Elville and Associates’ Managing Principal and Lead Attorney Stephen Elville offers this webinar discussion about the very important topic of how to select a Trustee. Choosing a Trustee is one of the most intensive pieces of the estate planning process, and a choice not to be taken lightly. Ensure you’re educated about all the factors that go into making this important decision.

 

Points of emphasis include:

– What is a Trustee and what are their responsibilities?

– Types of Trustees and their characteristics – advantages and disadvantages

– The perfect Trustee – setting the benchmark for selection

– Trustee selection – why is it so important?

– Trustee succession and plan design – why so difficult, why so crucial?

– Trustee roles in Wills and Trusts

– What are some reasons to consider appointing a Corporate Trustee?

– Why should you be concerned about “Successor Trustee risk”?

More Webinars from Elville and Associates

The education of clients and their families through counseling and superior legal-technical knowledge is the mission of Elville and Associates.  We hold multiple educational events every month. Click to view our calendar of educational webinars and events or visit the Elville and Associates YouTube channel to view recordings of our past webinars.

#elvilleeducation #elvillewebinarseries

Posted in Videos & Webinar Recordings | Comments Off on Trustee Selection – How to Choose the Right One for You

Identity theft occurs when someone uses another’s personal identifying information, like their name, social security number or credit card number, to commit fraud or theft. Identity theft is one of the fastest growing crimes in the United States. A 2021 Javeline Strategy study estimates Americans lost a total of $56 billion dollars in Identity Theft scams. These alarming statistics demonstrate identity theft may be the most frequent, costly and pervasive crime in the United States. This presentation will cover the various types of identity theft, to include child ID theft, medical ID theft, tax ID theft and data breaches. The ease of accessing our personal information online and through public information resources will also be discussed.

Your presenter is Mr. Andre Lingham, Founder and President for the Center of Elder Justice and Education and a distinguished retired Howard County Police Officer. The Center of Elder Justice and Education was established in 2021 and is a non-profit organization that promotes elder abuse awareness and education. Their mission is done by virtual and in person training to senior citizens, the general public, government agencies, police departments and private institutions.  Andre previously served over 30 years in law enforcement and retired from the Howard County Police Department in 2019 to focus full time on elder abuse awareness and education. While a member of the Howard County Police Department, he served as the Senior Citizen Liaison for 5 years. In 2014, Andre was named Howard Police Officer of the Year and 2015 American Legion Law Enforcement Officer of the Year for his work educating and protecting seniors

More Webinars from Elville and Associates

The education of clients and their families through counseling and superior legal-technical knowledge is the mission of Elville and Associates.  We hold multiple educational events every month. Click to view our calendar of educational webinars and events or visit the Elville and Associates YouTube channel to view recordings of our past webinars.

#elvilleeducation #elvillewebinarseries

Posted in Videos & Webinar Recordings | Comments Off on Identity Theft: The Illusion of Privacy

It is estimated that seniors are scammed out of $36 billion dollars per year in financial exploitation. Such exploitation occurs whenever older adults are deprived of their property by improper means. This commonly includes fraud, theft or deceptive behavior. Often the perpetrator of this behavior is a family member, caregiver, or someone who has a relationship of trust with the older adult. This presentation will cover the various types of financial exploitation, scams and frauds that target seniors and the best ways to minimize being victimized. Case studies and interviews with victims are included in the presentation. Your presenter is Mr. Andre Lingham, Founder and President for the Center of Elder Justice and Education and a distinguished retired Howard County Police Officer. The Center of Elder Justice and Education was established in 2021 and is a non-profit organization that promotes elder abuse awareness and education. Their mission is done by virtual and in person training to senior citizens, the general public, government agencies, police departments and private institutions. Andre previously served over 30 years in law enforcement and retired from the Howard County Police Department in 2019 to focus full time on elder abuse awareness and education. While a member of the Howard County Police Department, he served as the Senior Citizen Liaison for 5 years. In 2014, Andre was named Howard Police Officer of the Year and 2015 American Legion Law Enforcement Officer of the Year for his work educating and protecting seniors.

More Webinars from Elville and Associates

The education of clients and their families through counseling and superior legal-technical knowledge is the mission of Elville and Associates.  We hold multiple educational events every month. Click to view our calendar of educational webinars and events or visit the Elville and Associates YouTube channel to view recordings of our past webinars.

#elvilleeducation #elvillewebinarseries

Posted in Videos & Webinar Recordings | Comments Off on Webinar – Financial Exploitation: Frauds and Scams Targeting Seniors

There are strategies you can take to keep your brain always working and learning. We will cover these and steps to take if you feel your memory is slipping. Get specific tips you can apply right away to stay mentally sharp. Featuring nationally renowned speakers Ms. Ellen Platt, a certified Aging LifeCare Manager and President of The Option Group, and Dr. Michelle Fritsch, a board certified, doctoral trained health professional and founder of Retirement Wellness Strategies, this presentation is one you will not want to miss! This webinar is offered in partnership with Visiting Angels, a longtime supporter of Elville and Associates’ educational programs. To learn more about Visiting Angels, its services, educational programs and calendar of events, please visit www.visitingangels.com or contact Ms. Stephanie Lawler, Homecare Consultant, at stephaniel@mdvisitingangels.com.

More Webinars from Elville and Associates

The education of clients and their families through counseling and superior legal-technical knowledge is the mission of Elville and Associates.  We hold multiple educational events every month. Click to view our calendar of educational webinars and events or visit the Elville and Associates YouTube channel to view recordings of our past webinars.

#elvilleeducation #elvillewebinarseries

Posted in Videos & Webinar Recordings | Comments Off on The Elville Webinar Series’ Wellness Series Staying Mentally Sharp

Trusts are great tools for leaving assets to your heirs while maintaining control over their access to those assets. In many cases, you would tell your beneficiaries that you have made a trust for them. However, this is not always desirable — and this is where a “quiet” trust may be helpful.

A quiet trust is a trust created much like other trusts, but with little to no notice given to its beneficiaries. A person, called a grantor, places assets in a trust managed by someone who is appointed as a trustee.  

The trust document may provide that income will only be distributed to a beneficiary once specific conditions are met — for example, when the grantor passes away or the beneficiary reaches a certain age. It may further require that no information regarding the accounting of the trust, what the trust owns, or other details will be provided to a beneficiary until certain conditions or timeframes occur.

Advantages of a Quiet Trust

Many people turn to quiet trusts for their children or grandchildren. They want to avoid their heirs relying on these future resources and becoming complacent instead of developing themselves financially or professionally. The idea is that if the beneficiaries don’t know about the money, they will work harder to create their own wealth and develop good financial habits. Many trust grantors hope that this personal development will make it more likely that once their heirs receive income or assets in a trust, they will be better equipped to manage and preserve these resources.

In other situations, you may wish to keep a trust a secret as a matter of privacy. A quiet trust can control the number of people who know about the trust. This can prevent family disputes if one person will receive more than another. It can also prevent heirs from talking too much about what they may receive, misusing the information, or being taken advantage of. For example, some parents may be concerned about their children’s creditors or anyone trying to get close to them for the wrong reasons.

A quiet trust can shield your loved ones from these problems and help them overcome any disincentive to develop themselves to be the best they can be. In addition, just like an ordinary trust, a quiet trust can be used for estate tax planning and avoiding the lengthy and expensive probate process. Depending on how they are set up, quiet trusts can also delay when the assets are taxed as income.

When a Quiet Trust May Not Make Sense

However, there are situations where a quiet trust may not work for you or your family. For one, you may wish to involve your children in your financial planning or discussions about your assets.

Sometimes keeping information secret can also backfire. Your heirs may not be prepared for suddenly receiving large sums of money or investments if they are unaware of them. For example, if you leave them rental property and they have moved to another state by the time they receive it, they may not be able to manage the property easily.

The lack of disclosure may also create a certain amount of distrust or resentment.

Setting Up A Quiet Trust

How you set up a quiet trust will likely vary based on state law. The basic process involves drafting a trust agreement, transferring assets, and implementing the terms of the trust. You should ensure that the person you choose to manage your trust is someone on whom you can rely. The wrong person could mishandle assets, fail to keep proper accounting, or miss deadlines for filing tax returns.

This process is best overseen by an attorney and other professionals, such as a financial planner and CPA familiar with trusts.

For guidance on quiet trusts, consult the experienced estate planning attorneys at Elville and Associates, whose educational process and known throughout the mid-Atlantic as being unique in guiding individuals and families through the estate planning process.  The education of clients and their families through counseling, client education, and superior legal-technical knowledge is the mission of Elville and Associates.  Contact Elville and Associates today for your free initial consultation.

#elvilleeducation

#elvillewebinarseries

Posted in Blog | Comments Off on Don’t Yet Want Your Heirs to Know About Your Assets? Use a Quiet Trust in Your Estate Plan

If you have a child with disabilities, it is crucial to set money aside for the child’s future. At the same time, you need to consider your child’s access to public benefit programs such as Medicaid and Supplemental Security Income (SSI), as well as the state and federal tax implications. The two major vehicles to accomplish these goals, Maryland ABLE accounts and special needs trusts (SNTs), each have their advantages and limitations.  Using them in tandem may be the optimal strategy for your child with special needs.  

Achieving a Better Life Experience (ABLE): Pros and Cons

Patterned on Section 529 college savings accounts, ABLE accounts offer a tax-advantaged way for people with disabilities to put money aside in excess of the SSI program’s $2,000 resource cap without compromising their eligibility for government benefits like SSI and Medicaid.

Assets are allowed to grow, tax-free, inside the account, and withdrawals are not taxed so long as the money is spent on qualified disability expenses (QDEs) such as transportation, assistive technology, health and wellness, and employment support.

And, unlike a special needs trust, which leaves the account under the control of an assigned trustee, an ABLE account can be managed and controlled by the beneficiary once she or he comes of age. Being able to spend money without having to obtain a trustee’s permission translates into welcome financial independence for a person with a disability.

ABLE accounts are easy and inexpensive to set up.  Almost all states now have ABLE programs, and if yours doesn’t, you can set up an account using the program in another state that accepts out-of-state account holders.  For a directory of ABLE account programs, click here.

However, ABLE accounts have several serious drawbacks and limitations. The beneficiary with special needs is the owner of the assets but may lack the capacity to manage the money responsibly. The parents can petition to take on this role, but if they die before the beneficiary, the account would have to be managed through guardianship or conservatorship, which can be cumbersome. Alternatively, the Social Security Administration (SSA)-appointed Representative Payee can manage the account.

Perhaps the most significant drawback to an ABLE account is that the beneficiary must have become disabled before the age of 26 to qualify. Also, the beneficiary can only have one account and if its value exceeds $100,000, any benefit from the SSI program is suspended automatically.  (Medicaid eligibility is not affected until the account’s value meets the state’s 529 account threshold — for example, California’s is $529,000). Annual contributions are limited to $16,000, as aligned with the federal gift tax exclusion. Lastly, most states that administer ABLE programs have a Medicaid payback provision upon the death of the beneficiary. This means the state can claim reimbursement, dollar for dollar, for any Medicaid funds that went to the beneficiary during his lifetime, if any money remains in the ABLE account.

Special Needs Trusts (SNTs): Pros and Cons

A special needs trust can be a way around these limitations. Unlike ABLE accounts, there is no limit to the size of the trust, and the funds can be used for almost anything a beneficiary needs to supplement his or her government benefits. Annual contributions are not limited as they are for ABLE accounts. Because the trust, and not the person with special needs, owns the assets, it is not counted against the beneficiary’s financial eligibility for SSI or Medicaid.  Upon the beneficiary’s death, the assets in a third-party special needs trust can pass to the donor’s other relatives or anywhere else and are not subject to the state’s Medicaid payback provision (assets in a first-party special needs trust, which holds the beneficiary’s own assets, are subject to payback).

On the downside, as noted earlier, trust distributions are controlled by the trustee, not the beneficiary.  Also, third-party special needs trusts do not enjoy the same tax benefits as ABLE accounts. Income over $4,300 is taxed at the highest rate (37 percent) for federal taxes, and state taxes may be due as well, although deductions apply that can lower this rate to the beneficiary’s tax rate. Assets within the trust do not grow tax-free over time but are subject to capital gains taxes, and these can be considerable. Because the property originally belonged to an owner other than the primary beneficiary with special needs, capital gains are assessed when the assets were originally purchased, perhaps at a very low cost if they were held over a long period of time.

You Can Have It All

The best solution is to use both. The ABLE account can be funded over time from the special needs trust, giving the person with a disability who has the capacity and ability to manage his or her own assets up to $100,000. This approach offers the best of both worlds: ensuring that the person with a disability is able to manage significantly more money in an ABLE account while at the same time preserving public benefits and having assistance in managing an entire inheritance in the special needs trust.  

Stephen Elville, Managing Principal and Lead Attorney at Elville and Associates can work with you to devise the strategy that works best for your family.  As an experienced special needs planner and someone passionate about helping individuals and families with loved ones with special needs, Mr. Elville guides families and individuals through the planning process through client education, counseling, and leading-edge legal-technical knowledge, creating solutions to their needs and peace of mind along the way.  Contact Mr. Elville here or reach out to his Executive Assistant, Mary Guay Kramer, at 443-741-3635 or at mary@elvilleassociates.com to schedule a free initial consultation today.  

#elvilleeducation

#elvillewebinarseries

Posted in Blog | Comments Off on ABLE Accounts vs. Special Needs Trusts: Why Not Have It All?

Join Elville and Associates as we welcome Mr. Mark Trent of Medicare Supplement Services for this timely presentation about “Medicare Basics – What You Need to Know.” The annual Medicare enrollment period runs from October 15th through December 7th. Mr. Trent was Elville and Associates’ featured presenter at our 2017 and 2018 annual Client Event and we are thrilled to welcome him back for this presentation! His wit and wisdom make for a fun and very educational presentation. Among the topics of discussion will be: -The Federal Government’s “Medicare & You” handbook translated into English (the least read book in America) -The Basics – Medicare A, B, C and a D – and what’s CMS? -Part A and B entitlement and cost – plus something called IRMAA which may surprise you – What’s a Supplement? – ugh, more letters -Medicare Part D – DRUGS, it’s not what you’re used too -Medicare Part C – Advantage Plans, Medicare all in one! -Fall Open Enrollment – what it’s really for To register and receive your personal link to attend, please click here. Should you have any questions before the webinar please contact Community Relations Director Jeff Stauffer at jeff@elvilleassociates.com, or at 443-393-7696 x117. We look forward to hosting you! For CPAs, CFPs, and various other professionals, 1.5 continuing education hours are available for attending this webinar.

More Webinars from Elville and Associates

The education of clients and their families through counseling and superior legal-technical knowledge is the mission of Elville and Associates.  We hold multiple educational events every month. Click to view our calendar of educational webinars and events or visit the Elville and Associates YouTube channel to view recordings of our past webinars.

#elvilleeducation #elvillewebinarseries

Posted in Videos & Webinar Recordings | Comments Off on Medicare Basics What You Need to Know )Open Enrollment Is Around the Corner!)

This webinar is an in depth overview that will thoroughly educate attendees about the essentials of estate and elder law planning. Presented by Elville and Associates’ Managing Principal and Lead Attorney Stephen R. Elville, in our Estate Planning and Elder Law Essentials webinar Steve thoroughly educate attendees about estate planning and incapacity planning issues. Some of the topics she will address include: — understanding the planning process, including the reasons for estate planning — wills vs. trusts — probate vs. non-probate and understanding non-probate devices — the absolute importance of incorporating “flexibility” in your planning — planning for incapacity — understanding the importance of financial powers of attorney, advance medical directives and MOLST — Medicaid – myths versus reality — estate tax planning — asset protection and protecting shares for children and grandchildren — understanding why having outdated documents could provide challenges in the future — how to achieve perfection for your legacy Open to clients, financial advisors, and the general public, 1.5 continuing education hours are available for professionals who attend this presentation. 

More Webinars from Elville and Associates

The education of clients and their families through counseling and superior legal-technical knowledge is the mission of Elville and Associates.  We hold multiple educational events every month. Click to view our calendar of educational webinars and events or visit the Elville and Associates YouTube channel to view recordings of our past webinars.

#elvilleeducation #elvillewebinarseries

Posted in Videos & Webinar Recordings | Comments Off on Webinar The Essentials of Estate Planning and Elder Law

In part 10 of the Elville Webinar Series’ interactive Wellness Series, guest presenters Dr. Michelle Fritsch and Ms. Ellen Platt explore the important topic of how to make the most out of your medical appointments. Most people just show up to medical appointments. In today’s rushed and fragmented health system, you can greatly improve your health and assure no mistakes are made by knowing how to prepare for each visit, what to do during the visit, and what to do after the visit. This is true for doctors, dietitians, therapists, or any other type of healthcare. With their combined 60 years of healthcare experience, Dr. Fritsch and Ms. Platt have seen the problems first hand and developed these strategies that have worked for countless people. Featuring nationally renowned speaker Dr. Michelle Fritsch, a board certified, doctoral trained health professional and founder of Retirement Wellness Strategies and cofounder of Propel Comprehensive Wellness, this presentation is one you will not want to miss!

More Webinars from Elville and Associates

The education of clients and their families through counseling and superior legal-technical knowledge is the mission of Elville and Associates.  We hold multiple educational events every month. Click to view our calendar of educational webinars and events or visit the Elville and Associates YouTube channel to view recordings of our past webinars.

#elvilleeducation #elvillewebinarseries

Posted in Videos & Webinar Recordings | Comments Off on The Elville Webinar Series’ Wellness Series — Making the Most Out of Your Medical Appointments

Many individuals engaging in estate planning opt to create a third-party special needs trust to provide for their loved one living with a disability. However, did you know that these trusts may have to pay taxes on any income generated from the trust assets and retained by the trust for future use? If the trust is a qualified disability trust (QDT), it can minimize unnecessary tax consequences.

What Type of Trust Qualifies?

To qualify as a qualified disability trust, a trust must meet the following basic requirements:

• It must be irrevocable.
• The beneficiaries must be disabled and receive Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI). Additionally, the trust must have been established for their benefit before they turn 65.
• It cannot be a grantor trust and must be a separate tax-paying entity. So, for example, a first-party or self-settled special needs trust cannot qualify.
• Any remaining amount in the trust may be transferrable to nondisabled beneficiaries once the disabled beneficiaries are deceased.

Why Become a Qualified Disability Trust?

If a trust meets these requirements, it can reap significant tax benefits. Without the qualified disability trust designation, a trust normally may exempt up to $100 to $300 of income it generates from taxation, depending on whether it is required to distribute all of its income. However, a QDT may take an exemption equal to what an individual filing a personal income tax return may take. Per the Internal Revenue Code, this is $4,150 plus an annual adjustment for inflation.

In addition to the exemption, an individual benefits from more favorable tax brackets on income than a trust. A qualified disability trust also gets this benefit. As of 2022, the highest income trust bracket for a trust applies to amounts over $13,450, and the highest tax rate for trusts is 37 percent. In contrast, an individual taxpayer is not taxed at the highest rate of 37 percent until his or her income reaches $539,900 or more.

This preferred tax treatment can make a difference, especially when a trust wishes to retain income for future use. Alternatively, a trust may not want to distribute all income in order to protect beneficiaries from being disqualified from means-tested benefits such as Medicaid or SSI. Paying fewer taxes on retained income means more is left over for beneficiaries.

A qualified disability trust will have to file a tax form called Form 1041 to receive these benefits every year. A trust may need the assistance of a tax professional. However, this expense is well worth it when you consider the potential tax savings.

Estate Planning Tips

If you are setting up a special needs trust through your will, a best practice tip is to avoid vague terms and specifically name the beneficiary of the anticipated QDT. This will allow them to elect the qualified disability trust treatment on appropriate tax forms.

You should also carefully select your trustee. A trustee of a qualified disability trust will have serious fiduciary responsibilities that can last a lifetime. They should be financially savvy and willing to invest time and resources in correctly maintaining and administering a QDT. This includes keeping up with all annual tax filings.  Elville and Associates’ and its Managing Principal, Stephen R. Elville, offers a quarterly webinar presentation titled “Trustee Selection – How to Choose the Right One for You,” which discusses this important topic in depth.  You can view this presentation here.

By engaging in proper planning when setting up a special needs trust for your loved ones, you are setting them up for a better and brighter future. Working with an attorney to set up your trust correctly to qualify for qualified disability trust status may make an immeasurable difference in the lives of your beneficiaries.

For guidance in estate and special needs planning, consult with the qualified attorneys at Elville and Associates.  Initial consultations are free and will give you the opportunity to have your questions answered, have your attorney listen to you and understand your situation, and offer you solutions and a path forward for your planning, giving you peace of mind along the way.  Contact us online here or call us at 443-393-7696 to get started today.

#elvilleeducation 

Posted in Blog | Comments Off on Is a Qualified Disability Trust Right for Your Estate Plan?