Search found 2393 matches

by bsteiner
Fri Mar 24, 2017 6:19 pm
Forum: Personal Finance (Not Investing)
Topic: QRDO, Annuity in IRA, who pays surrender fee?
Replies: 2
Views: 140

Re: QRDO, Annuity in IRA, who pays surrender fee?

QDROs are for employer plans, not IRAs. The divorce or separation instrument can transfer an interest in an IRA. See Sections 408(d)(6) and 71(b)(2). That makes it easier. The insurance company should be able to tell you if they can divide the annuity. If not, perhaps he can cash some of it in withi...
by bsteiner
Fri Mar 24, 2017 4:15 pm
Forum: Investing - Help with Personal Investments
Topic: Ameriprise/RiverSource inherited annuity 1035 help/questions....
Replies: 9
Views: 394

Re: Ameriprise/RiverSource inherited annuity 1035 help/questions....

There's often no good solution. Cashing it in quickly accelerates the tax and bunches the income. Moving it to Vanguard reduces the fees but doesn't eliminate them; and results in the future investment income becoming ordinary income. It may be worth creating a spreadsheet to compare the choices, ma...
by bsteiner
Fri Mar 24, 2017 12:48 pm
Forum: Personal Finance (Not Investing)
Topic: Are Bogleheads in the minority on the use of investment advisors?
Replies: 46
Views: 2328

Re: Are Bogleheads in the minority on the use of investment advisors?

... After having been with an FA the last few years, my mother just asked for my advice on their portfolio a few weeks ago. This guy had convinced my mom to put most of her savings in a whole life policy and an annuity. .... Isn't buying a life insurance policy and an annuity like betting on both t...
by bsteiner
Fri Mar 24, 2017 11:47 am
Forum: Personal Finance (Not Investing)
Topic: Are Bogleheads in the minority on the use of investment advisors?
Replies: 46
Views: 2328

Re: Are Bogleheads in the minority on the use of investment advisors?

Many Bogleheads are not unlike the people you talked to: I will guess that most Bogleheads do not wish to read IRS instructions for their tax forms and just get an advisor in the form of tax software in order to avoid reading instructions. They all assume the advisor is doing right by them. The cos...
by bsteiner
Fri Mar 24, 2017 9:49 am
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Trust Distribution: Tax Reporting by Beneficiary
Replies: 18
Views: 590

Re: Irrevocable Trust Distribution: Tax Reporting by Beneficiary

... I still question the statement that all taxes are paid by the trust when there have been distributions to you. The trust has capital gains but no ordinary income net of expenses? It's a grantor trust and when they said the trust was paying the taxes, it's actually the grantor who's paying the t...
by bsteiner
Fri Mar 24, 2017 8:42 am
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Trust Distribution: Tax Reporting by Beneficiary
Replies: 18
Views: 590

Re: Irrevocable Trust Distribution: Tax Reporting by Beneficiary

... I still question the statement that all taxes are paid by the trust when there have been distributions to you. The trust has capital gains but no ordinary income net of expenses? It's a grantor trust and when they said the trust was paying the taxes, it's actually the grantor who's paying the t...
by bsteiner
Fri Mar 24, 2017 7:47 am
Forum: Personal Finance (Not Investing)
Topic: To file or not - irrevocable trust
Replies: 4
Views: 365

Re: To file or not - irrevocable trust

You are correct. You have to file if the trust has gross income of $600 or more, or if you have any taxable income. See Section 6012(a)(4). The statute says "any," but "no matter how small" means the same thing as "any." It seems to me that these specific filing instru...
by bsteiner
Thu Mar 23, 2017 1:02 pm
Forum: Personal Finance (Not Investing)
Topic: To file or not - irrevocable trust
Replies: 4
Views: 365

Re: To file or not - irrevocable trust

You are correct. You have to file if the trust has gross income of $600 or more, or if you have any taxable income. See Section 6012(a)(4).

The statute says "any," but "no matter how small" means the same thing as "any."
by bsteiner
Thu Mar 23, 2017 11:57 am
Forum: Personal Finance (Not Investing)
Topic: What criteria warrants a need for Living Revocable Trust?
Replies: 20
Views: 1141

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

... 6) non citizen spouse (you lose the unlimited marital deduction so if over the federal estate exemption, you may want to use a QDOT trust) 7) NRA spouse - there is a very low $60k federal estate exemption for NRA's to bequeath so again you may want a QDOT trust to keep assets out of their estat...
by bsteiner
Thu Mar 23, 2017 9:11 am
Forum: Personal Finance (Not Investing)
Topic: Administration of relative's estate
Replies: 26
Views: 1601

Re: Administration of relative's estate

In Florida, if there's no Will, the following persons, in the order shown, have priority to become personal representative: 1. The surviving spouse. 2. Whomever the persons with a majority in interest in the estate select. 3. The closest relative. If more than one are of equal degree, the court may ...
by bsteiner
Thu Mar 23, 2017 7:49 am
Forum: Personal Finance (Not Investing)
Topic: Living Trust - Death of grantor/trustee
Replies: 18
Views: 1242

Re: Living Trust - Death of grantor/trustee

there are two tax returns: January 1 to date of death for the person, and day after date of death to December 31 for the irrevocable trust. The two tax returns are similar, but the first is on Form 1040, while the second is on Form 1041 (for which I paid a tax preparer). 1. I assume the 1041's cont...
by bsteiner
Wed Mar 22, 2017 9:32 pm
Forum: Personal Finance (Not Investing)
Topic: What criteria warrants a need for Living Revocable Trust?
Replies: 20
Views: 1141

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

1 Substantial Wealth 2 Blended families. 3 Children 4 Human dynamics 5 Special needs 6 Substantial Wealth Actually none of these is relevant. Factors that would indicate the need for a revocable trust include: 1. If you live in a state where probating a Will, or dealing with the probate court, is p...
by bsteiner
Wed Mar 22, 2017 3:30 pm
Forum: Personal Finance (Not Investing)
Topic: What criteria warrants a need for Living Revocable Trust?
Replies: 20
Views: 1141

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

For $1.4 million including retirement benefits, and perhaps some life insurance not mentioned, I would suggest having competent counsel prepare your Wills (or living trusts if you move to California). A competent lawyer will be able to include appropriate trusts for your children, and a parallel set...
by bsteiner
Wed Mar 22, 2017 3:18 pm
Forum: Personal Finance (Not Investing)
Topic: What criteria warrants a need for Living Revocable Trust?
Replies: 20
Views: 1141

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

Here's an explanation of the Texas procedures by a Texas lawyer whom I happen to know: http://www.willsandprobate.com/FAQ/probate.htm.
by bsteiner
Wed Mar 22, 2017 9:57 am
Forum: Personal Finance (Not Investing)
Topic: Smart Will (or how to avoid a legal morass)
Replies: 21
Views: 1344

Re: Smart Will (or how to avoid a legal morass)

... In my limited exposure to estate settlement of relatives, none have settled in less than a year. All this small number of estates had investment income and paid income taxes. I am sure there are some estates that do settle quickly, but my, again limited, experience would not support assuming th...
by bsteiner
Wed Mar 22, 2017 9:35 am
Forum: Personal Finance (Not Investing)
Topic: Smart Will (or how to avoid a legal morass)
Replies: 21
Views: 1344

Re: Smart Will (or how to avoid a legal morass)

Bsteiner, Thanks. Of course the will must be written while a person is alive, but I thought that the surviving spouse could use disclaimers to adjust the amount of money that went into the credit shelter trust. That would permit them to decide at the time (after the will has been written and the te...
by bsteiner
Tue Mar 21, 2017 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: Smart Will (or how to avoid a legal morass)
Replies: 21
Views: 1344

Re: Smart Will (or how to avoid a legal morass)

If the two are the marital share (the spouse or a marital trust) and the credit shelter trust, then you may want the marital share to get a dollar amount (so that the post-death growth will be sheltered). Or you may want the credit shelter trust to get a dollar amount (if you expect nondeductible p...
by bsteiner
Tue Mar 21, 2017 3:35 pm
Forum: Personal Finance (Not Investing)
Topic: Legal Issue: What kind of lawyer (or do I not need one yet)?
Replies: 41
Views: 3391

Re: Legal Issue: What kind of lawyer (or do I not need one yet)?

Go back to the original lawyer. Ask them if they can advise you and for what cost and give them the option to recommend a smaller firm if more appropriate. If there are (or may be) issues raised with the details of the original agreement, the original lawyer (it seems to me) may be best able (and m...
by bsteiner
Tue Mar 21, 2017 8:45 am
Forum: Investing - Theory, News & General
Topic: endowment investment guiding principles for small nonprofits
Replies: 5
Views: 227

Re: endowment investment guiding principles for small nonprofits

I posted a similar question in this thread and received several responses: https://www.bogleheads.org/forum/viewtopic.php?t=210645. The people issues may be more difficult than the investment issues. Hiring Vanguard for 0.3% (less on amounts over $5 million) may facilitate dealing with the people is...
by bsteiner
Mon Mar 20, 2017 4:46 pm
Forum: Personal Finance (Not Investing)
Topic: Smart Will (or how to avoid a legal morass)
Replies: 21
Views: 1344

Re: Smart Will (or how to avoid a legal morass)

You are correct that a beneficiary of a percentage or fractional share is an interested party as to the administration of the estate. Whether to leave a beneficiary a percentage or a fraction, or a dollar amount, depends on the relative size of the bequest, and on tax issues. If you're leaving a cha...
by bsteiner
Mon Mar 20, 2017 11:43 am
Forum: Investing - Help with Personal Investments
Topic: Malpractice Asset Protection
Replies: 18
Views: 1047

Re: Malpractice Asset Protection

... Relatively new attending physician here. What do you guys all be for asset protection from malpractice suits? Should all my assets be in a trust? I am a hospital employee and our hospital self-insurers. I have purchased an umbrella policy for other protection but I'm not sure if that will be ap...
by bsteiner
Sun Mar 19, 2017 11:27 am
Forum: Personal Finance (Not Investing)
Topic: Dividing IRA in Family Wealth Trust
Replies: 13
Views: 812

Re: Dividing IRA in Family Wealth Trust

My experience at least is that IRAs are not placed in the trust as they are opened for the benefit of a named individual; likewise, they would then go to the beneficiaries of the IRA vs. the trustees of the revocable trust. That's how my in-laws accounts were set up at least. I would take a look an...
by bsteiner
Sun Mar 19, 2017 7:46 am
Forum: Personal Finance (Not Investing)
Topic: Divesting to heirs. When and how quickly.
Replies: 45
Views: 3943

Re: Divesting to heirs. When and how quickly.

... I have run into paralysis by analysis as regards trusts, etc. because of our unusual family/tax situations. Doesn't that apply to all families :shock: Our family has spent most of our lives living in multiple countries, hence the only country of tax relevance for each kid is the one he/she is c...
by bsteiner
Sun Mar 19, 2017 7:08 am
Forum: Investing - Help with Personal Investments
Topic: Planning if you don't care to leave an estate....
Replies: 32
Views: 2574

Re: Planning if you don't care to leave an estate....

As for leaving part of an estate to charity, a charity is like anyone else. If you are left a certain percentage of an estate wouldn't you want to make sure the personal representative collected all the assets, paid only proper debts, paid only reasonable administrative expenses, invested the prope...
by bsteiner
Sat Mar 18, 2017 10:30 pm
Forum: Personal Finance (Not Investing)
Topic: Dividing IRA in Family Wealth Trust
Replies: 13
Views: 812

Re: Dividing IRA in Family Wealth Trust

If the IRA is payable to the revocable trust, and the IRA benefits payable to the revocable trust are to be divided into two separate trusts, one trust for beneficiary A and the other trust for beneficiary B, they should be able to set up an inherited IRA, and then divide the inherited IRA into two ...
by bsteiner
Sat Mar 18, 2017 10:17 pm
Forum: Personal Finance (Not Investing)
Topic: Divesting to heirs. When and how quickly.
Replies: 45
Views: 3943

Re: Divesting to heirs. When and how quickly.

... Choices I see: 1. Gift each a million $ in an ETF (e.g. SPY) and hope each is a responsible adult (uneasy about the 19 year-old but I want to treat all equally). Most are in Canada .... I would advise considering a trust, or perhaps four trusts. The specifics of a trust could be worked out with...
by bsteiner
Fri Mar 17, 2017 4:37 pm
Forum: Investing - Help with Personal Investments
Topic: Using 12-13% of Retirement Funds to pay off Mortgage?
Replies: 23
Views: 2000

Re: Using 12-13% of Retirement Funds to pay off Mortgage?

Strongly disagree. Retirement benefits allow tax-free income and gains for a very long time, whereas interest on the mortgage is deductible against ordinary income. Your nonretirement account is a source of liquidity if needed. An alternative might be to reduce your equity allocation, either by sell...
by bsteiner
Fri Mar 17, 2017 9:46 am
Forum: Personal Finance (Not Investing)
Topic: S corp - 401K plan - profit sharing
Replies: 130
Views: 3579

Re: S corp - 401K plan - profit sharing

... Larry Burkett, who has now gone onto his reward, said that one shouldn't set up something to benefit you and not the employees. With 7 employees I didn't take his advice and went with the 401k thinking that would be a pretty good benefit and would only cost the 3 Percent non-elective match. I w...
by bsteiner
Thu Mar 16, 2017 9:40 pm
Forum: Investing - Help with Personal Investments
Topic: Father is 90, taking over his investments
Replies: 23
Views: 2525

Re: Father is 90, taking over his investments

... My father is 90 years old and has advanced dementia. He lives in an assisted living facility. His total expenses are $11K per month. He has about 1million is assets, all in cash, spread across a traditional IRS, a Roth IRA, and about $650K in a family trust, which became irrevocable upon the de...
by bsteiner
Wed Mar 15, 2017 5:37 pm
Forum: Personal Finance (Not Investing)
Topic: Amend Return - MFJ to MFS
Replies: 37
Views: 1454

Re: Amend Return - MFJ to MFS

I agree that it's usually easier to wait until after the due date and then file an amended return. However, sometimes you need to file a superseding return to make or change an election. For example, see Treas. Reg. § 20.2056(b)-7(b)(4)(i), which says that a QTIP election is made on the estate tax r...
by bsteiner
Wed Mar 15, 2017 3:36 pm
Forum: Personal Finance (Not Investing)
Topic: Help finding deceased grandparents money
Replies: 4
Views: 777

Re: Help finding deceased grandparents money

Their income tax returns and their estate tax returns would have information. Check with the executors, or have the executors check with the lawyer who handled their estates and with their accountant, or have the executors get copies from the IRS. Their executors could ask the manager at the broker'...
by bsteiner
Wed Mar 15, 2017 3:09 pm
Forum: Personal Finance (Not Investing)
Topic: Amend Return - MFJ to MFS
Replies: 37
Views: 1454

Re: Amend Return - MFJ to MFS

... However, you can't amend to change from joint to separate. Treas. Reg. § 1.6013-1(a)(1): https://www.law.cornell.edu/cfr/text/26/1.6013-1. "For any taxable year with respect to which a joint return has been filed, separate returns shall not be made by the spouses after the time for filing ...
by bsteiner
Wed Mar 15, 2017 2:19 pm
Forum: Personal Finance (Not Investing)
Topic: Amend Return - MFJ to MFS
Replies: 37
Views: 1454

Re: Amend Return - MFJ to MFS

The tax is almost always lower on a joint return. However, occasionally there is a special circumstance in which the tax is lower on separate returns. It can happen as a result of the floor on medical expenses, or because of some quirk in the state income tax where spouses each get a full ride up th...
by bsteiner
Wed Mar 15, 2017 9:01 am
Forum: Personal Consumer Issues
Topic: Cost of Dental Implant
Replies: 63
Views: 4543

Re: Cost of Dental Implant

Hello -- I'm a general dentist in NJ -- PLEASE don't go to another country to have this done. I have seen too many cases of failing, poorly done dentistry done in other countries. The patients come back to the US and now have to pay to have things redone. It's awful. ... I sometimes hear that you s...
by bsteiner
Tue Mar 14, 2017 10:07 am
Forum: Personal Finance (Not Investing)
Topic: Differences between TurboTax and H&R Block
Replies: 22
Views: 1797

Re: Differences between TurboTax and H&R Block

Lacrocious wrote:... I had used TaxAct for years and TaxCut before that for years ....

I am not recommending H&R Block any longer.


What's now known as H&R Block used to be known as TaxCut. It was originally known as Andrew Tobias' TaxCut, and for a while it was known as Kiplinger's TaxCut.
by bsteiner
Mon Mar 13, 2017 10:39 am
Forum: Personal Finance (Not Investing)
Topic: Getting Term Life Insurance - Plus or Basic? (Ohio National)
Replies: 12
Views: 521

Re: Getting Term Life Insurance - Plus or Basic? (Ohio National)

If you're in poor health at the end of the 20-year term (or at the end of the conversion period, if sooner), you might convert even if you wouldn't otherwise convert.
by bsteiner
Sun Mar 12, 2017 8:00 pm
Forum: Personal Finance (Not Investing)
Topic: Home Transfer
Replies: 18
Views: 1039

Re: Home Transfer

In addition to the disadvantages of this that others have pointed out, there are several other possible disadvantages of this: 1. You would have to draft it carefully to provide that if a child disclaims, his/her share goes to his/her issue rather than to the surviving children. 2. With a $2 million...
by bsteiner
Sun Mar 12, 2017 7:43 pm
Forum: Investing - Help with Personal Investments
Topic: Mitigating taxes on inherited IRA's and Annuities...
Replies: 14
Views: 883

Re: Mitigating taxes on inherited IRA's and Annuities...

You can probably stretch the inherited IRA over your life expectancy. If you're sure you won't need the money, and you're willing to let your children have control over it, and they're the contingent beneficiaries, then you could disclaim your share of the inherited IRA. There's often no good soluti...
by bsteiner
Sun Mar 12, 2017 4:09 pm
Forum: Personal Finance (Not Investing)
Topic: Real estate omitted from living trust
Replies: 6
Views: 601

Re: Real estate omitted from living trust

You wouldn't put your homestead in a living trust in Florida since it's not a probate asset (if it doesn't pass by operation of law it passes to the devisee or absent a specific devise it passes to the residuary beneficiaries) and because the cases go both ways as to whether the homestead protection...
by bsteiner
Sun Mar 12, 2017 11:59 am
Forum: Personal Finance (Not Investing)
Topic: Power of Attorney Issue/Question
Replies: 62
Views: 3569

Re: Power of Attorney Issue/Question

It's best to talk to whomever is holding your assets and ask them for their form for POA, especially durable POA forms and use those forms so they will honor them. My relative works as counsel for a bank and says that is clearly the safest way to go so you don't have any awkward surpasses when you ...
by bsteiner
Sat Mar 11, 2017 7:46 pm
Forum: Personal Finance (Not Investing)
Topic: Taxation Across State Lines 1120S (New York / New Jersey)
Replies: 14
Views: 764

Re: Taxation Across State Lines 1120S (New York / New Jersey)

Why won't you get a credit for your NY tax on the S income?

Does the S make sense since NYC doesn't recognize S for NYC corporate tax?
by bsteiner
Fri Mar 10, 2017 12:31 pm
Forum: Personal Finance (Not Investing)
Topic: Taxation of Irrevocable Trust Income
Replies: 44
Views: 1751

Re: Taxation of Irrevocable Trust Income

Thanks for giving me the opportunity to think about these things once again. I've been away from the trust business for a few years! Is there a book available that discusses taxation of trusts that you can recommend for those who want to read about it? MarkNYC or bsteiner may be able to recommend o...
by bsteiner
Fri Mar 10, 2017 11:17 am
Forum: Personal Finance (Not Investing)
Topic: Taxation of Irrevocable Trust Income
Replies: 44
Views: 1751

Re: Taxation of Irrevocable Trust Income

... Is there a book available that discusses taxation of trusts that you can recommend for those who want to read about it? MarkNYC or bsteiner may be able to recommend one. ... Blattmachr on Income Taxation of Trusts: http://www.pli.edu/product_files/Titles%2F123%2F%2350518_Blattmachr%20on%20Incom...
by bsteiner
Fri Mar 10, 2017 8:55 am
Forum: Personal Finance (Not Investing)
Topic: Second opinion on inheritance tax question
Replies: 7
Views: 750

Re: Second opinion on inheritance tax question

One more possibility. If the first decedent's Will contains a more appropriate trust for the fourth child, then the executors of the second decedent's estate may be able to disclaim the second decedent's interest in the first decedent's estate. They would have to do this within nine months from the ...
by bsteiner
Thu Mar 09, 2017 5:41 pm
Forum: Personal Finance (Not Investing)
Topic: Second opinion on inheritance tax question
Replies: 7
Views: 750

Re: Second opinion on inheritance tax question

BYUvol wrote:... the deceased person inherited everything less than 6 months ago themselves ....


In that case, the second decedent's estate will get a credit for the estate tax payable in the first decedent's estate on those assets.
by bsteiner
Thu Mar 09, 2017 12:42 pm
Forum: Personal Finance (Not Investing)
Topic: Second opinion on inheritance tax question
Replies: 7
Views: 750

Re: Second opinion on inheritance tax question

A family member recently passed in Oklahoma who had 4 children. The oldest 3 are responsible and capable adults, but the youngest has many legal, emotional, and mental challenges. When the family member passed, their will directed the 3 oldest to each receive 1/3 of the estate and each fund a porti...
by bsteiner
Thu Mar 09, 2017 11:50 am
Forum: Personal Finance (Not Investing)
Topic: Taxation of Irrevocable Trust Income
Replies: 44
Views: 1751

Re: Taxation of Irrevocable Trust Income

... I guess if I wanted to milk out as much as legally possible I would do that, but I'm fine to let the trust grow for the remaindermen. It's not unusual to want to accumulate income. Is this a marital (QTIP) trust under the Will of your spouse? If not, why would the decedent's Will mandate the di...
by bsteiner
Thu Mar 09, 2017 9:50 am
Forum: Personal Finance (Not Investing)
Topic: Which tax program should I use to prepare 1041 trust returns?
Replies: 3
Views: 376

Re: Which tax program should I use to prepare 1041 trust returns?

H&R Block Premium & Business includes the Federal fiduciary income tax return, including Schedule K-1, as well as the state fiduciary income tax returns for every state. The forms for individual returns are also included. You can prepare returns for as many trusts as you want, though it's in...
by bsteiner
Wed Mar 08, 2017 1:08 pm
Forum: Personal Consumer Issues
Topic: Obtaining Bachelors in Accounting @ 30
Replies: 32
Views: 1690

Re: Obtaining Bachelors in Accounting @ 30

I suggest, you get your Masters in Accounting, quite a few colleges offer this 1 year course, which will give you your required courses and a graduate degree. .... I have met folks that had a music degree for bachelors and were working in big 4, after getting their masters. .... I agree with your s...
by bsteiner
Wed Mar 08, 2017 11:21 am
Forum: Personal Finance (Not Investing)
Topic: Should I continue to pay Whole life insurance?
Replies: 17
Views: 1083

Re: Should I continue to pay Whole life insurance?

lotofquestions wrote:... I ... have chronic medical condition and can be disable or die anytime. ...


Depending on the likelihood of dying substantially earlier than average, that might be a factor in the decision.

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