guys. My mother is going to be giving
me my wife twenty thousand dollars to help pay my
son's school. Is she going to be on the hook
if she goes in a nursing home for that five
year look back?
Speaker 3 (13:45):
Yeah? Yeah.
Speaker 4 (13:46):
Anytime you make a gift, and this is what the
rule really says, is any time you'd make a disqualifying transfer.
Right now, What the heck is that a disqualifying transfer
that creates a five year waiting period is anytime you
take an asset like twenty grand that was available for
(14:07):
the nursing home and put it somewhere where it's no
longer available for the nursing home and not take back
fair market value for what you gave away, you have
a disqualifying transfer for five years. So, unfortunately the answer
is yes, each and every time those gifts were made,
they will be a five year waiting period associated with
(14:30):
each gift. That does not mean that there's not last
minute things we can do to fix that problem if
you find her or she finds herself faced with nursing
home care.
Speaker 3 (14:40):
So hopefully that that helped a little.
Speaker 2 (14:43):
Todd, I got another four you. Let's go to Dan
in New Hampshire. Dan, you're on with Todd a Lutski.
Speaker 9 (14:50):
Thanks for taking the time, Todd. Todd, I've got to
purchase going on of some property. It's going to be
a cash deal. I currently have a revocable trust. Can
that go into that revocable trust? Or is there a
process and it's a revocable trust of like two thousand
and eight?
Speaker 4 (15:08):
How is this property owned currently? Is it in your name?
Is it in your wife's name?
Speaker 9 (15:16):
Its purchase?
Speaker 6 (15:17):
Oh?
Speaker 4 (15:18):
I see, so you're gonna be buying the property. I'm
sorry I missed that. Okay, So you're going to be
buying the property. So you can do one of two things.
If you've set it up right, you can make the purchase.
You can make the purchaser the revocable trust. Are you
borrowing money to buy this No, So you can make
(15:38):
the purchaser on the p and s us trustee of
the revocable trust. In that way, the deed from the
seller will be deeded directly into the trust. Many people
don't do this, Many people don't remember or think about it.
That's just an option. If you've not done it that way,
you can simply close the deal and get the deed
(15:59):
in your own name and then go to your estate
planning attorney and have another deed prepared transferring the property
from you to the revocable trust, and then it will
be in there. So it's either two steps or one step.
But you are absolutely right, it belongs in your revocable
trust for sure, Todd.
Speaker 2 (16:18):
I got one more for you here, we got Philip
on the Cape. Philip, what is your question for Todd Lutsky?
Speaker 10 (16:26):
Hi, Tod, I seven years ago you did an irrevocable
trust for me for the properties, and I'm asking now,
can I swap one of the properties in Massachusetts for
a property in Florida? And but it does it go
in the irrevocable trust?
Speaker 3 (16:47):
So when you say swap, I don't I don't understand that.
What does what does that mean? Swap?
Speaker 4 (16:51):
Are they are these properties already in the trust? Or
are you buying selling and buying a new.
Speaker 10 (16:55):
One, selling and buying a new one?
Speaker 9 (16:58):
Oh?
Speaker 4 (16:58):
Okay, so the answer is going to be a quick yes,
but let me explain it. So, if it's in the
trust already, which it is, and I seven years ago,
By the way, that's very important for all the listeners
in general. Seven years ago means that these properties are
beyond that five year waiting period that we just heard
about when Eric asked the question. So these are already
(17:23):
protected from the nursing home. So now the question is
I want to sell my mass property and buy Florida property, perfectly, okay,
So what will happen is you'll prepare a P and S,
the trustee of the trust will sign it. Property will
then go out of the trust to the buyer, and
the buyer will cut a check to the trustee of
(17:43):
the trust and deposit it in the trust bank account.
Do not put it in your personal name even for
one second. It needs to go directly into the irrevocable trust.
Now the money's in the irrevocable trust that you're gonna use,
I suspect to buy this new Florida property. So now
(18:05):
out will go the money to the seller, and in
will come the new property you're buying into the trust.
Again directly into the trust. If you do that transaction,
there will be no resetting of the five year waiting
period because remember, folks, nothing new went in. All we
(18:29):
did was change what was in there from one investment
to another. So now you continue to have all these
assets fully protected from the nursing home. And since these
trusts are grant or trust for income tax purposes, your
capital gains tax liability is exactly the same as it
(18:52):
would have been had you sold the property not in
these trusts. Just to say, in case this is your
primary residence. What I'm mean by that is, if it's
your primary residence and you had used it for two
of the last five years, you'll get your two fifty
exclusion or if you're married, your five hundred thousand dollars exclusion.
(19:13):
So hope that helps and answers the question for you,
mister Watsky. As always, we appreciate you joining us today.
Thanks so much, always pleasure.
Speaker 1 (19:22):
This has been Asked Odd on the Financial Exchange Radio
network Ask Todd with Todd. Lutsky has been presented by
Cushing and Dolan, serving Massachusetts and New England for more
than thirty years, helping families with the state and tax
planning Medicaid Planning and Probate Law call eight hundred and
three nine three four thousand and one or visit Cushingdolan
dot com. The views expressed in this segment are solely
(19:42):
those of 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 Lutsky is here to answer your
questions and help you plan for a later life. Ask
Todd is presented by Cushing and Dolan, serving Massachusetts and
New England for more than thirty five years, helping families
with a state and tax planning, Medicaid planning, and probate law.
(00:22):
Visit Cushingdolan dot com. Now here's Todd Lutsky.
Speaker 2 (00:28):
And we are now joined by Todd Lutsky from the
law firm of Cushing and Dolan. We got the phone
lines open because the segment is Ask Todd, where you
get to Ask Todd your estate planning questions live on air.
Speaker 3 (00:41):
Right now.
Speaker 2 (00:42):
Eight eight eight two zero five two two sixty three
is the number. We do have limited space on the phone.
In fact, we got someone calling right now, so if
you got a question for Todd, get in line by
calling eight eight eight to zero five two two sixty
three so we can get to your estate plan questions.
That number again is eight eight eight two zero five
(01:05):
two two six three. Mister Latsky, how are you doing today?
Speaker 3 (01:10):
I'm good I'm afraid to ask you though.
Speaker 2 (01:12):
I'm doing great. Actually, I finally I got I got
a new side hustle.
Speaker 3 (01:18):
Oh yeah, side gig.
Speaker 2 (01:19):
I'm getting paid to do a sleep study. Oh yeah,
it's actually my dream job.
Speaker 3 (01:24):
I would think.
Speaker 2 (01:24):
So, yeah, that's pretty good, Tod, I want to talk
a little bit about last minute medicaid situations or I
guess qualifying for medicaid in kind of a last minute situation.
Speaker 3 (01:35):
Sure, I would.
Speaker 2 (01:36):
Say, someone is heading into a nursing home. Is there
anything that can be done in order to protect real
estate assets in that type of emergency situation?
Speaker 4 (01:48):
So do you want to talk about any real estate
or do you want to talk because there's different you know.
Speaker 2 (01:53):
On my list here I had primary vacation in rental,
all with question marks after them.
Speaker 3 (01:58):
Okay, so should we pick one?
Speaker 2 (02:00):
Start with primary residents?
Speaker 4 (02:01):
So primary residence is the most important one. Most people
have it, after all, and it's treated differently for a
married couple versus single people. So quite frankly, for a
married couple, if you have gotten sick and you're faced
with one spouse going in the nursing home, as long
as the healthy spouse is living in that home and
(02:26):
it is the primary residence.
Speaker 3 (02:28):
Of the healthy spouse.
Speaker 4 (02:30):
And it is located in Massachusetts, then it is considered
non countable period hard stop. You do not need to
show it as an asset, and it is non leanable,
meaning doesn't matter how long your spouse stays in the
nursing home, when that spouse passes away, assuming of course
(02:51):
they pass away, in order that there will be no
estate recovery for the state to get paid back. Now,
you don't want to leave the house that way. So
if that was the only asset and you got eligible
for medicaid after making that, the house was probably owned jointly, right,
don't leave it that way because if you die out
(03:13):
of order, then that jointly held house would end up
in the hands of these six spouse who's in the
nursing home.
Speaker 3 (03:18):
And that's different. So we don't love that.
Speaker 4 (03:20):
So change it, put it in the healthy spouse's name
on their own, and then of course do planning for
the healthy spouse after eligibility. I promised you that we
talk about it also for a single person. If you're single,
it's a little different. Primary residents located in Massachusetts and
you had been living there before you went to the
nursing home, and you went directly to the nursing home
(03:43):
from the house, then you need to check a box.
Believe it or not that the house is someplace you
intend to return home to, even though you may never
be able to do that doesn't matter. It's a subjective intent.
Then it would be non countable, provided, however, that it
(04:03):
is not exceeding this dollar amount, which by the way,
is changing under the new BBB Act, but for now
it's approximately one million, thirty three thousand dollars in Massachusetts,
and it seems to be index for inflation. If it
exceeds that value, then you're denied Medicaid hard stop. If
(04:25):
it doesn't, then you're gonna be non countable. So you
can get on Medicaid, which is great, much lower rate,
but it's leanable, so when you die there'll be a
payback to the state, but at a much lower rate.
So it's still a win better than right. In the
big check talk.
Speaker 2 (04:43):
With Tod Lootski from the law firm of Kushiingan Dolan.
We do still have room on the phone lines at
eight eight eight two zero five two two sixty three.
So if you've got questions about estate planning. This is
your chance to ask them. That phone number again is
eight eight eight to z zero five two two six three.
We're gonna take a quick break here, but when we
(05:05):
come back it's going to be right to your questions
with Todd again. We still have just a little bit
of room there, so get calling so you can ask
Todd your questions. That number is eight eight eight to
zero five two two sixty three. One more time eight
eight eight to zero five two two sixty three.
Speaker 1 (05:22):
Ask Todd with Todd Lutsky every Wednesday at ten thirty
only here on the Financial Exchange Radio Network. Summer's here
in New England and it's the perfect time to trade
the daily routine for something extraordinary. Say hello to the
US Virgin Islands, America's Caribbean paradise. Explore the vibrant history
(05:44):
and flavor of Saint Croix. Lounge on the stunning beaches
of Saint Thomas, or find your piece on the quiet
shores of Saint John. From the moment you arrive, you'll
feel it. You're naturally in rhythm with the heartbeat of
the islands. There's no passport needed, no currency to exchange,
just warm weather, clear blue water, and unforgettable experiences waiting
(06:05):
for you. Whether you're planning a romantic escape, a family adventure,
or a little of both, this is the summer to
make it happen. Go to visit usvii dot com to
learn more and start planning. That's visit USVII dot com.
Your island getaway is closer than you think. The US
Virgin Islands where summer never ends. Book your trip today
(06:26):
at visit usvii dot com. Changes to medicaid occur almost
every year, and if you are not informed, your assets
could be at risk, especially if you or your spouse
need nursing home care. Cushing and Dolan are experts in
elder law, and their new guide is called Last Minute
Medicaid Eligibility. It'll help you understand the Medicaid process, which
(06:47):
is critically important if you're retired or getting close to retiring.
The guide has important information regarding numerous strategies that can
protect your assets from the nursing home. It could be
your primary home, a vacation home, or any rental property
you may own. You've worked hard to achieve wealth, so
don't take chances when it comes to protecting it. Get
your copy of Cushing and Dolan's brand new guide called
Last Minute Medicaid Eligibility. Call right now eight six six
(07:10):
eight four eight five six nine nine. That's eight six
six eight four eight five six nine nine, or you
can request it online by visiting Legal Exchange Show dot com.
That's Legal exchange show dot com. The proceeding was paid
for in the views ex best are solely those of
Cushing and Dolan. Cushing and Dolan and or Armstrong Advisory
may contact you offering legal or investment services. Cushing and
Dolan and Armstrong Advisory do not endorse each other and
(07:30):
are not affiliated.
Speaker 2 (07:31):
Artificial intelligence isn't just the future, it's already shaping how
people think about their money. HI, this is Chuck Zada
from the Armstrong Advisory Group. We've put together a new
guide called AI in your Financial Plan. In it, we
explore the ways that AI is being used in financial technology,
from apps the tracks spending to tools that can help
identify trends. It's a rapidly changing space, and this guide
(07:54):
is designed to help you understand some of the potential
benefits and risks that AI may. Want to learn more,
call eight hundred three nine three for zero zero one
and request your free copy of AI and your financial
plan that's eight hundred three nine three for zero zero one,
or visit Armstrong Advisory dot com.
Speaker 1 (08:16):
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, and estate planning advisors before making
any investment decisions. Armstrong may contact you to offer investment
advisory services.
Speaker 5 (08:36):
Here at the Massachusetts Department of Elementary and Secondary Education,
we are committed to all students not only attending, but
succeeding at school. Your presence is powerful. Share why you
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Speaker 1 (09:36):
You're listening to ask Todd with Todd Lutsky on the
Financial Exchange Radio Network.
Speaker 2 (09:51):
All right, let's get right to your questions with Todd Lotsky.
First up, we got Gene in Medway. Gene, you're on
with Todd.
Speaker 7 (09:59):
Hello, so thank you very much. Hi Todd. About ten
years ago, you helped my husband and me set up
two irrevocable trust We put our assets in those. My
husband died in twenty twenty and you helped me again
to do the legal work required, and my husband's trust
(10:21):
then became remainders share. Yes, now we're selling the property
in Virginia. Okay, it's been a rental for over forty
years and we're now so we're selling it. My son
is the trustee, so he's handling everything for me. We
have a buyer, we have a settlement date. I had
(10:44):
never changed the deed to read that the trust was
a remainder share. Does that matter.
Speaker 4 (10:53):
It's not going to prevent the sale. Let's put it
that way. It's not going to prevent the sale. But
you know, it may or may not depending on the
size of the estate, which I cannot answer without pulling
your file and looking at it. It may or may
not matter. Have you ever rented this property over the
years since twenty twenty.
Speaker 7 (11:10):
It's still rented. Yes, okay, so the rental contract ends
at the end of July.
Speaker 4 (11:16):
Yeah, so you know it, it's probably not going to
be an issue number one. It's just that you might
want to just retitle it now to the remainder share
and then dad it out of the remainder share or
sell it, you know, from the remainder share, so you
could deposit the money into the remainder share under a
new tax ID number, which if we opened up the
remainder share, we would have got you that new tax
(11:37):
ID number long ago, because you've probably been receiving the
rent and depositing it in a bank account in that trust.
Speaker 3 (11:44):
Right, correct. Yeah, so you're probably doing everything right. You
have to understand.
Speaker 4 (11:48):
Without the file in front of me, it sounds like
you're doing it right and it's definitely going to be
able to be sold. But you might want to just
call in and just talk to me off air a
little bit so I can have the details of exactly
what you're doing in front of me. But it does
sound like it'll be okay, all right, So I hope
that helps a little and give us a ring. Thanks
for that call, and I'm glad to see and folks,
(12:09):
that does show you how flexible these trusts are. They
live on and they work really well. But lots of
times people don't have time to do planning and they're
stuck with this last minute situation where they enter a
nursing home. That's what this guide is about this month.
It's all about taking care of assets last minute. Whether
it's a house that we talked about earlier with Chuck,
(12:31):
or a piece of rental property or a vacation home.
They're treated differently life insurance four to oh one k's
bank accounts that are jointly held, whether a spouse or
a non spouse, how are they treated versus investment accounts.
All these answers are in the guide Last Minute countable
non countable assets, and even how to avoid the five
(12:53):
year waiting period for certain limited situations. My question, my
comment to you is just don't write the check, folks.
If you're faced with nursing home care, get this guide.
Learn what you can do last minute to protect these
assets before you write the check. Eight six six eight
four eight five six nine nine or legal Exchange show
(13:16):
dot Com again eight six six eight, four, eight, five, six,
nine nine or Legal Exchange show dot com and you
can download the guide right there.
Speaker 2 (13:26):
Todd, we get another one here for you. Let's go
to Eric in Springfield. Eric, what's your question for Tom Lunsky?
Speaker 8 (13:32):
Good morning, guys. My mother is going to be giving
me my wife twenty thousand dollars to help pay my
son's school. Is she going to be on the hook
if she goes in a nursing home for that five
year look back?
Speaker 3 (13:45):
Yeah? Yeah.
Speaker 4 (13:46):
Anytime you make a gift, and this is what the
rule really says, is any time you'd make a disqualifying transfer.
Right now, What the heck is that a disqualifying transfer
that creates a five year waiting period is anytime you
take an asset like twenty grand that was available for
(14:07):
the nursing home and put it somewhere where it's no
longer available for the nursing home and not take back
fair market value for what you gave away, you have
a disqualifying transfer for five years. So, unfortunately the answer
is yes, each and every time those gifts were made,
they will be a five year waiting period associated with
(14:30):
each gift. That does not mean that there's not last
minute things we can do to fix that problem if
you find her or she finds herself faced with nursing
home care.
Speaker 3 (14:40):
So hopefully that that helped a little.
Speaker 2 (14:43):
Todd, I got another four you. Let's go to Dan
in New Hampshire. Dan, you're on with Todd a Lutski.
Speaker 9 (14:50):
Thanks for taking the time, Todd. Todd, I've got to
purchase going on of some property. It's going to be
a cash deal. I currently have a revocable trust. Can
that go into that revocable trust? Or is there a
process and it's a revocable trust of like two thousand
and eight?
Speaker 4 (15:08):
How is this property owned currently? Is it in your name?
Is it in your wife's name?
Speaker 9 (15:16):
Its purchase?
Speaker 6 (15:17):
Oh?
Speaker 4 (15:18):
I see, so you're gonna be buying the property. I'm
sorry I missed that. Okay, So you're going to be
buying the property. So you can do one of two things.
If you've set it up right, you can make the purchase.
You can make the purchaser the revocable trust. Are you
borrowing money to buy this No, So you can make
(15:38):
the purchaser on the p and s us trustee of
the revocable trust. In that way, the deed from the
seller will be deeded directly into the trust. Many people
don't do this, Many people don't remember or think about it.
That's just an option. If you've not done it that way,
you can simply close the deal and get the deed
(15:59):
in your own name and then go to your estate
planning attorney and have another deed prepared transferring the property
from you to the revocable trust, and then it will
be in there. So it's either two steps or one step.
But you are absolutely right, it belongs in your revocable
trust for sure, Todd.
Speaker 2 (16:18):
I got one more for you here, we got Philip
on the Cape. Philip, what is your question for Todd Lutsky?
Speaker 10 (16:26):
Hi, Tod, I seven years ago you did an irrevocable
trust for me for the properties, and I'm asking now,
can I swap one of the properties in Massachusetts for
a property in Florida? And but it does it go
in the irrevocable trust?
Speaker 3 (16:47):
So when you say swap, I don't I don't understand that.
What does what does that mean? Swap?
Speaker 4 (16:51):
Are they are these properties already in the trust? Or
are you buying selling and buying a new.
Speaker 10 (16:55):
One, selling and buying a new one?
Speaker 9 (16:58):
Oh?
Speaker 4 (16:58):
Okay, so the answer is going to be a quick yes,
but let me explain it. So, if it's in the
trust already, which it is, and I seven years ago,
By the way, that's very important for all the listeners
in general. Seven years ago means that these properties are
beyond that five year waiting period that we just heard
about when Eric asked the question. So these are already
(17:23):
protected from the nursing home. So now the question is
I want to sell my mass property and buy Florida property, perfectly, okay,
So what will happen is you'll prepare a P and S,
the trustee of the trust will sign it. Property will
then go out of the trust to the buyer, and
the buyer will cut a check to the trustee of
(17:43):
the trust and deposit it in the trust bank account.
Do not put it in your personal name even for
one second. It needs to go directly into the irrevocable trust.
Now the money's in the irrevocable trust that you're gonna use,
I suspect to buy this new Florida property. So now
(18:05):
out will go the money to the seller, and in
will come the new property you're buying into the trust.
Again directly into the trust. If you do that transaction,
there will be no resetting of the five year waiting
period because remember, folks, nothing new went in. All we
(18:29):
did was change what was in there from one investment
to another. So now you continue to have all these
assets fully protected from the nursing home. And since these
trusts are grant or trust for income tax purposes, your
capital gains tax liability is exactly the same as it
(18:52):
would have been had you sold the property not in
these trusts. Just to say, in case this is your
primary residence. What I'm mean by that is, if it's
your primary residence and you had used it for two
of the last five years, you'll get your two fifty
exclusion or if you're married, your five hundred thousand dollars exclusion.
(19:13):
So hope that helps and answers the question for you,
mister Watsky. As always, we appreciate you joining us today.
Thanks so much, always pleasure.
Speaker 1 (19:22):
This has been Asked Odd on the Financial Exchange Radio
network Ask Todd with Todd. Lutsky has been presented by
Cushing and Dolan, serving Massachusetts and New England for more
than thirty years, helping families with the state and tax
planning Medicaid Planning and Probate Law call eight hundred and
three nine three four thousand and one or visit Cushingdolan
dot com. The views expressed in this segment are solely
(19:42):
those of 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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