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THE SAUGUS ADVOCATE – FriDAy, SEpTEmbEr 20, 2024 Page 19 SOUNDS | FROM PAGE 18 low Saugonian? This is an opportunity for our paper’s readers to single out – in a brief mention – remarkable acts or achievements by Saugus residents or an act of kindness or a nice gesture. Just send an email (mvoge@ comcast.net) with a mention in the subject line of “An Extra Shout Out.” No more than a paragraph; anything longer might lend itself to a story and/or a photo. Library features “paranormal investigation” on Oct. 3 “Paranormal Investigation with Don DeCristofaro” will be featured at the Saugus Public Library on Thursday, Oct. 3, from 6-7 p.m. in the CommuAuthor Laurie King’s virtual visit on Oct. 7 Residents who use the Saugus Public Library will be able to have an hour-long virtual visit with Laurie King, The nity Room. Don will discuss paranormal investigation in general, then get into some memorable investigations, including Conjuring House, Hell House and the USS Salem. The USS Salem is a post–World War II Heavy Cruiser and is considered to be the most actively haunted location in New England! Don will share video, photographic and audio evidence with the audience. Please register in advance using our online Events Calendar: https://www.sauguspubliclibrary.org/events. New York Times bestselling author of the Mary Russell & Sherlock Holmes series, via Zoom on Monday, Oct. 7, at 7 p.m. Mystery lovers everywhere are welcome to meet the writer of one of the most celebrated mystery series – featuring Sherlock Holmes’ apprentice, Mary Russell, and the great detective himself – and celebrate the 30th anniversary of the publication of “The Beekeeper’s Apprentice,” the first book in the series. Follow the unlikely pair from their first meeting when the great detective, now retired, mistakes 15-year-old Mary Russell for a boy, to their most recent adventure uncovering Sherlock Holmes’s family secrets in “The Lantern’s Dance.” Library visitors can register for An Evening with Laurie King at https://www.sauguspubliclibrary.org/events or https://www.eventkeeper.com/code/ekform.cfm?curOrg=SAUGUS&curID=722396 Every registrant will be entered to win A Beekeeper’s Apprentice Gift Basket! See the photo with this week’s “The Sounds of Saugus.” Knights begin planning flea market and craft fair The Knights of Columbus Council 1829 plans to hold its Festive Holiday Flea Market and Craft Fair on Saturday, Oct. 19 from 9 a.m. to 3 p.m. at 57 Appleton St. The huge indoor affair is still several weeks away. But it’s not too early for participants to begin planning. Vendor space for this year’s event will be $30 with free THE SOUNDS | SEE PAGE 20 LEGAL NOTICE SAUGUS BOARD OF SELECTMEN PUBLIC HEARING Notice is hereby given that the Saugus Board of Selectmen will conduct a Public Hearing on the request of PPT Hospitality, LLC, 255 Main Street, Unit A, Boxford, MA 01921, d/b/a Dumpling Garden, for a Common Victualer’s License and Entertainment License, to operate Dumpling Garden, 467 Essex St, Saugus, MA 01906, Saugus, MA 01906. This public hearing will be held on September 24, 2024, Saugus Town Hall auditorium, second floor, 298 Central Street, Saugus, MA at 7:05 PM. CAPITAL GAINS TAX AND IRREVOCABLE TRUSTS M any people question if they place real estate into a Medicaid qualifying trust what will happen upon the death of the Donor/Settlor/ Grantor some years down the road. If the irrevocable trust is drafted properly, the real estate will receive a full stepup in cost basis equal to the fair market value at the time of the Settlor’s death. Therefore, going forward, the original purchase price and improvements over the years become irrelevant. The beneficiaries of the Trust are treated as if they paid fair market value for the real estate at the time of the Settlor’s death. Why is this important? If the children/beneficiaries were to sell the appreciated property shortly after the Settlor’s death, there would be little or no capital gains tax to pay. The capital gains tax to be paid would be based upon any further appreciation between the time of death and the subsequent sale. As an example, let’s assume the Settlor purchased his home for $500,000 with approximately $100,000 in improvements during the Settlor’s lifetime. The cost basis in the hands of the Settlor in this case would be $600,000. If the Settlor had subsequently transferred his home to an irrevocable trust, and died 10 years later when the value of the home was $1,000,000, the children could be looking at a total rate of 28.8%, or $115,200. When you simply gift an appreciated asset outright to the children, there is what we call a “carry-over” basis in the hands of the children. That is to say, the cost basis in the hands of the Settlor becomes the cost basis in the hands of the children. No step-up in cost basis occurs. This concept of a step-up the cost basis in the hands of the beneficiaries would be $1,000,000. If the property were sold by the beneficiaries for $1,000,000, there would be no capital gain, and hence, no capital gains tax to be paid. If, however, the Settlor had simply given the property to his children without first transferring to such an irrevocable trust or without reserving a life estate within the deed of conveyance itself, a future sale by the children for $1,000,000 would result in a capital gain of $400,000 with a corresponding federal (15%) and Massachusetts (5%) capital gains tax to be paid of $80,000. Depending on the other income of the children, the federal capital gains tax rate could be as high as 20%. Furthermore, you might also get hit with the federal “net investment income tax” of 3.8%. Instead of the total rate being 20%, in cost basis would also apply to appreciated securities such as a brokerage account, common stock, preferred stock, etc. Reserving the right to use, occupy and possess the real estate during the Settlor’s lifetime will result in a step-up in cost basis upon the Settlor’s death. Reserving the right to receive the income generated by the assets housed in the Trust would also result in a step-up in cost basis upon the Settlor’s death. In order to obtain the benefit of Internal Revenue Code Section 121, which allows for the $500,000 capital gains tax exclusion for a married couple when the principal residence is sold, a provision allowing for a lifetime limited power to appoint Trust principal to charities will accomplish that objective. Joseph D. Ca taldo is an esta te planning/elder law a ttorney,Certified Public Accountant, Certified Financial Planner, AICPA Personal Financial Specialist and holds a masters degree in taxation. Debra Panetta, Chair Meredith K. Casagrande, Clerk September 20, 2024 ~ LEGAL NOTICE ~ Extension of Special Permit Saugus Board of Selectmen Public Hearing Notice is hereby given that the Saugus Board of Selectmen will conduct a public hearing on the transfer of an All Alcohol liquor license, from 44 Broadway Restaurant Group, Inc, d/b/a Oye’s Restaurant & Bar, 44 Broadway, Saugus, MA, to Family AP Corp., d/b/a Tribu Mexican Kitchen & Bar, Paul Mongui & Abner Gonzales, new owners. Paul Mongui, 271 Reservoir Ave, Revere, MA & Abner Gonzales, 614 Tremont St, #2, Boston, MA, Owners and Paul Mongui, Manager. This hearing will be held in the Saugus Town Hall Auditorium, second floor, 298 Central Street, Saugus, MA, on September 24, 2024 at 7:30 PM. Debra Panetta, Chairman Meredith K. Casagrande, Clerk September 20, 2024 ~ LEGAL NOTICE ~ Extension of Special Permit Saugus Board of Selectmen Public Hearing Notice is hereby given that the Saugus Board of Selectmen will conduct a Public Hearing on the request of Family AP Corp., 44 Broadway, Saugus, MA, d/b/a Tribu Mexican Kitchen & Bar, for a Common Victualer’s License and Entertainment License, to operate Tribu Mexican Kitchen & Bar, 44 Broadway, Saugus, MA 01906. Paul Mongui, 271 Reservoir Ave, Revere, MA & Abner Gonzales, 614 Tremont St, #2, Boston, MA, Owners and Paul Mongui, Manager. This hearing will be held in the Saugus Town Hall Auditorium, second floor, 298 Central Street, Saugus, MA, on September 24, 2024 at 7:25 PM. Debra Panetta, Chairman Meredith K. Casagrande, Clerk September 20, 2024

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