Page 10 THE SAUGUS ADVOCATE – FriDAy, JUly 17, 2026 SOUNDS | FROM PAGE 9 and bug spray and to gather with family and friends for an evening of outdoor entertainment, community spirit and summertime fun. For more information about Starlight Cinema, sponsorship opportunities or volunteer opportunities, please contact Saugus Community Television. Summer Reading time at the library The 2026 Summer Reading Program at the Saugus Public Library is underway and will last through Friday, Aug. 21. Here’s a summary of the program: WHO: Kids Pre-K through 6th grade. WHAT: Kids read the books they love, log their reading and earn prizes! They’ll enjoy reading what they love, free programs, crafts and activities. WHY: Don’t lose those hardearned skills! Summer reading plays a vital role in helping reTHE SOUNDS | SEE PAGE 12 IRREVOCABLE TRUSTS AND RENTAL REAL ESTATE R ental real estate is one type of asset that can be transferred to an irrevocable Trust without any adverse tax consequences. The real estate can also be sold by the Trust and the net sales proceeds therefrom can be used to purchase another piece of rental real estate at any time during or after the so-called “fiveyear look-back” period. Whenever you do transfer rental real estate to such a Trust, there is a five-year period that must elapse before this otherwise disqualifying transfer will no longer be considered a disqualifying transfer. In other words, once the five-year period has gone by, the assets held inside the Trust will not be countable for MassHealth eligibility purposes. There would also be no adverse income tax consequences associated with the sale of the rental property while held in the irrevocable Trust. In effect, the same capital gains taxes, if any capital gain to begin with, would be paid just as if the rental real estate were held directly in your name. A typical Medicaid irrevocable Trust is designed as an “income only” Trust, meaning the Trustee is obligated to pay out the income (if any) earned by the Trust to the Settlor (often referred to as the Grantor or Donor) of the Trust. “Net” rental income is “income”. Therefore, you would take all of your gross rents collected for the year and deduct all of the expenses attributable to the rental property in order to arrive at “net” rental income. The Settlor is the individual who creates the Trust and who is retaining the right to receive the income for the rest of his or her life. There cannot be any right to receive any “principal” from the Trust under any circumstances. If there is, the Trust will not qualify, and the assets held inside the Trust will be countable for purposes of MassHealth eligibility. To be technically correct, each tenant would write out a check made payable to the Trust. You would apply for a federal ID number in the name of the Trust and once obtained, open up a checking account in the name of the Trust. You may also wish to file a separate Trust income tax return to report the rent income and rent expenses for each calendar year. The federal form is Form 1041 and the Mass form is Form 2G. These types of Trusts are drafted in such a way as to be treated as “Grantor-type” Trusts for federal and state income tax purposes as the Settlor is considered to be the “owner” for federal income tax purposes. Therefore, the Trust will not pay any federal or Mass income taxes if there is any net rental income (i.e. a profit). Rather, the Trust will issue a Grantor Letter to the Settlor that would be utilized by him or her in preparing an individual income tax return. The Grantor Letter is what allows you to figure out how much income to report on your individual income tax return. These Medicaid irrevocable Trusts are therefore designed to be income tax neutral, resulting in no increase or decrease in income tax liability to the Settlor. If the rental real estate is sold by the Trust, the net sales proceeds therefrom must be retained in Trust and the Settlor would then be entitled to the investment income generated therefrom, whether it be from interest income, dividend income or capital gain income. In the alternative, if replacement real estate is purchased, title must be held in the same Trust and not be purchased by the Settlor in his or her own name. Otherwise, that would start the five year look back period all over again. 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. Savvy Senior by Jim Miller Should You Get a Heart Calcium Scan? Dear Savvy Senior, I just turned 58 and heart disease runs in my family. My cholesterol has been creeping up, and I’ve been hearing about a scan that can show your actual heart risk. Is that something I should look into? --Heart Worried Dear Worried, You’re smart to think about this now. For years, cholesterol numbers have been the main way to estimate heart disease risk. But there’s another tool gaining attention that can offer a more direct look: a coronary artery calcium scan, or CAC scan. This quick, noninvasive test looks for actual plaque buildup in your heart’s arteries, not just the risk of developing it. Here’s why that matters. High cholesterol suggests you might develop heart disease someday. But calcium in your arteries means some disease is already present. The higher your calcium score, the greater your risk of a future heart attack or stroke. That makes this test especially useful for people like you with a family history and borderline numbers. How it works A CAC scan is a specialized CT scan that takes about 10 minutes and doesn’t require needles or dyes. You simply lie on a table while the scanner takes images of your heart. It uses a small amount of radiation, similar to a mammogram. The result is a calcium score that reflects how much plaque is in your arteries: • A score of zero means no detectable plaque. • A score from 1 to 100 indicates mild plaque. • A score from 100 to 299 suggests moderate buildup. • A score of 300 or higher points to more serious disease. This number gives you and your doctor something concrete to work with. Instead of guessing about your risk, you can make more confident decisions about whether to start a statin or focus on lifestyle changes alone. Who needs it Not everyone needs a CAC scan. It’s most helpful for adults over 40 who have some risk factors, like high cholesterol, high blood pressure, or a family history of heart disease, but aren’t clearly high or low risk. If your risk level is uncertain or you’re hesitant about taking a statin, the scan can help break the tie. It can also be a strong wake-up call. Many people who see plaque on their scan are more motivated to take medication, improve their diet, lose weight, and stay active. Getting one CAC scans are widely available at hospitals and imaging centers that offer CT services. You’ll usually need a doctor’s order, but some centers offer self-pay screenings you can schedule yourself. The scan typically costs about $75 to $200 out of pocket and usually isn’t something you need to repeat very often. Results are often available quickly, sometimes within a day or two. A couple of caveats: A score of zero doesn’t mean you have no risk, and the test isn’t meant for diagnosing symptoms like chest pain. It’s just one piece of the puzzle and should be considered along with your overall health picture. Given your age, family history, and slightly elevated cholesterol, a CAC scan could be a very useful next step. It’s worth having a conversation with your doctor to see if it makes sense for you. Send your questions or comments to questions@savvysenior.org, or to Savvy Senior,P.O. Box 5443, Norman, OK 73070.
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