Page 20 THE EVERETT ADVOCATE – FRiDAy, JunE 23, 2023 Tax Benefits of Irrevocable Trusts f you place your principal residence into an irrevocable trust to protect the equity for your children, you can sell your home and still take advantage of the $250,000 capital gains tax exclusion ($500,000 for a married couple) upon sale. For example, if you are single and you lived in your home for at least two of the five years prior to the date of sale of your home, and you sold your home for $750,000, with a purchase price of $500,000, the $250,000 capital gain would not be taxable. In order to determine your actual cost basis, you would be adding to the purchase price all capital improvements since acquisition such as a new roof, new windows, new heating system, kitchen renovation, bathroom renovation, asphalt driveway, etc., plus any and all closing costs on the sale of the house such as broker’s commission, tax stamps, legal fees and recording fees. Upon your death, the fair I market value of the home would become the new cost basis in the hands of the beneficiaries of the Trust, such as your children. If they were to sell the home shortly after your death, in all probability, Trust. This would be the case if you decided to rent and not purchase a replacement property. The sale of the home and the purchase of a replacement home does not restart the fiveyear look-back period. Since the irrevocable Trust is there would then be no capital gains tax to pay. Only if the property appreciated significantly since the date of your death would there then be a capital gain to pay taxes on. Keep in mind that once the five-year look-back period has passed, the house would not be a countable asset for MassHealth purposes and being held in the irrevocable Trust would avoid probate as well as estate recovery for MassHealth benefits paid. If the house were to be sold during your lifetime, the net sales proceeds would be placed into the irrevocable Trust to either purchase a new home to be held by the Trust or to invest the monies to generate income to be paid to you as an income beneficiary of the ~ Legal Notice ~ Bids for the 2023 Roadway Rehabilitation The City of Everett is seeking sealed bids for the 2023 Roadway Rehabilitation - Full Depth Reconstruction at City Hall, 484 Broadway, Everett, MA 02149, until July 10, 2023 at 1 p.m. The work consists of full depth roadway reclamation; hot mix asphalt paving; removal and resetting of granite curbing; construction of cement concrete sidewalks, and ADA/AAB compliant pedestrian ramps; etc. Specifications and bid forms may be obtained by request to Allison.jenkins@ci.everett.ma.us Each Bid must be accompanied by a bid security consisting of a BID BOND, or, CERTIFIED CHECK in the amount of 5% of the bid price. All bidders must be pre-qualified by the Massachusetts Department of Transportation. All bids for are subject to the laws of Massachusetts, including G.L. c.30, § 39M, as amended. Prevailing wage rates apply to this project as outlined in M.G.L., Chapter 149, Section 26 through 27D inclusive. The successful bidder must furnish a 100% Performance Bond and a 100% Payment Bond. The City reserves the right to waive any informalities, to accept or reject, in whole or in part any or all bids, or take whatever other action may be deemed to be in the best interest of the City. June 23, 2023 drafted as a grantor-type Trust, even if you place a brokerage account into such a Trust, the interest, dividend and capital gain distribution income would be reported on a Trust tax return but the Trust would generate a Grantor Letter to be issued to the Grantor of the Trust (Settlor or Trustor) in order for the Grantor to be able to report this income on his or her individual income tax return at the much lower tax rates than those of Trusts. Not all types of assets are suitable to be placed into an irrevocable Trust as part of a Medicaid plan. For example, retirement accounts and IRA’s are assets that you would not place into such a Trust as to do so would create an immediate taxable event. Joseph D. Cataldo is an estate planning/elder law attorney, Certified Public Accountant, Certified Financial Planner, AICPA Personal Financial Specialist and holds a masters degree in taxation. 1. On June 23, 1845, what state was annexed that is nicknamed the Lone Star State and includes the “Big Thicket” and the Panhandle? 2. How many sides does a nonagon have? 3. What is the meaning of the “19” in COVID-19? 4. Reportedly, what sport has been called diamond ball, indoor baseball, kitten baseball, mush ball and pumpkin ball? 5. What flat picture can also be pictured in three dimensions? 6. On June 24, 1675, what war began in Swansea, Mass.? 7. In what city would you find Carnaby Street (once famous for fashion)? 8. On June 25, 1924, what female who worked in the World War II war industry was born? 9. What does PIN stand for? 10. Reportedly, what game became popular at the same time as the invention of the cylinder lawn mower? 11. On June 26, 1870, what first boardwalk in the United States opened? 12. What attracts June bugs? 13. On what continent was the first swimming championship (a 400-meter race): Australia, Europe or North America? 14. On June 27, 2001, what actor (born in Boston) who appeared in “Grumpy Old Men” and “The Odd Couple” died? 15. song “June is Bustin’ Out All Over”? 16. In what Rodgers & Hammerstein musical is the In June Guinness World Records reported that in Boston, Mass., Chef Nick DiGiovanni with help created the largest ever of what English meat dish – weighing 56.79 lbs.? 17. On June 28, 2007, what bird was removed from the list of endangered and threatened species? 18. How are Brian, Dennis and Carl Wilson, Mike Love and Al Jardine similar? 19. In 1970 what TV show filmed “Salem Saga” episodes in Salem, Mass.? 20. On June 29, 1973, the Federal Energy Office was created in response to what? ANSWERS 1. Texas 2. Nine 3. 11. It was identified in 2019. 4. Softball 5. Hologram 6. 7. London 8. the Riveter) 9. The Atlantic City Boardwalk 12. Lights 13. Australia 14. King Philip’s War Rosalind Walter (Rosie Personal Identification Number 10. Croquet Jack Lemmon 15. “Carousel” 16. Beef Wellington 17. 18. Bald Eagle They were “The Beach Boys” 19. “Bewitched” 20. The Arab Oil Embargo
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