Search found 2579 matches

by bsteiner
Fri Jun 23, 2017 4:14 pm
Forum: Personal Finance (Not Investing)
Topic: Fund Parent's Trusts
Replies: 12
Views: 1031

Re: Fund Parent's Trusts

i was reading about illinois estate tax at 4m threshold. am i reading this correctly about illinois: though the threshold is 4M, it's all or nothing: $3,999,999 no estate tax due. $4,000,001 and estate tax becomes due on the whole $4,000,001, not just the $1 above the threshold (like would be true ...
by bsteiner
Fri Jun 23, 2017 8:45 am
Forum: Personal Finance (Not Investing)
Topic: Trusts for minors? Responsible life insurance spending
Replies: 4
Views: 239

Re: Trusts for minors? Responsible life insurance spending

You can select any one or more individuals and/or a bank or trust company as trustee(s). You can give each child effective control of his/her trust at a specified age. Without knowing more about them we can't tell whether it would be appropriate to have the individuals you're selecting as guardians ...
by bsteiner
Thu Jun 22, 2017 10:05 pm
Forum: Personal Finance (Not Investing)
Topic: Fund Parent's Trusts
Replies: 12
Views: 1031

Re: Fund Parent's Trusts

bsteiner wote: Since the Illinois estate tax exempt amount is $4 million, and there's no portability for Illinois purposes, they should divide their assets so that each of them holds some assets in his/her name. That way, they'll each be under $4 million, and they won't pay either Federal or Illino...
by bsteiner
Thu Jun 22, 2017 9:11 pm
Forum: Personal Finance (Not Investing)
Topic: Fund Parent's Trusts
Replies: 12
Views: 1031

Re: Fund Parent's Trusts

... do children need separate trusts?). Without having all the facts, it's hard to answer all the questions you raised. They should consult with competent counsel who can ascertain the facts and their objectives, and can advise them how to best accomplish their objectives. This should be a routine ...
by bsteiner
Thu Jun 22, 2017 2:36 pm
Forum: Personal Finance (Not Investing)
Topic: House Closing is Tomorrow! Here are the Closing fees .... am I being ripped off?
Replies: 22
Views: 2076

Re: House Closing is Tomorrow! Here are the Closing fees .... am I being ripped off?

... -- I can't believe that you have to pay an Attorney Review fee. That's usually rolled up in the attorney fee which itself seems a bit high but not awful. .... That's the fee for the bank's lawyer. It's so tiny because the buyer's lawyer prepares the documents for review by the bank's lawyer. No...
by bsteiner
Thu Jun 22, 2017 8:05 am
Forum: Personal Finance (Not Investing)
Topic: What does it mean to be a board-certified elder law attorney?
Replies: 10
Views: 796

Re: What does it mean to be a board-certified elder law attorney?

There is no single litmus test. For every credential, there are good lawyers who have it, good lawyers who don't have it, and lawyers who have it whom I would prefer to have as opposing counsel than as co-counsel. However, you should be able to get some sense from the firm's website and the lawyer's...
by bsteiner
Wed Jun 21, 2017 10:56 pm
Forum: Investing - Help with Personal Investments
Topic: Small Business Owner with Simple IRA. Debating Switch to 401k
Replies: 13
Views: 749

Re: Small Business Owner with Simple IRA. Debating Switch to 401k

... How difficult and expensive would it be for my wife and I to save more than $18,500 through profit sharing, especially since the majority of our employees do not currently contribute? You would have to contribute some money for your employees. However, a good actuary can design the plan so as t...
by bsteiner
Wed Jun 21, 2017 10:24 pm
Forum: Personal Finance (Not Investing)
Topic: Step-up basis of inherited rental properties
Replies: 10
Views: 972

Re: Step-up basis of inherited rental properties

... Originally, 10 were owned jointly with my mother, and 8 were in my father's name only. Based on the advice of our realtor, he filed quit claim deeds on those eight properties to make my mother a joint owner on all 18 a few weeks before he died. ... Why did he seek legal advice from the real est...
by bsteiner
Wed Jun 21, 2017 10:13 pm
Forum: Personal Finance (Not Investing)
Topic: Fund Parent's Trusts
Replies: 12
Views: 1031

Re: Fund Parent's Trusts

There are so many more important issues here than whether you probate their Wills. Why did you even mention it? If they're 78 and worth over $5 million, they probably don't need life insurance. However, if their health issues are likely to affect their life expectancy, they may want to keep their li...
by bsteiner
Wed Jun 21, 2017 9:08 pm
Forum: Personal Finance (Not Investing)
Topic: What does it mean to be a board-certified elder law attorney?
Replies: 10
Views: 796

Re: What does it mean to be a board-certified elder law attorney?

I am looking for an estate attorney to help me with estate planning and I would prefer someone board-certified in elder law ..... Elder law is mainly Medicaid and guardianships. If you want someone to help you with your estate planning, you should look for a conventional trusts and estates lawyer. ...
by bsteiner
Wed Jun 21, 2017 9:36 am
Forum: Investing - Help with Personal Investments
Topic: Financial advisor question
Replies: 45
Views: 2766

Re: Financial advisor question

... I work in an advisory shop. We work with clients about that size. They pay on average about 60bps to 70bps in direct costs and 10bps in indirect costs (funds.) ... For that cost clients have portfolio managed, tax loss harvesting, tax prep services, retirement planning, and legal services. .......
by bsteiner
Tue Jun 20, 2017 8:38 am
Forum: Personal Consumer Issues
Topic: For Sale By Owner HOUSE- Advice Please
Replies: 22
Views: 2256

Re: For Sale By Owner HOUSE- Advice Please

The broker's job is to find a buyer. Since you've already found a buyer, you shouldn't need a broker.

The procedures for real estate transactions vary considerably from state to state, and sometimes within a state.
by bsteiner
Mon Jun 19, 2017 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: Unable to Access POA in Revocable Trust
Replies: 30
Views: 1723

Re: Unable to Access POA in Revocable Trust

... We did have from the lawyer a POA document separate from the trust, with Bank as Trustee. So we said "aha! this must be the payment solution we are looking for". But when we called the Bank, they were not yet ready to act as POA without a lot more information. I am thinking the lawyer...
by bsteiner
Mon Jun 19, 2017 11:56 am
Forum: Personal Finance (Not Investing)
Topic: inherited IRA in community property state requires spousal consent for non-spousal beneficiary
Replies: 32
Views: 1847

Re: inherited IRA in community property state requires spousal consent for non-spousal beneficiary

TIAA clarified that I have two options with the inherited IRA. The first is to "Stay in the Plan" which allows the account to stay in its current investment, retitles the account as Inherited IRA FBO letsgobobby, but does NOT require a spousal consent. The second is to rollover the inheri...
by bsteiner
Sun Jun 18, 2017 9:47 pm
Forum: Personal Finance (Not Investing)
Topic: How to put your primary residence in your living trust?
Replies: 3
Views: 503

Re: How to put your primary residence in your living trust?

J295 wrote:Carefreeapp .....did using a quitclaim render your owners title insurance coverage inapplicable in the event a title defect is discovered ...


That, like most everything else with regard to real estate, is likely to vary from state to state.
by bsteiner
Sun Jun 18, 2017 3:56 pm
Forum: Personal Finance (Not Investing)
Topic: Negotiating a House Using Seller's Agent (opinions wanted)
Replies: 75
Views: 2746

Re: Negotiating a House Using Seller's Agent (opinions wanted)

athan wrote:... I feel the agent could do more to bridge the gap for everyone involved.


The broker's job is to try to sell the house for at least the listing price.
by bsteiner
Sun Jun 18, 2017 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: Suggestions for my mother's annuities
Replies: 5
Views: 633

Re: Suggestions for my mother's annuities

... My concern is that these annuities have already built up $77K in untaxed income and may trigger an excessive tax bill if my mother dies. While we hope she'll live as long as possible, death is a certainty. The $77,000 of income is also a certainty (unless the value declines). There's often no g...
by bsteiner
Sun Jun 18, 2017 2:41 pm
Forum: Personal Finance (Not Investing)
Topic: How best to Donate?
Replies: 20
Views: 1199

Re: How best to Donate?

A Donor Advised Fund may be an option for you, but a single charity or an attorney might not recommend it to you. The reason is because many charities can benefit from a Donor Advised Fund and because you don't need to hire an attorney to start a Donor Advised Fund. There are conflicts of interest ...
by bsteiner
Sun Jun 18, 2017 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: Unable to Access POA in Revocable Trust
Replies: 30
Views: 1723

Re: Unable to Access POA in Revocable Trust

A power of attorney and a revocable trust are different documents.
by bsteiner
Sun Jun 18, 2017 11:12 am
Forum: Personal Finance (Not Investing)
Topic: How best to Donate?
Replies: 20
Views: 1199

Re: How best to Donate?

... Hypothetical situation. I set up a charitable lead trust (annuity, non-grantor) and fund it immediately with $100,000 of appreciated shares of a stock index fund. If I did the math right, at the 2.4% rate, the charity will receive $6354 per year for 20 years. I act as trustee (can I?), leave th...
by bsteiner
Sat Jun 17, 2017 9:06 pm
Forum: Personal Finance (Not Investing)
Topic: How best to Donate?
Replies: 20
Views: 1199

Re: How best to Donate?

This is like asking whether a fork or a spoon is better. They're both useful tools, but which is better depends on what you're eating. Sometimes either one will work, but more often one will and the other won't. It would help to know more about your situation and your objectives. Charitable remainde...
by bsteiner
Sat Jun 17, 2017 8:43 pm
Forum: Personal Finance (Not Investing)
Topic: URGENT TIME SENSITIVE: Deathbed Roth
Replies: 45
Views: 4113

Re: URGENT TIME SENSITIVE: Deathbed Roth

... Using the tax calculations for 2017 ... give $34K in tax. ... Given that, there may not be much difference in the heirs' after tax results. .... The benefit is much more than just the approximately 5% difference in the tax rate, since the IRA doesn't have to be distributed all at once upon death.
by bsteiner
Sat Jun 17, 2017 8:31 pm
Forum: Personal Finance (Not Investing)
Topic: inherited IRA in community property state requires spousal consent for non-spousal beneficiary
Replies: 32
Views: 1847

Re: inherited IRA in community property state requires spousal consent for non-spousal beneficiary

celia wrote:... According to this source ..., it looks like income from separate property in Washington stays separate ....


An even better source is the statute: http://app.leg.wa.gov/rcw/default.aspx?cite=26.16.010.
by bsteiner
Fri Jun 16, 2017 7:21 pm
Forum: Personal Finance (Not Investing)
Topic: URGENT TIME SENSITIVE: Deathbed Roth
Replies: 45
Views: 4113

Re: URGENT TIME SENSITIVE: Deathbed Roth

The conversion is likely to be a big winner. The 25% bracket goes up to $91,900 and the 28% bracket goes up to $191,650, plus the exemption and itemized deductions. At a constant tax bracket, the conversion is beneficial, since it puts more money into the tax-free environment (since there's other mo...
by bsteiner
Fri Jun 16, 2017 3:57 pm
Forum: Personal Finance (Not Investing)
Topic: Medicaid Planning
Replies: 32
Views: 1790

Re: Medicaid Planning

If you give away your assets, if you then wait 5 years, you can get Medicaid. .... You generally have to do this at least 5 years before going into the nursing home. Just curious, as I am a hopefully a long ways from needing to worry about this, and who knows what the rules will be at that time. Is...
by bsteiner
Fri Jun 16, 2017 2:35 pm
Forum: Personal Finance (Not Investing)
Topic: Medicaid Planning
Replies: 32
Views: 1790

Re: Medicaid Planning

If you give away your assets, if you then wait 5 years, you can get Medicaid. A common technique is to put assets into a trust in which you get the income but you can't get principal. If you wait 5 years, and then go into a nursing home, you'll have to contribute the income, but the principal will b...
by bsteiner
Fri Jun 16, 2017 6:12 am
Forum: Personal Finance (Not Investing)
Topic: inherited IRA in community property state requires spousal consent for non-spousal beneficiary
Replies: 32
Views: 1847

Re: inherited IRA in community property state requires spousal consent for non-spousal beneficiary

In some (but not all) community property states, the income from separate property is community property.
by bsteiner
Thu Jun 15, 2017 4:33 pm
Forum: Personal Finance (Not Investing)
Topic: Long Term Care Insurance?
Replies: 44
Views: 3354

Re: Long Term Care Insurance?

Fallible wrote:The hybrid long-term policy alternative is interesting and it would be good to know what other planners think about it. ....


It means you have to also buy either a life insurance policy or an annuity, which you may or may not otherwise need.
by bsteiner
Wed Jun 14, 2017 9:33 pm
Forum: Personal Finance (Not Investing)
Topic: Beneficiary designations for trust
Replies: 15
Views: 961

Re: Beneficiary designations for trust

verbose wrote:... I am supposed to provide the following contingent beneficiary:

"Co-trustees of the QUALIFIED JOINT SPOUSAL TRUST ....


What is a "qualified joint spousal trust"?
by bsteiner
Wed Jun 14, 2017 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: Is there a calculator that solves for optimal Roth conversion
Replies: 54
Views: 4055

Re: Is there a calculator that solves for optimal Roth conversion

The two I've used are Excel and Brentmark's Retirement Plan Analyzer: http://www.brentmark.com/pension.htm.
by bsteiner
Wed Jun 14, 2017 11:28 am
Forum: Personal Finance (Not Investing)
Topic: Trust Fund Hell
Replies: 61
Views: 6737

Re: Trust Fund Hell

... I would have expected the trustee to adhere to the advice given by the investment company he hired to meet his fiduciary duty to invest according to "prudent" standards or "professional advice" or however that might be construed. If I were a trustee in a case like this I wou...
by bsteiner
Wed Jun 14, 2017 9:44 am
Forum: Personal Finance (Not Investing)
Topic: Please throw darts at my estate plan (probate avoidance)
Replies: 11
Views: 1116

Re: Please throw darts at my estate plan (probate avoidance)

If the intent is for the surviving spouse to receive all of the assets, then the form at the first death doesn't much matter. However, at the second death, if all of the assets pass outside the Will, it may be more difficult to deal with funeral expenses, debts and taxes, and it may be more difficul...
by bsteiner
Wed Jun 14, 2017 9:07 am
Forum: Personal Finance (Not Investing)
Topic: Trust Fund Hell
Replies: 61
Views: 6737

Re: Trust Fund Hell

A bank or trust company gets paid the same (about 1% a year, a bit more on small trusts and less on large trusts) regardless of how they invest the assets. They'll generally diversify in an appropriate manner. They'll usually use individual securities for large cap U.S. stocks, and low-cost mutual ...
by bsteiner
Tue Jun 13, 2017 10:14 pm
Forum: Personal Finance (Not Investing)
Topic: Trust Fund Hell
Replies: 61
Views: 6737

Re: Trust Fund Hell

In 1990 I brought suit against the largest bank in Miami for mishandling the investments of my grandmother's trust fund. ... Another friendly reminder that the only reason professional trustees exist is to make money, and the safest way to do that is probably setting up a portfolio like the OP outl...
by bsteiner
Tue Jun 13, 2017 1:18 pm
Forum: Investing - Help with Personal Investments
Topic: Variable Life Insurance as an Investment Vehicle
Replies: 39
Views: 2208

Re: Variable Life Insurance as an Investment Vehicle

AHumanInterest wrote: ... I was talking with a financial advisor at AXA ....


Was he/she a financial advisor, or an insurance agent?
by bsteiner
Tue Jun 13, 2017 6:26 am
Forum: Personal Finance (Not Investing)
Topic: Overcharged for tax returns
Replies: 28
Views: 2605

Re: Overcharged for tax returns

That sounds like a bargain if he did a good job or an adequate job.
by bsteiner
Sun Jun 11, 2017 8:17 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question - Non-US citizen parent wants to gift wealth
Replies: 21
Views: 1739

Re: Tax question - Non-US citizen parent wants to gift wealth

He can give or leave the assets to you in trust rather than outright. That will keep the assets (and the income and growth thereon) out of your estate for estate tax purposes, and will protect the assets (and the income and growth thereon) from your creditors and spouses. It will also protect the as...
by bsteiner
Sun Jun 11, 2017 6:44 pm
Forum: Personal Finance (Not Investing)
Topic: Merging bypass & survivor's trust
Replies: 7
Views: 666

Re: Merging bypass & survivor's trust

Bsteiner advocates considering decanting the trust into another trust that will be included in the estate of the beneficiary. There are several possible solutions: 1. If the Will or revocable trust creating the credit shelter (bypass) trust was well-drafted (or even averagely drafted), the trustees...
by bsteiner
Sun Jun 11, 2017 6:29 pm
Forum: Personal Finance (Not Investing)
Topic: Trust questions [taxes on funds a corporation paid to an irrevocable trust]
Replies: 3
Views: 264

Re: Trust questions [taxes on funds a corporation paid to an irrevocable trust]

in 2012, my parents transferred ownership of a Washington State C Corporation to my brother irrevocable trust, my sister irrevocable trust and my irrevocable trust. The Corporation owns real estate and cash ... Real estate in a C corporation raises lots of red flags. Is there a reason for having re...
by bsteiner
Tue Jun 06, 2017 9:35 am
Forum: Investing - Help with Personal Investments
Topic: Private Placement Life Insurance/ TIAA-CREF
Replies: 25
Views: 7968

Re: Private Placement Life Insurance/ TIAA-CREF

It's not something a TIAA-CREF advisor would likely be familiar with. Since some of our clients have purchased it, I know it exists. If it exists, and a TIAA-CREF advisor is not able to give me information, then how can I get it? If you're at the level where this is a possibility (in other words, i...
by bsteiner
Mon Jun 05, 2017 10:12 pm
Forum: Investing - Help with Personal Investments
Topic: Benefits of waiting to convert $4,000,000 in IRAs into Roth
Replies: 41
Views: 4531

Re: Benefits of waiting to convert $4,000,000 in IRAs into Roth

At a constant tax rate, you would convert, assuming you had enough other assets to pay the tax. The Roth conversion provides several benefits: 1. You're effectively contributing the amount of the tax into the IRA. For example, assume a constant 40% tax rate, suppose you have a $4 million traditiona...
by bsteiner
Mon Jun 05, 2017 4:50 pm
Forum: Personal Finance (Not Investing)
Topic: Changing State Residences for ACA Coverage
Replies: 15
Views: 1307

Re: Changing State Residences for ACA Coverage

... has anyone changed residences for state income tax or ACA purposes, .... I don't know about the ACA, but many people move for state income tax purposes. In the NJ suburbs of NYC, people often see specialists in NYC (where major hospitals such as Columbia Presbyterian, Weill Cornell, NYU, Mount ...
by bsteiner
Mon Jun 05, 2017 3:42 pm
Forum: Investing - Theory, News & General
Topic: Best Roth conversion calculator?
Replies: 14
Views: 683

Re: Best Roth conversion calculator?

Two to consider are Brentmark's Retirement Plan Analyzer, http://www.brentmark.com/pension.htm, and Excel.
by bsteiner
Mon Jun 05, 2017 3:27 pm
Forum: Investing - Help with Personal Investments
Topic: Benefits of waiting to convert $4,000,000 in IRAs into Roth
Replies: 41
Views: 4531

Re: Benefits of waiting to convert $4,000,000 in IRAs into Roth

At a constant tax rate, you would convert, assuming you had enough other assets to pay the tax. The Roth conversion provides several benefits: 1. You're effectively contributing the amount of the tax into the IRA. For example, assume a constant 40% tax rate, suppose you have a $4 million traditional...
by bsteiner
Fri Jun 02, 2017 4:33 pm
Forum: Personal Finance (Not Investing)
Topic: Please critique my attorney's suggestions..
Replies: 28
Views: 4229

Re: Please critique my attorney's suggestions..

Not an attorney but I think if you ask ten attorneys the "best" way to handle your situation you'll get ten answers. .... It's as much an art as a science, so there will be some differences. However, if the 10 are reasonably good, most of them will be within a reasonable range. We went to...
by bsteiner
Mon May 29, 2017 1:21 pm
Forum: Investing - Help with Personal Investments
Topic: Need help before receiving inheritance
Replies: 18
Views: 2442

Re: Need help before receiving inheritance

... What kind of trust are protected from estate tax that wont be included back in her estate if she was to die within next 5 years? .... Pretty much any kind of trust under her Will. It doesn't matter how long she lives. We would make the trusts as flexible as possible. Absent some reason not to d...
by bsteiner
Sun May 28, 2017 9:09 pm
Forum: Investing - Help with Personal Investments
Topic: Looking for advice/reassurance on what to do with $4-5m
Replies: 63
Views: 5790

Re: Looking for advice/reassurance on what to do with $4-5m

... Too paranoid & shy to say the state. It's a smaller state .... Telling us what state you're in won't tell us who you are. Even the smallest state by population (Wyoming) has over 500,000 people. But telling us what state you're in might help focus the responses. 529 plans work well for peop...
by bsteiner
Sun May 28, 2017 5:59 pm
Forum: Personal Finance (Not Investing)
Topic: Meeting with retirement guru, specializes in federal govt employees
Replies: 72
Views: 7083

Re: Meeting with retirement guru, specializes in federal govt employees

... The CSRS plan offers some customization options to determine how large a survivor's annuity to provide. With FERS, the only options are 50% or 25%. It does. But if it's an investment issue, the logical choices is between a tiny survivor benefit to enable the spouse to keep the health insurance ...
by bsteiner
Sun May 28, 2017 4:50 pm
Forum: Personal Finance (Not Investing)
Topic: Meeting with retirement guru, specializes in federal govt employees
Replies: 72
Views: 7083

Re: Meeting with retirement guru, specializes in federal govt employees

... My understanding is that in order for a spouse to keep FEHB benefits upon the death of the employee they must choose the survivor option. This is probably worth clarifying but, if true, would dramatically increase the value of the survivor benefit. That's correct. However, you can select a tiny...

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