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Re: Help with mother's Revocable Living Trust after she pass

You won't be imposing on him if you pay him for his time.
by bsteiner
Sun Nov 23, 2014 5:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help with mother's Revocable Living Trust after she passes
Replies: 7
Views: 624

Re: Help with mother's Revocable Living Trust after she pass

The location of the lawyer doesn't matter. My clients are in many different states and some foreign countries. Many are much more than 175 miles away. I don't have a majority of them in any one state. However, getting a lawyer from a free dinner seminar is scary. As I often say, if you go to the fre...
by bsteiner
Sun Nov 23, 2014 12:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help with mother's Revocable Living Trust after she passes
Replies: 7
Views: 624

Re: Family Trust? Strategies for inheritance?

The original poster is conflating two different issues: (1) whether to create a revocable trust, and (2) what the dispositive terms will be. Revocable trusts are appropriate in some cases, and in some states. However, they're overhyped and oversold, and in most cases they're not necessary. In most s...
by bsteiner
Sun Nov 23, 2014 8:52 am
 
Forum: Personal Finance (Not Investing)
Topic: Family Trust? Strategies for inheritance?
Replies: 6
Views: 916

Re: How do you "un-fund" a revocable trust?

The original poster is conflating two separate issues, (1) whether to create a revocable trust, and (2) whether to provide for a credit shelter (bypass) (family) trust at his/her death. Revocable trusts are appropriate in some cases, and in some states. However, they're overhyped and oversold, and n...
by bsteiner
Sun Nov 23, 2014 8:13 am
 
Forum: Personal Finance (Not Investing)
Topic: How do you "un-fund" a revocable trust?
Replies: 10
Views: 1063

Re: charitable gift trust questions

Thank you for that reply. As you suspected, he doesn't have any highly appreciated securities. He tends to invest in low-appreciating securities. :D What about the typical plug from charities (ie, his alma mater) which will pay "6.8% at age 80"? How much of an immediate deduction does he ...
by bsteiner
Tue Nov 18, 2014 10:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: charitable gift trust questions
Replies: 6
Views: 820

Re: legalities of bypass trust funding question

If they're in Maryland (which is not a community property state), one possibility is that they bought a California form. About a dozen years ago, the late Paul Fletcher, a lawyer in Oregon, wrote some articles in Trusts & Estates saying that it might be possible for a couple in a common law stat...
by bsteiner
Tue Nov 18, 2014 10:13 pm
 
Forum: Personal Finance (Not Investing)
Topic: legalities of bypass trust funding question
Replies: 6
Views: 545

Re: Quit Cobra to go on Obamacare?

...1. How's the out of network / out of state coverage for your present plan? Those are often very limited or non-existent for Obamacare plans .... Someone in the NJ suburbs of NYC was considering the plans on the exchange and found that she could only buy a NJ plan. However, most of her doctors we...
by bsteiner
Tue Nov 18, 2014 10:01 pm
 
Forum: Personal Finance (Not Investing)
Topic: Quit Cobra to go on Obamacare?
Replies: 23
Views: 2811

Re: Revocable to Irrevocable Living Trust

...@bsteiner – You mentioned adding wording permitting the trustees to make distributions for any reason. I thought the language was standard for some "legal" reason. If the wording is changed to allow any use does that change or limit any other benefit of the trust? For example would the...
by bsteiner
Sun Nov 16, 2014 10:22 am
 
Forum: Personal Finance (Not Investing)
Topic: Revocable to Irrevocable Living Trust
Replies: 7
Views: 989

Re: charitable gift trust questions

For $500,000 rather than $5,000, you would probably create a customized charitable remainder trust, in which he and/or the persons he selects would be the trustee(s). The trustees would have to invest the money in a reasonable manner. The principal attraction of a charitable remainder trust is that ...
by bsteiner
Sun Nov 16, 2014 10:02 am
 
Forum: Personal Finance (Not Investing)
Topic: charitable gift trust questions
Replies: 6
Views: 820

Re: Transition from Saving to Spending

I've been retired for 12 years now, and just this year realized something that I should have started doing the year I retired. My main asset, except for the house, has been a Vanguard traditional IRA, that I started in the '80s with Windsor II and Value Index funds. It's been a great investment, an...
by bsteiner
Sat Nov 15, 2014 6:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: Transition from Saving to Spending
Replies: 37
Views: 3884

Re: Trust protection questions

The scenario is the following: Beneficiary is newly remarried to husband #2 who is on wife #3. They have been marries 2 years. Husband has a serious spending problem. Sometime in the next 10-15 years, the Bene will inherit $2M, 40% as an inherited IRA the rest in taxable accounts. What happens if t...
by bsteiner
Wed Nov 12, 2014 11:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: Trust protection questions
Replies: 13
Views: 1086

Re: Trust protection questions

...Beneficiary is newly remarried to husband #2 who is on wife #3. They have been marries 2 years. Husband has a serious spending problem. Sometime in the next 10-15 years, the Bene will inherit $2M, 40% as an inherited IRA the rest in taxable accounts. What happens if they divorce shortly after re...
by bsteiner
Wed Nov 12, 2014 11:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: Trust protection questions
Replies: 13
Views: 1086

Re: Revocable to Irrevocable Living Trust

I have recently been trying to get a will, durable POA, health care POA, and advanced directive. Yes at 55 I should have had these a long time ago but better late than never. I have talked to two different estate lawyers. In addition to the basics they both suggested I put my assets into a Revocabl...
by bsteiner
Wed Nov 12, 2014 10:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: Revocable to Irrevocable Living Trust
Replies: 7
Views: 989

Re: Trust protection questions

We've heard from some on the board about the advantages of leaving estates to beneficiaries in trusts, i.e. protection from bankruptcy, divorce and future estate taxes. I'd like to hear more about divorce protection. For example, if a bene receives an inheritance in a trust and then draws $10K &quo...
by bsteiner
Tue Nov 11, 2014 11:13 pm
 
Forum: Personal Finance (Not Investing)
Topic: Trust protection questions
Replies: 13
Views: 1086

Re: Bypass trust

...Bruce, I'm surprised at your comments. You say most people don't create revocable trusts. Here in Florida it is much more common than testamentary trusts. Most of my career in the trust business was spent in Florida and the vast majority of our accounts were RLT's. Also, you suggest asking for a...
by bsteiner
Tue Nov 11, 2014 10:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: Bypass trust
Replies: 7
Views: 1082

Re: Roth 401(k) vs. 401(k) Spreadsheet Attempt - Critique Pl

There are some additional benefits to the Roth: 1. All of the money in the plan or IRA doesn't have to come out all at once at retirement. Distributions can be stretched over the lifetimes of the IRA owner and spouse, and thereafter over the beneficiary's life expectancy. 2. There are no required di...
by bsteiner
Tue Nov 11, 2014 9:49 pm
 
Forum: Investing - Theory, News & General
Topic: Roth 401(k) vs. 401(k) Spreadsheet Attempt - Critique Please
Replies: 10
Views: 1296

Re: Bypass trust

If the credit shelter trust was created under a revocable trust rather than by Will, then it won't be a public record unless there was some court proceeding involving the trust instrument. However, it's worth checking to see if the credit shelter trust was created by Will. While some people create r...
by bsteiner
Tue Nov 11, 2014 9:31 am
 
Forum: Personal Finance (Not Investing)
Topic: Bypass trust
Replies: 7
Views: 1082

Re: Vanguard sued for charging too little

Internal Revenue Code Section 482 says: In any case of two or more organizations, trades, or businesses (whether or not incorporated, whether or not organized in the United States, and whether or not affiliated) owned or controlled directly or indirectly by the same interests, the Secretary may dist...
by bsteiner
Mon Nov 10, 2014 10:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: Vanguard sued for charging too little
Replies: 197
Views: 26807

Re: Help with my Father-In-Law's Assets

Since father-in-law is still living, his IRA is still his. Mother-in-law's IRA goes to the named beneficiary. If father-in-law is the beneficiary, he can roll it over into his own IRA. Mother-in-law's other assets go however her Will says. It's unlikely but possible that her Will would set up a cred...
by bsteiner
Mon Nov 10, 2014 10:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with my Father-In-Law's Assets
Replies: 11
Views: 1106

Re: Bypass trust

He could go to the probate court and get a copy of the Will and see what it says. In some states (such as Maryland and Florida) it's fairly easy to check online to see if it's on file, and then to order a copy from the court.
by bsteiner
Mon Nov 10, 2014 10:17 pm
 
Forum: Personal Finance (Not Investing)
Topic: Bypass trust
Replies: 7
Views: 1082

Re: One Person Defined Benefit Plan

I am considering starting a one person defined benefit plan .... I am 54 years old, am self employed with a stable income of $300K-$450K pretax, and am planning retirement in 6-8 years. .... The plans are somewhat expensive to set up, but allow deferred taxes on $100K-$200K. 1) I was wondering if a...
by bsteiner
Sun Nov 09, 2014 8:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: One Person Defined Benefit Plan
Replies: 49
Views: 3530

Re: I'm Scared! Vanguard Target Retirement 2015 - What to d

...I attended a retirement seminar and received a 'free' 1 hour advice visit with a financial adviser. He wants me to put my company pension and 401K in a variable annuity. I was very disappointed with him as he only offered his variable annuity plan and no other options.... If you go to the free d...
by bsteiner
Sat Nov 08, 2014 9:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: I'm Scared! Vanguard Target Retirement 2015 - What to do!
Replies: 39
Views: 7222

Re: adding 600K inheritance to an after tax portfolio

The deadline for disclaiming is 9 months from the original transfer. If the trust is the credit shelter trust for your mother's benefit under your father's Will, then the 9 month period would have commenced at your father's death. You can't disclaim an interest in property if you've accepted any ben...
by bsteiner
Sat Nov 08, 2014 5:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: adding 600K inheritance to an after tax portfolio
Replies: 11
Views: 2526

Re: Strategy of 6M trusts meeting tonight. Few Q's

...I agree with a few of the posters suggesting to immediately invest the cash taking into account the asset allocation of the other investments (Reits and Annuities).... Why did the trusts buy annuities? Trusts don't have to hedge against living too long. Also, whether a trust can defer the income...
by bsteiner
Sun Nov 02, 2014 1:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Strategy of 6M trusts meeting tonight. Few Q's
Replies: 64
Views: 5797

Re: How difficult is probate court? (NYC)

What's the big deal about probating a Will? I'm sure if varies by state but in Missouri it was required to publish two notices for potential creditors that had to be six months apart and no assets could be distributed until after the second one. The procedure regarding creditors varies from state t...
by bsteiner
Sun Nov 02, 2014 12:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: How difficult is probate court? (NYC)
Replies: 13
Views: 1690

Re: Strategy of 6M trusts meeting tonight. Few Q's

...No, the trustee does not have unlimited discretion in distributions. They are fixed for 7 or 10 years depending on which trust. In my statement, I meant that based on the distribution schedule the beneficiaries should be able to pay the taxes on whatever income the trust generates, at their rate...
by bsteiner
Sun Nov 02, 2014 7:50 am
 
Forum: Investing - Help with Personal Investments
Topic: Strategy of 6M trusts meeting tonight. Few Q's
Replies: 64
Views: 5797

Re: How difficult is probate court? (NYC)

...What about the use of a living trust instead of POD and TOD? No probate, assets move according to terms of trust. ... Revocable trusts are not commonly used in New York (where the decedent in this case lived). What's the big deal about probating a Will? We file the Will with some forms, a death ...
by bsteiner
Sat Nov 01, 2014 10:58 pm
 
Forum: Personal Finance (Not Investing)
Topic: How difficult is probate court? (NYC)
Replies: 13
Views: 1690

Re: Strategy of 6M trusts meeting tonight. Few Q's

...- Based on the trust documents, his goal is to pass through all trust income to the beneficiaries, so to calculate what bond fund(s) we buy based on OUR (beneficiary) tax rate. Lets say roughly 33% combined for state and federal. That suggests that the trustees have discretion (since if the trus...
by bsteiner
Sat Nov 01, 2014 10:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: Strategy of 6M trusts meeting tonight. Few Q's
Replies: 64
Views: 5797

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 1:58 pm
 
Forum: Investing - Theory, News & General
Topic: Vanguard Variable Annuity Costs
Replies: 10
Views: 876

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 9:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: How difficult is probate court? (NYC)
Replies: 13
Views: 1690

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 6:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: fleeced by an adviser, is there a recourse?
Replies: 104
Views: 9001

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 6:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to do taxes for sale of deceased father's stocks?
Replies: 18
Views: 1590

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 1:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: Calculating (IRA) RMD
Replies: 7
Views: 619

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 9:31 am
 
Forum: Investing - Help with Personal Investments
Topic: UGMA beneficiary trying to access funds
Replies: 29
Views: 2299

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 6:26 pm
 
Forum: Personal Finance (Not Investing)
Topic: Corporate co-trustee and state taxation
Replies: 3
Views: 616

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 6:10 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to do taxes for sale of deceased father's stocks?
Replies: 18
Views: 1590

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 2:45 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to do taxes for sale of deceased father's stocks?
Replies: 18
Views: 1590

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

You probate the Will, not the assets.
by bsteiner
Fri Oct 24, 2014 2:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do I need Probate for stocks and savings bonds (NYC)?
Replies: 5
Views: 353

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 9:51 pm
 
Forum: Personal Finance (Not Investing)
Topic: Elder Law attorney (Trusts, Medicaid, nursing homes)
Replies: 30
Views: 2003

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 10:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is Roth 401k better even if future tax bracket is lower?
Replies: 26
Views: 2839

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 5:31 pm
 
Forum: Personal Consumer Issues
Topic: "You're invited to...." (nonsense talk and dinner)
Replies: 105
Views: 9313

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 4:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help: missed the deadline for an inherited IRA, what next?
Replies: 6
Views: 707

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 8:01 am
 
Forum: Personal Finance (Not Investing)
Topic: Attorney Hourly Rates?
Replies: 41
Views: 3094

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 9:31 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help: missed the deadline for an inherited IRA, what next?
Replies: 6
Views: 707

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 2:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: First investment strategy meeting with new FA, $6M trusts
Replies: 80
Views: 4832

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 10:17 pm
 
Forum: Personal Finance (Not Investing)
Topic: Estate planning - big firm or solo practitioner?
Replies: 22
Views: 2139

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 9:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: Will and Estate Planning - do i or not need an attorney
Replies: 26
Views: 2327

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 9:02 am
 
Forum: Personal Finance (Not Investing)
Topic: Will and Estate Planning - do i or not need an attorney
Replies: 26
Views: 2327

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 5:06 pm
 
Forum: Personal Finance (Not Investing)
Topic: Non performance by executrix
Replies: 39
Views: 3297

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 9:47 am
 
Forum: Personal Finance (Not Investing)
Topic: Is Probate Required?
Replies: 9
Views: 862
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