Page 16 THE SAUGUS ADVOCATE – FriDAy, MAy 3, 2024 OBITUARIES F ADVANTAGES AND DISADVANTAGES OF MAKING GIFTS hands of your child, the asor many taxpayers, making lifetime gifts can result in estate tax savings, particularly for those taxpayers residing in Massachusetts. No income taxes are paid when the donee of the gift receives the gifted property. Gifting may also allow you to shift income from the top income tax bracket of a parent to a lower income tax bracket of a child or other relative. When you gift to a child, you do have the benefit of seeing your child enjoy the gifted asset during his or her lifetime. You can also get to see how well your child manages the money or other property gifted to him or her. By observing how a child is managing gifted monies, you can adjust going forward by either making additional gifts or by deciding to place property in a trust for the benefit of a son or daughter. Gifting to a child may also offer some asset protection as it might serve to spread out the risk of losing assets. Of course, there cannot be a transfer in defraud of a creditor. A disadvantage to gifting is that you will no longer have legal title to the asset gifted away. The donor of the gift needs to be relatively certain that he or she will not need the asset going forward. Therefore, you should evaluate your financial needs and corresponding resources before you decide to gift away assets. Also, once in the set would be at risk for his or her creditors including his or her spouse in a divorce proceeding. You also have to consider whether or not making a gift to a child will take away the child’s incentive to make it on his or her own. It might not be such a good idea to give assets to children too soon. It is always good when children are a little bit hungry. It usually brings out the best in them. A sink or swim mentally takes over. As your children are older and more established, making lifetime gifts in Massachusetts will serve to reduce your taxable estate. Since there is no gift tax in Massachusetts, such gifts result in no gift tax and will escape estate taxation upon your death. Any taxable gift (i.e. gifts to any donee each year in excess of $18,000) will serve to reduce your Massachusetts $2,000,000 estate tax lifetime exemption for purposes of being required to file a Massachusetts estate Margaret Ann “Peggy” tax return. If you gave $2million to your son Charlie during your lifetime and still had a $500,000 bank account in your name upon your death, the $500,000 would be taxed as part of your Massachusetts taxable estate because you still owned the $500,000 at the time of your death and you used up your $2million estate tax filing threshold exemption. Therefore, even though your gross estate was under $2million at the time of your death, all of the $500,000 would be subject to the estate tax. Many taxpayers do not realize this is how the Massachusetts estate tax works. However, giving away the $2million may very well have saved $99,600 in Massachusetts estate taxes. There is not too much concern with federal estate taxes for most people as the federal lifetime exemption is now over $13million for each decedent’s estate. However, if the 2017 tax act is not extended, the federal estate tax exemption will drop to approximately $6million come January 1, 2026. Also keep in mind whether you give directly to a child or to an irrevocable Trust, you do start the fiveyear look back period for purposes of protecting assets as part of a Medicaid asset protection plan. Joseph D. Cataldo is an estate planning/elder law attorney,Certified Public Accountant, Certified Financial Planner, AICPA Personal Financial Specialist and holds a masters degree in taxation. receive a patent, which was for weaving straw, silk and thread to make what accessory? 1. Miles Standish was the caption of what ship? 2. On May 3, 1978, the first spam email ever was sent – on what internet predecessor? 3. In what year did the Olympic Games at the Paris Exposition Universelle include fireman’s drills, carrier pigeons and ballooning: 1876, 1900 or 1941? 4. According to the Dull Men’s Club, data shows that “10-minute bursts of activity” doing household chores benefits what? 5. May 4 is Bird Day; the Bird Day founder suggested that students should recite “bird facts and proverbs” like “A bird in the bush is worth two in the __”? 6. What substance (starts with “t”) makes redwood tree bark red? 7. What language does the name of the 1955 Little Richard song “Tutti Frutti” come from? 8. On May 5, 1809, Connecticut’s Mary Kies was the first American female to 9. What six letter word ends in “mt”? 10. Where is the “Cherry Blossom Capital of the World”: Paris, France; Macon, Georgia; or Osaka, Japan? 11. On May 6, 1957, was the last episode of what sitcom that had a Cuban costar? 12. What is the collective noun for a bunch of bananas? 13. May is AAPI Heritage Month; what does AAPI stand for? 14. On May 7, 1840, what composer of “Swan Lake,” (Shortsleeves) Harlow ers Jack Short, Arthur Shortsleeves, James Shortsleeves, and William Shortsleeves. A true giver at heart, Peggy loved to serve others and has been a member of both the Malden Moose, and the Ladies Auxiliary of the Fraternal Order of Eagles. Peggy always enjoyed children, and they always loved her. In her work she lovingly cared for two boys with special needs for 17 years. Together, Peggy and HenO f Saugus. We are heartbroken to announce Margaret Ann passed away peacefully on April 25, 2024, with her son by her side. She was 79 years old. Peggy was born November 28, 1944 in Revere, MA. She grew up in Malden, MA, and attended Malden High School. Peggy was most recently a longtime resident of Saugus. She is survived by her longtime partner, Henry Colella of Saugus, her son, William Olson and wife Sandra Olson of Derry, NH, her sister Liz Culver and husband Casey of Everett, MA, and grandsons, Nicholas, Thomas, and Benjamin Olson of NH. Also survived by her sister in laws, Irene Callahan Short and Marianne Shortsleeves as well as 17 Nieces and Nephews. Peggy was predeceased by father, John Shortsleeves and mother, Margaret Graffam of Malden, MA, broth“The Nutcracker” and the “1812 Overture” was born? 15. Who is the Greek Goddess of Spring? 16. On May 8, 1961, the New York Metropolitan Baseball Club, Inc. chose what nickname? 17. How are Diana, Florence and Mary similar? 18. What German word means “desire to hike”? 19. What island country gets most of its energy geothermally and from hydroelectricity? 20. On May 9, 1914, President Woodrow Wilson proclaimed Mother’s Day on the second Monday of May; what is the day’s traditional flower? ry cruised the world. She especially enjoyed cruising the Mediterranean; touting Turkey, Greece, and Santorini as her favorites. Having sailed on 77 different cruises, she and Henry received a certificate commemorating more than 2 years at sea. Visiting hours will be held at the A. J. Spadafora Funeral Home, 865 Main Street, Malden on Saturday, May 4th from 12:00pm-2:00pm. A service will be held at 1:30pm during the visitation. Relatives and close friends are respectfully invited to attend a dinner following the service at 2:30pm at Anthony’s, 105 Canal St Malden. Mark A. Whelton assed away unexpectedly on April 15, 2024 after a courageous battle with multiple health issues at the age of 65. Born on September 15, 1958 in Saugus, MA, he was the son of the late John Whelton and Ruth (Mahoney) Whelton. OBITS | SEE PAGE 17 P ANSWERS 1. 2. 3. 4. 5. 6. 7. 8. 9. The Mayflower The U.S. Defense Dept.’s Advanced Research Projects Agency Network (ARPAnet) 1900 Health (“lowers risks of heart attack, stroke, and death”) Hand Tannin Italian (means “all fruits”) Hats Dreamt 10. Macon 11. “I Love Lucy” (Desi Arnaz) 12. Hand 13. Asian American and Pacific Islander 14. Pyotr Ilyich Tchaikovsky 15. Persephone 16. New York Mets 17. They are first names of The Supremes (last names: Ross, Ballard and Wilson, respectively) 18. Wanderlust 19. Iceland 20. Carnation
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