Repair The Roof - Estate & Retirement Planning Podcast

Two of the best options for realizing a substantial gain and eliminating capital gains tax on the sale of an investment property are through the sale of your personal residence or an installment sale.

A third option to help you save on taxes and grow your wealth is to take advantage of 1031 exchanges, or rollovers.

Listen in as Attorney Ted Gudorf breaks down the seven essential must-knows around like-kind exchanges set forth in Section 1031 of the Internal Revenue Code.

Key Topics:

• Personal residence (0:48)
• Installment sale (2:12)
• Eliminating capital gains tax using a 1031 rollover (3:55)
• The property must be like-kind (04:51)
• The 45-day rule (06:31)
• The 180-day purchase requirement (08:01)
• Use a qualified intermediary (08:48)
• The title must be mirrored in both transactions (10:05)
• Reinvest an equal or greater amount than the gain achieved in the original sale (11:32)
• Reverse exchanges (12:51)
• The long-term benefits of a 1031 rollover (14:04)

Resources:

• Gudorf Law Group
• The Ohio Estate Planning Guide - Free Book
• Gudorf Law: What We Do and How We Help Webinar
• Don't Go Broke in Nursing Home Workshop
• When a Loved One Dies: A Legal Guide - Free Book
• Subscribe on YouTube

There’s often a lot of confusion between the different types of irrevocable trusts, even as more and more people are forming them today.

A trust is a relationship between a trust-maker and a trustee, and there are specific terms that the trustee is expected to follow. As a general rule, a trust can either be revocable or irrevocable.

A revocable trust is one in which the trust can be revoked within the lifetime of the trust-maker. An irrevocable trust is one that cannot be revoked, which means the trust-maker cannot directly take back the assets that they placed in the trust.

In this episode of Repair the Roof, Attorney Ted Gudorf explores the three types of irrevocable trusts: estate tax irrevocable trusts, asset protection trusts, and Medicaid asset protection trusts.

Key Topics:

• What is a “trust”? (0:29)
• Similarities between revocable trusts and irrevocable trusts (2:19)
• Differences between revocable trusts and irrevocable trusts (4:17)
• Grantor trusts (04:43)
• Type 1: Estate tax irrevocable trust (06:37)
• Type 2: Asset protection trust (08:21)
• Type 3: Medicaid asset protection trust (11:32)
• Removing trustees through a trust protector/advisor (15:37)

Resources:

• Gudorf Law Group
• The Ohio Estate Planning Guide - Free Book
• Gudorf Law: What We Do and How We Help Webinar
• Don't Go Broke in Nursing Home Workshop
• When a Loved One Dies: A Legal Guide - Free Book
• Subscribe on YouTube

In 2018, the federal government collected over $170 billion in capital gains taxes. With all the economic turbulence we continue to experience in 2023, it’s more important than ever to understand the key concepts of capital gains tax to be better equipped to preserve our wealth.

In this episode of Repair the Roof, Attorney Ted Gudorf defines the term “capital asset,” when and how it is taxed, and what strategies we can employ in our estate planning to avoid the payment of capital gains tax in a legal and lawful manner.

Key Topics:

• “What is a capital asset?” (0:48)
• The difference between long-term and short-term capital gains (3:49)
• Breaking down the four long-term capital gains tax rates (4:46)
• How to report capital gains and minimize the amount you have to pay (07:30)
• Tax-loss harvesting (13:25)
• Eliminating capital gains tax by taking a highly-appreciated asset (14:50)

Resources:

• Gudorf Law Group
• The Ohio Estate Planning Guide - Free Book
• Gudorf Law: What We Do and How We Help Webinar
• Don't Go Broke in Nursing Home Workshop
• When a Loved One Dies: A Legal Guide - Free Book
• Subscribe on YouTube

If you give gifts on an annual basis, it’s important to know the rules to avoid ending up crossways with the Internal Revenue Service. 

For those with large estates, there is an exciting opportunity to do some planning prior to the sunset provisions kicking in on January 1, 2026, which will substantially change the laws.

While today’s discussion focuses on federal law, it’s important to know what applies to you on the state level.

Each of our 50 states can, if they wish, impose their own estate tax, inheritance tax, or gift tax. In 2023, there are 12 states with an estate tax. This means when a person dies, the government levies a percentage tax on the assets that are owned at death.

Six states have an inheritance tax, which taxes the person receiving the inheritance rather than the actual estate. The good is that there is only one state, Connecticut, which has a gift tax.

With all that in mind, how can you navigate the often-confusing federal gift tax laws, particularly when it comes to the “annual exclusion gift” and the “lifetime exemption amount?” Finally, what planning opportunity can you take advantage of between now and December 31, 2025? Listen in and find out!

Key Topics:

• State laws concerning estate, inheritance, and gift taxes (0:58)
• Federal law, the “annual exclusion gift,” and the “lifetime exemption amount” (3:34)
• What to expect when the sunset provisions kick in on January 1, 2026 (8:11)
• A planning opportunity to consider prior to December 31, 2025 (9:59)
• Which assets can be transferred into a trust? (12:43)
• Transferring an unlimited amount of money for medical expenses or for tuition (16:40)
• Fair market value determines your gift amount (19:43)
• Closing thoughts (21:03)

Resources:

• Gudorf Law Group
• The Ohio Estate Planning Guide - Free Book
• Gudorf Law: What We Do and How We Help Webinar
• Don't Go Broke in Nursing Home Workshop
• When a Loved One Dies: A Legal Guide - Free Book
• Subscribe on YouTube

With the number of baby boomers rising, more men and women are struggling to find appropriate ways to provide for long-term care.

In Dayton, Ohio, it’s not unusual in 2023 to see assisted living care costs go as high as $8500 per month, and it’s not unusual to see nursing home costs exceed $12000 per month.

With a medical inflation rate that is above the already-high regular inflation rate, the cost of care is clearly going to double in as little as ten years.

In this episode of Repair the Roof, Attorney Ted Gudorf discusses everything you need to know about a little-known, but powerful option to navigate the rising cost of care.

It’s called asset-based long-term care, and it utilizes either a whole life insurance policy, a universal life insurance policy, or an annuity as its foundation.

Our goal at Gudorf Law Group is to have your asset-based long-term care policy pay for at least 50% of the cost of care.

How exactly can you make this unique option work for you? Listen in and find out!

Key Topics:

• The rising baby boomer population coupled with rising long-term care costs (3:09)
• The limitations of Medicaid and other government healthcare programs (5:10)
• Deciding where you want care to be provided (7:44)
• An introduction to asset-based long-term care (10:18)
• At what age should you consider asset-based long-term care? (14:50)
• How does asset-based long-term care work? (16:08)
• How to get your own asset-based long-term care policy (23:42)

Resources:

• Gudorf Law Group
• The Ohio Estate Planning Guide - Free Book
• Gudorf Law: What We Do and How We Help Webinar
• Don't Go Broke in Nursing Home Workshop
• When a Loved One Dies: A Legal Guide - Free Book
• Subscribe on YouTube

In this episode of Repair the Roof, Attorney Ted Gudorf offers his best advice on navigating the rising costs of long-term custodial care by laying out the basics of crisis Medicaid planning.

Many of us across the country have had family members in need of long-term care. Over the last several years, there has been a rising cost for this care, whether it is at home, in assisted living, or at a nursing home.

Certain steps have been taken to expand Medicaid coverage in certain states, whereas other states are trying to restrict coverage.

Listen in as Ted talks about the basics of crisis Medicaid planning so that, if you find yourself in a crisis with respect to a family member, you will be able to protect assets while qualifying your loved one for payment through the Medicaid program.

Key Topics:

• The issue of rising care costs (1:28)
• The difference between preplanning and crisis planning (6:50)
• Creating a Medicaid Asset Protection Trust (9:31)
• The Assisted Living Waiver Program (ALWP) (12:15)
• The basics of crisis Medicaid planning for long-term care for single individuals (14:47)
• Which assets are counted (18:09)
• The basics of crisis Medicaid planning for long-term care for married individuals (20:16)
• Creating a pooled trust in Ohio (25:15)

Resources:

• Gudorf Law Group
• The Ohio Estate Planning Guide - Free Book
• Gudorf Law: What We Do and How We Help Webinar
• Don't Go Broke in Nursing Home Workshop
• When a Loved One Dies: A Legal Guide - Free Book
• Subscribe on YouTube

In this episode of Repair the Roof, Attorney Ted Gudorf discusses four basic yet essential steps to protecting your assets.

It is becoming increasingly popular for estate planning clients to want to protect their assets from potential creditor claims, whether from lawsuits or other creditor-type actions including bankruptcy and nursing homes.

How lawyers advertise today is drastically different from how they advertised half a century ago. In 1977, the United States Supreme Court determined that lawyers should have the right to advertise—commercial speech—by virtue of the First Amendment. Since that time, the number of lawsuits filed in this country has significantly increased.

All of this has led to the so-called “lawsuit crisis.” Asset protection has become a popular strategy as a result.

Listen in as Ted explains what “asset protection” is and what it is not, the importance of getting clear on what a debtor/creditor can and cannot do in your particular jurisdiction, and the four steps you need to take to protect your hard-earned nest egg not just for your family today but for the next generation.

Ted also offers advice on successfully utilizing an LLC for asset protection, and how to decide on a legacy trust, whether domestic or international.

Key Topics:

• The origin of the so-called “lawsuit crisis” (0:54)
• Defining “asset protection” (5:22)
• Debtor/creditor law as a function of state law (8:00)
• Step #1: Understand your state law (12:20)
• Step #2: Understand your insurance policies (16:56)
• Step #3: Create a Limited Liability Company (LLC) (23:49)
• Step #4: Put your assets into a legacy trust  (29:32)
• A recap of the four steps (38:52)

Resources:

• Gudorf Law Group
• The Ohio Estate Planning Guide - Free Book
• Gudorf Law: What We Do and How We Help Webinar
• Don't Go Broke in Nursing Home Workshop
• When a Loved One Dies: A Legal Guide - Free Book
• Subscribe on YouTube

In this episode of Repair the Roof, Attorney Ted Gudorf discusses why asset alignment, or funding, is key to having an effective estate plan.

Asset alignment revolves around making sure that the assets you own are properly titled, whether in the name of your revocable trust, your irrevocable trust, your limited liability company (LLC), or your individual name with a designated beneficiary.

Before diving into asset alignment, it is important to first identify the assets you own and in whose name each is titled—often overlooked details. Once this is done, prepare the necessary paperwork needed to retitle the assets to the proper name.

Some of the primary benefits of properly funding your estate plan include avoiding both living and death probate, protecting your assets (for example: from lawsuits, nursing home costs, etc.), and ensuring that your assets get passed onto your grandchildren.

90% of the estate plans we see are not fully funded and, in fact, most are not even partially funded. At our law firm, we believe in fully funding your revocable trust.

Key Topics:

• Identify the assets you own and how they are currently titled (1:26)
• Having a client organizer, collecting the paperwork, and creating an asset spreadsheet (3:22)
• Retitling the assets to be in the proper name (5:18)
• Avoiding both living and death probate (6:48)
• Protecting your assets (9:00)
• Ensuring your assets get passed onto your grandchildren (9:58)
• Fully funding your revocable trust (12:08)
• Retitling real estate (15:17)
• Retitling tangible personal property and banks, life insurance, and unique assets (18:05)
• A recap of today’s episode (20:49)

Resources:

• Gudorf Law Group
• The Ohio Estate Planning Guide - Free Book
• Gudorf Law: What We Do and How We Help Webinar
• Don't Go Broke in Nursing Home Workshop
• When a Loved One Dies: A Legal Guide - Free Book
• Subscribe on YouTube

In this episode of Repair the Roof, Attorney Ted Gudorf discusses the three legal documents you need to have to make sure your medical decisions are taken care of, whether you’re 18 years old and going off to college, or 95 years old and in a nursing home.

It is extremely important to be clear about whom you want to make medical decisions for you when you can’t, and also to give you some guidance about end-of-life decisions.

The first document is a HIPAA (Health Insurance Portability and Accountability Act of 1996) authorization, through which you designate other individuals to speak with your doctor for information relevant to your medical condition.

The second document is a healthcare power of attorney, through which you designate other individuals to make medical decisions for you if you cannot.

The third document is a living will, which lists your wishes with regard to end-of-life. The living will is different from a pour-over will, which lists the beneficiaries of your probate estate.

Key Topics:

• HIPAA authorization (1:12)
• Healthcare power of attorney (7:11)
• Living will (14:36)
• The difference between these three documents and a DNR (do-not-resuscitate) order (20:21)

Resources:

• Gudorf Law Group
• The Ohio Estate Planning Guide - Free Book
• Gudorf Law: What We Do and How We Help Webinar
• Don't Go Broke in Nursing Home Workshop
• When a Loved One Dies: A Legal Guide - Free Book
• Subscribe on YouTube

In this episode of Repair the Roof, Attorney Ted Gudorf discusses what to expect at your initial goals and responsibility (G&R) meeting. This is the second step in the process after you have completed and submitted the client organizer.

He unpacks the first conversation you will have with a member of our legal team: what questions you are going to be asked, what questions you should be asking, and what documentation you should bring to the meeting.

At the G&R meeting, you will go over two questions: 1) What are your goals?; 2) Who are you interested in putting in charge of your estate? As the meeting draws to a close, you will then be guided in preparing for the next two steps of this seven-step process: the design meeting and, after that, the delivery meeting.

Key Topics:

• Defining your goals (1:32)
• Income tax planning as a key component of estate planning (5:18)
• Multigenerational planning (7:46)
• Selecting your trustee (9:11)
• Preparing for the design meeting and the delivery meeting (15:23)

Resources:

• Gudorf Law Group
• The Ohio Estate Planning Guide - Free Book
• Gudorf Law: What We Do and How We Help Webinar
• Don't Go Broke in Nursing Home Workshop
• When a Loved One Dies: A Legal Guide - Free Book
• Subscribe on YouTube