UltraTrust Irrevocable Trust Asset Protection

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Will vs Trust: Top 5 Differences You Need to Know

   Watch the video on  Like this video? Subscribe to our channel. Living trusts (revocable trusts) and wills are methods for carrying out your wishes and providing instructions for disposing of your real and personal property when you die. Both documents offer instructions for your representative about how you want your assets distributed in the event of your death, but there are huge differences that can make a will or a living trust preferable over the other when preparing your estate plan.   Although the documents might appear on the surface to be similar, there are five top differences that you absolutely need to know when making a decision about which one to use:   1. Will vs Trust: Avoid probate.   When considering a will vs trust, avoiding probate is the single biggest reason why people set up revocable trusts. Why would someone want to avoid probate you ask? Probate proceedings frequently require costs for the services of an attorney, court fees, appraisers, accountants, and other expenses that can reduce the value of the estate you are trying to leave to your children, spouse and heirs upon your death. In fact, probate can eat as much as 5-10% of an estate depending on circumstances. The preparation of court petitions, appraisals and property inventories, as well as the notification of heirs and others named in a will can make probate proceedings long and drawn out and can last 6-12 months if there are no unexpected challenges.   As a public hearing, probate gives outside creditors the ability to make a claim on the assets to be distributed; those include legitimate creditors and questionable ones. For example, your mother’s friend comes out and makes a claim stating that she lent your parents $50,000 in 1971. Nobody recalls, there are minimal written records, your parents never mentioned it, and they are not around to challenge her claim. What happens?   The court may hire an investigator and the cost of the investigator comes out of the assets and the time to investigate could be 3 additional months. Perhaps they eventually settle for $25,000. After all creditors are paid, the judge then reviews the will and tries to abide by the wishes. However, then your brother is upset that he did not get an equal share, so he challenges it; claiming your father did not have a healthy mental state when he signed the will or another dozen reasons used to challenge it. This could delay the process for 4-6 month and the cost of expert witnesses could dwindle the estates assets further. The judge ultimately makes the final decision who gets what, and hopefully he follows the will to the best of his ability, but do you really want to rely on someone else that you don’t know to make the final determination?   A living trust avoids probate completely, and all of the potential pitfalls that come with a probate hearing, by allowing your successor trustee to distribute your assets according to the terms of your trust agreement. Property can be distributed to the people you have named in the trust immediately without the costs and delays of court proceedings. Finally, another benefit is that there is no public scrutiny or open doors for claims to be made that are not legitimate during a probate hearing. A revocable trust, however, offers no estate tax planning benefits. The assets are treated by the IRS, Medicaid, and creditors as if you owned them outright.   2. Will vs Trust: Privacy concerns   When considering a will vs trust, you should know that your will becomes a public record once your will is filed in a probate proceeding after your death. If  you wish to keep your personal and financial affairs confidential, a living trust might be a better option than a will because it does not have to be filed in a public court if you die. When the creator, also known as Grantor or Trustor, of a trust dies, a probate or other court is not involved in any proceedings to distribute the assets owned by the trust. Typically with a living trust, there is a successor trustee and he is responsible to review and follow the terms of the trust agreement for the distribution of the assets. The laws in some states require that the beneficiaries named in a living trust be given a copy of it after the death of the trust creator. Other states only provide the beneficiaries with the portion of the trust agreement that pertains to them in order to maintain the privacy of the deceased.     3. Will vs Trust: Ease of creation.   Although, when considering between a will vs trust, you should know that a living trust tend to be slightly more complex and can require greater effort to prepare than a will depending on how complex your attorney makes it (example: do you leave out your brother with a no-contest clause, or do you leave him a little something so that he does not spend money challenging the will?). Aside from legal requirements concerning their signing in the presence of witnesses, most states do not require specific language for a will, and some states even accept handwritten wills for probate as long as they are signed in the presence of the state-mandated number of witnesses.     Living trusts, on the other hand, typically specify the duties of the trustee, who is typically yourself and the terms can be changed at any time, and how property is to be managed during your lifetime. The details that must be included in a living trust can make them more complicated than a simple will. Even though wills might seem to be more complicated as far as requiring the presence of witnesses during the signing process, living trusts must be signed in front of a notary public – typically found at your local banking branch and costs little to nothing. The requirement that

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Geston v. Olson. CASE NO. 1:11-CV-044. .857 F.Supp.2d 863 (2012)

GESTON v. OLSON CASE NO. 1:11-CV-044. 857 F.Supp.2d 863 (2012) John and Carolyn GESTON, Plaintiffs, v. Carol K. OLSON, in her official capacity as Executive Director of the North Dakota Department of Human Services, Defendant. United States District Court, D. North Dakota, Southwestern Division. April 24, 2012. Order Denying Motion for Stay Pending Appeal August 1, 2012.   Gregory C. Larson Jeanne M. Steiner, Attorney General’s Office, Bismarck, ND, for Defendant.   ORDER GRANTING PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT AND DENYING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT   DANIEL L. HOVLAND, District Judge.   This is a Medicaid eligibility case. Before the Court are cross-motions for summary judgment filed on August 22, 2011, and October 3, 2011, respectively. See Docket Nos. 10 and 13. A number of responsive pleadings were filed by both parties thereafter. See Docket No’s. 16, 20, 27, 31, and 34. Oral argument was held in Bismarck, North Dakota, on April 12, 2012.   I. BACKGROUND.   Plaintiff John Geston is a 73-year-old resident of the Missouri Slope Lutheran Care Center (Missouri Slope), a skilled nursing home facility located in Bismarck, North Dakota. He is considered the “institutionalized spouse” for Medicaid purposes. John Geston resided at Edgewood Vista Memory Care facility (Edgewood Vista) prior to moving to Missouri Slope. The cost of his care is $219.25 per day. See Docket No. 21-1. Plaintiff Carolyn Geston is married to John Geston. She lives in her home in Bismarck and is considered the “community spouse” for Medicaid purposes.   The defendant, Carol K. Olson, is the Executive Director of the North Dakota Department of Human Services (DHS). North Dakota has elected to participate in the Medicaid program and has designated DHS to implement the program. N.D.C.C. § 50-24.1-01.1. As Executive Director of DHS, Olson is responsible for the administration of the Medicaid program for the State of North Dakota. The Burleigh County Social Services Board acts under the direction and supervision of theDHS to administer the Medicaid program in Burleigh County, North Dakota.   John Geston entered Missouri Slope on April 19, 2011. His application for Medicaid benefits was filed with the Burleigh County Social Service Board on April 29, 2011. See Docket No. 15-1. An asset assessment was included with the application. See Docket No. 15-6. Eligibility rules limit the amount of assets or resources1 a married couple may possess and still qualify for Medicaid. The asset limit for the “institutionalized spouse” is $3,000. The asset limit for the “community spouse” is $109,560. The asset assessment determined that the Geston’s total countable assets were $699,144.80. as of July 21, 2010, the date John Geston entered Edgewood Vista. See Docket No. 15-6. Subtracting the Geston’s combined asset allowance of $112,560 produced an excess asset calculation of $586,854.80.   Thus, it was necessary to spend down the assets if John Geston was to be eligible for Medicaid benefits. A new car and home were purchased along with prepaid burial services, all of which are considered to be exempt assets. Carolyn Geston also purchased an annuity. See Docket No. 11-1. The single premium annuity was purchased on November 24, 2010, from Employees Life Company (Mutual) for $400,000. The annuity had an effective date of December 6, 2010, and provides Carolyn Geston with monthly income of $2,734.65. The income of the “community spouse” is not taken into consideration in making a Medicaid eligibility determination for the “institutionalized spouse.” The annuity is irrevocable, unassignable, and nontransferable. The annuity has a benefit period of thirteen (13) years, which period is actuarially sound because it is less than Carolyn Geston’s life expectancy which is slightly more than thirteen years. The North Dakota Department of Human Services is named as the primary beneficiary in the first position for at least the total amount of Medicaid benefits paid on behalf of the Gestons.   The record reveals that John Geston applied for Medicaid benefits on April 29, 2011. See Docket No. 21-1. The Medicaid application was denied on June 8, 2011. See Docket No. 11-2. The basis for denial was that the Gestons’ countable assets, which were calculated at $454,691.33, exceeded the $112,560 maximum. The annuity was valued at $383,592.10 which represented the purchase price minus the annuity payments already made. Carolyn Geston’s annuity failed to meet the criteria set forth in N.D.C.C. § 50-24.1-02.8(7)(b) and the annuity was determined to be a countable asset. If the corpus of Carolyn Geston’s annuity was not treated as a countable asset, John Geston would be eligible for Medicaid benefits.   This action was commenced in federal court on May 13, 2011. See Docket No. 1. The action is brought pursuant to 42 U.S.C. § 1983 and the Supremacy Clause. U.S. Const. art. VI. para. 2. The Gestons seek injunctive and declaratory relief declaring N.D.C.C. § 50-24.1-02.8(7) invalid and preempted by federal law because it is more restrictive than federal law and impermissibly allows DHS to consider a community spouse’s income in determining an institutionalized spouse’s Medicaid eligibility. The Court has federal question jurisdiction as the primary issue is whether thefederal Medicaid Act has been violated. See 28 U.S.C. § 1331.   II. STANDARD OF REVIEW.   Summary judgment is appropriate when the evidence, viewed in a light most favorable to the non-moving party, indicates that no genuine issues of material fact exist and that the moving party is entitled to judgment as a matter of law. Davison v. City of Minneapolis, Minn., 490 F.3d 648, 654 (8th Cir.2007); seeFed.R.Civ.P. 56(c). Summary judgment is not appropriate if there are factual disputes that may affect the outcome of the case under the applicable substantive law. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). An issue of material fact is genuine if the evidence would allow a reasonable jury to return a verdict for the non-moving party. Id.   The Court must inquire whether the evidence presents a sufficient disagreement to require the submission of the case to a jury or whether the evidence

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Buying Notes with your Self-Directed IRA

Buying Notes with your Self-Directed IRA   Now that you know the basics of a Self-Directed IRA, let’s dive into some of the leading trends in Self-Directed Investing. With all of the stock market uncertainty, investing in notes has become increasingly attractive using tax-deferred funds in your IRA or retirement plan. Notes can be a great option because the payment streams come into your IRA and in the final analysis, on a first trust deed, the worst case is that you own the property. Best of all, discounted notes can be purchased for pennies on the dollar.   Investing in real estate and notes is just like any other transaction that uses a third-party entity as the owner. Here are some rules to keep in mind when considering note-buying with your Self-Directed IRA:   The IRA owner cannot receive any benefit from the IRA or its assets. Specifically: No living on the property. No direct receipt of income related to the property. Income is only permissible when it is proportionate to the investment. The IRA cannot deal with you or any disqualified persons. This includes parents, spouses, children, and some business associates.   Qualified plans assets, such as an office building invested in or by a plan, can have a certain part allocated to having you rent space for the purposes of the plan (we suggest consulting an attorney for more information).   How to get started buying notes with your self-directed IRA:   Once you’re ready to start investing, a direction of investment form must be completed when purchasing a real estate note. By utilizing an IRA administrator, you can guarantee your directions will be executed in a detailed and timely manner, assuring efficient transactions.   When a title or escrow company is involved, make sure that all instructions are provided for all documents in your account. Title or escrow companies may have additional requirements for your transactions than ours, so please be aware.   Your administrator must receive all loan documentation before funding can take place. Funding may not be initiated without a full loan package; this includes a trust deed and note, title insurance (if applicable), and appropriate vesting.   As your record keeper, your IRA administrator may receive payments directly from your payer as well as process loan payments. They also keep all original documentation for your convenience.   FREE copy of Wendy Patton’s book “Investing in Real Estate with Lease Options and ‘Subject To’ Deals” ($20 Value). You also receive the “Tax-Free Retirement Blueprint” for free (an $85 value) And a FREE 30-minute Self-Directed IRA strategy session (a $100 value)   That’s an extra $205 in bonuses and discounts!   By investing in notes, you are investing in a tangible asset. By investing with your Self-Directed IRA, you are guaranteeing tax-free returns on those investments, making it a great alternative to the stock market. For more information on buying notes in your Self-Directed IRA, or any of the options available to you by Self-Directed investing, call us toll-free at 888-938-5872.   Take back control of your retirement and stop losing money to the fund managers. Contact us today!   888-938-5872

Irrevocable Trust, Trusts, Uncategorized

Advantages of Trust

Advantages of a Trust   Trusts are a powerful tax planning tool but they also have many other uses which are of equal if not greater importance. A properly drafted and managed trust can confer advantages under any or all of the following:   Asset protection   Trusts can be used very effectively to protect assets. In simple terms, assets transferred to a trust no longer belong to the grantor and therefore if the grantor experiences financial problems the trust assets cannot be attached by the creditors of the grantor due to bankruptcy, dissolution of marriage, or a court award made as a result of, for example, a professional negligence claim. Thus, although the grantor may be declared insolvent, a portion of his assets might be safeguarded by the trust structure.   Tax planning   Assets transferred into a suitably drafted trust structure are, in simple terms, no longer considered as belonging to the grantor and therefore the income and capital gains generated by those assets are taxed according to the rules in the country of residence of the legal owners – the trustees.   Inheritance tax would normally be eliminated because the trustees would not die upon the death of the grantor. Generally speaking, trusts can be extremely effective for tax planning purposes and a correctly structured and administered trust will produce substantial savings in income tax, capital gains tax and inheritance tax/estate.   Avoiding the expense and delays of the probate process   The death of the head of the family will usually result in major disruption of the family estate whether or not there is a will. In most common law jurisdictions the estate must go through the probate procedure with much consequential delay, expense, publicity and upheaval.   By establishing a trust, probate can be avoided because “death” will have no effect on the trust property which will continue to be held and managed in confidence by the trustees in accordance with the terms of the trust.   Confidentiality   Assets in a trust are completely confidential, it’s a private matter. Assets NOT in a trust, goes to probate, with or without a will. The “probate procedure” a public procedure. A complete list of all the property owned by the deceased becomes a PUBLIC RECORD in order that that property can be assessed for estate taxes and in order that the property can be legally transferred to the executors who may then distribute to the legal heirs of the deceased according to the will.   This probate procedure is therefore entirely unsuitable for those who wish to keep details of their assets confidential.   Avoiding forced heirship   In non-common law jurisdictions there will often be questions of forced heirship to consider i.e. the deceased will not be permitted to leave his property to anyone he wishes on his death. This problem of forced heirship can be avoided by a properly drafted trust.   Estate planning   Many people do not want their assets to pass outright to their heirs, whether chosen by them or as prescribed by law, and prefer to make more complicated arrangements. These might involve providing a source of income for a widow for life, making provision for the education of children or providing a fund to protect members of the family in the event of sudden illness or other disasters. A trust is probably the most satisfactory and flexible way of making arrangements of this kind.   Protecting the weak   A trust provides a vehicle by which a person can provide for those who may be unable to manage their own affairs such as infant children, the aged, the disabled and persons suffering from certain illnesses.   Preserving family assets   Preserving the family assets or increasing them is often a motive for setting up a trust. Thus, an individual may wish to ensure that wealth accumulated over a lifetime is not divided up amongst the heirs but retained as one fund to accumulate further, with provision for payments to members of the family as the need arises while preserving some assets for later generations.   Continuing a family business   A person who has built up a business during a lifetime will often be concerned to ensure that it continues after death. If the shares in the company are transferred to trustees prior to death a trust can be used to prevent the unnecessary liquidation of a family company. The terms of the trust will ensure that the individual’s wishes are observed. These might include provision for payments to be made to members of the family from dividend income received by the trustees but that the trustees retain the shares and keep the company running save in special circumstances justifying sale of control or liquidation. This may be particularly advantageous where the family members have little business experience of their own or where they are unlikely to agree on the correct way to manage the business.   Gaining flexibility   The best laid plans can, in a changing world, rapidly become obsolete. A discretionary trust can, however, be structured to provide for a system of management of property that is capable of rapid change as circumstances demand. An irrevocable trust, is an asset protection fortress when it’s the owner of your sub “S” stock, a limited liability company, the general partner of a limited partnership, the general partner of a family limited partnership, the shareholder of an international business corporation, or other recognized legal entities.

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Defer Capital Gains, Defer Income Tax

Steps to Defer Your Capital Gains Tax for Any Highly Appreciable Assets & Defer Your Income Tax for Any Income Stream or Salary Alternative, Uncompromising & Exclusive Estate Planning & Wealth Preservation for Your Chartered Blueprint to Accelerated Financial Success. For individuals of high net worth, “affluent” investors, entrepreneurs, industrialists, physicians, senior executives, key employees, brokers, entertainers, personalities, any highly compensated or with commercial rights to income streams….patents, royalties, rent, day trading, etc…   Don’t blame your accountant. We specialize in tax-deferred, wealth preservation strategies. Financial engineering, with a twist. How many attorneys and accountants could expound on such divergent concepts as: VEBAs, ESOPs, offshore employee leasing, transfer pricing regulations, CFC regulations, Foreign Sales Corporations (FSCs), small insurance companies, shared appreciation, equity stripping, charitable support organizations, private foundations, Section 1031 transfers, Section 1035 transfers, offshore foundations, private annuities, etc.   Dance your way around the Tax-Man. In an increasingly specialized world, it’s impossible for attorneys and accountants to keep abreast of all changes outside their narrow areas of practice. Most advisors have not become proficient in finding ways to help their clients with specialized tax strategies and tax advantaged solutions. The combination of factors: (a) the newness of the concepts and (b) the complexity and difficulty of the subject matter, has kept this to a focused few.   Asset protection, wealth preservation, tax avoidance, and tax reduction is a building block solution. Call me if you have a complex financial goal. We have a network of bonded and licensed real-world financial experts, across boundaries, on a domestic and international platform, with complete discretion, legal, and tax compliance of your transaction(s).   Two dynamic Tax-Deferral strategies with a surprising twist:   Defer (postpone) your capital gains taxes, up to 30 years. Defer taxes on your salary, on any income stream. (Updated for the “Dreaded Phase-Ins of the 2001 Tax Act.”)   (1) Defer Your Capital Gains Taxes on any Highly Appreciated Asset:   Based on your life expectancy, your taxes can be tax-deferred up to 30 years. “Deferred” means “Postponed.” Qualifying appreciated assets include:   the sale of your real estate the sale of your business your stocks, bonds, collectibles, art work, antiques, boats, planes ANY HIGHLY APPRECIATED ASSET(S) a note receivable that’s at least 2 years old your lottery winning, etc. Example: $1million = $17.4million tax-deferred in 30 years.   A $1million capital gain will tax-defer an immediate Federal Capital Gains taxes of $200,000 plus your state capital gains taxes. $1million (assumed) re-invested @10% for 30 years, will accumulate $16.5milliong of “tax-deferred” Income. At the date of your death, you will eliminate the very public probate jail process, court costs, probate fees, and You will tax-defer $9.6million of federal inheritance taxes, plus your state inheritance taxes. Total Tax Deferred summary:   Original Capital Gain $1,000,000 Federal Capital Gain Taxes @ 20% $200,000 State Taxes on Capital Gain @ 9% $90,000 Tax-Deferred Income 1million @10%, 30 years $16,449,402 Federal Inheritance Taxes Deferred @ 55% $9,597,171 State Inheritance Taxes Deferred @ 9% $1,570,446 Total Available to Your Heirs $17,449,402   When this transaction is appropriately engineered and implemented by a qualified competent professional, your taxes may be postponed up to 30 years.   “Knowledge” is our most important “product.”   This series of financial transactions are complex. Not for everybody, one size does not fit all. It requires careful attention and professional competent implementation. It’s a legitimate, logical, and suitable method of tax deferral. To see if you qualify, contact us directly.   Ultimately, the complexity of these transactions are not done over the internet, telephone, fax, Email, or snail-mail.   “The hardest thing in the world to understand is the income tax.” – Albert Einstein.   There are two bridges. The first is easier to cross, you merely pay the toll. The other is “tax deferred” but you have to drive an extra mile in order to cross. The tragedy of life is that so few people know that the “tax deferred bridge” even exists.   See also Vertex Trust® / Deferral of Capital Gains   This Tax Deferral Transaction is NOT:   NOT a section 1031 exchange (problem: you exchange known problems for the unknown and will not eliminate your original goal of selling your asset) NOT a Charitable Remainder Trust, or any of those hybrids (problem: you lose control of your assets to people who only care about spending your money as fast as they can. In addition, any tax benefits are quickly dissipated due to various IRS restrictions, NOT MY CHOICE.) NOT a Charitable Lead Trust or, any of those hybrids (problem: you lose control of your assets, tax benefits are lost due to IRS limitations.) NOT a purchase of someone else’s Capital Loss Carryover (problem: constructive step transaction, invitation to an IRS audit) This Tax Deferral Transactions IS:   It’s a series of transactions financially engineered to defer your capital gains taxes, eliminate “probate,” eliminate estate taxes, defer taxes on your investment income, and when appropriately structured by a competent professional and is part of your financial plan, your taxes are deferred in your lifetime and your heirs may get the cash tax-deferred. I said Tax-Deferred.   It’s a series of transactions financially engineered to defer your capital gains taxes, eliminate “probate,” eliminate estate taxes, defer taxes on your investment income, and when appropriately structured by a competent professional and is part of your financial plan, your taxes are deferred in your lifetime and your heirs may get the cash tax-deferred. I said Tax-Deferred.   If you qualify, call us or contact us through the net. MINIMUM capital gains required US$500,000 Short term; US$1million Long Term. Click here from more information on Deferring Capital Gains Tax on any of your highly appreciable assets.     (2) Defer Income Taxes on Your Salary or any Income Stream Exclusively for those who “earn” more money than they spend, for the year.   This plan is on deferring your “Earned Income” (wages, salary, personal service contracts, commissions, any W-2

Asset Protection, Irrevocable Trust, UltraTrust, Uncategorized

Ultra Trust: Benefits of Irrevocable Trust Asset Protection

T. S. Eliot said:”Never confuse information with knowledge.”   Information: More than 80,000 lawsuits are filed daily in the United States. Holding any asset in your name or jointly… is extremely, extremely risky.   Knowledge: An ULTRA TRUST® will remove your probability of becoming “a statistic.”   What’s a Trust?   What’s an ULTRA TRUST®… and how do I get one?   The ULTRA TRUST® is a powerful new asset/wealth protection devise, meticulously crafted and engineered to hold your primary residence and all your other significant valuable assets, with total positive income tax benefits, i.e. real estate tax and mortgage interest deduction on your Federal form 1040.   Legally, disinherit the government. They will receive no Federal estate taxes. Period! ONE SIGNATURE, ONE DOCUMENT, The ULTRA TRUST® will insulate you from potentially harmful lawsuits, eliminate the probate process and all inheritance taxes on your estate.   The ULTRA TRUST® when properly implemented by a knowledgeable professional, is simple to put in place, inexpensive, with no dollar limitations. It eliminates the need for a separate insurance trust. It holds your investments, other real estate, title to your automobiles, significant if you have minor age drivers. It may defer capital gains taxes, for up to 20 years.   If you have ever considered how to protect yourself from frivolous, or ill motivated, expensive lawsuits, the ULTRA TRUST® is a powerful tool. Put knowledge to work. Call me at (508) 429-0011 for a no charge, no obligation, productive discussion of your needs. Years from now, you’ll look back on one of the wisest decisions you ever made.   The ULTRA TRUST® when combined with a Limited Liability Company is a financial asset protection fortress; you can become judgment proof.   We have prepared a concise report on the legal and tax benefits of the ULTRA TRUST® including all the Dreaded Phase-Ins of the 2001 Tax Act. For your detailed report and see if you qualify for the ULTRA TRUST®   Click on the following link: & Buy Your Jam-packed information to Protect & Preserve Your Wealth

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