Search found 45 matches

by Lastrun
Mon Oct 23, 2017 5:22 pm
Forum: Personal Finance (Not Investing)
Topic: How to make a Will myself?
Replies: 20
Views: 1164

Re: How to make a Will myself?

Borrow Quicken will maker by Nolo for your state. Estate litigation lawyers full employment software. I have seen many glitches in these software wills including failed bequests and devises, faulty lapses, unclear survivorship requirements, inconsistent fiduciary sucession provisions, etc. There is...
by Lastrun
Mon Oct 16, 2017 5:51 pm
Forum: Personal Finance (Not Investing)
Topic: Better to file taxes knowing they are incorrect (IRS owes me) or not file
Replies: 5
Views: 662

Re: Better to file taxes knowing they are incorrect (IRS owes me) or not file

Yes. File today. You do not want failure to file penalties. They are the worst. Yep, file. Penalties are not the worst--failure to file is also possibly a criminal offense under 18 USC Sec. 7203, subject to 5 years. Always best to file, and worry about adjustment or payment later. You have options ...
by Lastrun
Tue Oct 10, 2017 10:17 am
Forum: Personal Finance (Not Investing)
Topic: Asset Protection Strategy Advice
Replies: 21
Views: 2491

Re: Asset Protection Strategy Advice

Setting up a HELOC on owned real estate does not offer protection but at least it shows the property is encumbered which may discourage a frivolous lawsuit since the encumbrance can indicate lack of equity in the property. I like your list but don't agree with this one. First, one person's frivolit...
by Lastrun
Sat Oct 07, 2017 8:36 am
Forum: Investing - Theory, News & General
Topic: Crisis of Confidence - Choosing Bond allocations in portfolio
Replies: 24
Views: 1924

Re: Crisis of Confidence - Choosing Bond allocations in portfolio

I'm going to build out a spreadsheet forecasts target % in each class, factoring the glide path. This might help. https://corporate.morningstar.com/us/documents/Indexes/Morningstar_Lifetime_Allocation_Summary_062017.pdf Not saying it is gospel, just gives you Morningstar's approach to glide paths. ...
by Lastrun
Wed Sep 27, 2017 7:39 pm
Forum: Personal Finance (Not Investing)
Topic: Naming a temporary power of attorney
Replies: 9
Views: 518

Re: Naming a temporary power of attorney

I'm not a lawyer, but I don't think you can hand the POA off to another person. My understanding is that you cannot do this. Only if there is a specific provision in the POA document. Gill The old school rule was that the agent could not delegate the authority granted by the principal. So everyone'...
by Lastrun
Tue Sep 26, 2017 11:38 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Questions
Replies: 23
Views: 2908

Re: Estate Questions

The, not so sarcastic, answer to your question is yes. The IRS may not allow the discount on the retained minority interest. In my 5 years as a IRS Chief Counsel trial attorney, I frequently saw the Service take wrong, incorrect and unsupported positions. More out of bumbling and bungling than malic...
by Lastrun
Sat Sep 23, 2017 7:20 pm
Forum: Personal Finance (Not Investing)
Topic: Really need Bypass and Qtip for ~$20MM estate?
Replies: 23
Views: 3268

Re: Really need Bypass and Qtip for ~$20MM estate?

If somebody is certain their estate will be in this range, why would they wait for their death bed? Unfortunately, many people wait. To bring the thread drift back. The Credit Shelter Trust and QTIP were the easy part of a $20mm estate. Now it gets harder. The OP needs a very good estate planning l...
by Lastrun
Sat Sep 23, 2017 6:22 pm
Forum: Personal Finance (Not Investing)
Topic: Really need Bypass and Qtip for ~$20MM estate?
Replies: 23
Views: 3268

Re: Really need Bypass and Qtip for ~$20MM estate?

In today's environment taxable gifts are only desirable for overall transfer tax savings, if the donor(s) estate is above the exclusion amount(s). Otherwise, you risk the heirs paying a capital gains tax where there would have been no estate tax and a basis step up if the estate end up being under t...
by Lastrun
Sat Sep 23, 2017 5:45 pm
Forum: Personal Finance (Not Investing)
Topic: Initial co-trustee instead of successor trustee
Replies: 25
Views: 1360

Re: Initial co-trustee instead of successor trustee

A few key points: 1. If you make the 645(e) election to treat the trust and estate as one entity, make sure you pick a fiscal year and not a calendar year. Depending on the date of death this could mean you have to file two 1041s instead of one depending on when you wrap things up. Example, parent p...
by Lastrun
Sat Sep 23, 2017 5:02 pm
Forum: Personal Finance (Not Investing)
Topic: Executor died, as beneficiary can I become executor?
Replies: 9
Views: 1162

Re: Executor died, as beneficiary can I become executor?

I believe that this person would be an administrator, and not an executor. ^^^^^^^^^ This Under many state laws this is referred to as an "administrator cum testaments annex" Administrator c.t.a Basically personal rep. not named in the will. This is old school though. Depends on state law. Call the...
by Lastrun
Fri Sep 22, 2017 6:00 pm
Forum: Personal Finance (Not Investing)
Topic: Division of trust assets after death
Replies: 10
Views: 794

Re: Division of trust assets after death

At death, Grantor has a living trust that calls for 200k to ChildA and 200k to ChildB. Was this a specific bequest or just a general 50/50 distribution of the balance of the trust fund? Grantor's overall wish was that the entire estate is to be divided between ChildA and ChildB. ...... What if the ...
by Lastrun
Thu Sep 21, 2017 1:51 pm
Forum: Personal Finance (Not Investing)
Topic: Really need Bypass and Qtip for ~$20MM estate?
Replies: 23
Views: 3268

Re: Really need Bypass and Qtip for ~$20MM estate?

afan makes some great points: Almost always preferable to potentially pay a capital gain tax than an estate tax: 1. Capital gain tax rates have historically been lower than estate tax rates. 2. As afan points out, you may NEVER have to pay capital gains, but estate taxes are due 9 months after date ...
by Lastrun
Thu Sep 21, 2017 11:42 am
Forum: Personal Finance (Not Investing)
Topic: Really need Bypass and Qtip for ~$20MM estate?
Replies: 23
Views: 3268

Re: Really need Bypass and Qtip for ~$20MM estate?

Why is the QTIP is billed as a way to defer estate taxes when there is already the much simpler/cheaper unlimited marital deduction? Is it just a way to ensure the remainder beneficiaries, eg children of deceased, will get the property in the QTIP but still allow the surviving spouse access to the ...
by Lastrun
Thu Sep 21, 2017 6:55 am
Forum: Personal Finance (Not Investing)
Topic: Really need Bypass and Qtip for ~$20MM estate?
Replies: 23
Views: 3268

Re: Really need Bypass and Qtip for ~$20MM estate?

If one parent has already died, and there are instructions written down, isn't everything set in stone already? Google "Pamela Harriman" and "Trust" and you will find dome interesting reads on marital trusts. The point is, if the bypass and QTIP trusts are drafted with liberal "ascertainable standa...
by Lastrun
Thu Sep 21, 2017 6:49 am
Forum: Personal Finance (Not Investing)
Topic: Really need Bypass and Qtip for ~$20MM estate?
Replies: 23
Views: 3268

Re: Really need Bypass and Qtip for ~$20MM estate?

I'm a even more confused about the advantages of the QTIP Trust. ..... But doesn't the law provide for unlimited martial deduction meaning no estate taxes would be do anyway? Doesn't it make more sense just to set up a $5.45MM Credit Shelter Trust and let the surviving spouse inherit the remaining ...
by Lastrun
Wed Sep 20, 2017 1:39 pm
Forum: Investing - Help with Personal Investments
Topic: solo 401k, husband and wife LLC
Replies: 20
Views: 836

Re: solo 401k, husband and wife LLC

Also, just for posterity, here is the definition of a one-participant plan from the IRS Revenue Procedure (Rev. Proc. 2015-32), rather than blogs from the interweb. Section 6 ....... .02 One-participant plans. For purposes of this revenue procedure, a one-participant plan is a retirement plan with o...
by Lastrun
Wed Sep 20, 2017 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: What say ye... 60/40 or 65/35?
Replies: 17
Views: 1823

Re: What say ye... 60/40 or 65/35?

+1 that is does not really matter, especcialy when it is small when compared to your total portfolio.

But FYI, in Bernstein's Four Pillars, a book that is generally well-regarded here, he states clearly that ALL assets should be included in your asset allocation, including EF, 529s, etc.
by Lastrun
Wed Aug 30, 2017 4:00 pm
Forum: Personal Finance (Not Investing)
Topic: How to include living trust as beneficiary in investment account?
Replies: 15
Views: 754

Re: How to include living trust as beneficiary in investment account?

Typical advice here is: 1. Retirement Accounts First to spouse Second to Trust Third to Adult Kids Allows (a) spouse to rollover or disclaim to bypass trust if set up properly (b) trust to take if spouse is dead or possibly if spouse is disabled through disclaimer by spouse's POA, (c) allows trustee...
by Lastrun
Tue Aug 29, 2017 3:27 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Administration Question
Replies: 65
Views: 4504

Re: Estate Administration Question

Depending on the state, the court could order the return, I believe. This is the correct answer. Most states should allow this. Threaten the TOD takes with recovery and hope they pay some of it over. There may be limitations periods on filing the claim, so look into that. In VA, the executor has on...
by Lastrun
Tue Aug 29, 2017 3:13 pm
Forum: Personal Finance (Not Investing)
Topic: Quitclaim deed for land
Replies: 13
Views: 1131

Re: Quitclaim deed for land

I really don't understand why people do quit claim deeds for intra-family deeds. Google around "quit claim" and "title insurance" and you will see the issues of a potential loss of recourse in the event of a title defect. I am not a real estate attorney, but this is something else the OP should expl...
by Lastrun
Wed Aug 09, 2017 9:46 am
Forum: Personal Finance (Not Investing)
Topic: Do I need to file a gift tax return?
Replies: 26
Views: 2057

Re: Do I need to file a gift tax return?

Then it's likely that you won't have to file gift tax because the FMV of the car is under $28k threshold. +1 You probably won't find anything great out there on this. The 2503(b) exclusion is applied on a donor and donee basis. Since the car was joint with spouses, under a common law or community p...
by Lastrun
Thu Jul 20, 2017 7:18 am
Forum: Personal Finance (Not Investing)
Topic: Isn’t 39.6% tax better than 10% tax? (state estate tax vs. trust income tax)
Replies: 5
Views: 1079

Re: Isn’t 39.6% tax better than 10% tax? (state estate tax vs. trust income tax)

Given both the income tax benefits of leaving retirement benefits to the spouse, and the change in the Minnesota estate tax exempt amount, you might want to consider naming the spouse as the primary beneficiary, the credit shelter trust as the second level beneficiary, and the issue or trusts for t...
by Lastrun
Mon Jul 17, 2017 8:44 am
Forum: Personal Finance (Not Investing)
Topic: Your house can bypass probate in Virginia--true?
Replies: 20
Views: 1417

Re: Your house can bypass probate in Virginia--true?

Here is another question (do not know answer and may depend on local/state details): Some taxing jurisdictions offer exemption and/or deferral of real estate taxes for those of a certain age who have under a certain income and under an asset threshhold - not including home equity. Migh certain owne...
by Lastrun
Mon Jul 17, 2017 8:39 am
Forum: Personal Finance (Not Investing)
Topic: Your house can bypass probate in Virginia--true?
Replies: 20
Views: 1417

Re: Your house can bypass probate in Virginia--true?

I have a related question that I would like to pose: My wife and I have our house titled in the name of our living trust. We are both around 70 years old. If we wanted to sell the house while we were both still alive, would we only get one $250K capital gain exemption as opposed to two $250K capita...
by Lastrun
Sun Jul 16, 2017 8:03 pm
Forum: Personal Finance (Not Investing)
Topic: Your house can bypass probate in Virginia--true?
Replies: 20
Views: 1417

Re: Your house can bypass probate in Virginia--true?

If the pour over Will passes the real estate to the trust, it is an easy process but don't they still owe probate taxes? Yes, they would and this is a fair point. Some points: 1. You likely will want to file a deed of confirmation after death, if for no other reason than to just have it clear in a ...
by Lastrun
Sun Jul 16, 2017 4:04 pm
Forum: Personal Finance (Not Investing)
Topic: Your house can bypass probate in Virginia--true?
Replies: 20
Views: 1417

Re: Your house can bypass probate in Virginia--true?

"Pros and Cons of Revocable Transfer-on-Death Deeds in Virginia," https://insightlaw.net/news/bobbys-blog/pros-and-cons-of-revocable-transfer-on-death-deeds-in-virginia Everything else being equal if you want to avoid probate TOD is a no brainer. I'm surprised the link doesn't mention the Drop Like...
by Lastrun
Sat Jul 15, 2017 3:58 pm
Forum: Personal Finance (Not Investing)
Topic: Your house can bypass probate in Virginia--true?
Replies: 20
Views: 1417

Re: Your house can bypass probate in Virginia--true?

It is TRUE in Virginia that real estate is not part of the probate estate UNLESS the Will specifically provides that the real estate be sold or gives the executor power of sale. So your lawyer is smarter than 99% of my fellow members of the VA Bar. In Virginia, this is referred to as the "drops like...
by Lastrun
Sat Jul 15, 2017 12:15 pm
Forum: Personal Consumer Issues
Topic: Estate Planning-Question on Trust
Replies: 11
Views: 1025

Re: Estate Planning-Question on Trust

Based on the above, in my trusts I make the definition of incapacity very simple and allow the successor trustee to step in easily when needed. Why drag two doctors into the situation. If you are drooling, it is a waste of time, if you are not, and don't want to cede power to the successor trustee,...
by Lastrun
Sat Jul 15, 2017 10:50 am
Forum: Personal Finance (Not Investing)
Topic: What no-charge services do you get as a Flagship Select member at VG?
Replies: 5
Views: 1147

Re: What no-charge services do you get as a Flagship Select member at VG?

I have the same question. Currently, everything is in VG Target Date 2035 and Total Bond in tax deferred and the rest in a Three Fund in taxable. So I suspect two things: 1. I will get pitched for PAS; and/or 2. As a result of either Flagship or PAS, I will receive advice that I need more allocated ...
by Lastrun
Sat Jul 15, 2017 10:31 am
Forum: Personal Consumer Issues
Topic: Estate Planning-Question on Trust
Replies: 11
Views: 1025

Re: Estate Planning-Question on Trust

Ages ago our attorney cautioned against these springing powers . He said that financial institutions are very reluctant to accept that whatever is supposed to be the trigger has actually occurred. Who determines that and how is the firm protected if later it is sued for accepting a successor inappr...
by Lastrun
Thu Jul 13, 2017 1:40 pm
Forum: Personal Finance (Not Investing)
Topic: Do you count vehicle equity in net worth?
Replies: 203
Views: 11354

Re: Do you count vehicle equity in net worth?

Who are "they"? Are we being monitored?? Exactly. File them with who? In a file cabinet or are we talking with some company or agency? Who else gets you to file financial statements? As I said, it is interesting that many of you do not need to routinely file financial statements. Just interesting, ...
by Lastrun
Thu Jul 13, 2017 9:27 am
Forum: Personal Finance (Not Investing)
Topic: Do you count vehicle equity in net worth?
Replies: 203
Views: 11354

Re: Do you count vehicle equity in net worth?

Wolf349 wrote: Why are you tracking net worth? The answer to that question will help provide the answer to yours. I do--include cars on my personal financial statement (PFS). Interesting, that it appears many of you do not file financial statements on a regular basis. My rationale is not to increas...
by Lastrun
Wed Jul 05, 2017 8:54 am
Forum: Investing - Theory, News & General
Topic: Your View: Vanguard Variable Annuity or just use Taxable account
Replies: 13
Views: 1404

Re: Your View: Vanguard Variable Annuity or just use Taxable account

All of the comments so far are excellent, but I would like to focus in what I think is critical and what is less so: 1. I would not focus on the loss of basis step up, IRD, ordinary income issues as there is little distinction here between the VA and a 401K or Trad IRA. Neither of those arrangements...
by Lastrun
Tue Jul 04, 2017 9:04 am
Forum: Personal Finance (Not Investing)
Topic: Help with Revocable Trust- Bloodline?
Replies: 14
Views: 682

Re: Help with Revocable Trust- Bloodline?

This is a common concern of clients illustrated by the following hypothetical. Last parent does and estate passes to 28 year old son, recently married with 6 month old child of the marriage. Son dies 6 months after last to die of parents death. Assuming son has a will, it is likely it says "all to s...
by Lastrun
Tue Jul 04, 2017 7:09 am
Forum: Personal Consumer Issues
Topic: Amtrak Autotrain: Virginia to Florida
Replies: 7
Views: 1384

Re: Amtrak Autotrain: Virginia to Florida

To my knowledge, this is the only Auto Train in the USA. Designed to let Yankees from NY, drive to VA by the early afternoon, board the train and wake up in FL the next day. :D ResearchMed is right on. My DW and DD used to take this when DD was very young to visit DW's mother. I took it once for the...
by Lastrun
Tue Jun 27, 2017 1:19 pm
Forum: Investing - Help with Personal Investments
Topic: Why do Vanguard Target Retirement funds have no REIT?
Replies: 6
Views: 608

Re: Why do Vanguard Target Retirement funds have no REIT?

Just to be a little clearer: Form Vanguard's white paper: "Note that Vanguard does not maintain a separate allocation to real estate investment trusts (REITs) within the TDFs. However, we do include exposure to REITs as part of the U.S. and non-U.S. equity allocations at their market weight" See htt...
by Lastrun
Mon Jun 26, 2017 5:47 pm
Forum: Personal Finance (Not Investing)
Topic: irrevocable trust for children receiving an inheritance
Replies: 54
Views: 4583

Re: irrevocable trust for children receiving an inheritance

On the vested interest issue, I am just not sure as it depends on the exact trust language: 1. To B, in trust, until B=age 30, then outright. If B dies before 30, then to B's descendants, per stirpes. This is NOT a vested interest under the Act. So you could modify this as part of the decant. 2. To ...
by Lastrun
Mon Jun 26, 2017 3:05 pm
Forum: Personal Finance (Not Investing)
Topic: irrevocable trust for children receiving an inheritance
Replies: 54
Views: 4583

Re: irrevocable trust for children receiving an inheritance

I would tread very carefully here. Bsteiner has some great points, but I would seek the advice of a good trusts and estate lawyer to run through the decanting issues. Some thoughts: 1. Is the interest vested? The Uniform Trust Decanting Act defines a "vested interest" as "a right to receive an ascer...
by Lastrun
Sun Jun 25, 2017 1:51 pm
Forum: Investing - Theory, News & General
Topic: International Stocks - New thoughts
Replies: 83
Views: 7002

Re: International Stocks - New thoughts

The "at least" 20% and "no more" than 20% international has been debated elsewhere, although this is the first time I think with great Venn diagrams. I don't see either approach as exclusive. Here is what Vanguard has to say: "Our research has shown that allocations of 20% non-U.S. equities have pro...
by Lastrun
Sat Jun 24, 2017 9:49 am
Forum: Personal Finance (Not Investing)
Topic: How can undistributed trust income be taxed at beneficiary tax rate?
Replies: 6
Views: 850

Re: How can undistributed trust income be taxed at beneficiary tax rate?

You are on the right track with the grantor trust rules. Since you are presumably committed to making a taxable gift to him, what if the funds are temporarily gifted to him and then HE transfers the assets to the trust as the grantor. The trust could be structured with a benign grant of a power to h...
by Lastrun
Fri Jun 16, 2017 11:03 am
Forum: Investing - Theory, News & General
Topic: Individual (Solo) 401K Rules for a single member LLC - Husband and Wife
Replies: 3
Views: 383

Re: Individual (Solo) 401K Rules for a single member LLC - Husband and Wife

Read this: https://www.irs.gov/pub/irs-drop/rp-02-69.pdf The issue centers on whether the "ownership" interests in the LLC remained as community property in the move to NY. Also, I am not sure continued operation of the business is determinative. Rather, the ownership of the LLC interests are the is...
by Lastrun
Fri Jun 16, 2017 9:34 am
Forum: Investing - Theory, News & General
Topic: Individual (Solo) 401K Rules for a single member LLC - Husband and Wife
Replies: 3
Views: 383

Re: Individual (Solo) 401K Rules for a single member LLC - Husband and Wife

Who is correct depends on the state you live in? There is a good discussion here http://www.limitedliabilitycompanycenter.com/husband-wife-llc.html Also the IRS has some decent stuff on their website. Short answer is CPA is right IF you live in a NON community property state, but in a community prop...
by Lastrun
Thu Jun 15, 2017 6:43 pm
Forum: Personal Finance (Not Investing)
Topic: Tax efficient ways of liquidating S-Corp brokerage account?
Replies: 3
Views: 360

Re: Tax efficient ways of liquidating S-Corp brokerage account?

You should seek the advice of a tax professional. You will trigger gain on the distribution of appreciated securities (in kind) from the S corporation pursuant to Section 311(b) of the Internal Revenue Code. Search around the web for "distribution of appreciated assets from S corporation" There is p...
by Lastrun
Wed May 03, 2017 7:08 pm
Forum: Personal Finance (Not Investing)
Topic: VA Land Preservation Tax Credit
Replies: 2
Views: 337

Re: VA Land Preservation Tax Credit

Some thoughts. I googled it and got more information on it and am slowly educating myself on it. It looks like the state of Virginia (I am a resident, so am eligible) [ anyone who pays VA taxes can use the credit , you do not need to be a resident] gives tax breaks for the donation of land to the p...