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Re: Inheritance to be held in expensive trust for ~10 years

prudent wrote:Am I the only one who is shocked that there is a 1.75% fee to disburse funds? I don't think I have ever heard of such a thing.


Yes, in addition to the annual commissions (fees), trustees are often entitled a an additional commission on distributions of principal. It's 1% in New York.
by bsteiner
Wed Aug 27, 2014 9:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: Inheritance to be held in expensive trust for ~10 years
Replies: 36
Views: 4097

Re: How to find a lawyer for estate planning?

Don't call the bar association. Don't look in the yellow pages. Don't look at the elder law listings (that might be helpful for Medicaid planning, but not for estate planning). Don't start with Google. Ask around, as you would if you were looking for a doctor, dentist, plumber, auto mechanic, etc. A...
by bsteiner
Wed Aug 27, 2014 9:35 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to find a lawyer for estate planning?
Replies: 16
Views: 661

Problems posting replies today

Today, when I've tried to post a reply in a thread, it kicks me back and asks me to log in again. This keeps happening, and I haven't been able to post any replies today. I'll try tonight from another computer.
by bsteiner
Wed Aug 27, 2014 5:55 pm
 
Forum: Forum Issues and Administration
Topic: Problems posting replies today
Replies: 2
Views: 145

Re: Roth conversion from traditional IRA

Here is an article I wrote on this for the April 2013 issue of Trusts & Estates that will give you the concepts: http://www.kkwc.com/library_cat/uf_Roth ... r_ATRA.pdf.
by bsteiner
Tue Aug 26, 2014 11:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roth conversion from traditional IRA
Replies: 9
Views: 607

Re: Roth Conversion during an economic downturn

Lynette wrote:...I've decided not to do conversions at the moment as my accountants tell me there is no tax advantage to me.....


Why did your accountants tell you that?
by bsteiner
Tue Aug 26, 2014 9:04 am
 
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion during an economic downturn
Replies: 9
Views: 639

Re: I need "Ultra High Net Worth" investing advice please

...BSTEINER wrote a couple of articles on recent celebrity deaths and how their estate plans were suboptimal. Celebrity wasn't the issue; larger estates were. Here's the one I wrote on James Gandolfini's Will for Leimberg Information Services, Inc. (LISI), which was reprinted online with the consen...
by bsteiner
Sun Aug 24, 2014 2:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: I need "Ultra High Net Worth" investing advice please
Replies: 215
Views: 15000

Re: I need "Ultra High Net Worth" investing advice please

You would save some income taxes if you moved to a state with no state income tax, but you would have to weigh that against where you want to live, where you want to raise your children, and where your friends and family live. The time to have done some tax and estate planning was before the sale. I...
by bsteiner
Sun Aug 24, 2014 2:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: I need "Ultra High Net Worth" investing advice please
Replies: 215
Views: 15000

Re: I need "Ultra High Net Worth" investing advice please

Given the amount involved, the bank or trust company should be able to buy individual securities, so as to avoid a second layer of costs. However, they might want to invest some of the money in more exotic investments, since that's something that you couldn't otherwise easily do. Alternatively, you ...
by bsteiner
Sun Aug 24, 2014 1:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: I need "Ultra High Net Worth" investing advice please
Replies: 215
Views: 15000

Re: Tax on house sell in trust

On the one hand, estates and trusts are often taxable at higher rates than individuals. On the other hand, estates and trusts can often deduct administration expenses on their income tax returns. Without knowing more about the situation, it's hard to know which way is better. The lawyer handling you...
by bsteiner
Sun Aug 24, 2014 8:01 am
 
Forum: Personal Finance (Not Investing)
Topic: Tax on house sell in trust
Replies: 4
Views: 717

Re: Children Guardian

...We put everything into a trust and have a friend as executor (is that the right term?). Basically, he doles the money out to her as needed for care and keeping of the kids. We initially wanted very specific buckets based on income source and class, etc... But the lawyer advised us to keep it fle...
by bsteiner
Sun Aug 24, 2014 7:45 am
 
Forum: Personal Finance (Not Investing)
Topic: Children Guardian
Replies: 9
Views: 856

Re: Anyone have experience with Vaksman Law living trusts

What if my circumstances are fairly simple. One home,a vanguard acct and 2 kids leaving everything 50-50.....is everything really so complex or do attorneys just want $300 an hour for pretty basic documents? If it's really fairly simple (your children are adults, and your assets are sufficiently sm...
by bsteiner
Sat Aug 23, 2014 10:06 pm
 
Forum: Personal Finance (Not Investing)
Topic: Anyone have experience with Vaksman Law living trusts
Replies: 7
Views: 911

Re: Kitces - Think Twice about those Conversions

I know Michael Kitces and hold him in high regard. However, I don't agree with him on this. An IRA can continue for a very long time -- the lifetimes of the IRA owner and his/her spouse, followed by the life expectancies of the beneficiaries. I don't think it's possible to predict future income tax ...
by bsteiner
Sat Aug 23, 2014 9:42 pm
 
Forum: Investing - Theory, News & General
Topic: Kitces - Think Twice about those Conversions
Replies: 15
Views: 2923

Re: Children Guardian

...You probably want a living or testamentary (created by your will) trust to own the assets. They will be paid out of the trust by the trustees according to the instructions you provide, and if the guardian is not great with money, the guardian need not be one of the trustees. You want clear instr...
by bsteiner
Sat Aug 23, 2014 9:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: Children Guardian
Replies: 9
Views: 856

Re: Why aren't annuities better than investment drawdowns?

If one is really worried about longevity, it is hard to argue against paying an additional premium for the inflation rider. The nominal annuity market is much larger than the inflation-indexed one. It is difficult for an investor to calculate the actuarial value of annuities, so he does not know wh...
by bsteiner
Thu Aug 21, 2014 11:34 am
 
Forum: Investing - Theory, News & General
Topic: Why aren't annuities better than investment drawdowns?
Replies: 46
Views: 2894

How to finance major home improvements

If you were making major home improvements, would you finance them with a home equity line of credit at 0.75% under prime (currently 2.5%), a 15-year fixed rate mortgage at about 3%, or a 30-year fixed rate mortgage at about 4%? Either of the fixed rate mortgages would initially be at a higher rate ...
by bsteiner
Wed Aug 20, 2014 6:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to finance major home improvements
Replies: 24
Views: 1648

Re: How to best pay for a second home?

I think Pentagon Federal http://www.penfed.org has the same mortgage rates for vacation homes as for primary residences. As of now, 15 year fixed is 3% plus a 1% fee (or 3.25% without the 1% fee) and 30 year fixed is 3.875% plus a 1% fee (or 4.125% without the 1% fee).
by bsteiner
Wed Aug 20, 2014 5:26 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to best pay for a second home?
Replies: 8
Views: 792

Re: Roth Conversion - Old Age

They would have to weigh using their bank account to pay the tax on the conversion against him deferring Social Security to age 70 and using the bank account to make up the shortfall in income until then.
by bsteiner
Tue Aug 19, 2014 3:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion - Old Age
Replies: 31
Views: 1177

Re: "Robin Williams' estate plan: Good, but not great"

Wills of celebrities are useful for providing lessons. We don't know very much about Robin Williams' estate plan, just the two insurance trusts that are in the public record: the 1990 trust, http://amradaronline.files.wordpress.com/2014/08/robin-williams-will-docs.pdf and the 2009 trust, https://amr...
by bsteiner
Mon Aug 18, 2014 10:45 pm
 
Forum: Investing - Theory, News & General
Topic: "Robin Williams' estate plan: Good, but not great"
Replies: 4
Views: 1752

Re: change from trustee/successor trustee to CO-trustees

Read the trusts. They should provide for successor trustees, or say who can name co-trustees and successor trustees. In the case of the irrevocable trust, if no one has the power to name co-trustees or successor trustees, then you'll have to go to court. That's what happened with Robin Williams' ins...
by bsteiner
Sun Aug 17, 2014 10:51 am
 
Forum: Personal Finance (Not Investing)
Topic: change from trustee/successor trustee to CO-trustees
Replies: 9
Views: 776

Re: Looking for advice on creating a Will

...I don't have a lot of good experience with lawyers in Philadelphia, the city where I live. And I anticipate that if I walk into some highly recommended lawyers office in Philly they won't consider me worth their time for less than $3K-$5K. That's a lot of money to me!... ... The key issues are (...
by bsteiner
Sun Aug 17, 2014 10:40 am
 
Forum: Personal Finance (Not Investing)
Topic: Looking for advice on creating a Will
Replies: 39
Views: 2427

Re: Looking for advice on creating a Will

...I don't have a lot of good experience with lawyers in Philadelphia, the city where I live. And I anticipate that if I walk into some highly recommended lawyers office in Philly they won't consider me worth their time for less than $3K-$5K. That's a lot of money to me!... Philadelphia is a large ...
by bsteiner
Sat Aug 16, 2014 10:55 pm
 
Forum: Personal Finance (Not Investing)
Topic: Looking for advice on creating a Will
Replies: 39
Views: 2427

Re: Finding witnesses for a trust document

...what states required witnesses to the signing of a trust? That sounds a little strange to me, which is why I made the leap from witnesses to will, not to trust. Florida requires two witnesses for a revocable trust. Probating a Will in Florida is not particularly difficult, expensive or burdensom...
by bsteiner
Sat Aug 16, 2014 10:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: Finding witnesses for a trust document
Replies: 31
Views: 1276

Re: Smartest way to fund new car purchase?

0% interest on car loans at Pentagon Federal Credit Union http://www.penfed.org.
by bsteiner
Sat Aug 16, 2014 8:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: Smartest way to fund new car purchase?
Replies: 20
Views: 1490

Re: Reticient sibling [Dispute over execution of trust]

If the trustees can't satisfy the beneficiaries, the trustees can file a formal accounting in court. If a beneficiary objects, the court will resolve the matter. This can be expensive.
by bsteiner
Tue Aug 12, 2014 11:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: Reticient sibling [Dispute over execution of trust]
Replies: 31
Views: 2985

Re: Advice: Remodel of kitchen, bath, and basement?

Get a good architect.
by bsteiner
Mon Aug 04, 2014 4:54 pm
 
Forum: Personal Consumer Issues
Topic: Advice: Remodel of kitchen, bath, and basement?
Replies: 30
Views: 1421

Re: 1.49% 36 mo car loan offer - take it or pay cash?

Zero interest if you buy the car through Pentagon Federal's buying service: https://www.penfed.org/PenFed-Car-Buying-Service/.
by bsteiner
Sat Aug 02, 2014 10:27 pm
 
Forum: Personal Consumer Issues
Topic: 1.49% 36 mo car loan offer - take it or pay cash?
Replies: 13
Views: 1127

Re: 2nd marriage: SS, legal marriage vs commitment ceremony?

ourbrooks wrote:...it may be the case that holding a religious marriage ceremony has no civil consequences unless a state document, such as a marriage license, is filled.


That varies from state to state: http://www.courts.state.ny.us/reporter/ ... _50684.htm
by bsteiner
Sat Aug 02, 2014 8:55 pm
 
Forum: Personal Finance (Not Investing)
Topic: 2nd marriage: SS, legal marriage vs commitment ceremony?
Replies: 16
Views: 1393

Re: POLL: Wills vs. Living Trusts

Revocable trusts make sense in some cases, and in some states. However, they're overhyped and oversold, and for most people in most states are unnecessary and tend to be a distraction. Like any tool in the toolbox, we'll use it where it's appropriate, which is some but not most of the time. Asking ...
by bsteiner
Fri Aug 01, 2014 6:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: POLL: Wills vs. Living Trusts
Replies: 35
Views: 3109

Re: Trust for Daughter

What states do you, your ex-husband and your daughter live in? There are state tax issues that affect trust taxation. One thought is the suggestion for a corporate trustee had to do with trying to minimize these taxes. Bsteiner, Thanks for your insight. I will bring these issues up with my ex-husba...
by bsteiner
Fri Aug 01, 2014 3:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: Trust for Daughter
Replies: 13
Views: 1051

Re: Trust for Daughter

...The document is written that she gets the following: 1. Net income from the taxable account paid in quarterly installments. 2. Yearly RMD's from the retirement accounts. 3. Trustees can expend amounts of principal as necessary for support, maintenance and medical care, 4. Right to withdrawal 5% ...
by bsteiner
Fri Aug 01, 2014 2:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Trust for Daughter
Replies: 13
Views: 1051

Re: Trust for Daughter

...My ex-husband & I have been divorced for many years but still remain on very good terms. He was diagnosed approx. 3 years ago with a terminal, degenerative brain disorder similar to Lou Gehrig's disease. Our only child, a 22-year old daughter will inherit his entire estate. He wants to set u...
by bsteiner
Fri Aug 01, 2014 12:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Trust for Daughter
Replies: 13
Views: 1051

Re: I don't think I can afford to die in Pennsylvania

Pennsylvania has an inheritance tax rather than an estate tax. It's somewhat complicated, but essentially there's no tax on transfers to spouses, a 4.5% tax on transfers to children, and a 15% tax on transfers to unrelated persons. Life insurance payable to a beneficiary is exempt. In considering th...
by bsteiner
Wed Jul 30, 2014 11:33 am
 
Forum: Personal Finance (Not Investing)
Topic: I don't think I can afford to die in Pennsylvania
Replies: 35
Views: 3344

Re: POLL: Wills vs. Living Trusts

Revocable trusts make sense in some cases, and in some states. However, they're overhyped and oversold, and for most people in most states are unnecessary and tend to be a distraction. Like any tool in the toolbox, we'll use it where it's appropriate, which is some but not most of the time. Asking w...
by bsteiner
Tue Jul 29, 2014 9:04 am
 
Forum: Personal Finance (Not Investing)
Topic: POLL: Wills vs. Living Trusts
Replies: 35
Views: 3109

Re: Is tax deferment overvalued?

I do prefer Roths in the break-even situation, because of the risk reduction. Tax rates may either rise or fall, but if your money is growing tax-free, the change in rates won't affect you. In addition, you reduce the risk of having to move money to a taxable account from RMDs you don't need. Have ...
by bsteiner
Mon Jul 28, 2014 10:28 pm
 
Forum: Personal Finance (Not Investing)
Topic: Is tax deferment overvalued?
Replies: 20
Views: 2486

Re: Tips for incorpating a charity

The Form 1023 to apply for exempt status is a good deal of work. Any law firm with a tax and trusts and estates practice should be able to do it, since we do them when people set up foundations. However, the IRS just released a much simpler Form 1023-EZ that smaller charitable organizations can use....
by bsteiner
Mon Jul 28, 2014 10:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tips for incorpating a charity
Replies: 10
Views: 522

Re: Nanny/Household Employee Payroll Company

p_qrs_t wrote:
Calm Man wrote:... When we had nannies many years ago, that was the time when some woman nominated to be the US Attorney general turned out to be gaming the system. It would have been funny if it wasn't so sad. I don't remember her name.


Zoe Baird


I knew her, but it was long before that.
by bsteiner
Mon Jul 28, 2014 10:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: Nanny/Household Employee Payroll Company
Replies: 8
Views: 595

Re: Girlfriend moving in, lots of student loan debt

... PA does have a common law marriage, if established before 1/1/2005. A relative of mine lived with her boyfriend for 15 years . Neither wanted to get married nor have kids. She lived at his place and spent an enormous amount of effort improving the house. When it came time to break up, they came...
by bsteiner
Sun Jul 27, 2014 7:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: Girlfriend moving in, lots of student loan debt
Replies: 69
Views: 8759

Re: Is tax deferment overvalued?

...I concur with your question. Not so much for the need or lack of need to take RMDs. Rather, the conversion of equity taxation rates to ordinary income. I am battling that right now in that I have a whole bunch of gains in a variable annuity from stock funds that are going to come out one day as ...
by bsteiner
Sun Jul 27, 2014 1:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: Is tax deferment overvalued?
Replies: 20
Views: 2486

Re: Vanguard quietly adds longevity annuities

...Are you [nisiprius]disappointed because the payment amounts aren't close enough to actuarially fair (you didn't actually provide any data to evaluate that proposition), or simply because you wished that they offered payments that were fully inflation adjusting from annuitization date onwards? Th...
by bsteiner
Sat Jul 26, 2014 10:05 pm
 
Forum: Investing - Theory, News & General
Topic: Vanguard quietly adds longevity annuities
Replies: 85
Views: 6804

Re: Help! Term Life through an Irrevocable Life Insurance Tr

...Thanks for your response. Though helpful in many ways, I didn't follow all your points. - You mentioned that "Federal exempt amount is $5,340,000 (indexed), and portability has been made permanent" -- couldn't that change in the future just like it was about to in 2011? - Though I curr...
by bsteiner
Sat Jul 26, 2014 9:51 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help! Term Life through an Irrevocable Life Insurance Trust
Replies: 11
Views: 739

Re: Redepositing unnecessary RMD's from 401K

Under Internal Revenue Code Section 402(c)(3)(B), the Internal Revenue Service has discretion to waive the 60-day requirement "where the failure to waive such requirement would be against equity or good conscience, including casualty, disaster, or other events beyond the reasonable control of t...
by bsteiner
Sat Jul 26, 2014 9:15 pm
 
Forum: Personal Finance (Not Investing)
Topic: Redepositing unnecessary RMD's from 401K
Replies: 5
Views: 856

Re: Do you have State Farm Emergency Road Service?

Liberty Mutual has this as well. I think they use the same towing services that AAA uses when they get a call.
by bsteiner
Fri Jul 25, 2014 2:46 pm
 
Forum: Personal Consumer Issues
Topic: Do you have State Farm Emergency Road Service?
Replies: 4
Views: 471

Re: How to set up a trust

I have been reading about setting up a trust so that after death (wife & I), assets go into a trust for the benefit of (adult) child. This is primarily for asset protection. I assume the trust after death must be an irrevocable trust... Even if you make it revocable, if after you die you revoke...
by bsteiner
Thu Jul 24, 2014 11:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to set up a trust
Replies: 11
Views: 1878

Re: Help! Term Life through an Irrevocable Life Insurance Tr

bsteiner wrote: There's virtually nothing to administer while the insured is living. Can you go into a little more detail about this? I fired my lawyer and ended my trust because my lawyer's annual fees for administering the trust kept creeping up. And no, I don't believe he ever really reviewed th...
by bsteiner
Thu Jul 24, 2014 4:31 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help! Term Life through an Irrevocable Life Insurance Trust
Replies: 11
Views: 739

Re: Estate Trustee requests I "waive presentation of account

Most estates and trusts are settled informally, by receipt and release (waiver). The executor or trustee gives the beneficiaries sufficient information to satisfy the beneficiaries, and the beneficiaries sign receipts and releases (waivers). This avoids the expense of a formal accounting. Sometimes ...
by bsteiner
Thu Jul 24, 2014 3:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: Estate Trustee requests I "waive presentation of accounting"
Replies: 10
Views: 1362

Re: How does gift/estate tax indexation work?

The lifetime exemption for the gift/estate tax is now $10.68 million (for a couple) and is indexed to inflation. I am not sure how this works. Suppose that, while living, a couple funds a trust for their descendants with $10.68 million and thus fully uses up their lifetime exemption. Then some year...
by bsteiner
Thu Jul 24, 2014 3:54 pm
 
Forum: Personal Finance (Not Investing)
Topic: How does gift/estate tax indexation work?
Replies: 6
Views: 413

Re: Help! Term Life through an Irrevocable Life Insurance Tr

The insurance trust isn't as important now that the Federal exempt amount is $5,340,000 (indexed), and portabilty has been made permanent. If the estate is taxable (greater than $10.68MM) is an ILIT a good option? Is there a better estate tax avoidance strategy? He said he's 37, and that they don't...
by bsteiner
Thu Jul 24, 2014 2:26 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help! Term Life through an Irrevocable Life Insurance Trust
Replies: 11
Views: 739

Re: Help! Term Life through an Irrevocable Life Insurance Tr

The insurance trust isn't as important now that the Federal exempt amount is $5,340,000 (indexed), and portabilty has been made permanent. If you die young, the insurance will replace the income you would have earned, and it's less likely that your spouse will have a taxable estate. Nevertheless, so...
by bsteiner
Thu Jul 24, 2014 1:53 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help! Term Life through an Irrevocable Life Insurance Trust
Replies: 11
Views: 739

Re: Inheritance taxes for beneficiary

By way of background for those not familiar with New Jersey, New Jersey has an inheritance tax, with rates of 15% to 16% on transfers to unrelated persons. If he were to leave his assets to you (in his Will) in trust rather than outright (which he might want to do and you might want him to do in any...
by bsteiner
Wed Jul 23, 2014 7:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: Inheritance taxes for beneficiary
Replies: 3
Views: 593

Re: Intimidated by Trustee and Investment Advisor

As others have pointed out, as to any accounts already in your name (which would presumably be the ones under your social security number), you can move those accounts to another financial institution of your choice, and you can invest them any way you want. The trustees have to account to you for w...
by bsteiner
Wed Jul 23, 2014 6:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: Intimidated by Trustee and Investment Advisor
Replies: 32
Views: 3930
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