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by bsteiner
Thu Jul 28, 2016 10:42 am
Forum: Personal Consumer Issues
Topic: Driving - Yielding/Right of Way at Uncontrolled 4 Way Intersection
Replies: 34
Views: 1194

Re: Driving - Yielding/Right of Way at Uncontrolled 4 Way Intersection

A friend of mine used to say that the cheaper car always has the right of way.
by bsteiner
Thu Jul 28, 2016 8:50 am
Forum: Personal Consumer Issues
Topic: Do Realtors Find FSBOs?
Replies: 63
Views: 3866

Re: Do Realtors Find FSBOs?

... I remember the pre-Internet days when it was hard to get exposure of your property without use of the MLS. ... Some people used to advertise their house for sale in the classified ads of their newspaper. In the NYC suburbs, they would advertise the nicer houses in the New York Times, usually in...
by bsteiner
Wed Jul 27, 2016 9:16 am
Forum: Personal Finance (Not Investing)
Topic: Daring to figure it out for myself -- To Roth or Not to Roth and defusing the RMD tax bomb
Replies: 27
Views: 3134

Re: Daring to figure it out for myself -- To Roth or Not to Roth and defusing the RMD tax bomb

... A Roth conversion is a wash if the tax bracket remains the same. At a constant tax bracket, a Roth conversion is always beneficial, assuming you have other money (in cash or high basis assets) with which to pay the tax on the conversion. For example, suppose you'll always be in a 30% tax bracke...
by bsteiner
Wed Jul 27, 2016 8:20 am
Forum: Investing - Help with Personal Investments
Topic: Private Wealth Management - Vanguard or ML
Replies: 28
Views: 2498

Re: Private Wealth Management - Vanguard or ML

... Just creating revocable and irrevocable trusts is done for pretty low-cost one-time fees, I've seen $1000 range of charges quoted. Revocable trusts make sense in some cases, and in some states, but for most people in most states they're not necessary and they tend to be a distraction. The figur...
by bsteiner
Tue Jul 26, 2016 8:06 am
Forum: Investing - Help with Personal Investments
Topic: Non-US citizen with US Brokers: Estate Tax risk?
Replies: 59
Views: 10803

Re: Non-US citizen with US Brokers: Estate Tax risk?

... I'd put the account into a revocable trust (so it transfers without probate). ... There's a cost to that, probably comparable to the cost of probating the Will; and you have to write the check for the revocable trust whereas someone else writes the check for probating the Will. My understanding...
by bsteiner
Mon Jul 25, 2016 11:18 am
Forum: Personal Finance (Not Investing)
Topic: Who should my wife and I see, a Financial Advisor, planner, etc.
Replies: 38
Views: 2378

Re: Who should my wife and I see, a Financial Advisor, planner, etc.

... I've spoken several times for NAPFA. Many of their people are good, but mainly manage assets for a percentage of assets. ... I really am puzzled how NAPFA comes into the conversation on this forum when people are trying to get advice just precisely without an AUM fee. Why do you speak up for th...
by bsteiner
Mon Jul 25, 2016 11:12 am
Forum: Investing - Theory, News & General
Topic: King Solomon was the original Boglehead - historically speaking
Replies: 28
Views: 1768

Re: King Solomon was the original Boglehead - historically speaking

“If you can look into the seeds of time and say which grain will grow and which will not, speak then to me.” – Banquo in Macbeth, Act 1, scene 3. In other words, diversify. “Ventures are not in one bottom trusted, nor to one place, nor is my whole estate upon the fortune of this present year.” – Ant...
by bsteiner
Mon Jul 25, 2016 10:04 am
Forum: Personal Finance (Not Investing)
Topic: Who should my wife and I see, a Financial Advisor, planner, etc.
Replies: 38
Views: 2378

Re: Who should my wife and I see, a Financial Advisor, planner, etc.

The ones on the website you mentioned appear to be retail brokers and people who manage assets for a percentage of assets. I've spoken several times for NAPFA. Many of their people are good, but mainly manage assets for a percentage of assets. I know Sheryl Garrett. She's franchised the concept of w...
by bsteiner
Sun Jul 24, 2016 10:12 pm
Forum: Investing - Help with Personal Investments
Topic: "New" combo product for LTC/Whole life insurance
Replies: 11
Views: 861

Re: "New" combo product for LTC/Whole life insurance

I was presented a hybrid product which included whole life, LTC, and an annuity. It was impossible to evaluate because I was uninterested in the insurance component. I don't have LTC and may not buy it. If you buy both life insurance and an annuity, isn't that like betting on both teams in the same...
by bsteiner
Sun Jul 24, 2016 8:43 pm
Forum: Personal Finance (Not Investing)
Topic: Who can I name as executor if I have no family or friends?
Replies: 12
Views: 2069

Re: Who can I name as executor if I have no family or friends?

Who can I name as executor of my estate if I am leaving to several charities and don't have any family or friends? I don't want to name an executor that will be very costly and take away from the charities and I don't want someone appointed by the probate court? A lawyer, accountant, bank or trust ...
by bsteiner
Sun Jul 24, 2016 4:57 pm
Forum: Personal Finance (Not Investing)
Topic: Getting Disability Insurance without financial planning services
Replies: 13
Views: 1080

Re: Getting Disability Insurance without financial planning services

... the bar association designed a low-end set of benefits to offer a low-end price, simple as that. You get what you pay for with DI, and most group policies like the one from the bar have the same type of lack of benefits. Drawbacks of the bar association policy: -Only 5-year true own occupation ...
by bsteiner
Sun Jul 24, 2016 10:23 am
Forum: Personal Finance (Not Investing)
Topic: Put out-of-state rental property in LLC's name?
Replies: 27
Views: 4711

Re: Put out-of-state rental property in LLC's name?

... I also own out-of-state property (annual income propery, not vacation) in Florida. I'm also in the process of finding out the implications of moving the title into an LLC. However I do not believe that an out-of-state LLC is permissable. The reason is that when I asked my MA attorney to move th...
by bsteiner
Sun Jul 24, 2016 9:58 am
Forum: Investing - Help with Personal Investments
Topic: Inherited Traditional 401k into Roth IRA
Replies: 18
Views: 1526

Re: Inherited Traditional 401k into Roth IRA

... I got bad advice from a FA, they said that whatever I do, I should rollover a loved one's 401k into a traditional IRA, even if it's not with their firm... There are two things I wish I knew about before following the FA's advice, that could had saved my family tens if not hundred of thousands o...
by bsteiner
Sat Jul 23, 2016 9:01 pm
Forum: Personal Finance (Not Investing)
Topic: Getting Disability Insurance without financial planning services
Replies: 13
Views: 1080

Re: Getting Disability Insurance without financial planning services

If you are a member of a professional organization and/or union, see if there is something available there. ... That was what I found. When I needed disability insurance, I bought it through the plan that one of the bar associations I'm a member of negotiated with an insurance company. Insurance ag...
by bsteiner
Sat Jul 23, 2016 8:36 pm
Forum: Personal Finance (Not Investing)
Topic: IRA beneficiaries question
Replies: 15
Views: 1083

Re: IRA beneficiaries question

A quick question about IRA beneficiaries for my mother in law. My father in law passed away about a month ago at only 61yrs old. My mother in law is still working and combined has around 2.5mil in IRAs between her and her late husband's accounts. Her financial advisor has asked her to change her be...
by bsteiner
Fri Jul 22, 2016 4:28 pm
Forum: Investing - Help with Personal Investments
Topic: portfolio management fee questions,help needed
Replies: 11
Views: 511

Re: portfolio management fee questions,help needed

My father recently passed away. He had an irrevocable living trust and I am one of the 2 beneficiaries. The trust contains a portfolio of stocks/mutual funds that is currently being managed by a non professional trustee. I have a childhood friend who works at morgan stanley as a financial advisor w...
by bsteiner
Thu Jul 21, 2016 10:06 am
Forum: Investing - Help with Personal Investments
Topic: Non-US citizen with US Brokers: Estate Tax risk?
Replies: 59
Views: 10803

Re: Non-US citizen with US Brokers: Estate Tax risk?

... There is a lot of questionable information on this thread .... Agreed. ... In what ways does having life ... insurance not mitigate the estate tax risk exposure? .... It's one type of investment that a nonresident alien can use to avoid U.S. estate tax. However, there are costs to life insuranc...
by bsteiner
Thu Jul 21, 2016 9:50 am
Forum: Personal Finance (Not Investing)
Topic: Adopt my Girlfriend???
Replies: 38
Views: 6522

Re: Adopt my Girlfriend???

caticind wrote:... it seems a great deal easier to either move OR establish a living trust.


What does a living trust have to do with the Maryland inheritance tax (or anything else in this thread)?
by bsteiner
Tue Jul 19, 2016 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Executor of estate with serious accountant issue
Replies: 7
Views: 930

Re: Executor of estate with serious accountant issue

Estate tax returns are generally done by lawyers.

Accountants generally do the fiduciary income tax returns for estates. However, many accountants (even good ones) aren't familiar with fiduciary income tax returns. Perhaps the lawyer handling the estate can recommend one who is.
by bsteiner
Tue Jul 19, 2016 11:54 am
Forum: Personal Finance (Not Investing)
Topic: Considerations about the irrevocable trust
Replies: 33
Views: 1819

Re: Considerations about the irrevocable trust

... the lawyer I talked to wasn't sure about the NRA funding the trust taxation issues. All he said is that he will hire a famous accounting firm to make a report on the trust. I am wondering is that a common practice in this business that the trust attorney hires an accounting firm to work on the ...
by bsteiner
Mon Jul 18, 2016 2:25 pm
Forum: Personal Finance (Not Investing)
Topic: C Corp inheritance
Replies: 11
Views: 547

Re: C Corp inheritance

... All he said was that the properties cannot be sold until they both pass. What happens when one passes? .... The corporation can sell the properties whenever it wants. Whether approval by the directors or the shareholders or both will depend on the law of the state where the corporation is incor...
by bsteiner
Mon Jul 18, 2016 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: C Corp inheritance
Replies: 11
Views: 547

Re: C Corp inheritance

... Yes it is a C Corp. So you are saying it would have to pay capital gain taxes on the original purchase price? It initially started as a Restaurant business which sold which resulted in the purchase of the properties under the C Corp. I do not know if it could elect to be an S Corp. I am still t...
by bsteiner
Mon Jul 18, 2016 12:39 pm
Forum: Personal Finance (Not Investing)
Topic: Considerations about the irrevocable trust
Replies: 33
Views: 1819

Re: Considerations about the irrevocable trust

... They [Premier Trust] look like a fairly new company, will they last ? I also don't see their rate for the trust administration in their fee schedule on their web site - did you have to email them to get one? I doubt that any trust company would disappear. There's a chance that any trust company...
by bsteiner
Mon Jul 18, 2016 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: C Corp inheritance
Replies: 11
Views: 547

Re: C Corp inheritance

Hello everyone, Wanted to know if I could get some advice. My father and his brother have a C Corp. (about $10 million commercial and rental properties). I was trying to plan how the inheritance would be carried out in the future. Me and my sister would like to continue to have the investment to ge...
by bsteiner
Mon Jul 18, 2016 8:30 am
Forum: Investing - Theory, News & General
Topic: Situation where earning $1 more will cost $2000 in taxes
Replies: 20
Views: 4033

Re: Situation where earning $1 more will cost $2000 in taxes

The old $100,000 income cap on eligibility for a Roth conversion.
by bsteiner
Sun Jul 17, 2016 9:28 pm
Forum: Personal Finance (Not Investing)
Topic: Considerations about the irrevocable trust
Replies: 33
Views: 1819

Re: Considerations about the irrevocable trust

... We have used Premier Trust of Nevada. They charge $1,850 a year. let me stress they are just the independent trustee so essentially do nothing except get you Nevada jurisdiction. ... I've worked with them as well. In this case, they don't need Alaska, Delaware, Nevada or South Dakota law for as...
by bsteiner
Sun Jul 17, 2016 8:04 pm
Forum: Personal Finance (Not Investing)
Topic: Considerations about the irrevocable trust
Replies: 33
Views: 1819

Re: Considerations about the irrevocable trust

... as I live in CA, the state tax is another reason for me not no become a trustee. My dad is considering his friend in Seattle, WA as a trustee, it may be the way as there is no state tax there I believe. What are the best states to consider for irrevocable trust creation? Also are there any reas...
by bsteiner
Sun Jul 17, 2016 6:29 pm
Forum: Personal Finance (Not Investing)
Topic: Considerations about the irrevocable trust
Replies: 33
Views: 1819

Re: Considerations about the irrevocable trust

I would look into something like a Nevada dynasty trust. Great laws there. You can be the trustee and use a Nevada trust company as the independent trustee. It's very inexpensive to use the Nevada trustee (under $2k a year) and you will be in full control. Check out a well known lawyer like .... Th...
by bsteiner
Sun Jul 17, 2016 1:43 pm
Forum: Personal Finance (Not Investing)
Topic: Leave kids money by trust or outright/tax implications
Replies: 71
Views: 9004

Re: Leave kids money by trust or outright/tax implications

Thank you so much NMJack and bsteiner. Particularly for pointing me to Natalie Choate. Still working my way through, but she is clear that many important points are either unresolved, or inferred based on PLRs. She does not seem concerned about this and she certainly appears to be THE authority on ...
by bsteiner
Sun Jul 17, 2016 12:15 pm
Forum: Investing - Help with Personal Investments
Topic: Estate Planning Question - High Networth
Replies: 3
Views: 602

Re: Estate Planning Question - High Networth

... The fee only firm I am talking with is the Colony Group - (thecolonygroup.com). But they also work as a fee based - I believe - for wealth management. But I manage my own money in a passive index based portfolio so I don't need to pay them to manage it. So they are offering me a fee only estate...
by bsteiner
Sun Jul 17, 2016 11:01 am
Forum: Investing - Help with Personal Investments
Topic: Estate Planning Question - High Networth
Replies: 3
Views: 602

Re: Estate Planning Question - High Networth

Another person on the team may add value. Sometimes he/she has a longstanding relationship with the client, knows the client's family, assets and objectives, and is able to help focus things, translate concepts into plain English, and be the catalyst to make things happen. However, another person on...
by bsteiner
Sat Jul 16, 2016 10:51 pm
Forum: Personal Finance (Not Investing)
Topic: IRA passable to foreign-national spouse?
Replies: 4
Views: 545

Re: IRA passable to foreign-national spouse?

The issue is how to get both the rollover and the marital deduction if you're leaving your IRA to your spouse outright rather than in a qualified domestic trust. The regulations say how you can leave pension benefits to the spouse and qualify for the marital deduction, and say that the IRS is to iss...
by bsteiner
Sat Jul 16, 2016 10:44 pm
Forum: Personal Finance (Not Investing)
Topic: Leave kids money by trust or outright/tax implications
Replies: 71
Views: 9004

Re: Leave kids money by trust or outright/tax implications

Bumping this thread with another question for the estate planning experts: Accumulation vs Conduit trusts for retirement assets. I know (or I should say, I THINK) bsteiner has suggested accumulation trusts are preferable. They keep assets protected even after the trust has taken RMD's from the reti...
by bsteiner
Fri Jul 15, 2016 2:20 pm
Forum: Investing - Theory, News & General
Topic: Converting 1/2 of an IRA to Roth this year and 1/2 next year?
Replies: 20
Views: 1022

Re: Converting 1/2 of an IRA to Roth this year and 1/2 next year?

There are lots of factors, but in general a last minute conversion will likely add value even if the beneficiaries are in a somewhat lower bracket than the IRA owner, assuming the IRA owner has other assets to pay the tax on the conversion. That's because you're effectively shifting assets into the ...
by bsteiner
Fri Jul 15, 2016 9:14 am
Forum: Personal Consumer Issues
Topic: Need help with infant fare issue with airline
Replies: 18
Views: 1440

Re: Need help with infant fare issue with airline

... Someone who's 21st birthday on Tuesday gets to start drinking Tuesday at 12:01am. If your 21st birthday is on a Tuesday you reach age 21 on the Monday before your birthday. That's because on the day before your 21st birthday you've been alive for 21 full years. The day before your birthday comp...
by bsteiner
Fri Jul 15, 2016 8:57 am
Forum: Personal Finance (Not Investing)
Topic: Filed Flexible Spending Account Late - Being Denied $5K spent
Replies: 20
Views: 2039

Re: Filed Flexible Spending Account Late - Being Denied $5K spent

Proposed Treasury Regulation § 1.121-1(e) permits the employer to offer the grace period of two months and 15 days. The proposed regulation says that taxpayers may rely on it pending the issuance of final regulations. Since it's a regulatory deadline, perhaps the employer could request a private let...
by bsteiner
Wed Jul 13, 2016 12:36 pm
Forum: Investing - Help with Personal Investments
Topic: Strategy for conversion of $1.8 million IRA
Replies: 63
Views: 5894

Re: Strategy for conversion of $1.8 million IRA

... In most scenarios early and aggressive IRA to Roth conversions results in increases in "net worth" - I'm defining that as aggregate value of all accounts - at the end of eg 20 and 30 year projection periods. So the mathematical case for early and aggressive conversions is sound, under...
by bsteiner
Wed Jul 13, 2016 12:02 pm
Forum: Personal Finance (Not Investing)
Topic: Gifted IRA distributions vs inherited IRA
Replies: 6
Views: 481

Re: Gifted IRA distributions vs inherited IRA

He should consider Roth conversions.
by bsteiner
Wed Jul 13, 2016 11:44 am
Forum: Personal Finance (Not Investing)
Topic: Will/Trust for immigrant family with small children
Replies: 6
Views: 391

Re: Will/Trust for immigrant family with small children

Since the children are U.S. citizens, they'll probably want to make sure that the trusts for their children are considered domestic (U.S.) rather than foreign. That requires, among other things, that a majority of the trustees be U.S. persons. Lots of families have family members in different countr...
by bsteiner
Wed Jul 13, 2016 11:16 am
Forum: Personal Finance (Not Investing)
Topic: Corporate Co-Trustee and Testamentary Trust
Replies: 4
Views: 335

Re: Corporate Co-Trustee and Testamentary Trust

My wife and I are doing some basic estate planning and have two young children. We are establishing a will that contains a provision for a testamentary trust. The recommended guardian in our documents will be a co-trustee with a corporate trustee. We want the ability to allow the co-trustee to chan...
by bsteiner
Wed Jul 13, 2016 10:58 am
Forum: Personal Finance (Not Investing)
Topic: I am doing this! First time Home Buyer. How do you choose an Attorney?
Replies: 16
Views: 1413

Re: I am doing this! First time Home Buyer. How do you choose an Attorney?

Phineas is exactly right. Some might instead advise you to check sites like Martindale or Avvo. These sites are, in fact, worthless. The ratings are bought. The ratings are not bought. Avvo is aimed at the general public. You can game the ratings. They look to see how much information you put in yo...
by bsteiner
Wed Jul 13, 2016 10:00 am
Forum: Personal Finance (Not Investing)
Topic: Specify asset allocation in a Trust?
Replies: 53
Views: 2437

Re: Specify asset allocation in a Trust?

Bruce, Assuming your last post described domestic asset protection trusts, how well do they work? I have read some pieces by attorneys summarizing the laws in several states, suggesting they should be effective and always somehow concluding that whatever state corresponds to their place of practice...
by bsteiner
Tue Jul 12, 2016 4:15 pm
Forum: Personal Finance (Not Investing)
Topic: Specify asset allocation in a Trust?
Replies: 53
Views: 2437

Re: Specify asset allocation in a Trust?

... There seems to be an assumption that the primary purpose of the trust protector is to have the power to remove and replace an independent trustee. While I understand that this is true in some/many cases, that was certainly not the example I provided. Removing a trustee after they've exercised p...
by bsteiner
Mon Jul 11, 2016 4:10 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review - [Using Edward Jones, how to simplify?]
Replies: 20
Views: 1682

Re: Portfolio Review - [Using Edward Jones, how to simplify?]

... I have obtained more information about our "annuities." ... Account #1 Amount invested $160,061.25 Estimated death benefit: $188,719.85 Estimated surrender value: $183,994.31 ... Account #2 Amount invested $58,000 Estimated death benefit: $73,118.23 Estimated surrender value: $71,187....
by bsteiner
Mon Jul 11, 2016 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: Failed to file S Corp Taxes on time, fined by the IRS
Replies: 9
Views: 1132

Re: Failed to file S Corp Taxes on time, fined by the IRS

I don't have a primary source handy, but the instructions to Form 2553 (the S election form) say that the corporation's first tax year begins on the earliest of when it has shareholders, it has assets, or it begins doing business: https://www.irs.gov/pub/irs-pdf/i2553.pdf. You said it had no income ...
by bsteiner
Mon Jul 11, 2016 3:01 pm
Forum: Personal Finance (Not Investing)
Topic: Failed to file S Corp Taxes on time, fined by the IRS
Replies: 9
Views: 1132

Re: Failed to file S Corp Taxes on time, fined by the IRS

I don't have a primary source handy, but the instructions to Form 2553 say that the corporation's first tax year begins on the earliest of when it has shareholders, it has assets, or it begins doing business. You said it had no income or activities. Did it have assets? If not, then its first tax yea...
by bsteiner
Mon Jul 11, 2016 2:54 pm
Forum: Personal Finance (Not Investing)
Topic: how/where to cash foreign check
Replies: 10
Views: 492

Re: how/where to cash foreign check

Many years ago I was able to cash a check in foreign currency by walking in to the New York office of the bank on which it was drawn, and someone there had mercy on me. Bruce, isn't a bank required to pay a check drawn on itself under the UCC? Gill I don't know if the U.S. affiliate is considered t...
by bsteiner
Mon Jul 11, 2016 1:46 pm
Forum: Personal Finance (Not Investing)
Topic: how/where to cash foreign check
Replies: 10
Views: 492

Re: how/where to cash foreign check

Many years ago I was able to cash a check in foreign currency by walking in to the New York office of the bank on which it was drawn, and someone there had mercy on me.
by bsteiner
Mon Jul 11, 2016 11:55 am
Forum: Personal Finance (Not Investing)
Topic: Specify asset allocation in a Trust?
Replies: 53
Views: 2437

Re: Specify asset allocation in a Trust?

The concept of a "trust protector" or "trust advisor" or "trustee appointor" or whatever you want to call the role that has control over the trustee gained vogue in the US during the boom of offshore asset protection trusts around the 1990s. But it wasn't a novel conce...
by bsteiner
Sun Jul 10, 2016 8:50 am
Forum: Investing - Help with Personal Investments
Topic: Strategy for conversion of $1.8 million IRA
Replies: 63
Views: 5894

Re: Strategy for conversion of $1.8 million IRA

... Hi bsteiner I am very interested in your note on trusts, and would like your views. Here are my thoughts - I am assuming I will die first, which is most likely, and will pass on sufficient assets so that my wife lives comfortably. I initially thought we could accomplish this by her inheriting m...

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