Page 14 THE MALDEN ADVOCATE–Friday, March 3, 2023 WHY IRREVOCABLE TRUSTS ARE MOST OFTEN A BETTER CHOICE OVER LEGAL LIFE ESTATES B y placing your home, rental property or other assets into an irrevocable trust, the five year look back period will begin. Five years later, the assets in the irrevocable Trust will not be countable for MassHealth eligibility purposes. Furthermore, not only is probate avoided upon the Settlor’s death (i.e. the creator of the trust), but probate would also be avoided if a child/beneficiary were to die prior to the Settlor (i.e. parent). The predeceased child’s children or even grandchildren would become a beneficiary of the trust and that child’s beneficial interest in the trust would escape the probate process. If that child leaves minor children behind, the trustee would follow the terms of the trust and pay for items such as medical expenses, educational expenses, house expenses, etc. If, on the other hand, a parent chooses to deed the home or rental property to his or her children directly, while reserving a life estate, and one of the children were to predecease the parent, that child’s remainder interest in that property would be part of his or her probate estate. As estate planners, we try to avoid the probate process whenever possible for many reasons, such as cost and time delays. This could present a problem many years down the road if no one takes steps to probate the estate of the predeceased child. Furthermore, in a legal life estate situation, the parent would need the consent of the child who has a remainder interest in the property in order to sell the property. With an irrevocable trust, the child has no current ownership interest. The trustee is free to sell the real estate any time without the consent of the child. If the trust is drafted as a grantor-type trust, the capital gain exclusion of $500,000 on the sale of the principal residence will still be afforded to the Settlor of the trust. If it was rental property that was sold, the entire capital gain would still be reported by the Settlor on his or her tax return. The children would not be reporting any of the capital gains transactions on their own tax returns. The trust would actually file a tax return as a grantor-type trust and then issue a grantor letter to the Settlor (also referred to as a Grantor). With a legal life estate, the capital gain on the sale of a home or rental property would have to be allocated to the parent who reserved the life estate and the children who are the remaindermen. The computation for IRS purposes is based on the Book Aleph table and the IRS Section 7520 interest rates. For MassHealth purposes, at least for now, the computation is based upon the Social Security POMS tables. Hopefully, MassHealth will agree to use the IRS tables as the IRS tables are much more favorable to the life tenant if the home were to be sold, for example, as less of the net sales proceeds will be placed back on the table for the life tenant only to be included as a countable asset for MassHealth eligibility purposes. With an irrevocable trust, if the home or rental property is sold and converted to cash, the cash is safe inside the irrevocable trust. There is no risk of the trust assets becoming countable. If the parent decides to serve as trustee and there is a trust provision allowing for use and occupancy of any real estate held in trust, then any real estate abatement offered by the city or town will remain intact. It will not be lost due to placing the home into trust. The trust must be absolutely clear that there can be no principal distributions to the Settlor under any circumstances and that the Trustee must strictly adhere to the terms of the trust and comply with each and every fiduciary duty owed to the remaindermen of the Trust. Joseph D. Cataldo is an estate planning/elder law attorney, Certified Public Accountant, Certified Financial Planner, AICPA Personal Financial Specialist and holds a master’s degree in taxation. For Advertising with Results, call The Advocate Newspapers at 617-387-2200 or Info@advocatenews.net ~ Help Wanted ~ ~ Help Wanted ~ ~ Help Wanted ~ Combined Properties, Inc. is a full-service investment and real estate development firm specializing in commercial and multi-family residential properties. We take a long-term approach to business and have a clear vision for our future. This forward-focused perspective, coupled with our passion for creating better places to live and work, is reflected in all areas of our business. We hire and retain creative, experienced staff, invest in and develop quality assets, contract with premier vendors, cultivate long-lasting and responsive customer relationships, and invest wholly in the communities in which we work and call home. We are looking to fill the following positions: Parking Lot Attendant/Monitor Under the general direction of property management, the parking lot attendant will be responsible for enforcing the unauthorized use of assigned properties (Malden and Medford) and ensuring cleanliness and order for desired curb appeal. Responsibilities: · Actively patrol and perform regular inspections of assigned lots · Enforce parking rules and issue tickets and violations as necessary · Maintain clean and orderly lot free of trash and debris including sweeping trash and leaves · Instruct trespassers to leave the property · Notify management and/or authorities of escalated issues requiring attention and/or intervention · Complete daily shift paperwork of activities and incidents · May be asked to complete small maintenance tasks or special projects · Parking Lot Monitor/Attendant Requirements 3-5 years or related experience High School Diploma or equivalent Valid driver’s license and clean driving record Ability to work with independently with little to no supervision Ability to multitask Schedule is Tuesday - Saturday or Monday – Friday or 10:00 a.m. - 2:00 p.m. Commercial – Residential Painter – Light Maintenance We are seeking an experienced Painter for our apartment communities in Malden in nearby commercial properties. This is a full-time position with benefits (Monday-Friday 8:30-5:00 p.m.). Job responsibilities include: · Preparing surfaces to be painted by washing them, filling holes and cracks and sanding. · Applying primer and other sealers to paint surfaces. · Mixing and matching paint, stain, and other finishes to job specifications. · Apply paint, stain, and other finishes to paint surfaces using paintbrushes, rollers, or sprayers. · Remove and reinstall fixtures as necessary (doorknobs, electric switch covers, etc.) · Provide assistance with the completion of work orders as needed including, preventative maintenance projects and unit turnovers. Candidates should have a high school diploma or equivalent. Experience painting in a residential community required. Some maintenance experience and general knowledge of plumbing, electrical, appliance repair, carpentry, and HVAC desired. Please submit resume or work history to: HR@combinedproperties.com or call 781-388-0338 Combined Properties provides equal employment opportunities to all employees and applicants for employment and prohibits discrimination and harassment of any type without regard to race, color, religion, creed, sex, pregnancy or pregnancy-related condition, sexual orientation, gender identity or expression, genetic information, national origin, ancestry, age, disability, marital status, veteran status, National Guard or reserve unit obligations, or any other protected status prohibited by applicable law. This policy applies to all terms and conditions of employment, including recruiting, hiring, placement, promotion, termination, layoff, recall, transfer, leaves of absence, compensation and training. REAL ESTATE TRANSACTIONS BUYER1 PLEITEZ, WILIAN A BUYER2 LANDAVERDE, ERIKA Y SELLER1 CHEN, YONG L SELLER2 Copyrighted material previously published in Banker & Tradesman/The Commercial Record, a weekly trade newspaper. It is reprinted with permission from the publisher, The Warren Group. For a searchable database of real estate transactions and property information visit: www.thewarrengroup.com. ADDRESS 60-62 COLUMBIA ST CITY MALDEN DATE 02.06.23 PRICE 770000
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