Search found 1307 matches

by bsteiner
Sat Aug 29, 2015 10:22 pm
Forum: Personal Finance (Not Investing)
Topic: Charatable trust after death
Replies: 25
Views: 774

Re: Charatable trust after death

This is more of a question rather than a suggestion, but, can one put a contingency in a will or trust that says something to the effect that money is bequeathed if the organization will use it for funding of a rescue shelter to be named Brian's Shepard Shelter? To the extent you want to put restri...
by bsteiner
Sat Aug 29, 2015 10:16 pm
Forum: Personal Finance (Not Investing)
Topic: Charatable trust after death
Replies: 25
Views: 774

Re: Charatable trust after death

What you're describing is a foundation. While foundations aren't practical for small amounts, $5 or $6 million is more than enough for a foundation. While there are some expenses in running a foundation, such as annual tax returns, at that level the costs are far less than the costs of a donor advis...
by bsteiner
Tue Aug 25, 2015 10:07 am
Forum: Personal Finance (Not Investing)
Topic: Zero Percent for 60 months or $2000 Cash Back
Replies: 12
Views: 1865

Re: Zero Percent for 60 months or $2000 Cash Back

You could buy the car through Pentagon Federal's buying service (which is truecar under their name). That let's you borrow from them at 0.99% for 3 years and then take the $2,000.
by bsteiner
Mon Aug 24, 2015 9:45 pm
Forum: Investing - Help with Personal Investments
Topic: Help with my mother's AA - NOW deciding to ditch her advisor!
Replies: 29
Views: 2397

Re: Help with my mother's AA - NOW deciding to ditch her advisor!

If it's an income only Medicaid trust then you (she) can't use the proceeds of the sale of the house. You (she) can only use the income from this (and the income but not the principal from the other assets). Does this Medicaid planning make sense? You're limited to the income from the assets in the ...
by bsteiner
Mon Aug 24, 2015 7:08 pm
Forum: Personal Finance (Not Investing)
Topic: Cost for prenup
Replies: 15
Views: 1437

Re: Cost for prenup

Whether it's advisable in a given case depends upon the particular facts and circumstances. Most hold up where the parties had separate counsel, there was full disclosure of the parties' financial situation, and the terms of the agreement were reasonable. However, I had an estate a few years ago whe...
by bsteiner
Mon Aug 24, 2015 5:34 pm
Forum: Personal Finance (Not Investing)
Topic: Cost for prenup
Replies: 15
Views: 1437

Re: Cost for prenup

It may not cost much to draft it, but it costs something to speak or meet with you to discuss what you want it to say, to deal with issues you didn't consider (for example, in this case, what happens when you die or if your spouse dies, portability, retirement benefits) to gather the asset informati...
by bsteiner
Sun Aug 23, 2015 12:30 am
Forum: Personal Consumer Issues
Topic: Visiting New York City this weekend. What pizza should I try?
Replies: 47
Views: 3264

Re: Visiting New York City this weekend. What pizza should I try?

Above: There were trademark battles in the 1980s-90's that led to the proliferation of the various Ray's names on pizza locations. ... When I was in the graduate tax program at NYU in 1975-76, I used to go to Ray's on 6th Avenue and 11th Street, which became very well known. Back then, I wasn't awa...
by bsteiner
Sat Aug 22, 2015 11:05 pm
Forum: Investing - Theory, News & General
Topic: Creating a permanent legacy?
Replies: 53
Views: 5675

Re: Creating a permanent legacy?

... Let's assume the GST exemption was used when creating a dynasty trust (or an irrevocable GST trust in a state with rules that essentially make it a dynasty trust). Through good fortune, the trust has grown exponentially through let's say four generations. Let's also say that all the income the ...
by bsteiner
Sat Aug 22, 2015 10:28 pm
Forum: Investing - Theory, News & General
Topic: Creating a permanent legacy?
Replies: 53
Views: 5675

Re: Creating a permanent legacy?

... Let's assume the GST exemption was used when creating a dynasty trust (or an irrevocable GST trust in a state with rules that essentially make it a dynasty trust). Through good fortune, the trust has grown exponentially through let's say four generations. Let's also say that all the income the ...
by bsteiner
Sat Aug 22, 2015 8:05 pm
Forum: Investing - Help with Personal Investments
Topic: Chase insists on total distr of inherited IRA
Replies: 18
Views: 1292

Re: Chase insists on total distr of inherited IRA

... My dad was 91 so taking rmd's, so that simplifies things a bit. I'm executor/sole heir, but since assets so low no estate was officially 'set up' (no Federal ID number, no bank account, etc)--- just a matter of a will-only filing at the courthouse. Thus, don't think a distribution check issued ...
by bsteiner
Fri Aug 21, 2015 12:47 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Interest Deduction Snafu?
Replies: 11
Views: 689

Re: Mortgage Interest Deduction Snafu?

As you might expect, the bank sends in the Form 1098 electronically, so the IRS can match them. We once had a case where the taxpayer had a home in a foreign country, and a mortgage loan from a bank in the foreign country, so there was no Form 1098, and the IRS picked it up. In this case, who paid t...
by bsteiner
Wed Aug 19, 2015 4:22 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security surviving spouse
Replies: 3
Views: 485

Social Security surviving spouse

W was receiving Social Security disability benefits. She died about a year ago at age 62. H is 65. He began collecting his own Social Security benefits at 62 when he stopped working. Now that W has died, could H switch to surviving spouse benefits, either now or when he reaches full retirement age a...
by bsteiner
Tue Aug 18, 2015 5:18 pm
Forum: Personal Finance (Not Investing)
Topic: Life insurance instead of IRA in estate planning
Replies: 11
Views: 543

Re: Life insurance instead of IRA in estate planning

I know Ed very well. We've been on some continuing education panels together, and I've written for and am a technical advisor for his newsletter. If you have a taxable estate, and you've already used up your other assets, it generally makes sense to take money out of your IRA (even beyond the requir...
by bsteiner
Tue Aug 18, 2015 4:02 pm
Forum: Personal Finance (Not Investing)
Topic: Funding our living trusts?
Replies: 16
Views: 1312

Re: Funding our living trusts?

... If you are in a state that does NOT have a state income tax, be sure you do NOT have ANY trustee who is a resident of a state that does have a state income tax, as your entire trust may be taxed (even if that trustee is only one of several trustees). ... That's a whole other subject. Different ...
by bsteiner
Tue Aug 18, 2015 9:12 am
Forum: Personal Finance (Not Investing)
Topic: Funding our living trusts?
Replies: 16
Views: 1312

Re: Funding our living trusts?

... Our lawyer went thru the funding instructions with us on all our accounts (investment as well as 401K/IRA) and was clear on putting everything in the living trust. ... You can't put retirement benefits in a living trust while you're alive. It generally doesn't make sense to make a living trust ...
by bsteiner
Tue Aug 18, 2015 9:09 am
Forum: Personal Finance (Not Investing)
Topic: Funding our living trusts?
Replies: 16
Views: 1312

Re: Funding our living trusts?

An unfunded revocable trust isn't as unusual as it may seem. Some lawyers think that the biggest nuisance in dealing with the courts isn't probating the Will, but rather having to go to court each time the family wants to make a change in the trustees (for example, upon the death or resignation of a...
by bsteiner
Mon Aug 17, 2015 9:16 pm
Forum: Investing - Theory, News & General
Topic: Is a Roth dollar worth 1.525 times a taxable dollar?
Replies: 27
Views: 4318

Re: Is a Roth dollar worth 1.525 times a taxable dollar?

You assumed that the entire Roth would be paid out at the end of year 30. However, the Roth may continue during the lifetimes of the Roth IRA owner and his/her spouse, and then may be stretched over the life expectancies of the beneficiaries. In order to compare the Roth, traditional and taxable acc...
by bsteiner
Mon Aug 17, 2015 11:26 am
Forum: Personal Finance (Not Investing)
Topic: Need trustee company for trust
Replies: 36
Views: 2929

Re: Need trustee company for trust

... I am now looking into whether a CPA could do the administrative work, leave the bill paying and discretionary distributions to me, and save the beneficiary money over hiring a corporate trustee at all. Any thoughts? You'll be dead when the trusts under your Will take effect. Unless you expect t...
by bsteiner
Mon Aug 17, 2015 10:36 am
Forum: Personal Finance (Not Investing)
Topic: Need trustee company for trust
Replies: 36
Views: 2929

Re: Need trustee company for trust

There are professional trustees that we work with who are independent of our company (as they should be). Rick Ferri I really like this design, with a trustee who has custody of the assets and a separate investment manager. Knowing that the investment decisions are made by people who cannot touch t...
by bsteiner
Mon Aug 17, 2015 9:28 am
Forum: Personal Finance (Not Investing)
Topic: Funding our living trusts?
Replies: 16
Views: 1312

Re: Funding our living trusts?

At one time, the Massachusetts probate process was more work, so some people created living trusts. Massachusetts then enacted the Uniform Probate Code, which greatly simplified the process. The new law was passed in January 2009 to become effective in 2011, though the effective date was put off unt...
by bsteiner
Sun Aug 16, 2015 2:20 pm
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Life Insurance Trust (ILIT) - worth it for term life and/or other purposes?
Replies: 52
Views: 2231

Re: Irrevocable Life Insurance Trust (ILIT) - worth it for term life and/or other purposes?

... I sent up a ILIT when I started practice at age 30 and more children were very young. It clearly stated they would get a certain % at 25, 30, 35 and rest at 40 so they had 4 chances to blow the money. ... setting up an ILIT is very simple. Most lawyers just push a button on their word processor...
by bsteiner
Sun Aug 16, 2015 1:23 pm
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Life Insurance Trust (ILIT) - worth it for term life and/or other purposes?
Replies: 52
Views: 2231

Re: Irrevocable Life Insurance Trust (ILIT) - worth it for term life and/or other purposes?

... Just to be completely clear about the key distinction I think bsteiner is making is that there is all the difference in the world between transferring assets to your spouse (which you can do at any time during your life or death, without creating a tax liability) and transferring assets to a tr...
by bsteiner
Sun Aug 16, 2015 1:21 pm
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Life Insurance Trust (ILIT) - worth it for term life and/or other purposes?
Replies: 52
Views: 2231

Re: Irrevocable Life Insurance Trust (ILIT) - worth it for term life and/or other purposes?

... Most people say ILIT and insurance trust interchangeably. You could possibly have a NON ILIT that contains a bunch of stuff one of which might be an insurance policy. I am not in the industry but my understanding is that the main reason why people would pick an ILIT (and few probably should) ov...
by bsteiner
Sun Aug 16, 2015 11:59 am
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Life Insurance Trust (ILIT) - worth it for term life and/or other purposes?
Replies: 52
Views: 2231

Re: Irrevocable Life Insurance Trust (ILIT) - worth it for term life and/or other purposes?

... If I am understanding correctly, the insurance trust will only come in to play assuming a death benefit is collected from the term policy? We are essentially prepping for a scenario, rather gloomy if I must say, where one of the two spouses passes away within the Term of the term insurance poli...
by bsteiner
Sun Aug 16, 2015 10:08 am
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Life Insurance Trust (ILIT) - worth it for term life and/or other purposes?
Replies: 52
Views: 2231

Re: Irrevocable Life Insurance Trust (ILIT) - worth it for term life and/or other purposes?

... Bruce, We are so fortunate to have you on this forum. Your words of wisdom are always appreciated. Our situation is very similar except that our residence is in CA. Our estate attorney echoed these exact same words, almost verbatim (except we didn't have to deal with the NJ limits described abo...
by bsteiner
Sun Aug 16, 2015 9:56 am
Forum: Personal Finance (Not Investing)
Topic: Confused about Community Property
Replies: 15
Views: 1775

Re: Confused about Community Property

Several private messages reminded me that it's possible to hold community property as joint tenants with right of survivorship in at least some community property states, including California and Washington. Of course, if you hold property as joint tenants with right of survivorship, regardless of w...
by bsteiner
Sun Aug 16, 2015 9:17 am
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Life Insurance Trust (ILIT) - worth it for term life and/or other purposes?
Replies: 52
Views: 2231

Re: Irrevocable Life Insurance Trust (ILIT) - worth it for term life and/or other purposes?

More important are the degree of control the spouse should have over the money, the age at which each child should control his or her share, and who should control it until then. I agree these are important decisions but they are tough ones to make, especially in the abstract (given that the OP doe...
by bsteiner
Sun Aug 16, 2015 8:00 am
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Life Insurance Trust (ILIT) - worth it for term life and/or other purposes?
Replies: 52
Views: 2231

Re: Irrevocable Life Insurance Trust (ILIT) - worth it for term life and/or other purposes?

... Since the surviving spouse will be a physician, the $5 million insurance proceeds at the first death should go to the spouse in trust rather than outright, to protect it against the spouse's potential creditors, among other reasons .... Besides "potential creditors", what are some oth...
by bsteiner
Sat Aug 15, 2015 8:42 pm
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Life Insurance Trust (ILIT) - worth it for term life and/or other purposes?
Replies: 52
Views: 2231

Re: Irrevocable Life Insurance Trust (ILIT) - worth it for term life and/or other purposes?

2 physician household - young - still have student loans - thinking of purchasing 5mil/30yr term for each - did some digging and came across ILIT - life insurance agent also thought a good idea to potentially avoid estate tax State specific - "It has the lowest estate tax exemption of any stat...
by bsteiner
Sat Aug 15, 2015 8:17 pm
Forum: Personal Finance (Not Investing)
Topic: Confused about Community Property
Replies: 15
Views: 1775

Re: Confused about Community Property

Wills are a horrible tool to transfer assets at death because they need to be probated which takes time and money and makes you deal with impacted court systems. ... Why do you think that's the case? For most people, in most states, probating a Will is a routine administrative task. We fill out som...
by bsteiner
Fri Aug 14, 2015 1:55 pm
Forum: Investing - Theory, News & General
Topic: Interesting Argument in Favor of Roth
Replies: 53
Views: 6131

Re: Interesting Argument in Favor of Roth

... Another risk factor to consider is that Congress has changed the tax laws many times over the years .... Another risk factor to consider is the possibility that future tax rates will be higher than current tax rates, in which case the benefit of the Roth conversion will be greater than it would...
by bsteiner
Fri Aug 14, 2015 8:03 am
Forum: Personal Finance (Not Investing)
Topic: General Finance Strategies for Upper Middle Class
Replies: 33
Views: 5190

Re: General Finance Strategies for Upper Middle Class

Qualified plans and IRAs provide significant benefits for the upper middle class.
by bsteiner
Tue Aug 11, 2015 2:33 pm
Forum: Investing - Help with Personal Investments
Topic: Stubborn family members...take a look at this one!
Replies: 20
Views: 2765

Re: Stubborn family members...take a look at this one!

It's a unit investment trust rather than a mutual fund, so it's a little harder to find. They're now selling series 6 of this rather than series 5. According to the prospectus (see page 4), the expenses on series 6 are 0.61%: http://www.ftportfolios.com/Common/ContentFileLoader.aspx?ContentGUID=8dbe...
by bsteiner
Tue Aug 11, 2015 8:47 am
Forum: Investing - Theory, News & General
Topic: Interesting Argument in Favor of Roth
Replies: 53
Views: 6131

Re: Interesting Argument in Favor of Roth

... "If you'll pay 33% on a conversion, for example, but expect a 25% tax rate during retirement, you can still come out ahead with the conversion if you keep the account for another fifteen years or so .... The time frame between the proposed conversion and when the beneficiaries have to take...
by bsteiner
Mon Aug 10, 2015 5:20 pm
Forum: Investing - Help with Personal Investments
Topic: Convert to Roth if you have a lot to convert?
Replies: 15
Views: 1100

Re: Convert to Roth if you have a lot to convert?

If you don't do any more conversions, it's unlikely you'll be able to take it all out at 15%. So it would seem that some conversions, even at 25% or 28%, might be beneficial. You may want to run some numbers to see how it's likely to work out, making some reasonable assumptions for any variables. Th...
by bsteiner
Sun Aug 09, 2015 1:13 pm
Forum: Investing - Help with Personal Investments
Topic: Giving Financial Advisor Benefit of Doubt or Pull the Plug
Replies: 26
Views: 2748

Re: Giving Financial Advisor Benefit of Doubt or Pull the Plug

Is it feasible to amend the separate returns to joint returns, and if so, would that be beneficial?
by bsteiner
Sat Aug 08, 2015 8:13 pm
Forum: Investing - Theory, News & General
Topic: Kitces: How bond funds could beat individual bonds in a rising interest rate environment.
Replies: 11
Views: 1219

Re: Kitces: How bond funds could beat individual bonds in a rising interest rate environment.

... If the one year treasury yields .25%, the 4 year yields 1.50%, and the 5 year yields 1.75% (the article's numbers), then the market is implicitly forecasting that, in one year's time, a newly issued 4 year treasury will yield around 2.1% (ignoring risk premiums, etc), so that when the fund sell...
by bsteiner
Fri Aug 07, 2015 4:11 pm
Forum: Personal Finance (Not Investing)
Topic: Need trustee company for trust
Replies: 36
Views: 2929

Re: Need trustee company for trust

The thread may be old, but afan's post which led to my post is from today.
by bsteiner
Fri Aug 07, 2015 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: Need trustee company for trust
Replies: 36
Views: 2929

Re: Need trustee company for trust

... This sounds like a contingent need for a successor trustee after you are gone or no longer can handle the duties AND your selected successor trustees all meet the same fate. For something decades into the future, it might be better to include a provision that your successor trustees will have d...
by bsteiner
Fri Aug 07, 2015 10:58 am
Forum: Personal Finance (Not Investing)
Topic: Life Insurance Strategies for Upper Middle Class
Replies: 11
Views: 1584

Re: Life Insurance Strategies for Upper Middle Class

I am not an estate planning expert. My understanding of life insurance policies owned by independent (& I think irrevocable) life insurance trusts is that the benefit comes from passing wealth outside of the estate tax limits. The premium (single payment usually) takes funds out of the estate &...
by bsteiner
Fri Aug 07, 2015 7:55 am
Forum: Personal Finance (Not Investing)
Topic: Estate Planning for a newly emptied nest
Replies: 17
Views: 1155

Re: Estate Planning for a newly emptied nest

... We did have a revocable trust set up when the kids were little. At this point, we 1) don't think we need it and 2) realize we didn't understand it very well. Even though we don't see a need for a trust now, if live-ins, children, ex's, substance abuse, etc come into the picture, we will likely ...
by bsteiner
Thu Aug 06, 2015 4:46 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning for a newly emptied nest
Replies: 17
Views: 1155

Re: Estate Planning for a newly emptied nest

You might look into a revocable living trust with spendthrift provisions that go away at certain ages of the children and/or when a third party trustee determines your children have demonstrated financial maturity. Our clients almost always provide for their children (in their Wills) to receive the...
by bsteiner
Thu Aug 06, 2015 3:09 pm
Forum: Investing - Help with Personal Investments
Topic: Seventy-Eight year old mother inherits 1.2 million
Replies: 18
Views: 2493

Re: Seventy-Eight year old mother inherits 1.2 million

...at her age, there might be a good case for her "disclaiming" to you if you would be the backup beneficiary. It appears it may be too late to disclaim. Also, she may have already accepted the property. Furthermore, as one not much younger than the mother, I'd be a bit disinclined to dis...
by bsteiner
Thu Aug 06, 2015 12:03 pm
Forum: Investing - Help with Personal Investments
Topic: Index Trusts?
Replies: 3
Views: 313

Re: Index Trusts?

The Vanguard S&P 500 index fund was originally called the First Index Investment Trust: https://en.wikipedia.org/wiki/Index_fund#Origins.
by bsteiner
Tue Aug 04, 2015 9:34 pm
Forum: Investing - Help with Personal Investments
Topic: Roth conversion: Threshold checklist
Replies: 50
Views: 3198

Re: Roth conversion: Threshold checklist

At a constant tax rate, the Roth conversion is a big winner, assuming you have other money with which to pay the tax on the conversion. By paying the tax out of other assets, you're effectively making an additional contribution to your IRA. For example, assuming a constant 30% tax rate, suppose you ...
by bsteiner
Tue Aug 04, 2015 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: Physician Asset Protection
Replies: 35
Views: 3727

Re: Physician Asset Protection

... Also, with respect to the self-settled asset protection trusts in Nevada or South Dakota, .... They're really for the super-rich who have $50 million and want to limit their liability exposure (say to $3 million) but don't want to put the money offshore. Even if it's a state court issue, these ...
by bsteiner
Mon Aug 03, 2015 9:38 pm
Forum: Personal Finance (Not Investing)
Topic: Exchanging Euro Currency
Replies: 8
Views: 548

Re: Exchanging Euro Currency

Sell them at a fair price to her friends when they're going to visit Europe.
by bsteiner
Sat Aug 01, 2015 8:43 pm
Forum: Investing - Help with Personal Investments
Topic: What to do when approaching retirement and 90% is in taxable account
Replies: 8
Views: 1798

Re: What to do when approaching retirement and 90% is in taxable account

When the alimony ends, her income will be lower If she's in the 15% bracket, her tax rate on qualified dividends and long-term capital gains will be zero. This will allow her to sell the highly appreciated JPMorgan fund without paying capital gains tax. It will also allow her to convert her traditio...
by bsteiner
Fri Jul 31, 2015 4:38 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning
Replies: 3
Views: 482

Re: Estate Planning

Probating a Will is generally not particularly difficult, burdensome or expensive. We file the Will with the court together with some forms, a death certificate, and a filing fee. Is there some particular reason to try to "avoid" it in this case? Putting her assets in joint ownership may c...
by bsteiner
Thu Jul 30, 2015 3:38 pm
Forum: Personal Finance (Not Investing)
Topic: Beneficiaries for taxable and non-taxable accounts
Replies: 12
Views: 1235

Re: Beneficiaries for taxable and non-taxable accounts

... a disclaimant must understand that they cannot accept an account before disclaiming it. The IRS has made an exception for the date of death RMD of a retirement plan that a beneficiary must complete if the participant did not. ... The IRS didn't make an exception for required distributions. Unde...

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