Search found 1220 matches

by bsteiner
Thu Jul 02, 2015 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: power of attorney/trustee question
Replies: 11
Views: 601

Re: power of attorney/trustee question

The surviving parent's Will (and any trusts under his/her Will) don't take effect until he/she dies. At that point, if A is living but not able to serve as executor or trustee, then if B is the named successor, B will be appointed executor and trustee. The deceased parent's Will is already effective...
by bsteiner
Thu Jul 02, 2015 9:44 am
Forum: Personal Finance (Not Investing)
Topic: Snow Bird Question [State Residency Requirements]
Replies: 54
Views: 4590

Re: Snow Bird Question [State Residency Requirements]

It may be more complicated. The first page of the instructions to the California income tax return says that if the spouse earning California source income is domiciled in a community property state, then the community income is divided between the spouses: https://www.ftb.ca.gov/forms/2014/14_540in...
by bsteiner
Sun Jun 28, 2015 9:04 pm
Forum: Personal Finance (Not Investing)
Topic: Lucent offering pension buyout to retirees: what to do?
Replies: 54
Views: 4835

Re: Lucent offering pension buyout to retirees: what to do?

If the buyout amount is fair, he can always turn around and purchase his own annuities with that money (multiple, to spread out the risk among institutions). The annuity from the pension plan will probably pay more than one that he can buy from an insurance company, though it won't be diversified a...
by bsteiner
Sun Jun 28, 2015 8:51 am
Forum: Personal Consumer Issues
Topic: can you recommend comfortable walking shoes?
Replies: 46
Views: 3438

Re: can you recommend comfortable walking shoes?

I've had good luck with Mephisto and Ecco. I used to like the Rockport ProWalker with the replaceable Vibram sole but I haven't seen it in many years.

If you know what size will fit in a given brand, you may be able to find good deals on shoes on eBay.
by bsteiner
Thu Jun 25, 2015 3:53 pm
Forum: Investing - Help with Personal Investments
Topic: Variable Annuity: Fidelity vs Vanguard
Replies: 3
Views: 372

Re: Variable Annuity: Fidelity vs Vanguard

In addition to the additional fee (which isn't very much in this case), the annuity converts all of the investment income and gains to ordinary income. You may want to run some numbers to see the impact of this.
by bsteiner
Thu Jun 25, 2015 11:29 am
Forum: Investing - Theory, News & General
Topic: Jim Rogers quotes for today
Replies: 13
Views: 2304

Re: Jim Rogers quotes for today

I heard him speak a couple of times. He has some interesting ideas, but, much like the Yale endowment fund, it would be hard for me to implement some of them even if I wanted to. For example, when someone asked about investing in far-off places, he said that, for example, the next time you're in Teh...
by bsteiner
Thu Jun 25, 2015 9:02 am
Forum: Personal Finance (Not Investing)
Topic: What to do when there is no responsible family, trusts, wills, POA, etc.
Replies: 8
Views: 1233

Re: What to do when there is no responsible family, trusts, wills, POA, etc.

...We are learning the hard way about state law (concerning Wills) when the executor does NOT live in the same state as the deceased .... In most states, it doesn't matter. We've had estates in New Jersey and Texas (with local counsel for the Texas aspects) where there was an executor or administra...
by bsteiner
Wed Jun 24, 2015 9:27 pm
Forum: Personal Finance (Not Investing)
Topic: What to do when there is no responsible family, trusts, wills, POA, etc.
Replies: 8
Views: 1233

Re: What to do when there is no responsible family, trusts, wills, POA, etc.

If neither of you is around, and your daughter isn't ready to administer your estate and control her inheritance, someone has to do these jobs until your daughter is ready to control the assets. If you don't have an appropriate individual, you could name a bank or trust company as executor of the su...
by bsteiner
Mon Jun 22, 2015 8:29 pm
Forum: Investing - Help with Personal Investments
Topic: Investing 11 Million Dollar Gift
Replies: 80
Views: 11940

Re: Investing 11 Million Dollar Gift

Index Fan wrote:...I'd move away to a place where you aren't known and don't have to answer prying questions about your new-found wealth. You can always come back and visit friends and relatives from you 'new house'.


In the NY area, lots of people have $11 million or more. You won't stand out.
by bsteiner
Mon Jun 22, 2015 6:55 pm
Forum: Personal Finance (Not Investing)
Topic: Pension or Unfair Lump Sum
Replies: 39
Views: 5097

Re: Pension or Unfair Lump Sum

Another factor to consider is that if you take the lump sum and roll it over into an IRA, you may be able to convert some or all of it to a Roth (either all at once or over a number of years to avoid bunching the income), which may add substantial value.
by bsteiner
Mon Jun 22, 2015 2:54 pm
Forum: Personal Finance (Not Investing)
Topic: Life Expectancy Divisor for RMDs
Replies: 4
Views: 547

Re: Life Expectancy Divisor for RMDs

You should be happy. If you were born in the first half of the year, you would have a required distribution for the year you turn 70. By being born in the second half of the year, you don't have a required distribution for the year you turn 70.
by bsteiner
Sun Jun 21, 2015 1:55 pm
Forum: Investing - Help with Personal Investments
Topic: Investing 11 Million Dollar Gift
Replies: 80
Views: 11940

Re: Investing 11 Million Dollar Gift

... I am under the impression that when a gift is given in name to just me, my spouse (in NY) has no access or entitlement to it as long as I keep it in a separate account (nothing with her name on it). I understand that if I use some monies from seperate account in joint ventures (like house upgra...
by bsteiner
Fri Jun 19, 2015 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: Investing 11 Million Dollar Gift
Replies: 80
Views: 11940

Re: Investing 11 Million Dollar Gift

... I was wondering if a family limited partnership might make sense here. All investment assets would be held in the name of the partnership and then earnings flow through to the partners as established in the partnership agreement. The OP could be the General Partner with a very low percentage ow...
by bsteiner
Fri Jun 19, 2015 2:48 pm
Forum: Investing - Help with Personal Investments
Topic: Investing 11 Million Dollar Gift
Replies: 80
Views: 11940

Re: Investing 11 Million Dollar Gift

I am preparing myself for receipt of an 11M gift from a wealthy family member.... You might ask if the gift could be in trust rather than outright, to keep it out of your estate for estate tax purposes, and to protect it against your creditors and spouses. ... Is using a Private Bank (like a Chase ...
by bsteiner
Tue Jun 16, 2015 8:38 pm
Forum: Investing - Help with Personal Investments
Topic: I'm now a trustee of an Irrevocable Grantor Trust. Help requested.
Replies: 19
Views: 2158

Re: I'm now a trustee of an Irrevocable Grantor Trust. Help requested.

A revocable trust is disregarded for both income and estate tax purposes. Depending on the terms of the trust, an irrevocable trust could be its own taxpayer for income tax purposes, or it could be a grantor trust for income tax purposes (meaning that the grantor/settlor is taxable on the trust's in...
by bsteiner
Mon Jun 15, 2015 9:57 pm
Forum: Investing - Help with Personal Investments
Topic: Maxmyinterest.com Comment
Replies: 14
Views: 2301

Re: Maxmyinterest.com Comment

I am sure a good number of folks here have over $250k in investable assets here and do not have a family trust, including me. What value does a family trust bring and wouldn't the costs seem to fly in the face of chasing minute differences in interest rates. If you were talking $250MM, that might b...
by bsteiner
Mon Jun 15, 2015 6:19 pm
Forum: Personal Finance (Not Investing)
Topic: Establishing residency in Florida
Replies: 19
Views: 2630

Re: Establishing residency in Florida

Gill is correct. New York has audited a large number of taxpayers on this issue. I practice in both New York and Florida, so I see this issue frequently. We've had many such cases involving clients, some with very large amounts of tax at stake. For income tax purposes, you'll be taxable as a New Yor...
by bsteiner
Mon Jun 15, 2015 11:32 am
Forum: Investing - Help with Personal Investments
Topic: I'm now a trustee of an Irrevocable Grantor Trust. Help requested.
Replies: 19
Views: 2158

Re: I'm now a trustee of an Irrevocable Grantor Trust. Help requested.

There are lots of issues here, so you may want to consult with competent trusts and estates counsel. While the trustee was successful on appeal in this recent Minnesota case, the result might not be the same in the next case: http://cases.justia.com/minnesota/court-of-appeals/2014-a13-2295.pdf?ts=14...
by bsteiner
Sat Jun 13, 2015 8:29 pm
Forum: Personal Finance (Not Investing)
Topic: End of Life Business Procedures
Replies: 26
Views: 2310

Re: End of Life Business Procedures

raymclean wrote:... Get rid of out-of state real estate (by quit-claiming it to his wife? child?) ....


Deathbed transfers of appreciated assets will destroy the basis step-up. It might make more sense to transfer appreciated assets to the terminally ill person.

Why a quitclaim deed?
by bsteiner
Fri Jun 12, 2015 5:04 pm
Forum: Personal Finance (Not Investing)
Topic: Salvaging help please after Whole Life misrepresentation
Replies: 41
Views: 4436

Re: Salvaging help please after Whole Life misrepresentation

MN Finance wrote:...You were sold a life insurance policy and annuity by an insurance agent ....


Isn't buying both an life insurance policy and an annuity like betting on both teams in the same game?
by bsteiner
Fri Jun 12, 2015 4:53 pm
Forum: Personal Finance (Not Investing)
Topic: End of Life Business Procedures
Replies: 26
Views: 2310

Re: End of Life Business Procedures

He should make sure his Will makes sense. In other words, he should make sure it provides for the people he wants to provide for, and it does so in a way that's tax efficient and provides asset protection for the beneficiaries. Since you're in New York, if he's in New York (or another state that has...
by bsteiner
Fri Jun 12, 2015 1:23 pm
Forum: Investing - Help with Personal Investments
Topic: tIRA's RMDs causing increasing tax concerns
Replies: 62
Views: 7199

Re: tIRA's RMDs causing increasing tax concerns

...The big way to reduce total post-RMD taxes is to delay SS and spend down the IRA instead. Is it too late for that? If there are no spouse benefits, is that beneficial? Absent spouse benefits, Social Security is supposed to be approximately fair whether you start at 66 or 70, whereas there's a si...
by bsteiner
Thu Jun 11, 2015 9:18 am
Forum: Personal Consumer Issues
Topic: Spendthrift trust
Replies: 7
Views: 614

Re: Spendthrift trust

It doesn't cost much more to draft a Will with the appropriate trust for her than without it. The cost turns mainly on how much time he needs in the decision making process. It need not cost much to administer the trust. Trusts have to file income tax returns each year, but they're usually not parti...
by bsteiner
Wed Jun 10, 2015 10:49 am
Forum: Personal Finance (Not Investing)
Topic: How risky is real estate (especially New York City real estate)?
Replies: 26
Views: 3506

Re: How risky is real estate (especially New York City real estate)?

I doubt that I can predict the future of housing prices any better than I can predict the future of stock prices, but several factors contribute to housing being more expensive in NYC than in most other places. 1. The area is pretty well built up. In many areas, there's more vacant land available to...
by bsteiner
Tue Jun 09, 2015 2:56 pm
Forum: Personal Consumer Issues
Topic: Toyota care plus prepaid maintenance
Replies: 10
Views: 1100

Toyota care plus prepaid maintenance

The 2014 Toyota Camry comes with the scheduled maintenance for up to 2 years or 25,000 miles. You can extend this for up to 3 years/35,000 miles, 3 years/45,000 miles, 4 years/45,000 miles, 4 years/60,000 miles, 5 years/55,000 miles, or 5 years/75,000 miles. I was quoted $299 to extend it to 4 years...
by bsteiner
Mon Jun 08, 2015 3:12 pm
Forum: Investing - Help with Personal Investments
Topic: IRA Accounts in a Revocable Trust
Replies: 6
Views: 512

Re: IRA Accounts in a Revocable Trust

That raises at least three issues. First, if the child is the sole trustee, and if he/she has complete discretion to distribute to himself/herself, that will throw the assets into the child's estate. Second, conduit trusts rarely if ever make any sense. In a conduit trust, all of the distributions f...
by bsteiner
Mon Jun 08, 2015 12:37 pm
Forum: Investing - Help with Personal Investments
Topic: IRA Accounts in a Revocable Trust
Replies: 6
Views: 512

Re: IRA Accounts in a Revocable Trust

You can leave your IRAs to your children or grandchildren in trust rather than outright without running them through a revocable trust.
by bsteiner
Mon Jun 08, 2015 9:53 am
Forum: Investing - Help with Personal Investments
Topic: IRA Accounts in a Revocable Trust
Replies: 6
Views: 512

Re: IRA Accounts in a Revocable Trust

Where would your revocable trust go if your wife does not survive you? If your revocable trust goes to your children as primary beneficiaries and your grandchildren as contingent beneficiaries, then naming your revocable trust as contingent beneficiary of your traditional IRA (instead of your childr...
by bsteiner
Mon Jun 08, 2015 8:06 am
Forum: Personal Finance (Not Investing)
Topic: Designation of beneficiary for retirement plan
Replies: 5
Views: 783

Re: Designation of beneficiary for retirement plan

... If she doesn’t want it because she is worried about an estate tax, she could put it in a trust and get the income from it. At her death, the remainder will go to our daughter .... That's probably the worst of all worlds. You're taking the income from the trust, that would otherwise be out of he...
by bsteiner
Thu Jun 04, 2015 11:15 am
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion Decision Making Process
Replies: 4
Views: 440

Re: Roth Conversion Decision Making Process

If you have other money to pay the tax on the conversion, then by converting you're effectively making an additional contribution. For example, assume a constant 30% bracket. You have a $1,000 traditional IRA and $300 of other money. If you convert, you have a $1,000 Roth IRA that's tax-free. If it ...
by bsteiner
Wed Jun 03, 2015 5:30 pm
Forum: Investing - Theory, News & General
Topic: Small business 401(k) - Can Employee Fiduciary & other providers help with plan design?
Replies: 8
Views: 858

Re: Small business 401(k) - Can Employee Fiduciary & other providers help with plan design?

An actuarial firm that deals with small company retirement plans should be able to help. Your lawyer, or one of the tax or trusts and estates lawyers in his/her firm, should be able to recommend an actuary.
by bsteiner
Wed Jun 03, 2015 3:48 pm
Forum: Personal Finance (Not Investing)
Topic: Asset Protection
Replies: 1
Views: 300

Re: Asset Protection

It depends on what state the child lives in at the time of the divorce. Gifts and inheritances are in the pot in some states, but not in others. Your children may move from one state to another. Also, even in a state where gifts and inheritances are not in the pot upon divorce, it's sometimes hard t...
by bsteiner
Tue Jun 02, 2015 2:08 pm
Forum: Investing - Help with Personal Investments
Topic: Investment advice/Whole life insurance - disabled child
Replies: 14
Views: 1093

Re: Investment advice/Whole life insurance - disabled child

I think some people are making the planning for someone with a special needs child more complicated than it is. A significant percentage of clients have a child with special needs, so this is a common situation. On the investment side, you have to accumulate more money or withdraw more money, since ...
by bsteiner
Mon Jun 01, 2015 8:09 am
Forum: Investing - Theory, News & General
Topic: Ed Slott 'infomercial' on MPT [Maryland Public TV]
Replies: 21
Views: 2079

Re: Ed Slott 'infomercial' on MPT

... In the late 1990s into the 2000s, Mr Slott presented a traditional IRA inheritance technique that was brilliant but if enough people quickly ended up doing it, it would have crippled the SS system after a number of generations. In 2009ish, the Powers-that-Be killed that possibility going forwar...
by bsteiner
Sun May 31, 2015 9:39 pm
Forum: Personal Finance (Not Investing)
Topic: Rural Real Estate Appraisers
Replies: 3
Views: 470

Re: Rural Real Estate Appraisers

Indiana had an inheritance tax before 2013, so if the parent died 5 years ago, even if the estate was too small to file an estate tax return (or if the parent died in 2010 and the estate elected carryover basis in lieu of estate tax), the estate would have filed an Indiana inheritance tax return. In...
by bsteiner
Sun May 31, 2015 9:13 pm
Forum: Investing - Theory, News & General
Topic: Ed Slott 'infomercial' on MPT [Maryland Public TV]
Replies: 21
Views: 2079

Re: Ed Slott 'infomercial' on MPT

... I think the idea of tax deferred accounts being a tax bomb is real for those who have accumulated steadily over a lifetime of work. .... A traditional IRA isn't a tax bomb. The best way to view it IRA is that it's part yours (1 minus the tax rate) and part (the tax rate) the government's. The i...
by bsteiner
Sun May 31, 2015 3:01 pm
Forum: Investing - Theory, News & General
Topic: Ed Slott 'infomercial' on MPT [Maryland Public TV]
Replies: 21
Views: 2079

Re: Ed Slott 'infomercial' on MPT

I know Ed very well. I've been on some seminar panels with him, I've written for his newsletter, and I'm a technical advisor for his newsletter. He's a very entertaining speaker. It's not always beneficial to convert. Sometimes it's better to spread the conversion out over a number of years rather t...
by bsteiner
Sat May 30, 2015 8:47 pm
Forum: Personal Finance (Not Investing)
Topic: Financial planning for your demise
Replies: 18
Views: 2793

Re: Financial planning for your demise

... I chose to go the advisor route, and the first thing he did was insist I put a trust in place. Obviously good for the client to do, but I think it also puts the advisor in better position if something happens to client. ... It's not obvious from the facts presented. Creating a trust for your ow...
by bsteiner
Thu May 28, 2015 2:43 pm
Forum: Investing - Help with Personal Investments
Topic: Ideas for short term investment?
Replies: 10
Views: 842

Re: Ideas for short term investment?

Are the dividends all qualified dividends eligible for the 15% (or 20%) tax rate?

If not, are there any similar funds whose dividends are qualified?
by bsteiner
Wed May 27, 2015 2:47 pm
Forum: Personal Finance (Not Investing)
Topic: Tax versus Lottery Winning
Replies: 11
Views: 1590

Re: Tax versus Lottery Winning

See the Tax Court opinion in Tonda Lee Dickerson, T.C. Memo 2012-60: http://www.ustaxcourt.gov/InOpHistoric/ ... CM.WPD.pdf.
by bsteiner
Wed May 27, 2015 11:03 am
Forum: Personal Consumer Issues
Topic: Should I shorten my last name?
Replies: 70
Views: 6411

Re: Should I shorten my last name?

You can keep it, simplify it (from an English speaking perspective), or take your wife's name when you get married. A classmate had a last name that no one in the class, nor any of the teachers, could pronounce. He didn't know how it was supposed to be pronounced either. He dropped a few letters to ...
by bsteiner
Tue May 26, 2015 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: Parents getting US green card - Tax planning
Replies: 8
Views: 958

Re: Parents getting US green card - Tax planning

There may also be pre-immigration estate planning to consider.
by bsteiner
Tue May 26, 2015 9:11 pm
Forum: Investing - Help with Personal Investments
Topic: Max 401k or Prepay 30yr Mortgage in 15yrs
Replies: 25
Views: 2223

Re: Max 401k or Prepay 30yr Mortgage in 15yrs

There are several advantages to funding the 401(k) plans rather than prepaying the mortgage: 1. Your 401(k) benefits are part (1 minus the tax rate) yours and part (the tax rate) the government's. The income and gains on your share are tax-free. 2. The interest you pay on the mortgage is tax-deducti...
by bsteiner
Mon May 25, 2015 10:37 pm
Forum: Personal Finance (Not Investing)
Topic: $4500 reasonable for wills for blended family and some trusts?
Replies: 38
Views: 2285

Re: $4500 reasonable for wills for blended family and some trusts?

From my experience practicing in New Jersey (my office is in NYC but I live in NJ and practice actively in both states as well as FL), the $4,500 figure seems reasonable, though I would have expected a higher hourly rate and fewer hours. Even though I think it would probably take less than 10 hours,...
by bsteiner
Thu May 21, 2015 2:00 pm
Forum: Personal Finance (Not Investing)
Topic: Whole life or term life?
Replies: 35
Views: 3180

Re: Whole life or term life?

If inflation is 2%, then 4% after inflation is 6%. At 6%, $250 a month for 30 years will be about $250,000. If he buys the term insurance he can also invest the $250 a month (actually $206 since he'll have to pay for the term insurance), so if he dies while the policy in effects his beneficiaries wi...
by bsteiner
Wed May 20, 2015 12:27 pm
Forum: Personal Finance (Not Investing)
Topic: Maryland Income Tax Ruling
Replies: 3
Views: 584

Re: Maryland Income Tax Ruling

Maryland allowed a credit for taxes payable to other states, up to a pro rata portion of the Maryland tax. For example, suppose you live in Maryland and your income is $200,000, of which $100,000 was earned in another state, and you paid $8,000 to the other state, you could claim a credit against yo...
by bsteiner
Wed May 20, 2015 11:04 am
Forum: Investing - Help with Personal Investments
Topic: No heirs. Suggestions for Setting up a Charitable Legacy?
Replies: 6
Views: 635

Re: No heirs. Suggestions for Setting up a Charitable Legacy?

The simplest way, if their favorite charity runs an endowment fund, is to leave the money to the charity with a direction that the charity use the income but not the principal. If their favorite charity doesn't run an endowment fund, or if they're not comfortable ceding control to the charity,they c...
by bsteiner
Wed May 20, 2015 8:21 am
Forum: Personal Finance (Not Investing)
Topic: Estate Tax (WA State)
Replies: 9
Views: 769

Re: Estate Tax (WA State)

Washington State has a state estate tax with a lower exempt amount than the Federal, and it allows a state-only QTIP election. So a common estate plan for a couple in Washington State more concerned about the state than the Federal estate tax is for each spouse's Will to provide as follows if he/she...
by bsteiner
Mon May 18, 2015 1:37 pm
Forum: Personal Finance (Not Investing)
Topic: Forbes article by Wade Pfau: Improving Retirement Outcomes with Investments, Life Insurance, and Income Annuities
Replies: 42
Views: 4009

Re: Forbes article by Wade Pfau: Improving Retirement Outcomes with Investments, Life Insurance, and Income Annuities

... Roughly 1/3 of people surrender very early on and get almost nothing back which greatly helps the insurance company. These contracts are front loaded to the extreme. Another 1/3 surrender before they even break even especially when you consider inflation. A small percentage keep it long enough ...
by bsteiner
Mon May 18, 2015 1:11 pm
Forum: Personal Finance (Not Investing)
Topic: Establishing Revocable Trust vs Will
Replies: 42
Views: 4116

Re: Establishing Revocable Trust vs Will

... I'm in CA and my understanding is trusts are frequently recommended to avoid probate because that can be very expensive here especially if one owns a home. Maybe the the pour over will is something specific to CA? ... The original poster isn't in California, but for what it's worth, Professor D...

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