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Re: Vanguard Variable Annuity Costs

There's also the cost of converting the qualified dividends and capital gains to ordinary income.
by bsteiner
Wed Oct 29, 2014 2:58 pm
 
Forum: Investing - Theory, News & General
Topic: Vanguard Variable Annuity Costs
Replies: 10
Views: 792

Re: How difficult is probate court? (NYC)

My dad died in July. He left $300k worth of stock (no beneficiary) and $2k worth of Series E savings bonds (from 1978). House and 401k/ira xferred fine because my mom was listed as the beneficiary. A lawyer I called said it'll costs about $3k for his lawfirm plus another $600 for fees to NYC courts...
by bsteiner
Mon Oct 27, 2014 10:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: How difficult is probate court? (NYC)
Replies: 9
Views: 1124

Re: fleeced by an adviser, is there a recourse?

If this involved a trust, you may wish to consider whether you may have a claim against the trustees.
by bsteiner
Mon Oct 27, 2014 7:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: fleeced by an adviser, is there a recourse?
Replies: 104
Views: 8057

Re: How to do taxes for sale of deceased father's stocks?

I would think the ESOP required a beneficiary designation and would pass according to the designation and avoid probate. In addition, wouldn't distributions be treated taxwise similar to other retirement plans? We don't know whether it was an ESOP. If it was an ESOP, there are some special tax rule...
by bsteiner
Sun Oct 26, 2014 7:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to do taxes for sale of deceased father's stocks?
Replies: 18
Views: 1522

Re: Calculating (IRA) RMD

Thanks for the Replies. I went to IRS Pub 590 Table III I can now see where the 27.4 Figure is used. Is the IRS saying that at age 70, a person will live 27.4 more years (on average) ? ? ? If so, I now understand how the RMD is calculated. Best if you can understand the IRS definition. Simple quest...
by bsteiner
Sun Oct 26, 2014 2:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: Calculating (IRA) RMD
Replies: 7
Views: 587

Re: UGMA beneficiary trying to access funds

When my children reached age 21, Vanguard wanted me (as custodian) to sign the transfer forms and get a signature guarantee. On the other hand, a client had an insurance trust that provided that when her daughter reached age 40 (even if the client was still living), the trust would terminate and the...
by bsteiner
Sun Oct 26, 2014 10:31 am
 
Forum: Investing - Help with Personal Investments
Topic: UGMA beneficiary trying to access funds
Replies: 29
Views: 2233

Re: Corporate co-trustee and state taxation

I didn't notice the reference in your post to the Pennsylvania inheritance tax. The Pennsylvania inheritance tax only applies to Pennsylvania residents and nonresidents owning property in Pennsylvania at the time of death (and certain transfers within a year of death). Naming a Pennsylvania resident...
by bsteiner
Sat Oct 25, 2014 7:26 pm
 
Forum: Personal Finance (Not Investing)
Topic: Corporate co-trustee and state taxation
Replies: 3
Views: 602

Re: How to do taxes for sale of deceased father's stocks?

...my father did no financial planning. there was no will. and yes, my mom wants a trust. the main option is to have these stocks as part of the trust. ... If your father died without a Will, your mother isn't entitled to his entire estate. New York Estates, Powers and Trusts Law § 4-1.1(a)(1) says...
by bsteiner
Sat Oct 25, 2014 7:10 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to do taxes for sale of deceased father's stocks?
Replies: 18
Views: 1522

Re: How to do taxes for sale of deceased father's stocks?

...My father passed away in July. he left $300k in company stock from his employee stock purchase plan. ...(obviously, need to be xferred to my mom first.) ... Why do you say "obviously"? In another thread, you discuss the possibility of your mother creating an income only trust for her o...
by bsteiner
Fri Oct 24, 2014 3:45 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to do taxes for sale of deceased father's stocks?
Replies: 18
Views: 1522

Re: Do I need Probate for stocks and savings bonds (NYC)?

You probate the Will, not the assets.
by bsteiner
Fri Oct 24, 2014 3:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do I need Probate for stocks and savings bonds (NYC)?
Replies: 5
Views: 326

Re: Elder Law attorney (Trusts, Medicaid, nursing homes)

The cost of a nursing home is higher in NYC than in many other parts of the country. The figure you mentioned sounds reasonable. You are correct that most nursing home patients are on Medicaid, even if not initially. I gave a talk for the Hebrew Home for the Aged, which is one of the most highly reg...
by bsteiner
Thu Oct 23, 2014 10:51 pm
 
Forum: Personal Finance (Not Investing)
Topic: Elder Law attorney (Trusts, Medicaid, nursing homes)
Replies: 30
Views: 1958

Re: Is Roth 401k better even if future tax bracket is lower?

themicah wrote: ...if you can afford to take advantage of it, the Roth option effectively has a higher contribution limit.


That's correct. That's one reason the Roth makes sense even if the tax rate now is somewhat (but not too much) higher than the tax rate that would otherwise apply to the distributions.
by bsteiner
Tue Oct 21, 2014 11:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is Roth 401k better even if future tax bracket is lower?
Replies: 15
Views: 1954

Re: "You're invited to...." (nonsense talk and dinner)

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, then not only did you pay for your free dinner, but you paid for the free dinners for everyone else in the room.
by bsteiner
Tue Oct 21, 2014 6:31 pm
 
Forum: Personal Consumer Issues
Topic: "You're invited to...." (nonsense talk and dinner)
Replies: 68
Views: 4187

Re: Help: missed the deadline for an inherited IRA, what nex

I agree that while PLR 2008 11028 contemplated payment of the 50% penalty for the delinquent years, your husband has nothing to lose by making up the delinquent 2013 RMD ASAP and he should also complete his 2014 RMD. File a 1040X with Form 5329 for 2013 and request that the 50% penalty be waived fo...
by bsteiner
Mon Oct 20, 2014 5:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help: missed the deadline for an inherited IRA, what next?
Replies: 6
Views: 690

Re: Attorney Hourly Rates?

It depends. Since my practice isn't a local one, I often bring in local counsel in other places. Within the last year, one was a sole practitioner. He was a general practitioner in a small city. His hourly rate was $250. But he was exactly what we needed for the particular matter. We needed someone ...
by bsteiner
Mon Oct 20, 2014 9:01 am
 
Forum: Personal Finance (Not Investing)
Topic: Attorney Hourly Rates?
Replies: 41
Views: 3031

Re: Help: missed the deadline for an inherited IRA, what nex

As to the stretch, PLR 200811028 may be helpful: http://www.irs.gov/pub/irs-wd/0811028.pdf. As to the penalty, the IRS can (and often does) waive the penalty for reasonable cause. The lawyer handling the estate, or the lawyer who handles your estate planning, or some other lawyer, should be able to ...
by bsteiner
Sun Oct 19, 2014 10:31 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help: missed the deadline for an inherited IRA, what next?
Replies: 6
Views: 690

Re: First investment stratefy meeting with new FA, $6M trust

...I do kind of agree, 0.75% of 6M is $45K a year. This year, he will earn it (I cant count how many hours he and his firm have put in on all this mess cleanup). But going forward, it might be cheaper to just pay for accounting/tax services.... ...He actually charges a flat fee. This is also a CPA ...
by bsteiner
Sun Oct 19, 2014 3:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: First investment strategy meeting with new FA, $6M trusts
Replies: 80
Views: 4652

Re: Estate planning - big firm or solo practitioner?

Size of firm My parents want to update their estate plan. They have enough wealth to worry about estate taxes, and also have a disabled child for whom a special needs trust is appropriate. ... Their healthy children don't "need" an inheritance, but would be sad if a gold-digger ended up w...
by bsteiner
Sat Oct 18, 2014 11:17 pm
 
Forum: Personal Finance (Not Investing)
Topic: Estate planning - big firm or solo practitioner?
Replies: 17
Views: 1384

Re: Will and Estate Planning - do i or not need an attorney

I thought i would do a follow up on this as there may be others in the same situation as us. to summarize, our estate is less than JOINT allowance for federal tax, but will be liable for state. we live in MA... Since the Federal exempt amount is $5,340,000 (indexed), and the Massachusetts exempt am...
by bsteiner
Tue Oct 14, 2014 10:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: Will and Estate Planning - do i or not need an attorney
Replies: 26
Views: 2272

Re: Will and Estate Planning - do i or not need an attorney

...As I understand it, setting up revocable trusts for you and your spouse will avoid %5-%6 of Massachusetts estate taxes on the first $1M upon the death of the first spouse. The tax savings are substantially greater than the cost of the trust documents. Am I missing something? ... I'll respond in ...
by bsteiner
Tue Oct 14, 2014 10:02 am
 
Forum: Personal Finance (Not Investing)
Topic: Will and Estate Planning - do i or not need an attorney
Replies: 26
Views: 2272

Re: Non performance by executrix

The probate court procedures vary from state to state. If people think they're too burdensome in a given state (many people say that's the case in California), then they'll do revocable trusts and avoid them entirely (though they'll still have to deal with the courts and the procedures if there's a ...
by bsteiner
Sun Oct 12, 2014 6:06 pm
 
Forum: Personal Finance (Not Investing)
Topic: Non performance by executrix
Replies: 38
Views: 2950

Re: Is Probate Required?

It depends on whether there is anything for which the Will has to be admitted to probate or an executor has to be appointed. There could be checks in his name. He could be a beneficiary of or have a power of appointment over a trust created by someone else. He could be a party to a lawsuit. An execu...
by bsteiner
Sun Oct 12, 2014 10:47 am
 
Forum: Personal Finance (Not Investing)
Topic: Is Probate Required?
Replies: 9
Views: 849

Re: Reciprocal gifts to reduce the size of an estate

It won't work. Estate of Schuler v. Commissioner , 282 F.3d 575 (8th Cir. 2002), http://scholar.google.com/scholar_case?case=1523041199913421669&q=Estate+of+Schuler+v.+Commissioner&hl=en&as_sdt=3,31; Schultz v. United States , 493 F.2d 1225 (4th Cir. 1974), http://scholar.google.com/scho...
by bsteiner
Sun Oct 12, 2014 10:38 am
 
Forum: Personal Finance (Not Investing)
Topic: Reciprocal gifts to reduce the size of an estate
Replies: 1
Views: 401

Re: Non performance by executrix

Bsteiner thank you. The executrix is pro se. Since she handled the first estate with a lawyer, she claimed to know enough not to need one on the second estate. She is/was working with an accountant on this estate. He initially provided some info to us, but is no longer doing that. At one pointe he ...
by bsteiner
Sat Oct 11, 2014 11:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: Non performance by executrix
Replies: 38
Views: 2950

Re: Corporate co-trustee and state taxation

Some states treat a trust as a resident trust for income tax purposes if the grantor or testator is or was domiciled in that state. Other states treat a trust as a resident trust for income tax purposes if the trustees are in that state, or if a trustee is in that state, or if the trust is administe...
by bsteiner
Sat Oct 11, 2014 9:57 pm
 
Forum: Personal Finance (Not Investing)
Topic: Corporate co-trustee and state taxation
Replies: 3
Views: 602

Re: Non performance by executrix

Since I practice in NJ (as well as NY and FL), I'll try to respond to some of the points raised. If the estate wasn't particularly complicated, it would usually take more than a year but less than four years to administer. However, some estates can take much longer, for example if the estate tax ret...
by bsteiner
Sat Oct 11, 2014 9:35 pm
 
Forum: Personal Finance (Not Investing)
Topic: Non performance by executrix
Replies: 38
Views: 2950

Re: Inherited IRA

If you inherit the same amount in an IRA and a taxable account, the taxable account is worth more because no taxes are due on the amount inherited. The IRA will be 100% taxable (less any basis from non deductible contributions) at your marginal ordinary tax rate. Further, additional gains in the IR...
by bsteiner
Sat Oct 04, 2014 11:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: Inherited IRA
Replies: 13
Views: 1096

Re: Death Benefit from pension - lump sum or lifetime monthl

Cruncher and Frugal Al both raise good points. If the term is sufficiently long, the impact of the payments coming to an end is very small. Most of the value of the stream of payments is attributable to the payments in the early years. $x per year for 50 years is worth almost as much as $x per year ...
by bsteiner
Wed Oct 01, 2014 9:29 am
 
Forum: Personal Finance (Not Investing)
Topic: Death Benefit from pension - lump sum or lifetime monthly?
Replies: 19
Views: 1351

Re: Death Benefit from pension - lump sum or lifetime monthl

The return on the annuity is less than the 7% figure mentioned, since each annuity payment includes some principal. The inherited IRA offers more flexibility. The inherited IRA provides more deferral, since the required distributions are very small at first, and increase gradually. The inherited IRA...
by bsteiner
Tue Sep 30, 2014 11:32 pm
 
Forum: Personal Finance (Not Investing)
Topic: Death Benefit from pension - lump sum or lifetime monthly?
Replies: 19
Views: 1351

Re: IRA Beneficiary - Should a Trust ever be the beneficiary

...The lawyer who drew up my will was quite competent but he did not know what I was going to do with my 401K and Vanguard funds beneficiaries. .... A competent trusts and estates lawyer would ask about your retirement benefits, and would recommend (and perhaps prepare) beneficiary designations con...
by bsteiner
Tue Sep 30, 2014 11:15 pm
 
Forum: Personal Finance (Not Investing)
Topic: IRA Beneficiary - Should a Trust ever be the beneficiary?
Replies: 23
Views: 1767

Re: Worth converting from single member LLC to S-Corp?

technovelist wrote:You could also stash away a tremendous amount of money in a profit-sharing plan, reducing current taxes, and I don't think that is different for LLC and S-Corp.


With a corporation, only the salary is taken into account, whereas with an LLC the entire income is taken into account.
by bsteiner
Tue Sep 30, 2014 11:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: Worth converting from single member LLC to S-Corp?
Replies: 12
Views: 1084

Re: IRA Beneficiary - Should a Trust ever be the beneficiary

...I wonder if American retirees who buy property in other countries to live have investigated tax implications.... Some do, some don't. As long as you get a credit for the income tax paid in one country against the income tax payable in another country on the same income, or you get a credit for t...
by bsteiner
Mon Sep 29, 2014 11:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: IRA Beneficiary - Should a Trust ever be the beneficiary?
Replies: 23
Views: 1767

Re: Inheritance for non-US person

He/she may be referring to the income earned by the estate.
by bsteiner
Mon Sep 29, 2014 11:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: Inheritance for non-US person
Replies: 8
Views: 558

Re: See both financial advisor and elder law lawyer for Mom?

She can give away her assets, and then after 5 years get Medicaid. The typical Medicaid trust is one in which she puts her assets into a trust in which she receives all the income, but can't ever get principal. If she does that, after 5 years, she can get Medicaid. The principal tradeoff is that she...
by bsteiner
Mon Sep 29, 2014 11:26 pm
 
Forum: Personal Finance (Not Investing)
Topic: See both financial advisor and elder law lawyer for Mom?
Replies: 45
Views: 2450

Re: IRA Beneficiary - Should a Trust ever be the beneficiary

...I had "my will" designated as my beneficiaries and on advice from this site, I am making my brothers beneficiaries on the Roth IRA and 401K.... You can't leave assets to a Will. A Will is just sheets of paper. Sheets of paper can't own property. Even if they could, since they're not in...
by bsteiner
Sun Sep 28, 2014 10:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: IRA Beneficiary - Should a Trust ever be the beneficiary?
Replies: 23
Views: 1767

Re: IRS Relents! Notice 2014-54 permits Basis Isolation

...I'll start to make After-Tax contributions to my 401K. I plan to retire in about 4 years. ... This works well if you can convert to a Roth soon after you make the contribution (so that the income and gains will be tax-free). However, if you can't convert to a Roth soon after you make the contrib...
by bsteiner
Sun Sep 28, 2014 7:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: IRS Relents! Notice 2014-54 permits Basis Isolation
Replies: 85
Views: 8535

Re: Why do people buy annuities? Because Its All About Risk

This is a good overview. A bit over most people's head; Far over their heads if they never look up. But readable and understandable if you get take advantage of coffees/informational dinners. Annuities can open a much bigger array of retirement possibilities. YMMV. Sadly for most people, their mile...
by bsteiner
Sun Sep 28, 2014 9:09 am
 
Forum: Investing - Theory, News & General
Topic: Why do people buy annuities?
Replies: 50
Views: 4006

Re: New Trustee of 6M estate trusts... Lots of Q's

Disclaimers ...What is the meaning of the other term you used - disclaimers. How would that play in this discussion? A beneficiary can disclaim (refuse to accept) some or all of the benefits under a Will or trust agreement (or other disposition). Unless the Will or trust agreement or other governin...
by bsteiner
Sun Sep 28, 2014 9:02 am
 
Forum: Investing - Help with Personal Investments
Topic: New Trustee of 6M estate trusts... Lots of Q's
Replies: 15
Views: 2310

Re: New Trustee of 6M estate trusts... Lots of Q's

Decanting it may be worth checking to see if it's possible to avoid that [manadatory payout], either by disclaimers or by decanting the trusts. This I find VERY interesting. See, we already have a couple issues. One, trust #2 has limited liquidity if we want to keep the AXA annuity. Combining (or d...
by bsteiner
Sun Sep 28, 2014 8:51 am
 
Forum: Investing - Help with Personal Investments
Topic: New Trustee of 6M estate trusts... Lots of Q's
Replies: 15
Views: 2310

Re: New Trustee of 6M estate trusts... Lots of Q's

Mandating or not mandating distributions / beneficiary controlled trusts ...- @bsteiner: I didnt realize that this was an unusual situation with the trusts. So you are saying that, generally, such a trust(s) would either dump all at once on the death of the last survivor (grantor), or would continu...
by bsteiner
Sun Sep 28, 2014 8:41 am
 
Forum: Investing - Help with Personal Investments
Topic: New Trustee of 6M estate trusts... Lots of Q's
Replies: 15
Views: 2310

Re: Tax Season Reference???

J.K. Lasser's Your Income Tax comes in both a consumer edition and a professional edition.
by bsteiner
Sun Sep 28, 2014 7:55 am
 
Forum: Personal Finance (Not Investing)
Topic: Tax Season Reference???
Replies: 13
Views: 645

Re: New Trustee of 6M estate trusts... Lots of Q's

...The trustee's role is usually to act with fiduciuary responsibilities, in the best interests of the trustors (the person(s) who created and funded the trusts). After the trustors die, their job is usually to distribute the estate to the beneficiaries so they can each decide how to invest/spend t...
by bsteiner
Sat Sep 27, 2014 10:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: New Trustee of 6M estate trusts... Lots of Q's
Replies: 15
Views: 2310

Re: Will and Estate Planning - do i or not need an attorney

... Unless your estate is very large (8 figures not beginning with "1") or complex, it's not fair to meet with two unless at the end of the first meeting you write a check for the time spent at the first meeting. Like the first visit to a new doctor, the first meeting is when you give the...
by bsteiner
Sat Sep 27, 2014 9:42 pm
 
Forum: Personal Finance (Not Investing)
Topic: Will and Estate Planning - do i or not need an attorney
Replies: 26
Views: 2272

Re: Will and Estate Planning - do i or not need an attorney

...we are in Massachusetts. beneficiaries would be our adult children. our estate is over the federal threshold by a few thousand dollars.... If your estate is over $10 million (the Federal exempt amount is now $5,340,000), you should look for someone good. Given the amount involved, you may wish t...
by bsteiner
Sat Sep 27, 2014 8:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: Will and Estate Planning - do i or not need an attorney
Replies: 26
Views: 2272

Re: Will and Estate Planning - do i or not need an attorney

...we recently attended a very slickly presented program on estate planning, trusts, and wills with price tags ranging from 1500 to 7500.... You've given two good reasons to go elsewhere: "slickly presented program" and "wills with price tags." If you go to the free dinner semin...
by bsteiner
Sat Sep 27, 2014 7:51 pm
 
Forum: Personal Finance (Not Investing)
Topic: Will and Estate Planning - do i or not need an attorney
Replies: 26
Views: 2272

Re: IRA Beneficiary - Should a Trust ever be the beneficiary

I've received some conflicting information regarding titling all assets, including IRA's, into a revocable trust..... You said in another thread that you live in Florida. Probating a Will in Florida is not particularly difficult, expensive or burdensome. We probate lots of Wills in Florida from our...
by bsteiner
Sat Sep 27, 2014 7:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: IRA Beneficiary - Should a Trust ever be the beneficiary?
Replies: 23
Views: 1767

Re: Inherited IRA RMD

When my friend's mom passed away 2 years ago, she had an IRA ... which got split up between my friend and his sister. The man who handled the accounts did the RMD because she hadn't taken the RMD yet. Any tax implications from that RMD were paid for by the estate before its assets got split up. ......
by bsteiner
Wed Sep 24, 2014 6:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: Inherited IRA RMD
Replies: 12
Views: 1301

Re: Life Insurance - Indexed - Worth it?

If you go to the free dinner, and you're the one who buys the annuity, the living trust, the timeshare, or the bridge (or this product), not only did you pay for your free dinner, but you paid for the free dinners for everyone else in the room.
by bsteiner
Wed Sep 24, 2014 6:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Life Insurance - Indexed - Worth it?
Replies: 12
Views: 696

Re: Are the tax rules the same if a foreigner inherits a 401

Lynette wrote:...I have an option to get legal advice as part of my benefits - $15 per month....


Are the $15 a month lawyers familiar with international tax and estate planning?
by bsteiner
Tue Sep 23, 2014 10:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: Are the tax rules the same if a foreigner inherits a 401K?
Replies: 8
Views: 582

Re: Inherited IRA RMD

InvestorNewbie wrote:...Initially, the lawyer handling my mother's estate requested that the custodians simply cash out the IRA accounts. ...


That's not a good sign.
by bsteiner
Tue Sep 23, 2014 10:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: Inherited IRA RMD
Replies: 12
Views: 1301
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