THE MALDEN ADVOCATE–Friday, December 13, 2024 Page 19 OBITUARIES Bruce C. Jones Of Malden. Passed away December 3rd 2024. The son of Warren and Joan (Campbell) Jones Bruce was born and raised in Malden. He is the loving husband of Susan Jones and an excellent step father to Jennifer, Elizabeth, Katelyn and Mary. During his free time, he loved spending time with family, Bruce also enjoyed classic cars and classic rock, he even played saxophone in a band when he was in school. Bruce is survived by his wife of 20 years Susan Jones of Malden, his step daughters Jennifer Pak of East Bridgewater, Elizabeth Moniz of Westport, Katelyn Watson of Malden and Mary Rice of Washington, his sister Ruth Gillis of Tewksbury and his grandchildren Brodie Pak, Bradley Pak and Julian Moniz. Funeral services will be held at the Weir-MacCuish Golden Rule Funeral Home, 144 Salem St, Malden on Saturday, Dec 14th, at 6 pm, with Visitation held from 2-6pm. Choi Li A long-time resident of Malden. Passed away on December 4, 2024, surrounded by her loving family. Born and raised in Hong Kong, Choi immigrated to the United States with her children in 1977 and settled in Boston. In 1982, she and her family moved to Malden. Choi was a devoted mother & grandmother who cared for her children with love and dedication. She also enjoyed gardening, playing mahjong, and spending time with family and friends. Choi is survived by her children: Chi Kuen Lam of Winchester, Ching Yee Lee of Westwood, Chi Fun Lam of Westwood, and Sam Lee of Billerica; her grandchildren: Ethan, Emily, Hillary, Justin, Jared, and Megan; and her great-grandchild, August. Visitation will be held at the Weir-MacCuish Golden Rule Funeral Home, 144 Salem St, Malden, on Saturday, December 14, from 9:30 AM to 10:45 AM, followed by a Christian service from 10:45 AM to 11:30 AM. Interment will take place afterward at Forest Hills Cemetery in Boston. Leo A. Hamel Passed away on December 8, 2024. He was 66 years old. Leo grew up in Malden Massachusetts. He loved playing hockey in the rink and on the pond as a youth. He graduated from Malden High School, where he enjoyed many fun times with friends and classmates. After graduation, Leo Served in the Army National Guard Corps of Engineers. He started his career in painting and construction, working for himself and eventually founding the LAH Realty Trust, which he ran for 24 years, building many homes in the Wilmington area. He also worked for several construction companies, most recently as a superintendent for ZVI Construction. Additionally, Leo was a mortOBITS | SEE PAGE 21 Lawn and Yard Care SNOW PLOWING *REASONABLE RATES * PROMPT SERVICE * PARKING LOTS USA 781-521-9927 SPADAFORA AUTO PARTS JUNK CARS WANTED SAME DAY PICK UP 781-324-1929 Quality Used Tires Mounted & Installed Used Auto Parts & Batteries Family owned & operated since 1946 LINDERME AND GWYNN ESTATES: IMPLIED LIFE ESTATES T he tax court case in Linderme v. Commissioner, 52 T.C. 305 (1969) clearly states that the value of real estate can still be includable in the decedent’s taxable estate even if there was no actual reserved life estate on the deed itself. For example, if a 90 year old man deeded his home to his 3 children and reserved a life estate on the deed itself, the fair market value of the real estate would become the new cost basis going forward in the names of the three children. The reserved life estate on the deed itself leaves no question as to whether or not the home is to be included in the gross estate for estate tax purposes. Once included in the gross taxable estate, the step-up in cost basis is achieved thereby providing for the new cost basis to be equal to the fair market value of the home at the time of death. When there is no life estate language on the deed itself, you have to look at the facts and circumstances along with the Linderme case and the Gwynn case (437 F.2nd 1148 (4th Circuit, 1971) in order to determine if the home would still be includable in the gross taxable estate. So long as the fair market value of the home is not greater than $2million, and assuming there are no other assets owned at the time of death, there would be no Massachusetts estate tax to be paid. Certainly no federal estate tax with the new $13.99million exemption amount as of 1-1-25. If the children sell for $2million, they would pay no capital gains tax as well. Therefore, as part of an estate plan/tax plan, we want the value of the home to be includable in the taxable estate of the decedent. The reason is that once the property is included in the taxable estate, under Internal Revenue Code Section 1014(a), we can achieve a stepup in cost basis equal to the fair market value at the time of death. It’s as if the children paid $2million for the property thereby resulting in no capital gain upon a subsequent sale. In the Linderme and Gwynn cases, there was no reserved life estate on the deed itself. The court found that there was an understanding on the part of all parties that the parent was to live in the home until death. The parent lived in the house rent free until the date of death. None of the children resided in the house with the parent. In the Linderme case, the father paid all of the monthly operating costs such as real estate taxes, water and sewer, homeowner’s insurance, repairs, etc., until the day he moved to a nursing home. At that point in time, the home remained vacant. While in the nursing home, the son continued to pay the monthly expenses with the father’s own money. Upon the death of the father, the house was sold, estate bills were paid and the net proceeds were split among the three children. The Judge ruled that the decedent retained the possession and enjoyment of the home until the day he died. The Judge found that there was indeed an understanding of all parties that this was the case. He found that the value of the home should be includible in his taxable estate under Internal Revenue Code Section 2036(1)(a). The decedent had exclusive possession of the home. There are times when you really want the real estate to be includible in the taxable estate so that a very large future capital gains tax can be avoided. These are two court cases to keep in mind in order to avoid, or greatly minimize, any future capital gains tax. 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. Call $ $ $ $ Driveways from $35
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