Life Estates Explained: What Most People Get Wrong

In this week’s Ask Todd, Todd Lutsky of Cushing & Dolan breaks down the pros and cons of life estates — one of the most commonly used, and commonly misunderstood, estate planning tools. Todd explains what a life estate actually does, the loss-of-control issues many families don’t anticipate, and why selling a home with a life estate can become more complicated than expected.He also outlines when life estates may make sense — and when an irrevocable trust may be the better alternative.Listeners also asked: • Is there a tax-efficient way to protect an IRA from Medicaid?• How the SECURE Act affects inherited IRA planning• Can you sell a home held in an irrevocable trust without resetting the five-year clock?• What are the real benefits — and risks — of using a life estate?If you have questions about estate planning, Medicaid planning, or protecting your assets, tune in to Ask Todd every Wednesday at 10:30am on the Financial Exchange Radio Network.To learn more, visit cushingdolan.com or call (866) 848-5699.