Page 18 THE MALDEN ADVOCATE–Friday, August 16, 2024 IMMIGRANTS | FROM PAGE 5 Corporation, to repair the water damage and foundation cracks. “I feel I had to give back to my community, the school and public,” Mejias said outside Malden High School. “I don’t think there’s enough of that.” Nelson Masonry & Construction Corp. Manager Nelson Martinez volunteered his time along with fellow mason, Antonio Telule, who also emigrated from El Salvador having served as a US Army Major/Sgt. in Iraq. The cost of the repairs would have been Malden High School Asst. Principal John Benotti’s name is shown at top of the city seal. The city seal was dedicated in memory of John Ciavarro. GRANTOR-TYPE TRUSTS AS OWNERS OF SUB S CORPORATION STOCK A s part of the estate planning process, it is a good idea to consider transferring common stock in a Subchapter S Corporationto a wholly-owned grantor-type trust in order to avoid probate in the event of the stockholder’s death as well as for estate tax planning. Many businesses have adopted S Corporation status for tax purposes. With an S Corporation, the income or loss is passed through to the individual stockholder via a Schedule K-1 form in order for the income or loss to be reported on the stockholder’s Form 1040. Assuming the stockholder has enough stockholder basis in the corporation, any loss incurred by the corporation can be passed through to the stockholder to offsetincome such as wages, interest, dividends, net rental income, etc. IRC Section 1361(c)(2) allows for a grantor-type Trust to be an eligible shareholder of an S Corporation. All revocable trusts are grantor-type Trusts. If structured properly, even an irrevocable Trust can be deemed a grantor-type Trust for tax purposes. If a stockholder wishes to transfer his or her common stock certificate to a revocable or irrevocable Trust, he or she would be the Settlor (the Grantor) of such a Trust, the Trustee of such a Trust and the income beneficiary of the Trust. If an irrevocable Trust is the preferred option due to asset protection reasons such as nursing home costs, some people will look to name a child the Trustee. If the Trust is drafted properly and there are not any circumstances where a principal distribution can be made to the Settlor, then the common stock in the irrevocable Trust should not be a countable asset for purposes of MassHealth eligibility, even if the Settlor also serves as Trustee. The Settlor (Grantor) of the grantor-type Trust must be deemed the owner of the entire Trust and must be a United States citizen or resident. If the Grantor dies, the grantor-type Trust would still be a permissible stockholder for two years following the Grantor’s death. In the event of the Grantor’s death, for S Corporation income tax purposes, the Trust would be considered a non-grantor administrative Trust under Internal Revenue Code Section 1361(c)(2)(A)(ii). No election is necessary to be filed with the IRS in order for a grantor-type Trust to be an eligible shareholder of an S Corporation. A Grantor-Type Trust tax return could be filed in order to report the Schedule K-1 income or loss generated by the S Corporation. A Grantor letter would then be delivered to the Grantor of the Trust so that the Grantor could report the net income or net loss figure on his or herfederal and Massachusetts individual income taxreturn. 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. approximately $6,000 in labor, materials and time. “This country offers a lot of opportunities,” Martinez said while standing beside the city seal. “And I like restoring things.” Martinez is also originally from El Salvador but has been living in the United States for 31 years. MUSINGS | FROM PAGE 6 shook Malden (in a good way) in July of ’63. Hard to believe and really cool, but true. One of the original Rat Pack era icons made a short but unforgettable trip to Malden, leaving an impression that is still felt today. As reported in publisher and well-respected man about town, (Molly and Earl Brickman’s grandfather) David Brickman’s Malden Evening News: July 11, 1963 – Comedian Thrills Youngsters… “Jerry Lewis Gets Big Welcome” By Jean McSweeney “Malden’s Granada Theater provided hundreds of youngsters with the thrill of a young lifetime Wednesday afternoon in the form of the real-life gangling, madcap comedian Jerry Lewis – in person. “With a crowd of 2,050 inside the theater, mostly members of the younger set, stomping on the floor chanting ‘We want Jerry,’ after having sat through his latest film, ‘The Nutty Professor,’ Jerry was greeted by more crowds outside. “His arrival, 5 minutes earlier than scheduled, led some unThe city seal was dedicated in memory of Cliff Sauvageau. (Courtesy photos, Victor Mejias) Mejias said the seal had seen better days – with nothing being done about the deterioration caused by time and weather for over three decades, and he thought it was time to get it some help. “This country did so much for Nelson, and he wanted to give informed spectators to guess that one of the Kennedy family was dropping in for dinner at the Kernwood Restaurant next door. “A black limousine, license plate 4X, pulled up to the Dartmouth Street side entrance of The Granada, and a swarm of youngsters immediately engulfed the auto. “Quickly following was a second limousine, 2X, carrying musicians, agents and other entourage members. “Jerry sat in the limo for several minutes as dozens of eyes pried into the shadows of the auto for a glimpse of a live movie star. “The entrance was over in a flash as Jerry stepped out, surveyed the sea of faces shouting ‘Hi Jerry,’ and hustled into the theater, with local police keeping a path open. “A retinue of some 9 associates, five of them musicians, quickly went into action backstage to set up their equipment for the 15-minute personal appearance while Lewis had one last cigarette.” Loud Cheers “The cheers were deafening as the movie and TV star for whom back in some way,” Mejias said about his helpers. And he was grateful to be able to help in restoring the city seal in the country that gave them a home and to also keep alive the memory of some fellow classmates who meant so much to so many. some had waited since 9:30 a.m., walked into the spotlight singing ‘When You’re Smiling.’ For the next 15 minutes he held his audience in the palm of his hand entertaining them with little bits of dancing, comedy, and song. “Lewis brought the world of show business to Malden Wednesday not only by his own presence but also in the form of a three-minute film clip of ‘goofs’ from the set of ‘The Nutty Professor.’ A ‘goof,’ Hollywood style, is when someone on the set of the movie breaks up in laughter or makes a mistake while the filming is going on. “His closing number, ‘Rock-a bye Your Baby,’ which has become a Lewis standard, came all too soon for his audience who indicated by their stomps and screams that they could have stayed there for hours more. “But behind the scenes, the man called ‘the clown,’ ‘the nut,’ was observed to be a highly complex and exacting person who demands perfection from himself and his associates and accepts nothing less. “Obviously tired from a day MUSINGS| SEE PAGE 20 Like us on Facebook advocate newspaper Facebook.com/Advocate.news.ma John Rooney was remembered on the city seal.
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