Search found 2725 matches

by bsteiner
Fri Aug 18, 2017 9:17 am
Forum: Personal Finance (Not Investing)
Topic: Florida vs New Jersey Residency
Replies: 13
Views: 980

Re: Florida vs New Jersey Residency

Income tax You're generally taxable as a New Jersey resident if you're domiciled in New Jersey, or if (even if you're domiciled in Florida) you spend more than 183 days in New Jersey in a given year. For this purpose, any part of a day in New Jersey generally counts as a day. The days test is almos...
by bsteiner
Thu Aug 17, 2017 9:48 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning - step up question
Replies: 2
Views: 351

Re: Estate planning - step up question

It may cause lots of problems, but you'll still get the basis step-up. It will throw the children's inheritances into their estates for estate purposes, and expose them to their creditors and spouses. If you left their inheritances to them in separate trusts rather than outright, their inheritances ...
by bsteiner
Thu Aug 17, 2017 8:39 am
Forum: Personal Finance (Not Investing)
Topic: quick estate question
Replies: 54
Views: 2235

Re: quick estate question

Does it really take 6 months to probate a Will in any state absent a contest? Is there a Will contest? If so, can you get preliminary letters (or whatever they're called in Illinois), which would let the preliminary executor (or whatever it's called in Illinois) administer the estate (but just not m...
by bsteiner
Wed Aug 16, 2017 7:56 am
Forum: Personal Finance (Not Investing)
Topic: Help with mortgage rates-closing soon!
Replies: 11
Views: 870

Re: Help with mortgage rates-closing soon!

See http://www.hsh.com/lshow/. At the bottom of the page, click on your state. It will show listings from lenders in that state (though not as many as a few years ago).

Also go to the websites of the savings banks in your state and see what they're quoting.
by bsteiner
Tue Aug 15, 2017 8:19 am
Forum: Investing - Help with Personal Investments
Topic: Moving to Vanguard: Annuities and IRA
Replies: 8
Views: 674

Re: Moving to Vanguard: Annuities and IRA

... In 2010, I defaulted to using my wife's financial "advisor," a rep for New York Life. Ruh roh. ... $44,600 in a fixed NYL annuity (groan). $252,000 in a variable annuity (groan). I'm past the redemption penalty phase for both. I plan to transfer these to Vanguard. ... Was he/she an advisor, or ...
by bsteiner
Tue Aug 15, 2017 7:17 am
Forum: Personal Finance (Not Investing)
Topic: Taxes for Residual Beneficiaries of a Special Needs Trust
Replies: 2
Views: 223

Re: Taxes for Residual Beneficiaries of a Special Needs Trust

If it's payable to them outright, it will be included in their estates for estate tax purposes, and it will be subject to their creditors and spouses. You might look to see if you can decant the trust to keep it in further trust for them.
by bsteiner
Mon Aug 14, 2017 2:51 pm
Forum: Personal Finance (Not Investing)
Topic: Do I Need a Trust? (for single, no children, beneficiaries, etc.)
Replies: 16
Views: 1351

Re: Do I Need a Trust? (for single, no children, beneficiaries, etc.)

Let me add some advice an attorney gave my late father about charitable donations. My father was a supporter of certain organizations affiliated with his religious denomination. This denomination is very heirarchal and very controlling of affiliated organizations. It was my father's intent to leave...
by bsteiner
Mon Aug 14, 2017 8:09 am
Forum: Personal Finance (Not Investing)
Topic: Beneficiaries vs wills
Replies: 9
Views: 1175

Re: Beneficiaries vs wills

The problem you describe is a good reason to consult an estate planning attorney, who will likely suggest a revocable living trust. .... Revocable trusts make sense in some cases, and in some states. However, they've overhyped and oversold, and for most people, in most states, are not necessary, an...
by bsteiner
Sun Aug 13, 2017 9:30 pm
Forum: Personal Finance (Not Investing)
Topic: Do I really need a trust?
Replies: 48
Views: 3877

Re: Do I really need a trust?

bsteiner, Many thanks for your response and suggestions--your insights are highly valued and appreciated. ... ... Condon's book is useful. However, he focuses on the two end points (providing for children outright and providing for children in trusts that they don't control). Most of our clients op...
by bsteiner
Sat Aug 12, 2017 9:08 pm
Forum: Personal Finance (Not Investing)
Topic: Do I really need a trust?
Replies: 48
Views: 3877

Re: Do I really need a trust?

Went to see an attorney about doing a trust and was quoted a price of $ 3200 for a trust, will, PoAs etc. She advised against having the trust be beneficiaries of my 401K/ IRA (which is 80% of my estate, mid 7 figures). Suggested we put the house and the Taxable account into the trust. We live in C...
by bsteiner
Thu Aug 10, 2017 2:24 pm
Forum: Personal Finance (Not Investing)
Topic: Basic decisions about will/estate planning for young kids
Replies: 5
Views: 471

Re: Basic decisions about will/estate planning for young kids

Unless the amount involved is too small to warrant administering trusts (in which case you might not have enough life insurance), our clients almost always provide for their children in trust rather than outright (including custodianships under the Uniform Transfers to Minors Act). That keeps the ch...
by bsteiner
Wed Aug 09, 2017 1:52 pm
Forum: Personal Finance (Not Investing)
Topic: Should we sell a home to a friend's daughter?
Replies: 31
Views: 2961

Re: Should we sell a home to a friend's daughter?

You could ask the executor of your uncle's estate if he/she would share the appraisal that he/she obtained for estate tax purposes (or for the inventory, if any, or to determine the basis).
by bsteiner
Wed Aug 09, 2017 8:10 am
Forum: Investing - Help with Personal Investments
Topic: Investment management for trust
Replies: 4
Views: 422

Re: Investment management for trust

You could name a bank or trust company as co-trustee. Your lawyer should have relationships with several that would be appropriate for the amount involved. They'll probably charge about 1% a year. They'll agree on an asset allocation with the individual co-trustee (in this case, if the individual co...
by bsteiner
Tue Aug 08, 2017 3:41 pm
Forum: Personal Finance (Not Investing)
Topic: Is my current LTC policy relatively good?
Replies: 19
Views: 1130

Re: Is my current LTC policy relatively good?

You might do better if you could find a policy that didn't pay for the first three years, but paid for everything after three years. I am not aware of any such policies. The issue with a life insurance policy with a long-term care rider is that it involves the purchase of a life insurance policy, wh...
by bsteiner
Tue Aug 08, 2017 3:07 pm
Forum: Personal Finance (Not Investing)
Topic: Is my current LTC policy relatively good?
Replies: 19
Views: 1130

Re: Is my current LTC policy relatively good?

The lifetime maximum benefit is relatively low. So it won't protect against the risk that you need care for a long time.
by bsteiner
Tue Aug 08, 2017 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: What criteria warrants a need for Living Revocable Trust?
Replies: 39
Views: 3327

Re: What criteria warrants a need for Living Revocable Trust?

An elderly relative is inheriting her only sibling's estate. Relative is a Georgia resident who spends most of the year in Florida. Houses in both states. Relative has high six figure assets. Inheriting about $500,000 in CDs and bank accounts plus $120,000 paid-off house in a third state plus hard-...
by bsteiner
Mon Aug 07, 2017 6:40 pm
Forum: Personal Finance (Not Investing)
Topic: Close business as S Corp or Partnership
Replies: 6
Views: 578

Re: Close business as S Corp or Partnership

Distributions have to be pro rata.

If the shares are not identical (except for voting rights) then it's not an S corporation.
by bsteiner
Sat Aug 05, 2017 11:15 pm
Forum: Investing - Help with Personal Investments
Topic: New investor needing advice UK-US
Replies: 22
Views: 1345

Re: New investor needing advice UK-US

Are you and your spouse U.S. citizens?
by bsteiner
Sat Aug 05, 2017 11:00 pm
Forum: Personal Finance (Not Investing)
Topic: Roth, Taxes and Mistakes
Replies: 41
Views: 3999

Re: Roth, Taxes and Mistakes

One possibility would be to amend 2014 (and 2013 if it's still open) from separate to joint. Another possibility would be to apply for a ruling granting an extension of time to recharacterize for 2012 (and for 2013 if it's closed or if you don't want to amend it from separate to joint, and for 2014 ...
by bsteiner
Fri Aug 04, 2017 11:10 am
Forum: Personal Finance (Not Investing)
Topic: Inherited a testamentary trust - cost basis seems wrong
Replies: 6
Views: 400

Re: Inherited a testamentary trust - cost basis seems wrong

... Bsteiner, I will consult with my father's accountant to find out if Fed estate tax was filed during the time dad was receiving income from the trust, and discuss the other qualifiers you mentioned. You might also check with the lawyer who handled your mother's estate. Most estate tax returns ar...
by bsteiner
Fri Aug 04, 2017 10:32 am
Forum: Personal Finance (Not Investing)
Topic: Inherited a testamentary trust - cost basis seems wrong
Replies: 6
Views: 400

Re: Inherited a testamentary trust - cost basis seems wrong

If the trust was included in your father's estate for estate tax purposes, then you would get a new basis equal to the value at his death (or on the alternate valuation date, if applicable). However, if (as is likely) it was a credit shelter (bypass) trust, intended not to be included in your father...
by bsteiner
Fri Aug 04, 2017 7:42 am
Forum: Personal Finance (Not Investing)
Topic: Accountant/Planner fees during estate transfer
Replies: 18
Views: 1078

Re: Accountant/Planner fees during estate transfer

... - The estate should not have to go through probate from what we've been told and have researched. - The estate is in CA - I'm not sure if attorneys have to be hired - we have been told that the process in CA makes things extremely streamlined and fairly automatic (e.g., no probate). I'd assume ...
by bsteiner
Fri Aug 04, 2017 7:29 am
Forum: Investing - Help with Personal Investments
Topic: Tax implications, US/UK 403b
Replies: 2
Views: 173

Re: Tax implications, US/UK 403b

... I can then withdraw the entire balance of the Roth IRA to a UK bank account. Under the terms of the UK-US tax treaty there is no tax obligation in either country as Roth IRA is considered already taxed as income. ... Why not keep it in the Roth as long as possible, so the income and gains will ...
by bsteiner
Thu Aug 03, 2017 9:25 pm
Forum: Personal Finance (Not Investing)
Topic: Will / Trust attorney fees -- how much? (quoted $2000-3000)
Replies: 29
Views: 2528

Re: Will / Trust attorney fees -- how much? (quoted $2000-3000)

I have talked with financial profession who think conduit trusts are not beneficial. Did they mention why the conduit trust is not beneficial? I will inquire about this, or perhaps someone on the forum knows. ... Conduit trusts rarely if ever make any sense. In a conduit trust, all of the distribut...
by bsteiner
Thu Aug 03, 2017 4:57 pm
Forum: Investing - Help with Personal Investments
Topic: Strategy for getting out of Northwestern Mutual
Replies: 19
Views: 1604

Re: Strategy for getting out of Northwestern Mutual

I went to a NWM advisor .../quote] Was he/she an advisor or an insurance agent? ... I had the option of a roth 401k or traditional and was given different advice from the NWM advisor and Vanguard ... It's hard to know. You could make some reasonable assumptions and create a spreadsheet, but as Niel...
by bsteiner
Thu Aug 03, 2017 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: Accountant/Planner fees during estate transfer
Replies: 18
Views: 1078

Re: Accountant/Planner fees during estate transfer

... it appears both the executor (in this case, the accountant) and possibly the attorney are entitled to "reasonable compensation," which is defined for example in CA as being 4% of the first $100,000, and so on. So, it appears that there IS actually a fee for the settlement of a living trust? Exe...
by bsteiner
Thu Aug 03, 2017 2:20 pm
Forum: Personal Finance (Not Investing)
Topic: Accountant/Planner fees during estate transfer
Replies: 18
Views: 1078

Re: Accountant/Planner fees during estate transfer

... to confirm, there shouldn't be any sort of % fee (e.g., AUM) that anyone would charge as a commission or handling fee? Stockbrokers will charge a commission to sell the securities. Investment advisors will usually charge a percentage of assets under management if the executors hire them to mana...
by bsteiner
Thu Aug 03, 2017 1:50 pm
Forum: Personal Finance (Not Investing)
Topic: Accountant/Planner fees during estate transfer
Replies: 18
Views: 1078

Re: Accountant/Planner fees during estate transfer

Thanks everyone. To answer the previous question, it's a somewhat difficult situation because I've been looped into involvement in the process, but not fully. I'm being asked some questions and brought into some meetings, but not told all information - typical situation in which family finances are...
by bsteiner
Thu Aug 03, 2017 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Accountant/Planner fees during estate transfer
Replies: 18
Views: 1078

Re: Accountant/Planner fees during estate transfer

The lawyer usually does the estate tax returns. Most of the work is done by paralegals under the supervision of a lawyer. Accountants (or enrolled agents) usually do the decedent's final income tax returns and the estate's fiduciary income tax returns. The cost is often somewhat more than the cost f...
by bsteiner
Thu Aug 03, 2017 8:19 am
Forum: Personal Finance (Not Investing)
Topic: Will / Trust attorney fees -- how much? (quoted $2000-3000)
Replies: 29
Views: 2528

Re: Will / Trust attorney fees -- how much? (quoted $2000-3000)

... Personally, I'd DIY. You likely don't need a trust to delay funds receipt past 18. Your state will allow for up to a certain age. ... DIY is a no brainer for simple, easy will if you're smart and willing to learn. Well, there's your contrary opinion, OP. Most of us would disagree. A potential e...
by bsteiner
Thu Aug 03, 2017 8:01 am
Forum: Personal Finance (Not Investing)
Topic: Will / Trust attorney fees -- how much? (quoted $2000-3000)
Replies: 29
Views: 2528

Re: Will / Trust attorney fees -- how much? (quoted $2000-3000)

... Our trust in Seattle was 3x the cost of LA (admittedly I was single in LA and we got a more comprehensive product here) It would cost more if you were married and presumably had more assets and possibly had or were considering having children. Why "Our trust in Seattle"? While revocable trusts ...
by bsteiner
Thu Aug 03, 2017 7:46 am
Forum: Personal Finance (Not Investing)
Topic: Will/Trust Plan Thoughts?
Replies: 56
Views: 4529

Re: Will/Trust Plan Thoughts?

Bsteiner, under this design where the size of the IRA's determines whether they go outright or in trust: Is there a way for the trustees or heirs to make that decision at the parents' death? Or does that have to be written into the beneficiary designation or the will or trusts? The amounts in the r...
by bsteiner
Wed Aug 02, 2017 5:14 pm
Forum: Personal Finance (Not Investing)
Topic: Will/Trust Plan Thoughts?
Replies: 56
Views: 4529

Re: Will/Trust Plan Thoughts?

... My wife and I hold considerable assets in taxable, traditional IRAs and Roth IRAs and I assume assets from each of these three sources would pass to both of our children. In an earlier response in this thread, bsteiner made reference to a "parallel set of trusts" to hold inherited IRA...
by bsteiner
Wed Aug 02, 2017 9:20 am
Forum: Personal Finance (Not Investing)
Topic: How far off are Zillow's estimates?
Replies: 82
Views: 7308

Re: How far off are Zillow's estimates?

Sometimes they're close, but sometimes they're not.
by bsteiner
Wed Aug 02, 2017 7:51 am
Forum: Personal Finance (Not Investing)
Topic: Will / Trust attorney fees -- how much? (quoted $2000-3000)
Replies: 29
Views: 2528

Re: Will / Trust attorney fees -- how much? (quoted $2000-3000)

... These fees are possibly very regional too. The price we had to pay in Seattle was significantly higher than that of LA, I think due to the probate law costs being much higher in LA so everyone has a trust whereas here it's less common It's usually the other way around. Billing rates are higher ...
by bsteiner
Tue Aug 01, 2017 9:47 pm
Forum: Personal Finance (Not Investing)
Topic: Will / Trust attorney fees -- how much? (quoted $2000-3000)
Replies: 29
Views: 2528

Re: Will / Trust attorney fees -- how much? (quoted $2000-3000)

... Ages: 33-35 NW: $1-1.2 MM (approx. 25% her 401k/IRA, 25% his 401k/IRA, 50% joint taxable accounts). No real estate. No pre-marital assets, everything shared. Children: 1 (likely ~1 more to come) Employment: Both employed, salaries ~ $250k-$350k. Life insurance: $3MM each. 1. If one of us died, ...
by bsteiner
Tue Aug 01, 2017 3:48 pm
Forum: Investing - Help with Personal Investments
Topic: Insurance-Dedicated Funds (IDF)
Replies: 2
Views: 221

Re: Insurance-Dedicated Funds (IDF)

If you want to invest in something that's tax-inefficient (such as hedge funds that produce short-term capital gain), one way to do it is through a private placement life insurance policy. In exchange for the costs of the policy (which are much less than for a retail policy -- since you're putting i...
by bsteiner
Tue Aug 01, 2017 9:21 am
Forum: Personal Finance (Not Investing)
Topic: The age old debate 30 vs 15 [year mortgage rate]
Replies: 41
Views: 4692

Re: The age old debate 30 vs 15 [year mortgage rate]

... We have selected a home with an asking price of 680K, plan to put 256K as down payment to get out of jumbo territory. 30 year rate @ 4.13 15 year rate @ 3.50 .... You might want to check around. You may be able to find somewhat lower rates. Also, while some banks charge more for jumbo mortgages...
by bsteiner
Mon Jul 31, 2017 9:21 pm
Forum: Personal Finance (Not Investing)
Topic: Will/Trust Plan Thoughts?
Replies: 56
Views: 4529

Re: Will/Trust Plan Thoughts?

fourwheelcycle wrote:... Are my understandings incorrect?


Yes.

See my previous posts in this thread.
by bsteiner
Mon Jul 31, 2017 8:34 am
Forum: Personal Finance (Not Investing)
Topic: Philosophy major and future law student
Replies: 93
Views: 4971

Re: Philosophy major and future law student

... Tax law does not require any particular field of study as an undergraduate. It tends to attract accounting majors, but in the same way medicine attracts biology majors. .... Everything else being equal, I would much prefer for a tax lawyer a philosophy major (or an economics, political science,...
by bsteiner
Sun Jul 30, 2017 9:06 pm
Forum: Personal Finance (Not Investing)
Topic: Will/Trust Plan Thoughts?
Replies: 56
Views: 4529

Re: Will/Trust Plan Thoughts?

... Over 75% of the assets owned by my wife and I are in tax-deferred IRA accounts. I'm guessing that many others also have large percentages of their assets in tax-advantaged accounts. If we name each other as primary beneficiary for these accounts with our adult kids as secondary, then upon the d...
by bsteiner
Sun Jul 30, 2017 5:03 pm
Forum: Investing - Help with Personal Investments
Topic: Did I mess up? Transferred some of bro's trust money into his Roth IRA
Replies: 4
Views: 779

Re: Did I mess up? Transferred some of bro's trust money into his Roth IRA

Is the trust its own taxpayer? Or is it a grantor trust as to your brother if you and your sister created it for your brother to put his gift from his grandmother into? Or is it a grantor trust as to your grandmother if you and your sister created it for your grandmother to put the gift into and you...
by bsteiner
Sun Jul 30, 2017 2:18 pm
Forum: Personal Finance (Not Investing)
Topic: Philosophy major and future law student
Replies: 93
Views: 4971

Re: Philosophy major and future law student

Doing a philosophy major is a terrible idea. True, if you go to law school, your undergraduate major doesn't matter much (except for specific areas of law like Tax and Patent). But what if your child changes his mind and decides not to go to law school? Or becomes an attorney but then wants to do s...
by bsteiner
Sun Jul 30, 2017 10:38 am
Forum: Personal Finance (Not Investing)
Topic: Will/Trust Plan Thoughts?
Replies: 56
Views: 4529

Re: Will/Trust Plan Thoughts?

As of the last time I checked Vanguard would not serve as executor/ personal representative. But many banks and trust companies will. For a price. One way around all the concerns about the sister as representative, getting the slestate settled, avoiding undue influence of the brother in law... woul...
by bsteiner
Sun Jul 30, 2017 8:04 am
Forum: Personal Finance (Not Investing)
Topic: Will/Trust Plan Thoughts?
Replies: 56
Views: 4529

Re: Will/Trust Plan Thoughts?

... The attorney didn't ask about the asset size on our initial call (red flag, I'm guessing). ... It's better if you meet in person if possible. But many people do their planning by phone if they're not local or they're unable to travel. If you're doing your planning by phone, then not discussing ...
by bsteiner
Sun Jul 30, 2017 7:29 am
Forum: Investing - Help with Personal Investments
Topic: Finding a good tech-oriented tax advisor
Replies: 5
Views: 492

Re: Finding a good tech-oriented tax advisor

I've struggled to find a good tax advisor that really understands ISOs, NSOs, 83(b) elections in a private company and planning for IPO or acquisition while managing AMT. The cpas recommended to me so far seem to only understand public company ISO/RSU strategies. (Charged $300 for an hour with one ...
by bsteiner
Fri Jul 28, 2017 8:36 am
Forum: Personal Finance (Not Investing)
Topic: GF Picking a college major
Replies: 105
Views: 5229

Re: GF Picking a college major

... If she wants to stay where she is, there are only 3 majors at this school I think are worth pursuing: computer science, economics, and math .... She's just a sophomore in college. She should study what she wants. Steve Jobs said: "If I had never dropped in on that single calligraphy course...
by bsteiner
Thu Jul 27, 2017 10:22 am
Forum: Personal Finance (Not Investing)
Topic: Rental Property - Best Legal Structure?
Replies: 23
Views: 1894

Re: Rental Property - Best Legal Structure?

dm200 wrote:... Don't you have to personally guarantee contracts and debts of the LLCs?


It depends on whether the other party to the contract wants a personal guaranty, and if so, whether the LLC is able to find someone else to buy or borrow from who won't require one.
by bsteiner
Thu Jul 27, 2017 8:33 am
Forum: Personal Finance (Not Investing)
Topic: IRA "registration error" (?) Roth vs Traditional at American Funds
Replies: 37
Views: 1982

Re: IRA "registration error" (?) Roth vs Traditional at American Funds

You might also try to get a copy of the forms that the IRA owner signed to open the IRA.
by bsteiner
Thu Jul 27, 2017 7:29 am
Forum: Personal Finance (Not Investing)
Topic: Rental Property - Best Legal Structure?
Replies: 23
Views: 1894

Re: Rental Property - Best Legal Structure?

... has anyone attempted setup S-Corp to hold their rental properties? .... Once. If the buyer and seller are both partnerships (including LLCs for this purpose), and there's sufficient overlap in ownership, the gain will be ordinary income. So we had an S corporation as the buyer. We also sometime...