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| - | As tax preparation time begins, several seniors are asking to contain Medicaid asset protection as component of their tax preparing strategies. For those of you not familiar with the 2005 Tax Reduction Act, some of the provisions address precise transfers by seniors beneath the new Medicare nursing home provisions. Beneath the new provisions, before a senior qualifies for Medicare help into a nursing residence, they ought to invest-down their assets. These new restriction have a 5 year look-back, utilized to be 3 years. And employed to be that each and every spouse had a one-half interest in the marital property, it now appears that all the marital assets are to be spent-down. I have not noticed particular regulations but it appears that the healthy spouse will be left with out any assets if 1 of them gets sick.
| + | What Is a Transaction Coordinator? |
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| - | Suggestions by seniors have been to transfer their assets to their youngsters. Even though this selection is accessible, Im not positive that its a very good option. What if the youngster decides to use the asset for themselves, what if they get divorced and the judge awards assets originally intended for the parents to the divorcing wifes decree, what if the kid gets sued?
| + | A Transaction Coordinator is a person who takes responsibility for managing the deadlines and tasks of a real estate contract to closing. Some of the duties include: |
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| - | There are also tax implications. If the assets are transferred to the child for much less than fair marketplace worth, then its a taxable gift. Even worse, if this kind of transfer to the kid is completed prior to the five years-appear back, -is it a fraudulent conveyance?
| + | 1. Responsible for processing of all contracts through closing. |
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| - | Medicaid asset protection has to be carried out very carefully. Organizing in this region is evolving. There are a lot of eldercare law firms popping up all more than the place. I have been approached by such a firm to send them clients. They claim that they can structure a new deal whereby the nursing home wont be able to attach assets even immediately after they enter the nursing home.
| + | 2. Coordinating appointments for inspections, appraisals, and closing. |
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| - | I know this much, any technique employed to deflect assets from the original owner has to be accomplished at its fair marketplace worth. For example you just cant transfer your house from you to your youngster. There are tax consequences. Did you just sell your house? Or did you just gift your residence? Who will establish the fair industry value? Did you get a genuine appraisal? If therefore, its at much less than fair market place value (willing buyer and prepared seller, neither below compulsion to acquire or sell, every acting in their finest interest) did you just produce a far more difficult dilemma?
| + | 3. Effectively communicates with clients, customers, other agents, lenders, title agents and other service providers throughout the process. |
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| - | Any strategy whereby theres an element of strings attached, its revocable and therefore you have carried out absolutely nothing to disassociate your self from your asset. One particular can challenge your intent, to divert assets for the purpose of defrauding a prospective creditor and failure to have filed a gift tax return has statutory penalties, and interest, worse- if Medicare intended, criminal?
| + | 4. Responsible for proper documentation of the file to comply with brokerage policies. |
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| - | I am aware of only one particular strategy of disassociating yourself from your asset (private residence, your CDs, your investments, vacation spot) is to give it away. Period. You can gift it to your children, spend the tax and thats it. The difficulty is that you no longer have any manage and you are at the mercy of your childs good intentions and a blessed spouse. Risky? You bet!
| + | 5. Assures that all post-closing disbursements, filing, and procedures take place. |
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| - | An irrevocable trust with an independent trustee (not connected to you by blood or marriage) will fit the bill.
| + | 6. Frees the agent client up to focus on business building activities. |
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| - | An irrevocable trust, is an irrevocable contract in between you and the independent trustee to manage the assets for the benefit of all beneficiaries. You and your spouse can turn out to be beneficiaries along with your children and grand children.
| + | In many offices across the country, there are transaction coordinators on staff who are shared among the office. While this approach seems practical or beneficial on the surface because the coordinator is in house and can be accessed by stopping by her/his desk. It's not always the best or most effective approach when explored further. There are many reasons for that, a few are outlined here: |
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| - | Timing is extremely important. If the transfer (repositioning) of your beneficial assets is completed prior to the five years, chances are good that it will stand-up in court. What if its ahead of the five years are up? Is your Medicaid asset protection program nonetheless excellent? In my book its far better to have accomplished some thing than absolutely nothing.
| + | a. The transaction coordinator is paid by the office and has a job, which is not always exclusively coordinating transactions. Meaning, they could get pulled away from their job to help the other departments such as receptionist, listing coordinating or what have you. This means they aren't working on your transactions. |
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| | + | b. Interruptions! The facts are clear, it can take more than 20 minutes to get back on task after an interruption. That said, imagine how inefficient it can be if agents are walking in and out of the transactioncoordinators office all day long. |
Current revision as of 05:40, 9 December 2017
What Is a Transaction Coordinator?
A Transaction Coordinator is a person who takes responsibility for managing the deadlines and tasks of a real estate contract to closing. Some of the duties include:
1. Responsible for processing of all contracts through closing.
2. Coordinating appointments for inspections, appraisals, and closing.
3. Effectively communicates with clients, customers, other agents, lenders, title agents and other service providers throughout the process.
4. Responsible for proper documentation of the file to comply with brokerage policies.
5. Assures that all post-closing disbursements, filing, and procedures take place.
6. Frees the agent client up to focus on business building activities.
In many offices across the country, there are transaction coordinators on staff who are shared among the office. While this approach seems practical or beneficial on the surface because the coordinator is in house and can be accessed by stopping by her/his desk. It's not always the best or most effective approach when explored further. There are many reasons for that, a few are outlined here:
a. The transaction coordinator is paid by the office and has a job, which is not always exclusively coordinating transactions. Meaning, they could get pulled away from their job to help the other departments such as receptionist, listing coordinating or what have you. This means they aren't working on your transactions.
b. Interruptions! The facts are clear, it can take more than 20 minutes to get back on task after an interruption. That said, imagine how inefficient it can be if agents are walking in and out of the transactioncoordinators office all day long.
