Page 13 - Jupiter West - September '21

Jupiter West, Page 13
How To Own Your Real Estate

Submitted by Anné to be the owner of the residence rather than the debtor. If this concern with rental property is usually asset protection.
Desormier-Cartwright, J.D. situation could apply to you, it is important that you meet with Because the occupants of the rental property can change over
Real estate is more than a knowledgeable estate planning attorney before making any time, as a landlord and owner of rental property, there is a
just your primary residence. transfers of your primary residence to a trust. higher probability of lawsuits arising in connection with it. For
It can include other real estate Vacation Home rental property, transferring ownership to an LLC is a great
such as a vacation home or a For some families, the vacation home has high monetary option. If a renter gets injured on the property, sues the LLC
rental property. Depending value, but also significant emotional value as well. that owns the property, and obtains a judgment that exceeds
upon the type of real estate Ownership of a vacation home by a trust or limited liability any property insurance you have, the renter can only go after
you own, the ideal form of company (LLC) can be advantageous because it addresses the assets owned by the LLC, not your personal assets or those
ownership can vary. Below, two main priorities: ease of transfer to the next generation of any other owners of the LLC, to satisfy any claims.
we take a look at the different and asset protection. In addition, ownership by the LLC may protect the rental
types of real estate and make With a trust or LLC, you are able to determine a set of rules property from your personal creditors. However, if you are
suggestions about the best form of ownership for each. for how the property is to be used and maintained, as well as forming a single member LLC, it is important to have us check
Primary Residence designate what is to happen to the vacation home once you state law to make sure creditor protection is available.
Because of the special tax treatment a primary residence pass away. This can be a great solution if you want to ensure Give Us A Call Today!
receives, you need to very carefully consider how your home that the vacation home stays in the family for generations with Whether you are concerned about your primary residence,
is owned. In applicable states, “tenancy by the entirety” offers minimal family conflicts. family cabin, or rental property, we are here to assist you in
married couples creditor protection from the creditors of one An additional benefit of having an LLC own the vacation protecting this valuable asset. Due to the various considerations
of the spouses (with a possible exception for federal tax liens) home is that it provides limited liability from outside claims. for selecting a form of ownership, it is important to have the
while still preserving relevant tax benefits. It also allows If a judgment is entered against the LLC, the creditor is limited right advisors helping you along the way. Give us a call so we
the automatic transfer of ownership to the surviving spouse to the assets of the LLC to satisfy its claims, not your personal can discuss your current and future real estate ventures and
upon the death of the first spouse, without court involvement. assets or those of the other members. Also, if you or another the best way to protect them for generations to come.
Transferring ownership of the primary residence to a joint member have a judgment entered against you for a claim If you have questions about your estate plan and what
revocable trust may also be an option if you live in a state that unrelated to the LLC, it will be harder for a creditor to force documents you should have in place to plan your estate,
allows the tenancy of the entireties protection to transfer to a a sale of the vacation home. This can be incredibly helpful if schedule a free consultation today by calling our office at
joint revocable trust. Ownership by the trust also means that you wish to pass on the vacation home to the next generation (561) 694-7827, Anné Desormier-Cartwright, Esq., Elder
the real estate will not go through the lengthy, expensive, and without having to worry about the individual financial situation & Estate Planning Attorneys PA, 480 Maplewood Drive,
public probate process but will instead be handled according of each of the new members. Suite 3, Jupiter, FL 33458.
to your wishes as specified in the trust document. Note: In some states, single member LLCs (an LLC in The content of this article is general and should not be
If you are single, owning the property in your sole name which you are the only member) do not enjoy the same relied upon without review of your specific circumstances
allows you to take advantage of tax benefits for primary protection from your personal creditors. The rationale of these by competent legal counsel. Reliance on the information
residences. Similarly, transferring ownership to a revocable laws is that your creditors should be able to seek relief through herein is at your own risk, as it expresses no opinion by
living trust may also allow you to retain the applicable tax your LLC interests to satisfy their claims because there are no the firm on your specific circumstances or legal needs.
benefits with the added benefit of avoiding the probate process. other members that will be negatively impacted their seizure An attorney client relationship is not created through the
If asset protection is a major concern during your lifetime, of money and property owned by the LLC. information provided herein.
certain types of irrevocable trusts are best suited for your needs If the vacation home has been in the family for many To comply with the U.S. Treasury regulations, we must
but may require you to give up some control of the property. years, it is important to consult with us and your tax advisor inform you that (i) any U.S. federal tax advice contained in
Also note that the bankruptcy code may provide additional to make sure that transferring your vacation home to a trust this newsletter was not intended or written to be used, and
protections for a primary residence (i.e. your state may or LLC will not cause an increase in your property taxes or cannot be used, by any person for the purpose of avoiding U.S.
have a “homestead” exemption). However, in some states, other unintended consequences. federal tax penalties that may be imposed on such person and
transferring your primary residence to a trust may eliminate Rental Property (ii) each taxpayer should seek advice from their tax advisor
the homestead exemption because the trust will be deemed As a stream of income, instead of a residence, the bigger based on the taxpayer’s particular circumstances.
Financial Focus

Prepare For Health Care New Retirement: What a Difference a Year Makes. The status, income and other factors. You’ll certainly want to
study also found that retirees’ greatest financial worry is
include these costs as a significant part of your planned
Costs In Retirement the cost of health care and long-term care – concerns that retirement budget.
have increased during the COVID-19 pandemic. • Learn what to expect from Medicare. You can
By Sally Sima Stahl And health care is likely going to be one of the enroll in Medicare three months before you turn 65.
It’s unfortunate but true: largest expenses in retirement – the average couple Before you sign up, you’ll find it helpful to do some
As we age, we encounter might spend $10,000 to $12,000 per year on health care research on what Medicare covers, or perhaps even attend
more health-related issues costs. Nonetheless, you can boost your confidence about a seminar or webinar. On the most basic level, you’ll need
– and they carry a price meeting these costs by making the right moves. to choose either the original Medicare program, possibly
tag that can get pretty high Here are a few suggestions: supplemented with a Medigap policy, or Medicare
in retirement. Will you be • Take advantage of your health savings account. Advantage, also known as Medicare Part C. Given
ready for these costs? If you’re still working, consider contributing to a health all the variables involved – deductibles, copayments,
Perhaps your first step savings account (HSA) if it’s offered by your employer. coinsurance, areas of coverage and availability of your
in preparing yourself is This account allows you to save pretax dollars (and personal doctors – you’ll want to choose your plan
knowing what you may possibly earn employee matching contributions), which carefully.
be facing. Consider this: can potentially grow, and be withdrawn, tax-free to help • Protect yourself from long-term care costs. No
80 percent of Americans 65 and older have a chronic you pay for qualified medical expenses in retirement. matter which Medicare plan you choose, it won’t cover
condition and 42 percent live with a disability, according • Incorporate health care expenses into your overall much, if any, of the costs of long-term care, such as an
to the National Coalition on Aging and the Centers for financial strategy. As you estimate your expenses in extended stay in a nursing home. You may want to consult
Disease Control and Prevention, as reported in a recent retirement, designate a certain percentage for health care, with a financial advisor, who can suggest options to
Edward Jones/Age Wave survey titled Four Pillars of the with the exact amount depending on your age, health protect you and your family from long-term care costs,
which can be considerable.
“Service is our number one priority” And, of course, do whatever you can to stay healthy,
before and during your retirement. It’s been shown that
561-743-0070 exercise and a balanced diet can help you feel better,
maintain your weight and even reduce the likelihood of
www.palmspoolservices.com developing some serious illnesses.
By making the right financial moves and taking care
of yourself, you can go a long way toward managing your
health care costs in retirement – and enjoying many happy
and rewarding years.
This article was written by Edward Jones for use by
your local Edward Jones Financial Advisor. Edward
Jones. Member SIPC.
Edward Jones, its employees and financial advisors
are not estate planners and cannot provide tax or legal
advice. You should consult your estate-planning attorney
or qualified tax advisor regarding your situation.
Call me for a free portfolio review at (561) 748-7600,
Sally Sima Stahl, AAMS, 1851 W. Indiantown Road, Ste.
106, Jupiter, FL 33458.
Expires 9/30/21.

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