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Re: $1 and $2 foreign tax paid - file? refundable credit?

They can carry their unused foreign tax credits back one year and forward 10 years under Internal Revenue Code Section 904(c). So if they can't use the credit for the current year or the previous year, they may be able to use the credit at some point during the next 10 years. Whether it's worth the ...
by bsteiner
Sun Jan 25, 2015 12:28 pm
 
Forum: Personal Finance (Not Investing)
Topic: $1 and $2 foreign tax paid - file? refundable credit?
Replies: 5
Views: 304

Re: Transfer on death plan or Go to dreaded probate?

We did visit an Atty in 2012 before the estate tax uncertainty ended and the recommendation was for a perpetual trust which my family member was very uncomfortable with. Their desire is to distribute assets immediately upon death and trust the Benes to do well or ill accordingly. To the extent a te...
by bsteiner
Sun Jan 25, 2015 11:32 am
 
Forum: Personal Finance (Not Investing)
Topic: Transfer on death plan or Go to dreaded probate?
Replies: 6
Views: 729

Re: QuitClaim Deed

ArthurO wrote:... nothing personal, but I hate attorneys ....


I'm a lawyer, and I also live in New Jersey. I hope if we meet at one of the local chapter meetings you won't hate me.
by bsteiner
Sun Jan 25, 2015 10:35 am
 
Forum: Personal Finance (Not Investing)
Topic: QuitClaim Deed
Replies: 28
Views: 1541

Re: Looking for trust investment advice

... since different states have different ways of determining when a trust is taxable as a resident trust, there are often ways to arrange for a trust not to be taxable in any state. Can you discuss how to avoid state taxes in a trust? Any articles that discuss this? ... Some states treat a trust a...
by bsteiner
Sat Jan 24, 2015 11:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Looking for trust investment advice
Replies: 8
Views: 409

Re: Transfer on death plan or Go to dreaded probate?

Assuming someone was just under the threshold to worry about estate taxes (5-10 million total account size) and was older, would you use a TOD to simplify things and avoid probate? Main downside is if you have per stirpes intentions in your will .... So main question is, is probate really that bad?...
by bsteiner
Sat Jan 24, 2015 8:58 pm
 
Forum: Personal Finance (Not Investing)
Topic: Transfer on death plan or Go to dreaded probate?
Replies: 6
Views: 729

Re: Looking for trust investment advice

You may want to run the numbers to compare the following three choices: 1. Ignoring any other items, if you sell all at once, you'll incur 20% capital gains tax plus 3.8% net investment income tax on the capital gain above $12,300. This will reduce the expenses on the entire portfolio immediately. T...
by bsteiner
Sat Jan 24, 2015 8:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: Looking for trust investment advice
Replies: 8
Views: 409

Re: Estate planning for parents, trying to push forward

... My mother was given the name of a lawyer from a friend. We haven't called yet, but the website states that they(the office is one lawyer and one paralegal) work with older persons, disabled persons, family, and caregivers. After a bit of explanation of these areas, it states that they also emph...
by bsteiner
Fri Jan 23, 2015 2:54 pm
 
Forum: Personal Finance (Not Investing)
Topic: Estate planning for parents, trying to push forward
Replies: 4
Views: 577

Re: SF Bay Area Living Trust Attorney Recommendation

I'll start contracting these attorneys and also check if they're part of my group legal plan. .... Unless you're net worth is modest and your situation is very basic, the ones in the group plan are probably not the ones you would want, any more than you should want the ones who are happy to provide...
by bsteiner
Fri Jan 23, 2015 10:39 am
 
Forum: Personal Finance (Not Investing)
Topic: SF Bay Area Living Trust Attorney Recommendation
Replies: 16
Views: 825

Re: SF Bay Area Living Trust Attorney Recommendation

...You can ask for a free initial consultation and estimate as to how much it will cost to do the things you want/need. ... If you ask for a free initial consultation, the lawyers who will give you one are probably not the ones you want. The initial meeting is often a significant portion of the wor...
by bsteiner
Thu Jan 22, 2015 11:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: SF Bay Area Living Trust Attorney Recommendation
Replies: 16
Views: 825

Re: Estate planning for parents, trying to push forward

... I'm encouraging my late-60's parents to start their estate planning in earnest. .... The most complicated aspect is that my brother is somewhat mentally disabled, also with some health issues .... In the meantime, the immediate plan is that I go with my parents to their first visit to an elder ...
by bsteiner
Thu Jan 22, 2015 10:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: Estate planning for parents, trying to push forward
Replies: 4
Views: 577

Re: Surviving the Tax Bite of RMD Withdrawals in Retirement

The required withdrawal percentage goes up as your life expectancy goes down; the first year it's about 3.65%; when you're 71, it goes up to 3.77%, and so on. Let's suppose that you're in the middle of the 15% bracket for your first withdrawal. You take out more than the required 3.65% Next year, w...
by bsteiner
Thu Jan 22, 2015 4:35 pm
 
Forum: Investing - Theory, News & General
Topic: Surviving the Tax Bite of RMD Withdrawals in Retirement
Replies: 71
Views: 5215

Re: Surviving the Tax Bite of RMD Withdrawals in Retirement

The Wizard wrote:... if all your income is taxable would you rather be in the 15% federal tax bracket or the 28% tax bracket? ...


I would prefer to be in the 39.6% Federal bracket.
by bsteiner
Thu Jan 22, 2015 3:23 pm
 
Forum: Investing - Theory, News & General
Topic: Surviving the Tax Bite of RMD Withdrawals in Retirement
Replies: 71
Views: 5215

Re: Feedback please: Lump Sum vs Pension

The pension gives you an annuity at a much better price than if you had to buy one from an insurance company, since the insurance company has to cover its expenses, retain reserves, and make a profit. The lump sum gives you more control and flexibility. The lump sum allows for the possibility of a R...
by bsteiner
Mon Jan 19, 2015 6:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: Feedback please: Lump Sum vs Pension
Replies: 8
Views: 745

Re: Should parents setup Revocable Living Trust?

Colorado doesn't require ancillary probate. Colorado Code §§ 15-13-204 and 15-13-205: https://law.resource.org/pub/us/code/co/colorado.xml.older/code11.15.html. Hawaii is a Uniform Probate Code state, so the procedures there should be simple. Given the value of their estate, not only should they pro...
by bsteiner
Mon Jan 19, 2015 6:01 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should parents setup Revocable Living Trust?
Replies: 8
Views: 879

Re: Should parents setup Revocable Living Trust?

Revocable trusts do not save (or cost) estate taxes. Revocable trusts generally do not save (or cost) income taxes. Revocable trusts are overhyped and oversold, and for most people, in most states, aren't worth the effort. The one factor that might suggest a revocable trust in this case, at least fo...
by bsteiner
Mon Jan 19, 2015 4:55 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should parents setup Revocable Living Trust?
Replies: 8
Views: 879

Re: Two CSR Fed Employees Retiring 2015 - Need Input Please!

Have you put up to 10% of your after tax lifetime federal income into a Voluntary Contribution Account for each of you? This is a special provision available for CSRS employees and when you have completed your contributions to the Vol Contribution Account, you can roll it over into a Roth IRA for e...
by bsteiner
Mon Jan 19, 2015 3:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: Two CSRS Fed Employees Retiring 2015 - Need Input Please!
Replies: 43
Views: 2368

Re: CP2000’s for 2011-12, HRB’s error. Time to switch?

...I don’t think I have a particularly complex return. I file jointly with my wife, and we have one daughter. I’m not sure if we’re in the top tax bracket, but we’re close. ... The top bracket for a married couple begins at $457,600 of taxable income, so if you're in or close to the top bracket, an...
by bsteiner
Mon Jan 19, 2015 12:23 pm
 
Forum: Personal Finance (Not Investing)
Topic: CP2000’s for 2011-12, HRB’s error. Time to switch?
Replies: 8
Views: 501

Re: Downside of putting condo in a trust

... if in Ohio I'd highly recommend considering a transfer on death (TOD) deed if avoiding Probate is the main goal. While a few states allow transfer on death (TOD) deeds, there are a few reasons not to do them. 1. Probating a Will is generally not particularly difficult, expensive or burdensome. ...
by bsteiner
Mon Jan 19, 2015 11:51 am
 
Forum: Personal Finance (Not Investing)
Topic: Downside of putting condo in a trust
Replies: 29
Views: 2817

Re: A quick poll--pension annuity vs. lump sum

... The use of "fair" is clearly defined as, will the lump sum buy the annuity? It is not stated as a choice. ... At a fair price, the lump sum wouldn't buy the annuity, since the insurance company has to cover its expenses and establish reserves, and may want to make a profit. I would vi...
by bsteiner
Mon Jan 19, 2015 10:10 am
 
Forum: Personal Finance (Not Investing)
Topic: A quick poll--pension annuity vs. lump sum
Replies: 62
Views: 3608

Re: Downside of putting condo in a trust

...I am in CA and have a revocable trust to avoid probate... no asset protection, no other discernible advantages. .... Revocable trusts are common in California for reasons specific to California. I don't practice in California, but people there say that there is more court involvement in estates ...
by bsteiner
Sun Jan 18, 2015 8:56 am
 
Forum: Personal Finance (Not Investing)
Topic: Downside of putting condo in a trust
Replies: 29
Views: 2817

Re: Help with a variable annuity

yankeefan4065 wrote:...A small part of her portfolio (about 5%) is in a variable annuity (Prudential ASXT6) sold to her by her tax advisor in 2007. ...


Why would a tax advisor recommend an annuity?
by bsteiner
Fri Jan 16, 2015 12:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Update...Help with a variable annuity
Replies: 30
Views: 1248

Re: Great Krugman column on Swiss currency debacle

If the Swiss franc continues to be this strong, it might be worth holding Swiss francs even at -0.75% interest.

Are there any mattress companies in Switzerland that are publicly traded?
by bsteiner
Fri Jan 16, 2015 12:49 pm
 
Forum: Investing - Theory, News & General
Topic: Great Krugman column on Swiss currency debacle
Replies: 8
Views: 1223

Re: UGMA/UTMA to save taxes - can I do this?

freddie wrote:Cost basis goes up on death not gifting. ...


The basis is increased by the portion of the gift tax allocable to the appreciation. Before 1977, the basis was increased (but not beyond the value at the time of the gift) by the entire amount of the gift tax. Internal Revenue Code Section 1015.
by bsteiner
Wed Jan 14, 2015 10:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: UGMA/UTMA to save taxes - can I do this?
Replies: 11
Views: 753

Re: Downside of putting condo in a trust

Revocable trusts do not save or cost any estate taxes. For estate tax purposes, assets in a revocable trust are treated the same as if they were owned by the decedent. During lifetime, revocable trusts do not save or cost any income taxes. For income tax purposes, if you create a revocable trust, yo...
by bsteiner
Tue Jan 13, 2015 11:01 pm
 
Forum: Personal Finance (Not Investing)
Topic: Downside of putting condo in a trust
Replies: 29
Views: 2817

Re: How to transfer estate without including tax man

If she's a doctor, then you would certainly provide for her in trust rather than outright, to keep her inheritance out of her estate, and to protect it against her potential creditors. If you want to provide a trust that would make regular payments to her for life, with remainder to charity, you cou...
by bsteiner
Tue Jan 13, 2015 10:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to transfer estate without including tax man
Replies: 27
Views: 2398

Re: How to transfer estate without including tax man

If the Federal estate tax exempt amount ($5,430,000 in 2015, and indexed) is sufficient for her, this is routine, and can be done for far less than $12,000. You could simply leave the Federal estate tax exempt amount to her (or, better yet, in trust for her), and the rest to charity. The formula wou...
by bsteiner
Tue Jan 13, 2015 8:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to transfer estate without including tax man
Replies: 27
Views: 2398

Re: What Movie Have You Recently Watched?

Over the holiday weekends and this past weekend I saw Annie, Imitation Game and Selma. I enjoyed all three.
by bsteiner
Sun Jan 11, 2015 9:37 pm
 
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 452
Views: 53224

Israel bonds [how to evaluate political risk?]

Israel bonds now pay 2.76% for 5 years or 3.55% for 10 years, in each case in U.S. dollars. I think the minimum needed to get these rates is $25,000.

I don't know how to evaluate the political risk.
by bsteiner
Sun Jan 11, 2015 3:14 pm
 
Forum: Investing - Theory, News & General
Topic: Israel bonds [how to evaluate political risk?]
Replies: 17
Views: 1498

Re: Help me to understand time shares

If you go to the free dinner seminar, and you're the one who buys the annuity, the living trust, the timeshare, or the bridge, not only did you pay for your free dinner, but you paid for the free dinners for everyone else in the room.
by bsteiner
Sun Jan 11, 2015 9:35 am
 
Forum: Personal Consumer Issues
Topic: Help me to understand time shares
Replies: 58
Views: 5368

Michael Kitces on long-term care insurance

Michael Kitces wrote a nice article today on long-term care insurance, proposing policies with longer waiting periods to facilitate insurance against the risk of needing care for a long time: https://www.kitces.com/blog/can-increasing-the-long-term-care-insurance-elimination-period-make-coverage-app...
by bsteiner
Wed Jan 07, 2015 4:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: Michael Kitces on long-term care insurance
Replies: 17
Views: 2032

Re: Asset protection in Nevada

Talked to a lawyer he said this have never been tested in court, and they believe it will hold up in court etc etc. weird no one has ever went to court ever? this is new in NV or something. Can you put all your assets into the trust or only things you won't touch for awhile and can leave alone for ...
by bsteiner
Wed Jan 07, 2015 3:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: Asset protection in Nevada
Replies: 19
Views: 2415

Re: Vanguard announces new Tax-Exempt Index Bond Fund

Is there some activity in the intermediate term fund? For example, if you want to have 5-year bonds, and you buy 5-year bonds, after a year you have 4-year bonds. Do they then sell what are then 4-year bonds and buy 5-year bonds? If so, do they pick up some gain from the yield curve if the yield on ...
by bsteiner
Tue Jan 06, 2015 4:47 pm
 
Forum: Investing - Theory, News & General
Topic: New Vanguard AMT-free National Municipal Bond Fund
Replies: 58
Views: 5009

Re: Pre-tax Retirement Accounts and Pensions in Networth

... the see-through Roth IRA trust can't be distributed to pay trust administration costs because this would cause the see-through to fail. (The Roth IRA is supposed to "see through" to a nameable person beneficiary, so having it pay for trust administration would disqualify it.) ... A tr...
by bsteiner
Mon Jan 05, 2015 9:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: Pre-tax Retirement Accounts and Pensions in Networth
Replies: 24
Views: 2373

Re: Social Security election change? Q for my 71 yr Mom

Could she have taken a divorced spouse benefit at 66 and then switched to her own at 70? If her own benefit is actuarially equivalent regardless of when she begins taking it, then wouldn't the divorced spouse benefit essentially be free money?
by bsteiner
Sun Jan 04, 2015 6:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: Social Security election change? Q for my 71 yr Mom
Replies: 21
Views: 2263

Re: Client Not Letting Independent Contractor Use LLC?

...One of the most important reasons to have an LLC is that many customers won't contract, or will hesitate to contract, with a sole proprietor, but will make a b2b contract with an LLC with less resistance. ... Why is that? If I enter into a contract with a sole proprietor, the sole proprietor has...
by bsteiner
Sat Jan 03, 2015 9:58 pm
 
Forum: Personal Finance (Not Investing)
Topic: Client Not Letting Independent Contractor Use LLC?
Replies: 32
Views: 2902

Re: Pre-tax Retirement Accounts and Pensions in Networth

...How do you recommend accounting for pre-tax retirement accounts in calculating networth... Should there be a deduction for tax (and/or tax and penalty if one is many years before retirement)? ... I think the simplest thing is to ignore the tax aspects. On the one hand, the traditional 401(k) or ...
by bsteiner
Sat Jan 03, 2015 9:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: Pre-tax Retirement Accounts and Pensions in Networth
Replies: 24
Views: 2373

Re: take pension with survivor benefits or not

How would you analyze the choice between a larger pension with survivor benefits and a smaller pension with a survivor benefit where the goal is to maximize the expected value? Remember these offers are 'actuarially fair'... In our case, H has a pension that allowed anywhere from 0-55% survivor ben...
by bsteiner
Fri Jan 02, 2015 10:08 am
 
Forum: Personal Finance (Not Investing)
Topic: take pension with survivor benefits or not
Replies: 40
Views: 2989

Re: take pension with survivor benefits or not

How would you analyze the choice between a larger pension with survivor benefits and a smaller pension with a survivor benefit where the goal is to maximize the expected value?
by bsteiner
Thu Jan 01, 2015 10:42 pm
 
Forum: Personal Finance (Not Investing)
Topic: take pension with survivor benefits or not
Replies: 40
Views: 2989

Re: Tax software to prepare 1041 form

... hoping ... they don't have to file a 706 estate tax return or its state equivalent. Since the estate tax rate is less than 100%, you would be better off having a larger estate. Actually, there is a cliff phenomenon marginal estate rate over 100% in New York State (up to 164% ...): .... The phas...
by bsteiner
Tue Dec 30, 2014 9:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax software to prepare 1041 form
Replies: 13
Views: 934

Re: Bypass trust soon will not reduce future family estate t

...Some years ago, the couple set up individual revocable trusts with bypass trust provisions, because their combined estate was significantly greater than their state estate tax exemption (Maryland in this case). One spouse died in 2010 with an estate of just over $1M. $1M being the MD exemption a...
by bsteiner
Tue Dec 30, 2014 9:27 pm
 
Forum: Personal Finance (Not Investing)
Topic: Bypass trust soon will not reduce future family estate tax
Replies: 6
Views: 1093

Re: Tax software to prepare 1041 form

dodecahedron wrote:... hoping ... they don't have to file a 706 estate tax return or its state equivalent.


Since the estate tax rate is less than 100%, you would be better off having a larger estate.
by bsteiner
Tue Dec 30, 2014 8:57 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax software to prepare 1041 form
Replies: 13
Views: 934

Re: Tax software to prepare 1041 form

H&R Block (formerly TaxCut) Premium & Business.
by bsteiner
Tue Dec 30, 2014 11:42 am
 
Forum: Personal Finance (Not Investing)
Topic: Tax software to prepare 1041 form
Replies: 13
Views: 934

Re: Investing inheritance money for elderly motherr

bsteiner, thanks for the response and thanks for the research. You didn't have these PLRs memorized and ready off the top of your head, did you? No, but I can usually find the key PLRs dealing with retirement benefits quickly. In this case, since I have a ruling request pending on a similar situati...
by bsteiner
Sun Dec 28, 2014 7:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investing inheritance money for elderly motherr
Replies: 70
Views: 4511

Re: Investing inheritance money for elderly motherr

...Suppose the IRA owner started a direct rollover and received a check, then either (a) deposited the check in a non-IRA account and died, or (b) died without the check being cashed. What happens to the money? Is it still eligible to go as an inherited IRA to the beneficiaries named on the origina...
by bsteiner
Sun Dec 28, 2014 8:37 am
 
Forum: Investing - Help with Personal Investments
Topic: Investing inheritance money for elderly motherr
Replies: 70
Views: 4511

Re: Investing inheritance money for elderly motherr

This discussion makes me wonder if there is a such thing as 60 day rollover possible in the case of inheriting a retirement account. Could the beneficiary actually receive the money and bank it and then roll it into an inherited IRA within 60 days? No. Only the employee or IRA owner or spouse can d...
by bsteiner
Sun Dec 28, 2014 7:45 am
 
Forum: Investing - Help with Personal Investments
Topic: Investing inheritance money for elderly motherr
Replies: 70
Views: 4511

Re: Vanguard National Trust Company?

In a single trust, the age of the oldest child must be used to calculate the RMD. In multiple "pass-through" trusts, the age of each beneficiary may be used. That assumes that the IRA is payable to the separate trusts. Also, most likely, if a child dies without leaving any issue, and with...
by bsteiner
Sat Dec 27, 2014 10:10 pm
 
Forum: Investing - Theory, News & General
Topic: Vanguard National Trust Company?
Replies: 96
Views: 21150

Re: Vanguard National Trust Company?

dr_g wrote:... In my case, the revocable trust will be split into three irrevocable subtrusts upon my death to maximize the "stretch" benefits for qualified assets. ...


How does dividing a trust affect the stretch?
by bsteiner
Sat Dec 27, 2014 7:48 pm
 
Forum: Investing - Theory, News & General
Topic: Vanguard National Trust Company?
Replies: 96
Views: 21150

Re: Need help with trust problem, huge tax bill possible (CA

There are some exceptions to reassessment in California for inherited property. Since I don't practice in California, I'm not familiar with the details, but the lawyer handling your grandmother's estate should be familiar with the specifics of the exception for inherited property.
by bsteiner
Sat Dec 27, 2014 7:42 pm
 
Forum: Personal Finance (Not Investing)
Topic: Need help with trust problem, huge tax bill possible (CA)
Replies: 8
Views: 1371

Re: 1 rollover per year?

...I even saw a "Letter to the Editor" of the local paper ragging on Obama or was it Bush about this. ... Congress makes the laws. This restriction on rollovers was in Section 408(d)(3)(B) from its inception, as passed by Congress as part of ERISA in 1974 and signed by President Ford. It ...
by bsteiner
Sat Dec 27, 2014 7:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: 1 rollover per year?
Replies: 23
Views: 1719

Re: Investing inheritance money for elderly motherr

Why ASAP? ... We were told that she has to transfer the money by Dec 31st. ... I have the same question as livesoft. Dealing with it slower but well is probably better than doing it faster but poorly. ...Two of the financial planners want to invest some in annuities (most of it).... If you go to th...
by bsteiner
Fri Dec 26, 2014 3:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investing inheritance money for elderly motherr
Replies: 70
Views: 4511
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