Search found 76 matches

by Lastrun
Wed Feb 14, 2018 10:22 am
Forum: Personal Finance (Not Investing)
Topic: Set up a Bypass Trust or not?
Replies: 4
Views: 581

Re: Set up a Bypass Trust or not?

I echo Bsteiner that these late funding situations are not uncommon and here the main issue (threat) is likely the income taxes during the 10 year period, and what does the IRS think about that. Was income accumulated in the trust at all during the 10 year period? One concern I have is whether the b...
by Lastrun
Tue Feb 13, 2018 6:03 pm
Forum: Personal Finance (Not Investing)
Topic: Institutional Trustee?
Replies: 7
Views: 397

Re: Institutional Trustee?

In my experience, traditional banks really don't want to hold real estate any more, even with substantial other non-real estate assets, at least that is my experience in the DC area.

Do you have a mortgage on the property? That may present a wrinkle with the lender.
by Lastrun
Thu Feb 01, 2018 3:11 pm
Forum: Investing - Theory, News & General
Topic: Bill Sharpe's preferred portfolio
Replies: 98
Views: 19900

Re: Bill Sharpe's preferred portfolio

Other than a slight underweighting of the USA, those numbers seem so remarkably like a 60/40 portfolio with equity fully diversified globally? Somewhere, a BH mentioned that perhaps it would just be easier to have an equal percentage portfolio. I thought it was in this thread but I cannot find it. ...
by Lastrun
Mon Jan 29, 2018 4:28 pm
Forum: Investing - Help with Personal Investments
Topic: Returns: Total Bond Market Index vs. Intermediate Term Index
Replies: 8
Views: 1065

Re: Returns: Total Bond Market Index vs. Intermediate Term Index

There are ton of other threads on this exact question. Looking at it over a longer term than you have, I think the return difference is not that dramatic. https://www.portfoliovisualizer.com/backtest-asset-class-allocation?s=y&mode=2&startYear=1972&endYear=2017&initialAmount=10000&annualOperation=0&...
by Lastrun
Mon Jan 29, 2018 10:48 am
Forum: Personal Consumer Issues
Topic: Paris Hotel Recommendations
Replies: 21
Views: 1541

Re: Paris Hotel Recommendations

We stayed at the Hotel Raphael which is right by the Arc de Triomphe. They had a great rooftop restaurant. It is a decent walk to the Eiffel tower but we would walk down there every night with our 7-year-old and she never complained. I think is was part of the Amex hotel collection, at least at that...
by Lastrun
Sat Jan 27, 2018 4:05 pm
Forum: Local Chapters and Bogleheads Community
Topic: Post your Financial Milestone Announcements Here
Replies: 200
Views: 13671

Re: Can I be a member of the two comma club?

It’s absurd that anyone would suggest that home equity does not count towards net worth. Unless, of course, they are making up their own rules. I think absurd, respectfully, it too strong a word, as is the phrase making up their own rules. There is support for this in the definition of "accredited ...
by Lastrun
Wed Jan 24, 2018 2:59 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Question
Replies: 7
Views: 675

Re: Tax Question

Also, when you talk to the professional, ask whether it is advantageous to obtain an EIN for the estate and elect to treat the estate and trust as one for purposes of the 1041. The reason to do this is that the estate can have a fiscal year and the trust typically can only have a calendar year. Toge...
by Lastrun
Tue Jan 23, 2018 5:47 pm
Forum: Investing - Theory, News & General
Topic: Backdoor Roth / step-transaction doctrine news: [Congress recognizes process]
Replies: 33
Views: 2621

Re: Backdoor Roth / step-transaction doctrine news: [Congress recognizes process]

The IRS is even more subservient to the congressional intent. In my 5 years with the National Office, technical attorney's at the Service would be more concerned with statements of Congressional intent than they would be with an adverse Circuit Court opinion. See e.g.'s Actions on Decisions by the ...
by Lastrun
Tue Jan 23, 2018 5:42 pm
Forum: Investing - Theory, News & General
Topic: Backdoor Roth / step-transaction doctrine news: [Congress recognizes process]
Replies: 33
Views: 2621

Re: Backdoor Roth / step-transaction doctrine news: [Congress recognizes process]

Everyone needs to be careful in the back and forth. The correct statement of the issue is substantial authority for the tax return position. IMHO the reports COULD POSSIBLY BE substantial authority. Not saying the are, but just saying that statements of 100% certainty that they are not are, with all...
by Lastrun
Mon Jan 22, 2018 9:40 am
Forum: Personal Finance (Not Investing)
Topic: Gift and estate tax questions
Replies: 4
Views: 524

Re: Gift and estate tax questions

There is no “clawback” of money saved from previously more generous rules that later become less generous (to the taxpayer) We'll have to agree to disagree on this one. I think your answer is right, but IMHO the only real limitation on retroactive taxation is the political process. See e.g. US v. C...
by Lastrun
Wed Jan 17, 2018 8:50 pm
Forum: Personal Finance (Not Investing)
Topic: Irrevocable trust for primary residence
Replies: 12
Views: 964

Re: Irrevocable trust for primary residence

Don't know, but what if you got and maintained mortgage loan(s) to the maximum possible on the home (no matter who owns it). Then, use other asset protection techniques for the proceeds. Then, there is little, if any, value to those successfully suing. If you want to specifically protect the house,...
by Lastrun
Wed Jan 17, 2018 4:39 pm
Forum: Investing - Help with Personal Investments
Topic: Ally Bank No penalty CD for parking cash, is there a catch?
Replies: 40
Views: 10795

Re: Ally Bank No penalty CD for parking cash, is there a catch?

I originally had a 11 month CD at a lower rate and a savings account at Ally. Recently, I closed the 11 month lower rate CD and opened up a new 11 month CD at the higher rate. I also purchased a new 12 month CD at the promo rate. I am not sure the whole process took more than 5 minutes. But I did ha...
by Lastrun
Wed Jan 17, 2018 4:05 pm
Forum: Personal Finance (Not Investing)
Topic: [Virginia] Transfer on Death Deeds .. New Husband?
Replies: 42
Views: 1787

Re: [Virginia] Transfer on Death Deeds .. New Husband?

Do you hold a mortgage on the house? If so, isn;t that a degree of protection? Lets assume the OP does hold the debt. After marriage, Mom revokes the TOD deed and conveys the house into joint name with the spouse, or devises the property in her will to the spouse. Under the specific devise, unless ...
by Lastrun
Wed Jan 17, 2018 3:54 pm
Forum: Personal Finance (Not Investing)
Topic: [Virginia] Transfer on Death Deeds .. New Husband?
Replies: 42
Views: 1787

Re: [Virginia] Transfer on Death Deeds .. New Husband?

I am not ready to give up on this, I think the OP needs some good advice and/or a talk with the local Commissioner of Revenue. Each county is a little different and I would be upfront and honest in what I was trying to accomplish. I think many of the responses on here are great----prenup with waiver...
by Lastrun
Wed Jan 17, 2018 12:55 pm
Forum: Personal Finance (Not Investing)
Topic: [Virginia] Transfer on Death Deeds .. New Husband?
Replies: 42
Views: 1787

Re: [Virginia] Transfer on Death Deeds .. New Husband?

OP--A prenuptial agreement could address many problems, and could be prepared in conjunction with the new wills that both members of the happy couple should prepare anyway. Note that a prenup must be signed before the wedding, and the wills can be prepared in advance but should be signed after the ...
by Lastrun
Wed Jan 17, 2018 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: [Virginia] Transfer on Death Deeds .. New Husband?
Replies: 42
Views: 1787

Re: [Virginia] Transfer on Death Deeds .. New Husband?

You need a lawyer to tell you how solid a TOD deed is in Virginia. TOD is solid, but that is not the issue. The threats are: 1. Manipulation of the TOD deed prior to death; and 2. Claims against the TOD property after death. See my post above, the TOD deed in VA remains subject to the debts of the ...
by Lastrun
Wed Jan 17, 2018 10:24 am
Forum: Personal Finance (Not Investing)
Topic: [Virginia] Transfer on Death Deeds .. New Husband?
Replies: 42
Views: 1787

Re: [Virginia] Transfer on Death Deeds .. New Husband?

In addition, she can have a will (as far as I know) naming you as a beneficiary to the degree whe desires. I have the dim idea that in some states a surviving spouse has a right to some portion of the deceased person's estate. Yes, despite the TOD, now these are not huge in VA, but . . .. Big ones ...
by Lastrun
Wed Jan 17, 2018 10:19 am
Forum: Personal Finance (Not Investing)
Topic: [Virginia] Transfer on Death Deeds .. New Husband?
Replies: 42
Views: 1787

Re: [Virginia] Transfer on Death Deeds .. New Husband?

Do you hold a mortgage on the house? If so, isn;t that a degree of protection? Lets assume the OP does hold the debt. After marriage, Mom revokes the TOD deed and conveys the house into joint name with the spouse, or devises the property in her will to the spouse. Under the specific devise, unless ...
by Lastrun
Wed Jan 17, 2018 9:35 am
Forum: Personal Finance (Not Investing)
Topic: [Virginia] Transfer on Death Deeds .. New Husband?
Replies: 42
Views: 1787

Re: [Virginia] Transfer on Death Deeds .. New Husband?

I deeded the house back to her and then I moved out to take advantage of a tax benefit that is offered to her as long as she is only on the deed, and I do not live on the property. Was this for eligibility for real property tax relief for the elderly? VA has intestate succession laws so I would've ...
by Lastrun
Mon Dec 18, 2017 9:04 pm
Forum: Personal Finance (Not Investing)
Topic: Real Estate Joint Revocable Trust
Replies: 2
Views: 267

Re: Real Estate Joint Revocable Trust

This is very state dependent, but there are two main advantages-(1) planning for incapacity and (2) probate avoidance at death. Typically, under most state laws, transfer to a revocable trust offers no asset protection from creditors. I can think of many possible disadvantages: Loss of title insuran...
by Lastrun
Sat Dec 09, 2017 7:24 pm
Forum: Personal Finance (Not Investing)
Topic: 1031 Exchange vs Charitable Remainder Trust
Replies: 9
Views: 678

Re: 1031 Exchange vs Charitable Remainder Trust

The choices are (i) keep the property, (ii) sell and pay the tax, (iii) Section 1031 exchange and keep the new property until death, or (iv) charitable remainder trust (CRT). The CRT doesn't avoid the tax. It effectively defers the tax. . . . . . . . The exchange has the risk of how the replacement...
by Lastrun
Sat Dec 09, 2017 6:46 pm
Forum: Investing - Help with Personal Investments
Topic: If you use EE Bonds, what did drive your decision
Replies: 41
Views: 3004

Re: If you use EE Bonds, what did drive your decision

I've been buying them, my thought is to use it as part of a guaranteed nominal ladder to permit me to take Social Security at age 70. . . . I would not advise anyone to tie up all or a significant part of their assets in EE bonds as that would leave one overly exposed to the ravages of inflation. I...
by Lastrun
Mon Nov 27, 2017 8:38 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning question (should we add beneficiaries to savings account?)
Replies: 33
Views: 2116

Re: Estate planning question (should we add beneficiaries to savings account?)

bsteiner wrote:
Mon Nov 27, 2017 8:22 pm
In addition to defeating estate plans and making estate administration more complicated, joint accounts and TOD accounts generate lots of work for our litigators.
Probably your best line ever. So true.
by Lastrun
Mon Nov 27, 2017 8:32 pm
Forum: Personal Finance (Not Investing)
Topic: Forming an LLC without an attorney
Replies: 24
Views: 2582

Re: Forming an LLC without an attorney

There are really two issues here: Formation and Operation Formation: Most of the advice above is spot on. You don't need LegalZoom or similar service, or an attorney to form an LLC. Also as stated, most state websites have excellent forms and online filing systems. Operation: This is essentially the...
by Lastrun
Mon Nov 27, 2017 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning question (should we add beneficiaries to savings account?)
Replies: 33
Views: 2116

Re: Estate planning question (should we add beneficiaries to savings account?)

I am thinking more in the line of the bank account and not the IRA. In VA probate is only 10 bps on an asset of that size (the bank account), so the probate cost is not than significant when compared to potential control issues with the sisters. The concern is that the OP's wife needs funds to maint...
by Lastrun
Mon Nov 27, 2017 2:08 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning question (should we add beneficiaries to savings account?)
Replies: 33
Views: 2116

Re: Estate planning question (should we add beneficiaries to savings account?)

CAsage wrote:
Mon Nov 27, 2017 2:04 pm
DO NOT let your wife pay all the bills and have the siblings take any cash without being sure you have enough..... The three-way split is AFTER expenses!
Respectfully, could you explain how the OP's wife does this, when the two SILs have already shown up at the bank with mom's death certificate?
by Lastrun
Mon Nov 27, 2017 1:18 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning question (should we add beneficiaries to savings account?)
Replies: 33
Views: 2116

Re: Estate planning question (should we add beneficiaries to savings account?)

My wife is the most responsible of her three daughters and is intended executrix of her will. The most important line in all of your facts. Probate fees, if any at that level of assets, will be a small price to pay for your wife to have control of the account to pay bills on the house etc. IMHO. Bu...
by Lastrun
Fri Nov 24, 2017 8:43 am
Forum: Investing - Help with Personal Investments
Topic: Help with estate planning
Replies: 21
Views: 2385

Re: Help with estate planning

Why didn't he leave $5,490,000 to a credit shelter trust? While there's portability for the Federal estate tax, there's no portability for the GST tax (and with $11 million and you and your sister both doing fine financially) you're likely to have taxable estates. ^^^^^^^^^ This Also, add to Bstein...
by Lastrun
Mon Oct 23, 2017 5:22 pm
Forum: Personal Finance (Not Investing)
Topic: How to make a Will myself?
Replies: 20
Views: 1366

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: 714

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: 2695

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: 2117

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: 610

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: 3159

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: 3483

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: 3483

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: 1535

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: 1265

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: 875

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: 3483

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: 3483

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: 3483

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: 3483

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: 1026

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: 2005

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: 886

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...