Search found 3091 matches

by afan
Thu Jan 18, 2018 5:38 pm
Forum: Personal Finance (Not Investing)
Topic: [Virginia] Transfer on Death Deeds .. New Husband?
Replies: 42
Views: 1510

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

The safest seems to be to have mom transfer the house to child. Child would then have the "normal" situation of owing money on a mortgage for a house that child owns. Nothing happens at mom's death since child owns the house and is liable for the mortgage. This may cost more money, but if child no l...
by afan
Thu Jan 18, 2018 5:02 pm
Forum: Personal Finance (Not Investing)
Topic: To the doctors on the forum
Replies: 88
Views: 4542

Re: To the doctors on the forum

That was a good analogy to the McDonalds. The docs are the equivalent of the person who rings you up at the counter. They have no more say in the prices that the clerk at the fast food joint. If the clerk gives someone a discount, that money is being taken from the company that employs the clerk. De...
by afan
Thu Jan 18, 2018 4:17 pm
Forum: Personal Finance (Not Investing)
Topic: Will/Estate question first child
Replies: 16
Views: 910

Re: Will/Estate question first child

I would be amazed if a good estate planning attorney would do this for $500. This is a complex and specialized field. It takes years beyond law school to become expert at it. Those people charge market rates for their knowledge. OP indicated small estate, everything to surviving spouse and naming g...
by afan
Thu Jan 18, 2018 4:08 pm
Forum: Personal Finance (Not Investing)
Topic: Should I Cash Out my NML Whole Life Insurance?
Replies: 21
Views: 1620

Re: Should I Cash Out my NML Whole Life Insurance?

Ok so an update on this post after speaking with the agent and doing some more thinking. The 1988 policy has a minimum rate of 3%, which is at 4.9% for this year. If I were to keep that one, I could apply the dividend to the premium, which would then pay for itself fully in 14 years, but the premiu...
by afan
Thu Jan 18, 2018 11:15 am
Forum: Personal Finance (Not Investing)
Topic: Will/Estate question first child
Replies: 16
Views: 910

Re: Will/Estate question first child

A boglehead newly interested in estate planning would be well advised to read bsteiner's posts. He is one of those highly expert estate planning attorneys and he gives away great information on here. Of course, he does not do anyone's personal estate planning or write documents on bogleheads, for th...
by afan
Thu Jan 18, 2018 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Will/Estate question first child
Replies: 16
Views: 910

Re: Will/Estate question first child

I would be amazed if a good estate planning attorney would do this for $500. This is a complex and specialized field. It takes years beyond law school to become expert at it. Those people charge market rates for their knowledge.
by afan
Thu Jan 18, 2018 10:40 am
Forum: Personal Finance (Not Investing)
Topic: To the doctors on the forum
Replies: 88
Views: 4542

Re: To the doctors on the forum

This is one of the factors driving small independent outfits to merge into large organizations. The cost of management of these financial concerns is beyond most small shops. Those hospital chains will have whole departments devoted to contracting and billing.
by afan
Thu Jan 18, 2018 10:21 am
Forum: Personal Finance (Not Investing)
Topic: Irrevocable trust for primary residence
Replies: 12
Views: 830

Re: Irrevocable trust for primary residence

Setting up trusts for your kids and putting away their college money could protect that. I don't know the asset protection aspects of 529 plans but worth investigating. Four years of private college for two kids adds up to a lot of money. Even more if you plan to pay for graduate school. That way, i...
by afan
Thu Jan 18, 2018 10:10 am
Forum: Personal Finance (Not Investing)
Topic: To the doctors on the forum
Replies: 88
Views: 4542

Re: To the doctors on the forum

If you contact a particular provider and tell them your insurance plan they should be able to figure out the rate insurance will cover. The PHYSICIAN will have no idea, this is accounting, not medicine. But the people who do the accounting at the provider site will know what insurance will cover. Ke...
by afan
Thu Jan 18, 2018 5:56 am
Forum: Personal Finance (Not Investing)
Topic: To the doctors on the forum
Replies: 88
Views: 4542

Re: To the doctors on the forum

Your doctor will have no idea what a procedure will cost except that increasingly insurance plans will tell them. The insurers give referring physicians access to this information to encourage them to refer to low cost providers. Then they reward or penalize the docs based on the costs of the care t...
by afan
Thu Jan 18, 2018 5:46 am
Forum: Personal Finance (Not Investing)
Topic: Irrevocable trust for primary residence
Replies: 12
Views: 830

Re: Irrevocable trust for primary residence

At the extreme an approach that works for people with weaker ties to the US: Create a foreign asset protection trust and put as much of your money in it as you can. Do not own any US real estate. All your assets would be things you can hold in your offshore trust. That way, if you lose a big case th...
by afan
Wed Jan 17, 2018 4:48 pm
Forum: Personal Finance (Not Investing)
Topic: Irrevocable trust for primary residence
Replies: 12
Views: 830

Re: Irrevocable trust for primary residence

I am not a lawyer and not any kind of expert on asset protection. I can give you my impressions from having looked into it somewhat. I think it would be difficult for this to work. One principle of asset protection trusts seems to be that they work best when the grantor (person who created and funde...
by afan
Wed Jan 17, 2018 8:49 am
Forum: Personal Finance (Not Investing)
Topic: Owning house in a trust?
Replies: 17
Views: 1689

Re: Owning house in a trust?

My wife and I have a revocable trust and our house is in it. It is there to avoid probate. Once we had kids we saw an estate attorney to draft up our wills, health care proxies, etc. He was the one who recommended and created the revocable trust. In some states there are advantages for a married co...
by afan
Wed Jan 17, 2018 8:47 am
Forum: Personal Finance (Not Investing)
Topic: Owning house in a trust?
Replies: 17
Views: 1689

Re: Owning house in a trust?

There may be reasons of anonymity but there are more common things accomplished by owning a house in trust. I served as executor and trustee for someone who was I'll and ultimately incapacitated for some time before death. The house was held by the trust so it was a simple matter to sell it. No need...
by afan
Mon Jan 15, 2018 7:59 pm
Forum: Personal Finance (Not Investing)
Topic: Trustee vs POA
Replies: 27
Views: 1432

Re: Trustee vs POA

Can anybody think of a reason why DW and I would want a trust instead of POA when all of our accounts are jointly owned anyway? I'm talking about when I'm incapacitated - not the benefits of a trust for inheritance purposes. If everything except retirement accounts are joint and you each have the o...
by afan
Sun Jan 14, 2018 7:43 pm
Forum: Personal Finance (Not Investing)
Topic: Executor/Trustee question
Replies: 20
Views: 1091

Re: Executor/Trustee question

I have not heard of pour over wills avoiding probate. The point of the pour over is to have all the disposition provisions in the trust. Then everything not in trust gets poured over into the trust and distributed as the trust provides. The alternative would be to have distribution provisions in the...
by afan
Sun Jan 14, 2018 7:39 pm
Forum: Personal Finance (Not Investing)
Topic: Homeowners Insurance - value to insure?
Replies: 23
Views: 2567

Re: Homeowners Insurance - value to insure?

Assuming you want to collect the full replacement cost if you have a total loss, then you need to get a good estimate of what that would be. It also has to be an estimate your insurance company will accept. We went through this in detail with our company. They made me go around and measure every roo...
by afan
Sun Jan 14, 2018 10:31 am
Forum: Personal Finance (Not Investing)
Topic: Estate Planning (Input Requested)
Replies: 14
Views: 1159

Re: Estate Planning (Input Requested)

All of the things brought up be wannabe can be accomplished by amending the existing trust. No need to revoke it, retitle assets currently held by the trust, force the estate to go through probate and all the other complexities inherent in the proposed plan. The OP may need an update to the estate p...
by afan
Sun Jan 14, 2018 10:15 am
Forum: Personal Finance (Not Investing)
Topic: How much Umbrella Insurance coverage needed?
Replies: 60
Views: 9134

Re: How much Umbrella Insurance coverage needed?

Puzzled by this. The legal costs of setting up and maintaining the trust have to be much more than even an expensive umbrella policy. We have not had any liability claims but I was quoted prices for umbrella coverage. A 5 million dollar policy would have been a lot less than one hour of fees for an ...
by afan
Sat Jan 13, 2018 3:06 pm
Forum: Personal Finance (Not Investing)
Topic: No doc loans for house with high equity?
Replies: 1
Views: 281

Re: No doc loans for house with high equity?

I think the financial crisis made no doc loans a lot less popular with banks. Interest rates are higher. Why would you want one? You can almost certainly get a better deal if you apply for a conventional loan. When we last refinanced they waived the appraisal because the loan was small compared to t...
by afan
Sat Jan 13, 2018 3:04 pm
Forum: Personal Finance (Not Investing)
Topic: What information should my heirs have just in case
Replies: 12
Views: 612

Re: What information should my heirs have just in case

Assuming they have powers of attorney to manage your affairs when you cannot:

They should know the institutions and account numbers so they can actually do something when needed.


You may need to give each financial company the POA for your daughters on their own forms.
by afan
Sat Jan 13, 2018 3:00 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning (Input Requested)
Replies: 14
Views: 1159

Re: Estate Planning (Input Requested)

Sounds like terrible advice. First, the trust in no way "complicates" distribution after the second death. As your attorney seems to have acknowledged, it avoids probate. Probate may not be a big deal in your state but avoiding it will hardly make the distribution more complicated. Since you have al...
by afan
Sat Jan 13, 2018 12:41 pm
Forum: Personal Finance (Not Investing)
Topic: How much Umbrella Insurance coverage needed?
Replies: 60
Views: 9134

Re: How much Umbrella Insurance coverage needed?

Interesting link. It is like many ads from lawyers in asset protection states that make this sound more reliable than it may be. It certainly lists only a small set of the asset protection states. A lobby of banks and attorneys in these states gets the legislature to pass laws making a state a desti...
by afan
Sat Jan 13, 2018 11:56 am
Forum: Personal Finance (Not Investing)
Topic: How much Umbrella Insurance coverage needed?
Replies: 60
Views: 9134

Re: How much Umbrella Insurance coverage needed?

Wouldn't the asset be eventually subject to creditors when eventually distributed to the beneficiary of the trust? “spendthrift” provision which prevents creditors from making claims against the beneficiaries’ interest in the trust and also prevents the beneficiaries from transferring or pledging t...
by afan
Sat Jan 13, 2018 11:50 am
Forum: Personal Finance (Not Investing)
Topic: How much Umbrella Insurance coverage needed?
Replies: 60
Views: 9134

Re: How much Umbrella Insurance coverage needed?

Went through these issues with an expert attorney. How much umbrella insurance to get? "Get a lot. It is far cheaper and simpler than any other set protection options. It would make no sense to do anything else while skimping on umbrella coverage" Are retirement plan assets protected? "While in the ...
by afan
Sat Jan 13, 2018 10:18 am
Forum: Personal Finance (Not Investing)
Topic: Trusts for adult Children
Replies: 203
Views: 9904

Re: Trusts for adults Children

However, some lawyers believe appointing the beneficiary as a co-trustee could be used to invalidate the asset protection aspects of the trust, if it were challenged in court. I don't beleive this has anything to do with which lawyer you're talking to, but everything to do with which state that law...
by afan
Fri Jan 12, 2018 10:46 am
Forum: Personal Finance (Not Investing)
Topic: Use HSA money or pay out of pocket?
Replies: 36
Views: 2843

Re: Use HSA money or pay out of pocket?

Since the HSA money is triple tax benefitted, and most everyone will have a lot of medical expenses in retirement, my initial thoughts are it is better to use the HSA as an additional retirement account and pay out of pocket for medical expenses throughout the year, as long as we're financially abl...
by afan
Fri Jan 12, 2018 9:58 am
Forum: Personal Finance (Not Investing)
Topic: Trusts for adult Children
Replies: 203
Views: 9904

Re: Trusts for adult Children

One step we missed when dealing with a situation like pennywise's MIL: insurance. Although we had moved almost all the assets into the trust, things like homeowners insurance were still in the name of the beneficiary, rather than the trust. This meant they would not deal with me as trustee, since I ...
by afan
Fri Jan 12, 2018 5:23 am
Forum: Personal Finance (Not Investing)
Topic: Trusts for adult Children
Replies: 203
Views: 9904

Re: Trusts for adult Children

Living trust. That handles the estate planning goals and has advantages discussed above while the grantor is still alive. POD has problems that I would avoid. Creating and funding an irrevocable trust now is fine for those who can afford it. This works best for those who are sure they will have no n...
by afan
Thu Jan 11, 2018 8:17 pm
Forum: Personal Finance (Not Investing)
Topic: Finding a preparer for complex tax returns and consultation
Replies: 4
Views: 401

Re: Finding a preparer for complex tax returns and consultation

This. We have an enrolled agent who has worked for us and a number of families we know. Some of the work for others has been quite complicated. CPA is a designation for accountants that covers a Broadway range of issues. Many CPAs have limited experience with preparing tax returns.
by afan
Thu Jan 11, 2018 8:13 pm
Forum: Personal Finance (Not Investing)
Topic: Trusts for adult Children
Replies: 203
Views: 9904

Re: Trusts for adult Children

In the one case where I needed to use a POA and it did not work the person was old enough to have been forced to withdraw nearly all the money in the retirement plans. For a younger person I agree this would be a problem. For our retirement plans we have signed up each other as POA using the process...
by afan
Thu Jan 11, 2018 4:01 pm
Forum: Personal Finance (Not Investing)
Topic: Trusts for adult Children
Replies: 203
Views: 9904

Re: Trusts for adult Children

Maybe I should print this thread out and file it with the will/trust documents so the kids see my reasoning. Our kids are analytical types. The one who will be tasked with taking over when we are too enfeebled to manage our affairs is also very knowledgeable financially. This adult child has sat pa...
by afan
Thu Jan 11, 2018 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: Trusts for adult Children
Replies: 203
Views: 9904

Re: Trusts for adult Children

Power of attorney vs trust. Having dealt with this once for a declining elderly person there was no comparison. For assets held in the person's revocable living trust, all I had to do was prove that I was the trustee and I was able to manage things with no more hassle. I would compare this to my exp...
by afan
Thu Jan 11, 2018 3:25 pm
Forum: Personal Finance (Not Investing)
Topic: Trusts for adult Children
Replies: 203
Views: 9904

Re: Trusts for adult Children

Keeping money in the trust vs distributing. Probably taxes should not be the primary consideration. If the beneficiary needs the money, then the trustee should spend it for the beneficiary or distribute it to them. If the beneficiary does not need the money, then there are, often, income tax advanta...
by afan
Wed Jan 10, 2018 5:13 pm
Forum: Personal Finance (Not Investing)
Topic: Trusts for adult Children
Replies: 203
Views: 9904

Re: Trusts for adult Children

Going through the same thing trying to figure out what to do. I would appreciate any suggestions. We have a meeting scheduled with an estate lawyer coming up soon. Background Married 38 years (each 60) Have Wills, POAs and Health Care Directives Three kids (19,25,31) Good kids, decent but not high ...
by afan
Wed Jan 10, 2018 4:58 pm
Forum: Personal Finance (Not Investing)
Topic: Trusts for adult Children
Replies: 203
Views: 9904

Re: Trusts for adult Children

A question I have for HEMS, my lawyer said even though they specifically said that, I could say I withdraw money for HEMS, but there is really no checking to see whether I actually spend the money for HEMS. Is this correct? I’m thinking the HEMS is a front for bad actors, but not for the trustee wh...
by afan
Wed Jan 10, 2018 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Can't move online $$ from Trust to JTROS at VG
Replies: 13
Views: 504

Re: Can't move online $$ from Trust to JTROS at VG

So, is your external bank account a joint account? If so, why would Vanguard transfer money from an individual trust to a joint external account but not a joint Vanguard account? You echo my own thoughts and protestations to my "Flagship" rep. The external account is indeed a joint account. And in ...
by afan
Wed Jan 10, 2018 12:54 pm
Forum: Personal Finance (Not Investing)
Topic: Trusts for adult Children
Replies: 203
Views: 9904

Re: Trusts for adults Children

Right now our will leaves everything to a trust, managed by my brother-in-law, who we consider to be trustworthy and knowledgeable. He would have the ability to move the assets to our son at his discretion (no set timetable). Lately, quite frankly, I've been having second thoughts - specifically ab...
by afan
Wed Jan 10, 2018 11:54 am
Forum: Personal Finance (Not Investing)
Topic: Can't move online $$ from Trust to JTROS at VG
Replies: 13
Views: 504

Re: Can't move online $$ from Trust to JTROS at VG

Interesting. I have set up transfers between a trust account and a joint account at Vanguard. Never had a problem I have not actually done it in a long time, so maybe at some point they developed a rule against it. Are they saying that you cannot do this online EVER? Or just that in order to set it ...
by afan
Mon Jan 08, 2018 6:01 pm
Forum: Personal Finance (Not Investing)
Topic: Overwhelmed with how to handle taxes on large inherited portfolio.
Replies: 24
Views: 1626

Re: Overwhelmed with how to handle taxes on large inherited portfolio.

The easy way is just as grabiner explained. If you WANT to estimate your quarterly taxes this year, and you absolutely do not have to, then this is also simple: your broker or fund company will tell you how much you made in dividends on each monthly statement. Depending on your company, they might a...
by afan
Mon Jan 08, 2018 5:47 pm
Forum: Personal Finance (Not Investing)
Topic: Overwhelmed with how to handle taxes on large inherited portfolio.
Replies: 24
Views: 1626

Re: Overwhelmed with how to handle taxes on large inherited portfolio.

There is a CPA in my city that also runs a financial advisory section and is also a PFS, which I like. I don't know what a PFS is, but you don't need one. All my taxes would be handled, as well as management of the account, for .97 AUM. Having my IRA, 529, taxable accounts all under one tax managed...
by afan
Mon Jan 08, 2018 2:44 pm
Forum: Personal Finance (Not Investing)
Topic: Do we need disability insurance
Replies: 52
Views: 6144

Re: Do we need disability insurance

My employer considers the premiums to be taxable income and reports it as such on W2. That means I pay tax on it and the benefits would be tax free.
by afan
Mon Jan 08, 2018 12:55 pm
Forum: Personal Finance (Not Investing)
Topic: Stand Alone Umbrella Insurance
Replies: 37
Views: 2442

Re: Stand Alone Umbrella Insurance

Two different expert attorneys have told me that umbrella insurance is well worth having. Even at higher levels of coverage, they say, it is a good deal compared to any other asset protection steps one can take. For the OP, painful as it is, the best thing to do is shop. Figure out what you want for...
by afan
Mon Jan 08, 2018 12:46 pm
Forum: Personal Finance (Not Investing)
Topic: Mom passed, I am successor trustee
Replies: 9
Views: 1285

Re: Mom passed, I am successor trustee

If you're worried about paying current bills, why can't you liquidate a small portion of the VG or other retirement accounts into a trust checking account, which you will want to set up anyway? The Citibank money will fold into the estate at some point later and her total estate monies are all fung...
by afan
Mon Jan 08, 2018 12:42 pm
Forum: Personal Finance (Not Investing)
Topic: Mom passed, I am successor trustee
Replies: 9
Views: 1285

Re: Mom passed, I am successor trustee

I am not an attorney and have not experience with CA. Having settled one estate, I found it helpful to Letters of Administration. Things kept coming up that I did not know about and financial institutions were happy to deal with me once they had the Letters. That took them off the hook for dealing w...
by afan
Sun Jan 07, 2018 4:03 pm
Forum: Personal Finance (Not Investing)
Topic: Question on wills and advanced medical directives
Replies: 18
Views: 1218

Re: Question on wills and advanced medical directives

It may be local medical environment. I have found doctors quite interested in having practical discussions about realistic outcomes and goals of care. Not all loved ones want to hear that there is little to be accomplished by further aggressive treatment.
by afan
Sun Jan 07, 2018 8:54 am
Forum: Personal Finance (Not Investing)
Topic: Living Trust - Will
Replies: 55
Views: 4068

Re: Living Trust - Will

I think of it in terms of what I want the person to do. The healthcare proxy makes decisions about treatment or not when the person is unable to do this for themselves. The trustee handles financial matters. The health care proxy ideally would be close to you personally. A spouse, an adult child, a ...
by afan
Sun Jan 07, 2018 8:37 am
Forum: Personal Finance (Not Investing)
Topic: Managing and Investing Trust Assets
Replies: 16
Views: 1063

Re: Managing and Investing Trust Assets

Please note that the comments about the trust owning house are me thinking out loud. If it seems appealing check it with your lawyer. I agree with your analysis of how to use trust vs personal money. In addition to better for the heirs trust assets have much more asset protection than your personal ...
by afan
Sat Jan 06, 2018 4:46 pm
Forum: Personal Finance (Not Investing)
Topic: State Farm vs Geico
Replies: 67
Views: 4506

Re: State Farm vs Geico

In 2016, GEICO, Progressive, and USAA made up 27% of the auto insurance market. In 2006, it was only 18%. That could be due to advertising. Those three have been very aggressive at it, while SF has been pretty stodgy. And just like Big Pharma, they wouldn't do it if it wasn't successful. All three ...