Page 18 THE MALDEN ADVOCATE–Friday, July 12, 2024 MUSINGS | FROM PAGE 6 For Advertising with Results, call The Advocate Newspapers at 617-387-2200 or Info@advocatenews.net CAN A SETTLOR OF AN IRREVOCABLE MEDICAID QUALIFYING TRUST RECEIVE PRINCIPAL DISTRIBUTIONS? T he Trustee of an irrevocable trust is prohibited from distributing any principal from the Trust to the Settlor (the person creating the Trust) in order for the Trust assets not to be counted for MassHealth purposes. A typical irrevocable Trust, will however, provide for the income generated from the underlying Trust assets to be distributed to the Settlor. In this instance, the Settlor would be the income beneficiary. The Settlor or Settlors, as the case may be, would presumably be paying for monthly living expenses with other sources of monthly income such as pension income and social security income. The interest and dividend income generated from the Trust’s liquid assets and net rental income, assuming rental real estate was also placed inside the irrevocable Trust, would be additional sources of monthly income to be utilized by the Settlor in order to meet his or her monthly expenses. The Settlors would have to look to other assets held outside of the irrevocable Trust in order to gain access to needed resources. For example, an IRA or a 401(k) account. These assets are typically not funded into an irrevocable Trust as they would first have to be liquidated with corresponding income taxes to be paid. That situation could be a last resort if the Settlor needed to qualify for MassHealth. Sometimes, people will gradually cash out these retirement accounts in order to stretch out the income over several years, thereby saving a lot of money in taxes. If a $300,000 IRA, for example, needed to be cashed out in one year in order to transfer to a spouse for MassHealth eligibility, the taxes in that one year would be substantial. There is also typically a provision in the irrevocable Trust that would allow for a distribution of principal to a member of a class consisting of children and grandchildren. This is a way to get principal out of the irrevocable Trust. However, under no circumstances, can the distribution of principal go to the Settlor. I suppose at that point, once funds are in the hands of the children or grandchildren, they are free to do what they want with the money, including possibility purchasing something that might just benefit the Settlor. Of course, a child or grandchild can certainly do that with his or her own money anyway. So it should not make a difference in a situation where funds are distributed from such a Trust to a child or grandchild and those funds are actually used to purchase goods or services for the Settlor. There is always a risk that the child will take the money and run. But when the Settlor reserves a “special power of appointment, exercisable via his or her Last Will and Testament, the Settlor could effectively disinherit a child or grandchild by “appointing” the Trust principal to someone else. This special power of appointment ends up giving a lot of control to the Settlor over the ultimate distribution of Trust assets. 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. Ruth League Auxiliary Awards Banquet held at the Moose, Bob Rotondi, Pearl Verge and Joe Devincentis handed out trophies to 85 boys, including Jimmy Mirley, Franny Molis and Perry Verge Jr. “Captain” Carl Yastrzemski, coming off a Triple Crown season for the pennant winning Boston Red Sox, spoke at the banquet. ● Boston Red Sox star shortstop Rico Petrocelli’s wife, Elsie, gave birth to twins at Lynn Union Hospital in June (Rico had strong Malden ties). ● The MHS Class of 1967 graduates 585 students with Peter “Panama” Carroll receiving the $100 “MHS Custodians Scholarship.” He also received a JV letter in hoop and was “Head Manager” of the football team. He also “enjoys playing basketball,” according to his yearbook information. ● Speaking of the class of 1967: Richie Cremone (he of “Cremone’s Restaurant” fame) played defensive center for the football team, is a Patriots fan, is a member of the Saint Peter’s Holy Name Society and served on the Art Committee. Vietnam War hero (the late) Kevin Crowe pitched for The Voke Baseball Team, worked at New England Metal Spinning and liked to listen to The Mamas & The Papas. Joe Dellagatta (rest in peace, Joe) liked to listen to The Beach Boys. Math was Henry Gennetti’s favorite subject. Jean Tomasello was voted best female athlete. Paul Condon was named best lineman. ● Converse Rubber at 392 Pearl St. is hiring General Factory workers and Production Unit Assemblers (“male and female”). ● In July, Manager Dick Williams, new dad Rico Petrocelli and second baseman Mike Andrews appear at the Tulsa Gas Station on the corner of Medford Street and the Fellsway (Rigano’s Towing) to sign autographs and smoke cigarettes. Mike Scibelli, Frank Levine, Jimmy Damiano and I remember this vividly. As Peter Falk’s iconic TV character Columbo would say, “Just one more thing, sir” – 1967 was, once again, a very good year. Granted I was only 10 but the world started opening wide for me in the Summer of Love. Jimmy Damiano and I found a second home at Devir Park – spending every daylight hour on Bruce Field aka Craddock Park honing our baseball skills until we graduated to the Bandstand. Saint Rocco ’67 with brother Joe, my first 10-speed racer (moms bought it at the Schwinn shop on Commercial St.), Billy Callahan’s legendary 4th of July celebration (and parade) and watching construction workers break ground for the Irish American Club! The best of times, no debate! Stay tuned for Part 2 coming real soon. —Peter is a longtime Malden resident and a regular contributor to The Malden Advocate and can be reached at PeteL39@aol.com for comments, compliments or criticisms. MALDEN PLANNING BOARD and MALDEN CITY COUNCIL ORDINANCE COMMITTEE PUBLIC HEARING The Malden Planning Board and Malden City Council Ordinance Committee will jointly 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, July 24, 2024, in accordance with Section 12.32.050 of Title 12 of the Code of the City of Malden (MCC), regarding a petition for zoning amendments, as proposed in City Council Paper #286/2024, to amend Section 12.28.140 of Title 12, MCC, the zoning ordinances for the Rowe’s Quarry Reclamation and Redevelopment District, as follows: 1. Section 12.28.140.C, MCC (Uses), to amend existing provisions as follows: a) To amend use regulations to allow multifamily residential dwelling use, up to six stories inclusive, by Site Plan Review in Subdistrict RQ3; b) To amend use regulations to change the maximum height to six stories inclusive for multifamily dwelling use allowed by Site Plan Review in Subdistricts RQ1 and RQ2; c) To amend Restrictions on Residential Units regarding units with three bedrooms in Subdistricts RQ1, RQ2 and RQ3; and d) To make administrative revisions to correct, update and clarify existing provisions. 2. Section 12.28.140.D, MCC (Dimensional Regulations), to amend existing provisions as follows: a) To establish a minimum setback from property lines for buildings in Subdistrict RQ3; b) To amend Dimensional Limitations on Retail Use to establish a maximum size for stand-alone buildings for hotel use in Subdistrict RQ3; and c) To make administrative revisions to correct, update and clarify existing provisions. 3. Section 12.28.140.F, MCC (Parking), to amend existing provisions as follows: a) To establish parking requirements for multifamily dwellings in Subdistrict RQ3; and b) To make administrative revisions to correct, update and clarify existing provisions. 4. Section 12.28.140. J, MCC (General Requirements for Development in Subdistrict RQ3), to add new provisions with requirements for Transportation Demand Management Plan and Traffic and Safety Improvements. The full text of the proposed zoning amendments (City Council Paper #286/2024) is available for public review on the City of Malden website at https://cityofmalden.legistar.com/Legislation.aspx and with the City Planner, Inspectional Services, 3rd floor, and the City Clerk, 2nd Floor, 215 Pleasant Street, Malden, MA. By: Diane M. Chuha, Clerk Malden Planning Board By: Amanda Linehan, Chair Malden City Council Ordinance Committee July 03, 12, 2024
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