Search found 687 matches

Return to advanced search

Re: Inheritance Issue

My wife and I live in a community property state and each has willed their estate to 2 daughters . One of our sons/in law is a spendthrift on himself[ ie cars, recreation etc] and appears to have no money sense. I'm afraid when she inherits, it will become comingled over time. We would like to cont...
by bsteiner
Wed Apr 23, 2014 7:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: Inheritance Issue
Replies: 26
Views: 1325

Re: Estate Planning help-US citizen but family In other cou

You could name an executor in the United States.
by bsteiner
Tue Apr 22, 2014 11:15 pm
 
Forum: Personal Finance (Not Investing)
Topic: Estate Planning help-US citizen but family In other country
Replies: 3
Views: 247

Re: Life Insurance Primary and Secondary Beneficiaries

...I would recommend that a client in your situation have a revocable trust ... There was nothing in the facts presented that would suggest the need for a revocable trust, especially here given the extent to which the estate planning process appears to have become much more difficult than it might ...
by bsteiner
Tue Apr 22, 2014 10:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: Life Insurance Primary and Secondary Beneficiaries
Replies: 35
Views: 1155

Re: Life Insurance Primary and Secondary Beneficiaries

On the form, write "See attached rider." Then, on the rider, say exactly what you want, and say it in a way that it's clear who gets what regardless of who is living. For example, 10% to husband if he survives, or if not then to stepdaughter, 45% to the trust for daughter #1, and 45% to th...
by bsteiner
Sun Apr 20, 2014 6:49 pm
 
Forum: Personal Finance (Not Investing)
Topic: Life Insurance Primary and Secondary Beneficiaries
Replies: 35
Views: 1155

Re: Testamentary Trust as Beneficiary

...There is a section VI that is called contingent trusts that has the same wording as for each of my daughters…it appears to address trusts that are set up for any minors that end up being beneficiaries of my will, including any future kids, but only if they are minors. I think that also covers my...
by bsteiner
Sun Apr 20, 2014 1:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: Testamentary Trust as Beneficiary
Replies: 19
Views: 905

Re: Testamentary Trust as Beneficiary

...I am a Voyager .... For both my traditional IRA and my Roth IRA, I have my husband designated as primary. For secondary, I just completed this option on-line and it appeared to "take". Is this the correct wording? To the trustee of TRUST FBO (daughter 1's first and last name) created i...
by bsteiner
Sun Apr 20, 2014 12:53 pm
 
Forum: Personal Finance (Not Investing)
Topic: Testamentary Trust as Beneficiary
Replies: 19
Views: 905

Re: Testamentary Trust as Beneficiary

...If you're not a Flagship ... client, they'll still accept a single trust as beneficiary. See page 2 of their regular (non-Flagship) beneficiary designation form (page 6 of the document): https://personal.vanguard.com/us/ElfPDFStreamPublic?ts=1397953577493. So the workaround is to create a single...
by bsteiner
Sun Apr 20, 2014 11:42 am
 
Forum: Personal Finance (Not Investing)
Topic: Testamentary Trust as Beneficiary
Replies: 19
Views: 905

Re: Inherited IRA Options - need some help

...I wonder whether there are not too many occurrences of these situations since you would think beneficiaries want to find out about and receive every asset that is left to them. It sometimes happens that the beneficiaries don't know about the IRA. PLR 200811028 may offer another possibility: http...
by bsteiner
Sat Apr 19, 2014 10:53 pm
 
Forum: Personal Finance (Not Investing)
Topic: Inherited IRA Options - need some help
Replies: 11
Views: 988

Re: Estate Planning Issues

In many cases, the compressed brackets for trusts aren't a major issue. For example, if you have a $1 million trust, and it's invested 60% in stocks paying 2% (qualified dividends) and 40% in tax-exempt bonds, you'll have $12,000 of qualified dividends, and you'll pay $1,800 of tax. The qualified di...
by bsteiner
Sat Apr 19, 2014 8:45 pm
 
Forum: Personal Finance (Not Investing)
Topic: Estate Planning Issues
Replies: 14
Views: 1653

Re: Testamentary Trust as Beneficiary

...Vanguard would not accept a testamentary trust beneficiary designation for my IRA accounts there. I had enough trouble with them accepting my sister and her children as primary and per stirpes beneficiaries because that doesn't fit their allowable cookie cutter designation choices either. ... Va...
by bsteiner
Sat Apr 19, 2014 8:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: Testamentary Trust as Beneficiary
Replies: 19
Views: 905

Re: Beneficiaries in will but not designated on accounts

That's why we generally don't name beneficiaries (with a few exceptions, mainly life insurance, where naming beneficiaries protects against creditors, and retirement benefits, where naming beneficiaries protects against creditors and allows for a longer stretch). If you name beneficiaries for non-re...
by bsteiner
Fri Apr 18, 2014 3:22 pm
 
Forum: Personal Finance (Not Investing)
Topic: Beneficiaries in will but not designated on accounts
Replies: 3
Views: 479

Re: Estate Planning Lawyer

...bsteiner is a NYC lawyer who posts here regularly. I don't believe he's a big fan of revocable trusts, however. Also, your fee estimate is very low in NYC and, in fact, is probably too low in most parts of the US. What makes you conclude you need a revocable trust? We'll do revocable trusts wher...
by bsteiner
Thu Apr 17, 2014 7:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: Estate Planning Lawyer
Replies: 8
Views: 1156

Re: Testamentary Trust as Beneficiary

"The trust" may work so long as you have only one child, but you may want to expand on this (to create a separate trust for each child) if there's a chance you might have another child. We usually wouldn't name beneficiaries of investment accounts (other than life insurance or retirement b...
by bsteiner
Thu Apr 17, 2014 6:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: Testamentary Trust as Beneficiary
Replies: 19
Views: 905

Re: Retirement account beneficiary; family trust?

...Thank you very much for the article, but the language was a bit heavy for me. If I understood this right, there is no benefit in passing the retirement assets to spouse in trusts, but children should acquire them in trust. In fact, spouse will have more options to do when retirement assets trans...
by bsteiner
Thu Apr 17, 2014 5:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: Retirement account beneficiary; family trust?
Replies: 13
Views: 1179

Re: Estate Planning Issues

Her job is to decide what her goals are, not how best to accomplish them. The lawyer's job is to figure out how best to accomplish her goals. If she wants to provide for her sisters in a way that will protect them, she should provide for them in trust rather than outright, notwithstanding the "...
by bsteiner
Thu Apr 17, 2014 5:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: Estate Planning Issues
Replies: 14
Views: 1653

Re: Retirement account beneficiary; family trust?

I can't tell what the original poster did from the facts presented. The term "family trust" usually refers to a trust created for the benefit of one's spouse and issue (descendants). Absent some particular reason in a given case, most married people leave their retirement benefits to the s...
by bsteiner
Sun Apr 13, 2014 4:17 pm
 
Forum: Personal Finance (Not Investing)
Topic: Retirement account beneficiary; family trust?
Replies: 13
Views: 1179

Re: Lump Sum vs Annuity: A New Question?

If you take the lump sum and roll it over into an IRA, you may be able to convert to a Roth, either all at once or over a number of years. If you can pay the tax on the conversion out of other assets, the Roth conversion will often add substantial value.
by bsteiner
Sat Apr 12, 2014 9:59 pm
 
Forum: Investing - Theory, News & General
Topic: Lump Sum vs Annuity: A New Question?
Replies: 62
Views: 3245

Re: Considerations For Executor

There are two different issues here. A responsible and honest person need not have any special skills to serve as executor. The executor can hire lawyers, accountants, real estate brokers, and other advisors. In many states, such as New York, the executor's commission (compensation) is fixed by law....
by bsteiner
Sat Apr 12, 2014 9:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: Considerations For Executor
Replies: 10
Views: 1250

Re: Making a Will (Young Couple)

... I had an attorney friend review and offer advice to modify. We made some changes on his advice. You could also hire an attorney, making it clear you only want a review - should be very cheap as compared to hiring them for the full thing. I can look at a Will and spot the major issues in a few m...
by bsteiner
Sat Apr 12, 2014 9:27 pm
 
Forum: Personal Finance (Not Investing)
Topic: Making a Will (Young Couple)
Replies: 16
Views: 1285

Re: You have more than enough invested, now how to protect i

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. Putting your home in an irrevocable trust won't save any taxes if ...
by bsteiner
Tue Apr 08, 2014 6:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: You have more than enough invested, now how to protect it
Replies: 9
Views: 1273

Re: Is Our Accountant Over-Charging Us?

HardKnocker wrote:... Local high school teacher with 30 years seniority = $70/hr


Plus the overhead of the school (the school building and grounds, the non-teacher employees, textbooks, supplies, buses, cafeteria, etc.)
by bsteiner
Thu Apr 03, 2014 10:51 am
 
Forum: Personal Finance (Not Investing)
Topic: Is Our Accountant Over-Charging Us?
Replies: 30
Views: 3164

Re: Lump Sum vs annuity

Another factor to consider is that the lump sum allows for the possibility of a Roth conversion. That could add substantial value if (i) you can convert at a tax rate less than, equal to, or not too much higher than the tax rate that would otherwise apply to the distributions, and (ii) you can pay t...
by bsteiner
Thu Apr 03, 2014 8:54 am
 
Forum: Personal Finance (Not Investing)
Topic: Lump Sum vs annuity
Replies: 17
Views: 1105

Re: Pay Off Mortgage

I personally probably wouldn't if I had no cash flow issues and my after tax interest rate was about 2.9% (only considering federal). I would just keep your allocation as it is and keep paying the mortgage. I wouldn't be willing give up the liquidity that you would be giving up by selling off 80%-8...
by bsteiner
Wed Apr 02, 2014 6:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: Pay Off Mortgage
Replies: 56
Views: 3793

Re: Roth IRA

You could stretch it out over your life expectancy, and share the distributions with your siblings as you receive them, or even them up with other assets. You might want to ask any legal questions of the attorney handling the estate, or the attorney who handles your estate planning, rather than of t...
by bsteiner
Tue Apr 01, 2014 6:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: Roth IRA
Replies: 3
Views: 268

Re: Need help with time share offer

If you go to the free dinner seminar (or the free ski pass program), and you buy the annuity, the living trust, the timeshare, or the bridge, not only did you pay for your free dinner (or your free ski pass), but you paid for the free dinners (or the free ski passes) for everyone else in the room.
by bsteiner
Mon Mar 31, 2014 8:52 am
 
Forum: Personal Finance (Not Investing)
Topic: Need help with time share offer
Replies: 22
Views: 1538

Re: ILIT for term life insurance? [Irrevocable Life Ins. Tru

As the Federal exempt amount has increased, we've seen fewer insurance trusts. However, some younger clients have a very high income and may buy a relatively large amount of insurance. Someone who doesn't want to leave the excess above the state exempt amount (including the insurance proceeds) to th...
by bsteiner
Sun Mar 30, 2014 2:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: ILIT for term life insurance? [Irrevocable Life Ins. Trust]
Replies: 11
Views: 572

Re: 401k fee lawsuits

The New York Times article provides a link to the 8th Circuit's opinion in the case against ABB: http://media.ca8.uscourts.gov/opndir/14/03/122056P.pdf. The article also provides links to the Department of Labor's news releases in connection with the settlements in the Sunkist and National Rural Ele...
by bsteiner
Sun Mar 30, 2014 8:39 am
 
Forum: Personal Finance (Not Investing)
Topic: [New 8th Circuit Ruling Striking Down High 401K Fees]
Replies: 44
Views: 2489

Re: ILIT for term life insurance?

To the extent the insurance proceeds replace the income you would have earned, if your spouse survives, and you leave the insurance to your spouse or to a marital trust, unless your spouse dies soon after you die, your family will use the insurance proceeds, so they won't be included in your spouse'...
by bsteiner
Sat Mar 29, 2014 10:49 pm
 
Forum: Personal Finance (Not Investing)
Topic: ILIT for term life insurance? [Irrevocable Life Ins. Trust]
Replies: 11
Views: 572

Re: A whole life question (put the axes and torches away)

...Many years ago, my dad (he owned an insurance agency) bought me a $100k whole life policy. .... I have $16k of cash value. Yearly premium is $393. I'm 57 with medical history that I expect would make term life stupidly expensive. With my savings and retirement savings, my kids college would be c...
by bsteiner
Sat Mar 29, 2014 9:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: A whole life question (put the axes and torches away)
Replies: 40
Views: 2095

Re: IRS letter claiming return is late - anyone experience t

The courts differ on whether you can prove timely mailing other than by the postmark, or by a record of mailing by registered or certified mail or certain private delivery services. The 8th, 9th and 10th Circuits are favorable to the taxpayer, while the 2nd and 6th Circuits are favorable to the gove...
by bsteiner
Sat Mar 29, 2014 9:15 pm
 
Forum: Personal Finance (Not Investing)
Topic: IRS letter claiming return is late - anyone experience this?
Replies: 34
Views: 3444

Re: IRA Deductions for Estate Tax Return?

IRAs are income in respect of a decedent (IRD). Assume a 40% income tax rate and a 40% estate tax rate. If you received $100 of IRA benefits during your lifetime, you would pay $40 of income tax. The remaining $60 would be subject to estate tax. Your estate would pay $24 of estate tax, leaving $36 f...
by bsteiner
Tue Mar 25, 2014 10:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: IRA Deductions for Estate Tax Return?
Replies: 4
Views: 394

Re: Attempt at explaining the backdoor Roth to my new accoun

These comments underscore just how large and complex the tax code is. If you compare tax work with general legal work, you will note that most lawyers specialize in a rather narrow corridor of the legal field. Often CPAs and those that specialize in business tax preparation are not fully familiar w...
by bsteiner
Tue Mar 25, 2014 10:23 pm
 
Forum: Personal Finance (Not Investing)
Topic: Attempt at explaining the backdoor Roth to my new accountant
Replies: 26
Views: 2271

Re: Is there ever a reason to prefer taxable over tax advant

...Once you get $2-3 million in tax advantaged as a Single Person, you're in the 28% marginal bracket for income. So it's better to have taxable accts with 15% dividend taxation henceforth... Not at a constant tax rate and a tax rate greater than zero on qualified dividends and long-term capital ga...
by bsteiner
Mon Mar 24, 2014 9:05 am
 
Forum: Investing - Theory, News & General
Topic: Is there ever a reason to prefer taxable over tax advantaged
Replies: 48
Views: 4557

Re: Trusts for minor/young adult children and IRAs

...If we put language into an irrevocable trust that: 1. Distributions can only be made to beneficiaries. 2. Before a certain age, trustee can distribute to beneficiaries (and NOT on beneficiaries behalf) for "education" or "medical" or.... Then it passes the test? 1. Maybe. Wha...
by bsteiner
Mon Mar 24, 2014 8:52 am
 
Forum: Personal Finance (Not Investing)
Topic: Trusts for minor/young adult children and IRAs
Replies: 4
Views: 482

Re: Trusts for minor/young adult children and IRAs

...It seems as if we want to: a) Have RMD be minimized as much as possible -- basically over the lifetime of the oldest child. That seems to rule in ONLY a conduit trust. b) ensure that distributions remain in the trust, and only sent to our kids for things like tuition, medical, and living expense...
by bsteiner
Sun Mar 23, 2014 7:10 pm
 
Forum: Personal Finance (Not Investing)
Topic: Trusts for minor/young adult children and IRAs
Replies: 4
Views: 482

Re: PenFed v. Truecar v. BJs v. Costco auto buying

I bought a 2014.5 Toyota Camry (they added a rear view camera and called it 2014.5 to distinguish it from the original 2014) using PenFed's car buying service. The dealer honored the price. As of now, Toyota offers a choice of a $1,000 rebate or 0% interest for 5 years on that car, and PenFed offers...
by bsteiner
Sat Mar 22, 2014 8:53 pm
 
Forum: Personal Consumer Issues
Topic: PenFed v. Truecar v. BJs v. Costco auto buying
Replies: 16
Views: 1791

Re: Anyone know of places to purchase canes

Rain or Shine, 45 East 45th Street, by Grand Central: http://www.rainorshine.biz/
by bsteiner
Sat Mar 22, 2014 8:43 pm
 
Forum: Personal Consumer Issues
Topic: Anyone know of places to purchase canes
Replies: 26
Views: 1258

Re: Tax Court strikes a blow to IRA Rollovers

...My wife cleaned out an IRA in November (not 2013). I convinced her to send half back within 60 days. Then she took it back out, but by then it was the next (tax) year. It was a (partial) rollover from one custodian to the exact same custodian.... You have to wait more than one year from the firs...
by bsteiner
Fri Mar 21, 2014 6:13 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax Court strikes a blow to IRA Rollovers
Replies: 98
Views: 11477

Re: Confused about gifting, estate taxes, and trusts

The Federal estate tax exempt amount is $5,340,000, so it's unlikely that there will be any Federal estate tax under any circumstance. This changes the planning for smaller estates that would have paid Federal estate tax when the exempt amount was smaller The Massachusetts estate tax exempt amount i...
by bsteiner
Fri Mar 21, 2014 4:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: Confused about gifting, estate taxes, and trusts
Replies: 37
Views: 1885

Re: LLC vs Irrevocable Trust vs Dynasty Trust

Without knowing the facts of their situation and their objectives, it's hard to know how best to accomplish their objectives. If we knew the facts of their situation and their objectives, it would be easy to determine how best to accomplish their objectives. LLCs are entities like corporations and p...
by bsteiner
Thu Mar 20, 2014 11:55 pm
 
Forum: Personal Finance (Not Investing)
Topic: LLC vs Irrevocable Trust vs Dynasty Trust
Replies: 7
Views: 831

Re: 10 Reasons to take your pension annuity over a lump sum

...It is amazing the number of free dinner seminars to which I get an invitation now that I am approaching early retirement age. 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, ...
by bsteiner
Mon Mar 17, 2014 4:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: 10 Reasons to take your pension annuity over a lump sum
Replies: 34
Views: 4241

Re: Online Wills

I don't know whether books or software or "document preparation" services are OK. I don't know what would happen if I wrote "I leave everything to my sweetie, or to my kids per stripes," on a watermelon rind, with a Sharpie, and had my cousin witness it. Might be a perfectly goo...
by bsteiner
Mon Mar 17, 2014 4:24 pm
 
Forum: Personal Finance (Not Investing)
Topic: Online Wills
Replies: 27
Views: 2427

Re: Using Life Expectancy Tables for RMD

Minimum Required Distribution means the same thing as Required Minimum Distribution. At least, I can't parse the difference. ... I agree that the term is redundant. The caption to Section 401(a)(9) says "required distributions." I think that's the best term for it. For many years, most pe...
by bsteiner
Sun Mar 16, 2014 9:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: Using Life Expectancy Tables for RMD
Replies: 22
Views: 1423

Re: Help me run my company's pension plan

Like individuals saving for retirement, most defined benefit plans invest in a combination of equities (since they may do better over a long period of time) and fixed income (to diversify and reduce volatility). However some people have argued that defined benefit plans should invest entirely in fix...
by bsteiner
Sun Mar 16, 2014 11:51 am
 
Forum: Personal Finance (Not Investing)
Topic: Help me run my company's pension plan
Replies: 35
Views: 2149

Re: 20% More in Roth vs. TIRA, Even w/Uniform Tax Rate?

I can't believe how bad some recent journalism has been on the Roth/Traditional question. ... Seriously, these types of articles do readers a huge disservice by never pointing out that a $5000 contribution to a Roth IRA or 401k represents a bigger savings sacrifice on an equivalent pre- or post-tax...
by bsteiner
Sun Mar 16, 2014 9:15 am
 
Forum: Investing - Theory, News & General
Topic: 20% More in Roth vs. TIRA, Even w/Uniform Tax Rate?
Replies: 20
Views: 1172

Re: Setting up a spendthrift trust for a child

...if Bruce Steiner enters this discussion, I suggest we defer to his advice, because some of the best information I've seen on this topic comes from him. ... It may help to provide some references to the attorney preparing your documents.... Thanks for the kind words, though if you have to provide...
by bsteiner
Sat Mar 15, 2014 11:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Setting up a spendthrift trust for a child
Replies: 6
Views: 1326

Re: Roth IRA vs Traditional in total amount per year

When comparing Roth vs Traditional IRA I always see people compare them as if the person put the same $5,500 in every year and the only real debate is if it is better to pay tax now or later. Shouldn't people point out that in a Roth you can pay in post-tax dollars vs. pre-tax dollars when you put ...
by bsteiner
Sat Mar 15, 2014 10:41 pm
 
Forum: Investing - Theory, News & General
Topic: Roth IRA vs Traditional in total amount per year
Replies: 19
Views: 1151

Re: Help me run my company's pension plan

It might be worth consulting with an actuary who mainly deals with privately held companies to see what type of qualified plan would be best given your objectives.
by bsteiner
Fri Mar 14, 2014 11:48 am
 
Forum: Personal Finance (Not Investing)
Topic: Help me run my company's pension plan
Replies: 35
Views: 2149

Re: Edward Jones ignores do-not-call lists

Someone called yesterday (but I didn't catch the name of his firm) recommending that I buy some shares of a stock at 66¢ that he said was worth $1.25, and asked how many shares I would buy, and if I would buy 10,000 shares. He was unable to respond to my questions as to (i) who gave him my name, (ii...
by bsteiner
Fri Mar 14, 2014 9:10 am
 
Forum: Investing - Theory, News & General
Topic: Edward Jones ignores do-not-call lists
Replies: 20
Views: 1559
Next

Return to advanced search