Page 18 THE MALDEN ADVOCATE–Friday, June 2, 2023 For Advertising with Results, call The Advocate Newspapers at 617-387-2200 or Info@advocatenews.net - Legal Notice - COMMONWEALTH OF MASSACHUSETTS THE TRIAL COURT TRUST INCOME TAX RETURNS n the context of estate planning/Medicaid planning, whether you are executing revocable trusts or irrevocable trusts, it is good to know some of the basics of the income tax fi ling requirements. In the event you have executed a revocable Trust, it will be treated as a grantor-type trust and no separate tax return will be required to be fi led. If you open up a bank account or an investment account in the name of such a trust, you can have the bank or financial institution simply use your social security number for 1099 reporting purposes. If you, as the Settlor of such I a revocable Trust, were to die, at that point in time the trust would become irrevocable and would no longer be classifi ed as a grantor-type trust. In such an event, if the trust generates income, whether interest, dividend, capital gain income, or net rental income from investment real estate, then a separate Trust tax return would need to be filed. Furthermore, the Trustee would have to fi le for a federal ID number with the IRS. If the Trust does not distribute its income, it will have to pay taxes at the Trust level. The highest tax bracket for Trusts of 37 percent starts at only $13,450 in taxable income. Therefore, it is often more desirable to distribute the income to the income benefi ciaries in order to claim an income distribution deduction at the Trust level to zero out the taxable income. The income will then be taxed to the income beneficiaries who actually received the distribution on their individual income tax returns. For the 2022 calendar year, the 22 percent tax bracket for a married couple does not begin until taxable income is $83,550. The 37 percent tax bracket for the same couple does not begin until taxable income is $647,850. With a Medicaid irrevocable Trust executed for asset protection purposes, a tax return would have to be fi led by the Trust under its federal ID number. The Trust should be drafted in such a way as to be treated as a grantor-type Trust. If this Trust is generating taxable income, there would then be a grantor letter issued to the Settlor/Grantor/Trustor of the Trust in order for that person to report the items of income on his or her individual income tax return. Since the irrevocable Trust is drafted to be treated as a grantor-type Trust, it does not matter if interest income, dividend income, capital gain income or net rental income is actually distributed to the income benefi ciary. Those items of income will pass through to the income benefi ciaries of the Trust via the grantor letter and will be reported on their Form 1040. The Trust will not be paying the income taxes on the income it generates. Upon the death of the Settlor of the irrevocable Trust, the Trust will no longer be treated as a grantor-type Trust. Consequently, any net income generated by the Trust will be taxed at higher Trust income tax rates unless the net income is actually distributed to the income benefi ciaries. Navigating the tax rules pertaining to revocable and irrevocable Trusts can be challenging to say the least. Joseph D. Cataldo is an estate planning/elder law attorney, Certifi ed Public Accountant, Certifi ed Financial Planner, AICPA Personal Financial Specialist and holds a master’s degree in taxation. REAL ESTATE TRANSACTIONS BUYER1 LI, XIANGBIN BUYER2 CHEN, JING SELLER1 SMITH, JANICE C SELLER2 PROBATE AND FAMILY COURT Suffolk Probate and Family Court 24 New Chardon Street Boston, MA 02114 Docket No. SU20D0773DR DIVORCE SUMMONS BY PUBLICATION AND MAILING GABRIELA HENRIQUE vs. LUANDERSON HENRIQUE To the Defendant: The Plaintiff has filed a Complaint for Divorce requesting that the Court grant a divorce for Irretrievable Breakdown of the Marriage. The Complaint is on file at the Court. An Automatic Restraining Order has been entered in this matter preventing you from taking any action which would negatively impact the current financial status of either party. SEE Supplemental Probate Court Rule 411. You are hereby summoned and required to serve upon: Gabriela Henrique, 308 Washington Ave., #7, Chelsea, MA 02150 your answer, if any, on or before 07/20/2023. If you fail to do so, the court will proceed to the hearing and adjudication of this action. You are also required to file a copy of your answer, if any, in the office of the Register of this Court. WITNESS, Hon. Brian J. Dunn, First Justice of this Court. Date: May 25, 2023 VINCENT PROCOPIO REGISTER OF PROBATE June 02, 2023 NSPECTIONAL SERVICES 215 Pleasant Street, Room 330 Malden, Massachusetts 02148 (781) 397-7000 ext. 2044 City of Malden Massachusetts MALDEN PLANNING BOARD PUBLIC HEARING The Malden Planning Board will hold a public hearing in the Herbert L. Jackson Council Chamber, Malden City Hall, 215 Pleasant Street, Malden, MA at 7:00 P.M. on Wednesday, June 14, 2023 on the petition of SL Realty Holdings, LLC (Permit Application # CMID 053698-2023) seeking a special permit under Title 12, Chapter 12, Section 030 and Title 12, Chapter 12, Section 300 of the Code of the City of Malden, to allow multifamily residential dwelling use, more than three stories but not exceeding six stories, of property in the Central Business zoning district, and for an Inclusionary Development, namely, to construct a building with five stories and a total of fifty-one (51) dwelling units, including eleven (11) Affordable Housing Units, at the property known as and numbered, 11 Charles Street, Malden and by City Assessor’s Parcel ID# 054 237 707. Petition and plans are available for public review in the Inspectional Services Department, City Hall, 215 Pleasant Street, Room 330, Malden, MA and on the City website under Permit Application # CMID -053698-2023 at https://maldenma-energovweb.tylerhost.net/ apps/SelfService#/home By: Diane M. Chuha Clerk May 26, 2023 June 2, 2023 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 CITY 133-135 WASHINGTON ST MALDEN DATE 05.10.23 PRICE 950000 Advocate Call now! 617-387-2200 advertise on the web at www.advocatenews.net Classifieds
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