THE REVERE ADVOCATE – FRIDAY, AUGUST 8, 2025 Page 15 Classes of 1965 and 1966 Reunions Oct. 12 T he High School Class Reunion for the classes from Revere High School and Immaculate Conception High School 1965 and 1966 are in the works. They are joining together to celebrate their Class Reunions. The event will be held at the Casa Lucia Function Hall, Lucia Avenue, Revere, Mass., on Sunday, October 12, 2025, at 4:00 p.m. The cost for the evening is $85.00. If you use VENMO, the cost is $88.00 per person. Reservations are required. CHAPT. 90 | FROM Page 4 ing the transportation needs of our communities.” “One of government’s most fundamental roles is the building and maintenance of roads. Our unprecedented funding of Chapter 90 demonstrates our commitment to this important task. Better roads allow for safer commutes and an effi cient fl ow of commerce. In short, Chapter 90 funding is a winner for all,” said Representative Jeff rey Rosario Turco (D-Winthrop). “This historic level of funding will help cities and towns improve their roads and sidewalks along with other transportation infrastructure,” said Senator Brendan Crighton (D-Lynn), who is Senate Chair of the Legislature’s Joint Committee on Transportation. “As we are experiencing increasing traffic congestion and the negative impacts of climate change, it is crucial that we prioritize investments that make it easier for our residents to travel safely. Thank you to Senate President Spilka for her steadfast leadership and commitment to transformative infrastructure.” “This legislation takes into consideration years of feedback from the Administration and our local partners,” said Senator Ed Kennedy (D-Lowell), who is Senate Chair of the Legislature’s Joint Committee on Bonding, Capital Expenditures and State Assets. “In addition to incorporating 50 per cent more funding to Chapter 90 than in previous years, We plan an evening of memories, renewal of acquaintances (and whatever) and lots of fun. For further information and/or if you wish to assist in our eff orts, contact us at rhsclassof65@yahoo.com. We want to catch up on your lives and keep in touch with you. Hope you can make it. We are searching for classmates from Revere High School and Immaculate Conception Classes graduating in 1965 and 1966. Your Reunion Committee these funds are supplemented by additional targeted resources that will improve the roads, bridges, and transportation related infrastructure in all types of communities in the Commonwealth.” The one-year $300 million (M) authorization in the Chapter 90 program funding represents a historic 50 percent increase and includes: • $200M to be distributed to all municipalities based on the standard Chapter 90 program distribution formula • $100M to be distributed to all municipalities based solely on road mileage Funding for three additional critical programs to support various transportation-related projects includes: • $500M for the Lifecycle Asset Management Program (LAMP), which supports nonfederally aided roads and targets the pavement and bridges that are in the worst condition • $200M for a culvert and small bridge repair program for municipalities’ local culverts and small bridges under 20 feet that are in a state of disrepair or require replacement • $185M for capital projects to reduce congestion hotspots, funding that will be available for projects like shared use paths, intersection improvements, railroad grade crossings and sidewalks Both chambers of the Legislature having voted to enact the legislation, the bill now goes to the Governor for her signature. IRREVOCABLE TRUSTS T here are several reasons why one might look to a transfer to an irrevocable trust instead of an outright gift of assets to children. Below are a few of those reasons: 1. If a parent simply makes a gift of an appreciated asset to a child, for example, upon that parent’s death there is no “step-up” in cost basis equal to the fair market value of the asset as of the date of death. Whatever that person paid for the asset originally, becomes the cost basis in the hands of the children and on a subsequent sale there may very well be a signifi cant capital gain. The asset could be appreciated real estate or stock. We refer to the cost basis tax concept where a parent simply makes an outright gift to a child as “carryover cost basis”. A properly drafted irrevocable trust will provide for the step-up in cost basis of the appreciated asset so that upon the individual’s death, the fair market value at that point in time is used to determine cost basis going forward. The trust is drafted so as to include the asset as part of the taxable estate. If the gross estate is less than $15 million for federal estate tax purposes (as of 1-1-26), there will be no federal estate tax. In Massachusetts, the exemption has now risen to $2million. So in all likelihood, there will be no federal estate tax (and possibly no Massachusetts estate tax as well) to be paid upon death and the children will get to use the fair market value at date of death for purposes of determining capital gains and losses in the future. That is certainly a lot better than using the purchase price of the asset 50 years ago as the children’s starting point. 2. Control of assets. If assets are transferred to an irrevocable trust, the Settlor/Donor of the Trust can still maintain control over the trust assets by serving as Trustee. Even if the Settlor/Donor is not the Trustee, he or she can retain the power to remove the Trustee and name a successor trustee if he or she is not happy with the way the trust is being administered. If serving as Trustee of an irrevocable trust, the Settlor/Donor would not need the consent of the children to sell real estate that is housed in the trust. He or she could sell the real estate, invest in another piece of real estate or sell the real estate and simply invest the sales proceeds in a stock, bond, or mutual fund portfolio, money market account, annuity, etc. The key is that the irrevocable Trust must be drafted properly if the Settlor/Donor of the Trust is to serve as Trustee. The Settlor/ Donor cannot, under any circumstances, be entitled to receive any principal from the Trust. Only income can be distributed to the Settlor/Donor of such a Trust. 3. The irrevocable Trust has signifi cant more safeguards in terms of protecting the trust principal. Creditors of the children would not be able to attach the assets while held in the irrevocable trust. If the assets were given to the children directly, no such protection would be provided. There are so-called “spendthrift” provisions that are designed to protect the benefi ciary’s interest that is held in the irrevocable trust. The Settlor/Donor has the right under well-settled trust law to include such provisions in order to protect children against possible future creditors, spouses in a divorce proceeding or even against a bankruptcy fi ling. 4. The irrevocable trust will also protect a beneficiary’s own children if that benefi ciary were to die prematurely. The benefi ciary’s share will remain in trust for his or her own children with the trustee able to distribute income and/or principal for the children’s health, education, maintenance and support. Only at certain ages would the children be able to demand from the trustee to withdraw his or her share of the trust. If a benefi ciary is incompetent, or if the benefi ciary is suff ering from alcoholism, drug addiction or a gambling addiction, the trustee would have discretion not to allow for distributions of principal, which would only result in the money being squandered. Only an irrevocable trust can provide for this feature. Outright gifts simply cannot. 5. Capital gains exclusion on the sale of the home. An irrevocable trust will also provide for the Internal Revenue Code Section 121 capital gain exclusion on the sale of the principal residence in the amount of $250,000 for a single taxpayer and $500,000 for a married couple. Even though the house is placed in the trust, the exclusion will still apply. This avoids the situation where the house is sold by the children who might be the remainder men on the deed subject to a life estate in the mother or father. If the children do not live in the home, no exclusion is available to them. Only the portion of the sale attributable to the value of the life estate will be aff orded the capital gain exclusion. Furthermore, if the mother or father were on the verge of going into a nursing home, the sales proceeds attributable to the mother or father would have to be spent down on nursing home care. No such problem exists with an irrevocable trust. The irrevocable Trust is drafted as a grantor-type Trust thereby allowing the Settlor/Donor to take advantage of the capital gain exclusion on the sale of the principal residence. 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.
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