Wills/ Estates/ Trusts and Inheritance – Anibal Group LLC RealtyNetWorth.com

Concierges, for persons in transition

April 30, 2024

~ ‘Concierge Providers’ in honor of Paul’s mom 1921- 2021. Paul at anibal-group-llc-realtynetworth.com-thenetworthlife_consultation-with-retiree_trusts_conservator_wills MI FL realty broker

Get a concierge: Request information form/ contact us.
Be a concierge: Learn more / contact us.

As always, its another benefit of having a brokerage agreement with me, just as our ‘Annual If/ Any/ All’ package.

With a retainer & pertinent rider docs in place, get this extra perk. Concierge Providers, assist you & only you, with the little stuff outside of the brokerage aspect of your buy/ sell/ and relo.

Pay-as-you go Providers can be:
1. ‘By Your Side’ advocates for QnA, your own personal curator, &/or assistant role, giving general assistance & FYI’s. These are often active or recently retired licensed professionals. >$500 min. retainer/ hourly billings/ retainer refreshed when used up.
2. ‘Site Visiting’ to help w/on-site ‘tasks’. Facilitator Assistant – Good for a small number of specific tasks – The Concierge can visit the site, as needed, for collecting quotes, and checking in on providers – limiting service to being a curator & update reporter. ~ You will ‘launch the task’ & initiate the providers task(s). ~ To protect providers that we’ve curated, we may request retainer = your articulated budget. However, you’ll finalize payment directly to providers at task(s) end, we return to you the ‘escrowed’ security funds at that point, as you are the one directly engaging the provider(s). >$500 min. retainer (higher if we’ve done pre build out)/ >$hourly + mileage billings/ retainer refreshed when used up.
3. ‘Bigger Plan’ – again, a Facilitator Assistant for a more global approach – perhaps many sub-tasks & providers. ~ Retainer equals your overall plan budget. You’re still/ always/ responsible for the process(es) to accomplish your overall plan. >As a % of your anticipated project total outlay, the > of $500 or 10% of budgeted $’s is our min. retainer / >$hourly + mileage billings/ retainer refreshed when used up.
4. Customer Control: ~ Our in-house assigned Concierge does NOT provide contracting services, insurance, tax reporting, or compliance. The customer must give explicit clear details & memorialize them – spoken/ phone calls/ texts & personal emails are not recognized by us. Get acknowledgements in writing!
‘No-Cost’:
- You, our client, can automatically get this service package perk with your *retainer & agreement as your provider of buy/ sell/ or relocation brokerage. .
- We set aside a percentage of our brokerage servicing fee, out of our pocket, for your personal assistant(s).
- On your client portal, YourSpace24/7, you have a dashboard to keep track of credits available and credits used, much like say a Speedy Rewards or Frequent Flyer Perks, etc.
- Its pay-as-you-go above rebates offered, BUT any upfront as a retainer can be rebated back to you at closing. Maximum possible rebates? Higher levels are extended to poverty level elders with limited assets, otherwise, to our ‘recommended’ realty servicing agreement we can add a rider for:
  - Transactions 200k+ We’ll rebate lesser of retainer or 5% of our brokerage fee.
  - 500k+ We’ll rebate lesser of actual or 10% of our brokerage fee.
  - $1m …. 25%.
- Request a ‘Concierge Rider’, then the concierge providers retainer you present us with – min $500 + your rebate for services used up to the less of the % noted above or your retainer = applied to closing. The net affect at closing settlement is you get personal services at ‘No-Cost’.
  - (the “Rider” retainer is separate from agent/ broker servicing agreement & retainer)

~ I so oft see real estate agents promoting “the ___ ___ ‘team’ or ‘our team’ “.

I realized, the ‘listing specialist’, ‘marketing specialist’, ‘closing specialist’, etc, are all handlers for the office/ agent/ broker aspect. >> Light bulb: what about the client? How about a ‘specialist’ for them and them alone? YES! That’s us.

__ These are ‘transaction/ transitions concierge’ providers. __ A helper providing professionalism, empathy, assisting you through a traumatic time of life – the transactions of real estate!

__ I’m excited to offer this assistance during the time of your ‘transaction/ transitions’ brokerage. ‘They’ don’t talk ‘house/ real estate/ marketing/ title/ mortgage’ ….NO…they are the ‘who might know how to help’, kind-of-a-friend, to and for the client when feeling overloaded. ~ Some concierge(s) also provide ‘tickler checklists’, not an overwhelming printout, but perhaps touching base as the transaction unfolds.

real estate agent broker screening referral advocacy paul anibal seniors and veterans specialist__michigan_to_florida_california-to-maine

I’d like more info per name and contact information provided below ….

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* Concierges available w/ min. $250k transactions of a 1st, 2nd residence or trust/ estate liquidation. Level 1 ‘base’ available w/ up-front brokerage agreement & retainer, level 2 ‘premium’ also requires pay-as-we-go additions to retainer. Request details.

Please seek you own professional legal, tax, real estate, and insurance advice – not to the reliance of this article.

Office:

Elder & Concierge services – Michigan & Florida – moving buy sell relocation transitions Fenton Linden Holly Byron Hartland Michigan

Trusts ~ An estate tool for everyone

February 23, 2019

Anibal-Group-RealtyNetWorth-Dog-In-Lake Once you’ve physically or mentally passed to the next realm, you will leave some situation for family. Complicated interactions, probate and extra taxes may be the gift you leave. Or you may set up a trust.

A trust can greatly simplify things. There are many types used for various situations. The most common is a revocable living trust. It lets you:

specify how your estate will be distributed
can avoid probate – a lengthy, costly & emotional process
minimize arguments

Joint property ownership, or payable-on-death transfers or accounts can also avoid probate. Be careful about the taxation consequences of these.

The cost will vary depending on your situation, but $1,500 to $3,000 may cover the basics of:

your trust
a will
medical directive and
a power of attorney

List out for assigning all of your assets to the trust that you wish to avoid probate. Include wording for any additional assets so they may ‘pour over’ into the trust.

Retirement accounts and insurance policies generally aren’t subject to probate.

While alive, you have control to change, or even revoke it. Revocable trusts don’t require a tax return. This type of trust is part of your estate & won’t offer much tax benefit or asset protection. An irrevocable trust can, but once set up is difficult to alter.

After passing:

Further benefits are clarity and control. You may detail how your assets are distributed to beneficiaries and avoid much family conflict. For younger ones, a trust can outline ages and conditions they receive what part of their inheritance.

Special needs trust:

A special needs trust is a form of revocable trust designed for dependents with disabilities. Social Security allows disbursements without disqualifying them from Social Security, Medicare, or other benefits.

Private or public wishes?

If you use probate things can complicated since probate files are public record, trusts are not. As always, seek legal, tax, and financial feedback from advisors in all areas.

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* The above is for informational purposes only. Anibal Group LLC is not offering professional advice & this article is not to be considered advice specific to your situation. Your decisions should involve professionals of your choice re: insurance, legal, banking/ lending, structural/ property condition, and other transaction significant matters. We can offer referrals.

Passing Your Home to Your Children.

February 24, 2017

When/ How/ If: I Should Deed My House to the Kids

There can be some benefits, but also drawbacks to both the gift giver and recipient(s).

(Speak to your accountant/ lawyer/ lender/ and insurance agent for specific advise – the following is excerpts from counsel received and not to take the place of paid advisers in their respective field of licensing.) Anibal-Group-RealtyNetWorth-Senior_Services_woman-elder-2

Some will:

Add the child’s name onto the existing deed.
Make an outright gifting over.
Deed over but reserve a life estate.
Will the property, i.e: a “transfer on death”.
Others consider a revocable trust, irrevocable trust, or a family LLC.

#1, Possibly Tax Disaster.

Set up an office visit. There are good reasons, but often more bad reasons to use this strategy.

#2, Outright Gift.

Irrevocable, the parent loses control and legal right to stay in home. Perhaps the parents will rent back.
Ends the parent’s right to claim any preferences on property tax bills, e.g.: the homestead exemption, being blind or over 65, hardship/ low income exemptions.
This can dramatically increase property taxes.
If real estate transferred to a child is worth more than what was paid to purchase and improve it, then the child pays capital gain tax on the sale of the property. (The $250k/ $500k MFJ primary residence exemption is not applicable unless you own and live in the property).
Children’s (ex)spouse and creditors may have the ability to seize the property.
vs. Will at death.
- If a parent’s Last Will and Testament leaves real estate to a child, parent can change their mind w/ a new will.
Additional Parent Considerations.
- To remove the asset for Medicaid qualification, remember that a transfer of your real estate can make the parent ineligible for benefits for nursing home expenses, depending on when you enter the home. The length of time ineligible depends on the value of the real estate, whether it was transferred outright or retained as a life estate. Generally, its a five years look back.

A transfer of real estate is a “gift” and will no doubt require filing Tax Form 709 with the IRS.

#3, Gift with Retained Life Estate.

During life, the parent has the right to live in the property, and at death the life estate ends. Property transfer effectively at that time.
Some want to avoid probate after death, and possibly to avoid any court administration of their estate.
If the recipient child dies first, the child’s share in the real estate could pass to the deceased child’s spouse, rather than to the grandchildren.
- vs a parent’s Last Will and Testament may provide that an inheritance would go to grandchildren if a child died before the parent.
The parent still loses a significant degree of control. If the parent sells the property, the proceeds belong to the parent and the child (remaindermen), split according to the percentage of ownership determined by IRS life-expectancy tables.
- Capital gain tax would be owed by the child on his or her gains.
If the parent retains a life estate and the property is not sold before the parent dies, then under current law there would be no capital gain at the time of death because its cost basis is “stepped up” to the property’s market value on the date of death. This is a good thing for the recipient !
For Medicaid, the parent is deemed to own the entire interest in the real estate for five years after a deed execution retaining a life estate. They will also be the owner of the life estate interest thereafter, the value of which is calculated at the time of application for Medicaid.
RE: inheritance tax, the date-of-death value is taxable to the child – not lovely. But, the child gets a step-up in cost basis (easier if inherited at death in my opinion).

#4, Will the property.

Call the lawyer. Ok, now, plan for the child to do back flips on how much taxes you just saved him/her/them.

#5, The ‘entity’ approach.

The nuances will require coordinated input from your lawyer, CPA/ accountant, insurance agent, with some feedback from a real estate broker and your banker.

Bottom line. anibal-affiliates-realtynetworth_deeding-property-to-children-b

The when/ how to transfer should involve your accountant, lawyer, insurance agent, banker/lender at a minimum.

As I’ve told clients for decades: “You’re not dealing with a candy bar.”

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ROI Strategies for Real Estate ~ Cash now or cash later?

February 6, 2017

If you expect real estate should involve ROI, then there’s some basics to the outline.

Acquisitions – some we have control, others not – e.g.: inheritance.
Holding – short/ long/ entity/ self held/ purchase for child/ etc
Approach: add value/ flip/ wholesale/ rent/ vacation/ family lease to/ residence with business inside

Most properties will be held for cash income OR appreciation. If you can get both, then neither will probably be optimal.

Regardless, upfront considerations must include: Anibal-Group-LLC-RealtyNetWorth-Senior_Services_woman-elder

What you need from the property: income now or later (cash flow vs appreciation)
- I look at these like ‘a job’ or
- ‘retirement investment’
I will invest more:
- cash or
- time & talent

So there will be many vehicles and considerations. SD IRAs, set up LLC, Corporation, etc. One of my favorite realizations is that PROFIT is usually made on the way into an investment in THE BUY. Further when you SELL, what can you/will you do with the funds ? Make sure you have another opportunity lined up if you liquidate a great rental. Make sense ?

‘Later’ is not the preferred time to plan.

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For your friend at a time of loss.

September 10, 2016

Remember when you first realized you need ‘something more to offer’ when friends are at a hard time ? I remember well. I felt empty that I didn’t have deeper compassion for a grieving neighbor at a time of traumatic loss in the family. It was time to turn off the entertainment and read. real estate agent broker screening referral advocacy paul anibal seniors and veterans specialist__michigan_to_florida_california-to-maine

Here is a nice starter list for you to develop deeper empathy and your loved one. I especially like C S Lewis books. He experienced an early loss of a spouse married late in life, a compassionate deep thinker who is easy to follow.

15 Grief And Loss Books To Help You In Your Healing Journey

I guess the ever growing family counseling library I have is why I’ll sometimes call myself ‘your financial therapist’. If a loss was yours, “….what you are feeling is normal, and you are not alone.”

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Passing title at death

December 18, 2015

The dad signed a deed giving property to the child, left it in his desk assuming child would find it after death.

Deed was

Never delivered
Never accepted
Never recorded (aka perfected) although not a requirement but a good idea
and is now subject to probate without a will to pass the property

Deeds undelivered until after death in Michigan do not survive death.

Lesson: See the lawyer now.

Leaving your house to the children

December 18, 2015

For future planning FYI. leaving property to children Anibal Group LLC RealtyNetWorth.com

http://www.bfaslaw.com/wp-content/uploads/2011/12/Holding_Title_to_Real_Estate.pdf

particularly the part:
“….Joint Tenancy:……Another problem with owning property in joint tenancy is that when you add a co-owner to
the property as a joint tenant, you lose many aspects of property control. Many parents think that by
adding their son’s or daughter’s name to the property that it is a way to pass the property on without
a probate and this is generally true, but …...bla bla……. You also
expose the property to your co-owner’s debts and obligations, so by adding your son’s or daughter’s
name to the property, you could potentially lose your home to your child’s creditors if he or she is
successfully sued. There could also be gift and/or income tax problems if your co-owner is not your
spouse.

…….bla bla bla…..

Finally, property held in joint tenancy only receives a step up in the basis equal to one-half of
the property value at the death of the first joint tenant.

Paul’s notes:

Easiest tax wise, the spouse owns with spouse….property willed to child(ren). Child(ren) get full stepped up basis to reduce tax burden on them. Parents get ease of mind not having to worry about child being sued and attachment to parents property.

I’ve seen children added to deeds prior to passing of parent(s). Sometimes this is great, but I saw a real estate agent give advise she wasn’t at all qualified to give & it created an immense hardship ($15ooo tax bill) that could have been avoided with a 5 minute call to myself.

Please

This should involve legal AND taxation planning – if not insurable risk as well – consultation.

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