NAELA Lunch and Learn Webinar – Fun Trust Tricks with Adverse and Nonadverse Parties
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NAELA Lunch and Learn Webinar – Fun Trust Tricks with Adverse and Nonadverse Parties
February 27, 2015 @ 8:00 am - 5:00 pm
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The Cost: Free to Members | Does this sound familiar? Greta Grantor wants to deed her home in a trust to protect it in case she ever requires nursing home and Medicaid. Greta also knows there might come a time when she needs to downsize and sell her home. Preserving the tax-free sale of the home while not breaching Medicaid rules in order to keep the home a noncountable asset are important goals. Another client, Sam Settlor, wants to move assets into a trust in order to qualify for VA benefits. Because the VA will likely question the existence of a grantor trust if taxable income from his trust shows up on his Form 1040, avoiding grantor trust status is important. Sam also wants some control over trust distributions and who may inherit. Answers for Greta and Sam might involve the use of adverse and nonadverse parties. Grantor trust status is achieved by the grantor retaining certain benefits or powers over trust assets (herein called “grantor power”).