Search found 1711 matches

by bsteiner
Sun May 01, 2016 5:16 pm
Forum: Personal Finance (Not Investing)
Topic: Advice for new trustee, distributions
Replies: 50
Views: 2287

Re: Advice for new trustee, distributions

bsteiner, Thanks. But how easily could it have gone the other way? Testator left an estate consisting soley of BRK, trustee diversifies and misses out on one of the great investing successes in history? Diversification is usually better, but not always. The trustee needs a safe harbor of saying tha...
by bsteiner
Sun May 01, 2016 10:06 am
Forum: Personal Consumer Issues
Topic: Law School Advice
Replies: 89
Views: 7151

Re: Law School Advice

Georgetown seems tempting. It's an excellent law school, and Washington, D.C., is an exciting place.

While I've never been to Tennessee, Vanderbilt is also a very good law school. Two of my friends went there and they both did well.
by bsteiner
Sun May 01, 2016 10:01 am
Forum: Personal Finance (Not Investing)
Topic: Do I need anything more than WillMaker?
Replies: 13
Views: 1121

Re: Do I need anything more than WillMaker?

I wanted to get advice to see if Willmaker software would be sufficient for my needs. My current will was made with Willmaker since I think I am pretty uncomplicated. Situation: Age in low-mid 40s Current retirement nest egg (low-mid 7 figures) Own a majority share of a corporation (my portion prob...
by bsteiner
Sun May 01, 2016 8:08 am
Forum: Personal Finance (Not Investing)
Topic: Advice for new trustee, distributions
Replies: 50
Views: 2287

Re: Advice for new trustee, distributions

... As an outstanding trusts and estates lawyer told me years ago "banks don't want to be sued". If they looked at the investment restrictions and saw lawsuit bait- follow the terms and get sued for not being prudent, act prudently and get sued for not following the terms, they would just...
by bsteiner
Tue Apr 26, 2016 7:59 am
Forum: Personal Finance (Not Investing)
Topic: Advice for new trustee, distributions
Replies: 50
Views: 2287

Re: Advice for new trustee, distributions

Rodc wrote:Is the trust allowed to buy an annuity with some of the assets? ....


See this case in Minnesota on this: https://mn.gov/law-library-stat/archive ... 120814.pdf.
by bsteiner
Mon Apr 25, 2016 9:10 pm
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Trust - Am I being Bamboozled?
Replies: 50
Views: 4893

Re: Irrevocable Trust - Am I being Bamboozled?

... It was ironic that one of the firms had a fancy-hotel-free-seminar-based-sales-pitch that included a testimony of how much they treasured "helping" people. .... That's a clear warning sign. If you go to the free dinner seminar and you're the one who buys the annuity, the living trust,...
by bsteiner
Mon Apr 25, 2016 2:04 pm
Forum: Personal Finance (Not Investing)
Topic: Advice for new trustee, distributions
Replies: 50
Views: 2287

Re: Advice for new trustee, distributions

"...may from time to time may pay to or on behalf of [beneficiary] such amounts of income and/or principle as the trustee in the trustee's sole, absolute and uncontrolled discretion deems necessary or advisable for [beneficiary's] health, support, maintenance or care" I assume this is an ...
by bsteiner
Sun Apr 24, 2016 8:27 pm
Forum: Personal Finance (Not Investing)
Topic: Wills & Trusts - Necessity
Replies: 14
Views: 1633

Re: Wills & Trusts - Necessity

We have 3 children (6, 8, 14) and live in NY state. ... Most of our assets are liquid (401ks, IRAs, bank accounts, 529 plans, employer stock incentive plans etc) and are either jointly held with my spouse or have her as the primary beneficiary with the assets distributed equally to the three childr...
by bsteiner
Thu Apr 21, 2016 10:04 pm
Forum: Personal Finance (Not Investing)
Topic: Step down in basis (at death)?
Replies: 15
Views: 1098

Re: Step down in basis (at death)?

I know there are some situations where you can elect to use the FMV 6 months after death instead (which could potentially result in higher basis) - don't know the details of where this applies. That used to be the case. However, since 1984 you can only use alternate valuation if it reduces both the...
by bsteiner
Thu Apr 21, 2016 9:22 pm
Forum: Personal Finance (Not Investing)
Topic: Step down in basis (at death)?
Replies: 15
Views: 1098

Re: Step down in basis (at death)?

The person approaching death should sell the stocks at a loss, or gift them to the heirs to maintain the cost basis. ... Unused capital losses die with the decedent. If you make a gift of property that has gone down in value, the donee takes the donor's basis for purposes of determining gain, but a...
by bsteiner
Thu Apr 21, 2016 11:15 am
Forum: Personal Finance (Not Investing)
Topic: Tax prep fees for trust? [Final returns for trust and estate]
Replies: 5
Views: 462

Re: Tax prep fees for trust? [Final returns for trust and estate]

The accountant had to do four sets of returns: the returns for the two trusts (most likely the marital and credit shelter trust under the original poster's father's Will), the returns for the mother's estate, and the mother's final returns. Without knowing more about the decedent, her estate and the...
by bsteiner
Thu Apr 21, 2016 8:39 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage advice for second home.
Replies: 18
Views: 1376

Re: Mortgage advice for second home.

Is more than $100k of a primary home cash out refi tax-deductible, if used to purchase a second home? I would get a mortgage on the second home, and figure out when and how to pay it off later. Correct. If you take out a mortgage on the vacation home, you'll be able to deduct the interest against o...
by bsteiner
Wed Apr 20, 2016 11:00 am
Forum: Investing - Theory, News & General
Topic: Self Directed IRA question
Replies: 17
Views: 952

Re: Self Directed IRA question

We've done many of these: 1. One was for a mortgage loan to an unrelated party. 2. One was to purchase a block of stock in a thinly traded public company directly from the selling shareholder who was an unrelated party. The block was large enough that the seller couldn't have easily sold it on the p...
by bsteiner
Tue Apr 19, 2016 11:43 am
Forum: Personal Finance (Not Investing)
Topic: Help with estate planning issues/Trust vs Will
Replies: 17
Views: 2103

Re: Help with estate planning issues/Trust vs Will

Thank you, Bruce, for your response above and for the link to your paper. This was very helpful- particularly the specific examples. ... Just a few more questions, and I think I will have a beginner's understanding of our options. Hopefully, Bruce, you will indulge me one more time... I am still co...
by bsteiner
Mon Apr 18, 2016 11:58 am
Forum: Personal Finance (Not Investing)
Topic: Help with estate planning issues/Trust vs Will
Replies: 17
Views: 2103

Re: Help with estate planning issues/Trust vs Will

Bruce, You did not mention among your reasons for a revocable living trust: ease if having someone take over to manage finances if the grantor needs thus. In the only case in which I have been involved, everything was fine and simple for assets held in the trust. I proved I was the person named as ...
by bsteiner
Sun Apr 17, 2016 5:13 pm
Forum: Personal Finance (Not Investing)
Topic: Need A Trust Company
Replies: 19
Views: 1580

Re: Need A Trust Company

Here's who we use for our trust services. http://www.theprivatetrustcompany.com/aboutptc.htm They do not manage our investments. We currently do that on our own, but have an investment company selected to take care of that function after our passing, in addition to having the trust activated at tha...
by bsteiner
Sun Apr 17, 2016 4:26 pm
Forum: Personal Finance (Not Investing)
Topic: Help with estate planning issues/Trust vs Will
Replies: 17
Views: 2103

Re: Help with estate planning issues/Trust vs Will

2. Leave $1 million of your IRA and your $1 million of other assets to the credit shelter trust, so as to fully fund it, and the rest of your IRA to your spouse. You'll need a formula beneficiary designation form, which will be some effort. Bruce - as a simpler alternative, couldn't the grantor sim...
by bsteiner
Sun Apr 17, 2016 2:30 pm
Forum: Personal Finance (Not Investing)
Topic: Questions about an inherited trust
Replies: 3
Views: 394

Re: Questions about an inherited trust

Sadly, my MIL just passed away. This has resulted in my wife and her sibling unexpectedly becoming successor co-trustees for a trust (created under California law) with $900k in mutual funds (no IRAs or other retirement assets) at a couple of non-Vanguard firms. In trying to understand this situati...
by bsteiner
Sun Apr 17, 2016 8:28 am
Forum: Personal Finance (Not Investing)
Topic: Help with estate planning issues/Trust vs Will
Replies: 17
Views: 2103

Re: Help with estate planning issues/Trust vs Will

First off, thank you so much, bsteiner. That was the most specific and clear explanation of the potential advantages of a living trust I have ever seen- by a large margin. I now feel more comfortable making that decision. ... That's probably the least important issue here. ... I am most confused by...
by bsteiner
Fri Apr 15, 2016 8:21 am
Forum: Personal Finance (Not Investing)
Topic: Trust advice for a beginner Trustee
Replies: 25
Views: 1894

Re: Trust advice for a beginner Trustee

I am a Trustee responsible for my deceased wife's trust. The only beneficiary is her son, my stepson, who will soon turn 26. ... He also has a property valued at approximately $475K which will be sold within the next 12 months and the proceeds added to the trust. ... I didn't catch this before. If ...
by bsteiner
Thu Apr 14, 2016 11:54 am
Forum: Personal Finance (Not Investing)
Topic: Help with estate planning issues/Trust vs Will
Replies: 17
Views: 2103

Re: Help with estate planning issues/Trust vs Will

... Other than privacy and avoidance of probate (which can be accomplished with payable on death accounts), and the ability to execute more involved mechanisms of distribution to the heirs, why would one opt for the revocable living trust over a will? .... Revocable trusts are overhyped and oversol...
by bsteiner
Thu Apr 14, 2016 8:49 am
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth - help me help my CPA understand
Replies: 29
Views: 2053

Re: Backdoor Roth - help me help my CPA understand

CT-Scott wrote:... The last two years I've paid this CPA just over $200 to handle our taxes. ... I doubt I'd be able to get my taxes done for anything close to $200 by a more savvy CPA ...


It's like that with lots of things.
by bsteiner
Wed Apr 13, 2016 8:27 pm
Forum: Personal Finance (Not Investing)
Topic: Help with estate planning issues/Trust vs Will
Replies: 17
Views: 2103

Re: Help wit estate planning issues/Trust vs Will

What state are you in? I'm guessing Washington since it's the only one that comes to mind that's a community property state and that also has a state estate tax, but it would help to be sure,
by bsteiner
Wed Apr 13, 2016 12:22 pm
Forum: Personal Finance (Not Investing)
Topic: Trust advice for a beginner Trustee
Replies: 25
Views: 1894

Re: Trust advice for a beginner Trustee

... How can he have a vote with regard to a distribution in his own favor? I had thought this wasn't a problem if there were some standard for distributions beyond the discretion of the trustee and that even if there were a problem, at worst it would be to disregard the trust for creditor protectio...
by bsteiner
Tue Apr 12, 2016 3:15 pm
Forum: Personal Finance (Not Investing)
Topic: Trust advice for a beginner Trustee
Replies: 25
Views: 1894

Re: Trust advice for a beginner Trustee

... How can he have a vote with regard to a distribution in his own favor? I had thought this wasn't a problem if there were some standard for distributions beyond the discretion of the trustee and that even if there were a problem, at worst it would be to disregard the trust for creditor protectio...
by bsteiner
Tue Apr 12, 2016 2:31 pm
Forum: Investing - Theory, News & General
Topic: what is the draw of active management?
Replies: 37
Views: 2025

Re: what is the draw of active management?

... On the tax deferred vs taxable decision there is an argument for a small number of people. If an investor is about to start required minimum distributions, is in a relatively low tax bracket now and will be in a much higher tax bracket when they start the distributions, it may not make sense to...
by bsteiner
Tue Apr 12, 2016 1:47 pm
Forum: Personal Finance (Not Investing)
Topic: Trust advice for a beginner Trustee
Replies: 25
Views: 1894

Re: Trust advice for a beginner Trustee

... how will payouts be managed when it's 50/50? How was it decided that he gets $1600/month? .... Unless the Will provides otherwise, trustees act by majority vote, so if there's a tie vote as to whether to make a distribution, the motion fails (so the distribution doesn't get made). How can he ha...
by bsteiner
Tue Apr 12, 2016 9:29 am
Forum: Investing - Help with Personal Investments
Topic: Living Trust Advice
Replies: 12
Views: 1314

Re: Living Trust Advice

Hello, My wife and I recently had our first child. I have savings, checking, brokerage accounts, multiple IRA's and a 401k. I also own a condo. I would like to set up a living trust to include all of my assets in case something were to happen to me (though I am still young, early thirties). I am se...
by bsteiner
Tue Apr 12, 2016 8:03 am
Forum: Investing - Theory, News & General
Topic: what is the draw of active management?
Replies: 37
Views: 2025

Re: what is the draw of active management?

There could be a legitimate case to be made for higher income people who will have a higher marginal tax rate in retirement to make a portion of their retirement investments in taxable. This is because all withdrawals from tax deferred accounts are taxes at higher ordinary income tax rates. Whereas...
by bsteiner
Mon Apr 11, 2016 12:52 pm
Forum: Investing - Theory, News & General
Topic: Annuities and longevity risk, analyzing the problem
Replies: 45
Views: 3703

Re: Annuities and longevity risk, analyzing the problem

ResearchMed, the "rational decumulation" paper cited by Larry, various papers on "money's worth" analysis of annuities as cited e.g. by Vanguard, here , and some crude amateur stuff I did with a spreadsheet all come to the same conclusion--commercially available annuities seem t...
by bsteiner
Sun Apr 10, 2016 8:19 pm
Forum: Personal Finance (Not Investing)
Topic: One Home in Tax Free State. Second Home in Taxed State??
Replies: 12
Views: 1324

Re: One Home in Tax Free State. Second Home in Taxed State??

... The rationale behind the two residences is actually more weather related than tax based. I don't like cold winters and I hate hot humid summers. A place in Canada will handle the summers nicely while winters can be in California, Arizona or Florida. If I can tax optimize at the same time, all t...
by bsteiner
Sun Apr 10, 2016 7:39 pm
Forum: Personal Finance (Not Investing)
Topic: One Home in Tax Free State. Second Home in Taxed State??
Replies: 12
Views: 1324

Re: One Home in Tax Free State. Second Home in Taxed State??

I'm wondering if and how one can structure one's life so as to pay no state income taxes but still spend several months a year in a state with income tax. As a for instance, what would my state income tax situation be if I have $200,000 in income from dividends, interest, and mandatory IRA withdraw...
by bsteiner
Sun Apr 10, 2016 11:26 am
Forum: Personal Finance (Not Investing)
Topic: Trust Protector
Replies: 23
Views: 1119

Re: Trust Protector

... The trust document is complex and I have difficulty following everything (IANAL). However, I believe afan is correct. The Protector is for the irrevocable family trust that occurs after my (and my spouse's) death. ... What is it that you want the protector to do? Is there some reason a child sh...
by bsteiner
Sun Apr 10, 2016 7:42 am
Forum: Investing - Theory, News & General
Topic: Methuselah fund: Vanguard?
Replies: 16
Views: 2240

Re: Methuselah fund: Vanguard?

... I think you can name a child as a beneficiary and then they hopefully follow your wishes(and so on down the line until your 100 years are up). If each generation is 30 years, if you do it outright rather than in trust, the fund will be cut in half by estate taxes (or reduced by 40% if your desc...
by bsteiner
Sat Apr 09, 2016 11:21 pm
Forum: Investing - Theory, News & General
Topic: Methuselah fund: Vanguard?
Replies: 16
Views: 2240

Re: Methuselah fund: Vanguard?

... So what is the approximate cost? Would $10,000 work? Also you make it sound like a one time deal but sounds like it would require maintenance. Hence why I was suggesting like 0.5%-1.0% through Vanguard, since it seems potentially more complex than the 0.3% they charge for a personal advisor? Mo...
by bsteiner
Sat Apr 09, 2016 10:51 pm
Forum: Personal Finance (Not Investing)
Topic: Trust Protector
Replies: 23
Views: 1119

Re: Trust Protector

... Is there any reason you need or want a revocable trust? ... The original reason for the trusts were to minimize the payment of federal and state estate taxes. Those laws have changed so that the trusts were no longer necessary. However, since they already existed, we felt it was worthwhile to k...
by bsteiner
Sat Apr 09, 2016 10:45 pm
Forum: Investing - Theory, News & General
Topic: Methuselah fund: Vanguard?
Replies: 16
Views: 2240

Re: Methuselah fund: Vanguard?

It's fairly easy to create a trust that will last for, say, 90 years, and then pay out to great-grandchildren. Many states now allow trusts to last for a very long time or allow perpetual trusts. Since the number of descendants increases with each generation (for example, you might have two childre...
by bsteiner
Sat Apr 09, 2016 9:09 pm
Forum: Personal Finance (Not Investing)
Topic: Trust Protector
Replies: 23
Views: 1119

Re: Trust Protector

sport wrote:... I am posting to ask what qualities I should look for in the new Protector.


What is it that you want the protector to do?

Is there any reason you need or want a revocable trust?
by bsteiner
Sat Apr 09, 2016 8:54 pm
Forum: Personal Finance (Not Investing)
Topic: Trust Protector
Replies: 23
Views: 1119

Re: Trust Protector

I planned and managed trusts my entire career and don't remember a trust protector for a domestic trust. I have no idea why you need one. Me neither. Trust Protectors have been used for revocable trusts to insure that successor trustees faithfully carry out the wishes of grantors/beneficiaries in t...
by bsteiner
Sat Apr 09, 2016 7:29 pm
Forum: Investing - Theory, News & General
Topic: Methuselah fund: Vanguard?
Replies: 16
Views: 2240

Re: Methuselah fund: Vanguard?

It's fairly easy to create a trust that will last for, say, 90 years, and then pay out to great-grandchildren. Many states now allow trusts to last for a very long time or allow perpetual trusts. Since the number of descendants increases with each generation (for example, you might have two children...
by bsteiner
Fri Apr 08, 2016 8:27 am
Forum: Investing - Help with Personal Investments
Topic: Foxbusiness: Why Taxes, Not Fees are Retirement Savers' Biggest Enemy
Replies: 32
Views: 3340

Re: Foxbusiness: Why Taxes, Not Fees are Retirement Savers' Biggest Enemy

Fox Business isn't political in the same way as Fox News. I know Ed Slott. We've been on some continuing education panels together, and I've written for his newsletter and am a technical advisor for it. While he's not a lawyer, and while the primary market for his seminars is stockbrokers and other ...
by bsteiner
Wed Apr 06, 2016 3:04 pm
Forum: Personal Finance (Not Investing)
Topic: Fee for setting up trusts
Replies: 11
Views: 728

Re: Fee for setting up trusts

If you go to the free dinner seminar, and you're the one who buys the annuity, the living trust, the timeshare, or the bridge, not only did you pay for your free dinner, but you paid for the free dinners for everyone else in the room.
by bsteiner
Wed Apr 06, 2016 9:17 am
Forum: Personal Consumer Issues
Topic: Out of state wills and trusts
Replies: 10
Views: 686

Re: Out of state wills and trusts

A Will signed in one state will probably be valid in another state, but it may not say what you would want it to say if you move to another state. For example, in this case, California is a community property state but Florida isn't, so there may be things they might do differently now that they're ...
by bsteiner
Wed Apr 06, 2016 7:51 am
Forum: Personal Finance (Not Investing)
Topic: Revocable Living Trust - 457(b) Beneficiary - Tax Question
Replies: 4
Views: 356

Re: Revocable Living Trust - 457(b) Beneficiary - Tax Question

... If the lawyer is "less than helpful," Wife may want to consider working with a lawyer who will be helpful. Your articles are incredibly helpful, thank you. To answer your question about what Husband was trying to accomplish - I don't believe he was advised well in regards to what asse...
by bsteiner
Tue Apr 05, 2016 9:58 pm
Forum: Personal Finance (Not Investing)
Topic: Should I convert a large IRA to a Roth IRA and incur large taxes
Replies: 86
Views: 6781

Re: Should I convert a large IRA to a Roth IRA and incur large taxes

I will always be in at least the 33% federal bracket and with state, it is about 40%. I'm sorry to bring this up, but the discussion assumes you will actually be in the 33% + 7% tax brackets in retirement. That's not impossible, but it certainly would be unusual. In today's dollars, your taxable in...
by bsteiner
Tue Apr 05, 2016 9:47 pm
Forum: Personal Finance (Not Investing)
Topic: Revocable Living Trust - 457(b) Beneficiary - Tax Question
Replies: 4
Views: 356

Re: Revocable Living Trust - 457(b) Beneficiary - Tax Question

... Husband had a living revocable trust, with the wife named as the beneficiary. Husband has two retirement accounts through a county government, a money purchase plan, and a 457(b) plan, on which he named the Trust as the primary beneficiary. Husband recently died. The question is, will the full ...
by bsteiner
Tue Apr 05, 2016 9:38 pm
Forum: Personal Finance (Not Investing)
Topic: Revocable Living Trust - 457(b) Beneficiary - Tax Question
Replies: 4
Views: 356

Re: Revocable Living Trust - 457(b) Beneficiary - Tax Question

TallBoy29er wrote:... I do believe that a revocable living trust becomes irrevocable at the death of the grantor, but would like confirmation. ...


Even if it's still revocable, if the grantor revokes it after he/she dies, we won't know about it.
by bsteiner
Tue Apr 05, 2016 1:54 pm
Forum: Personal Finance (Not Investing)
Topic: Should I convert a large IRA to a Roth IRA and incur large taxes
Replies: 86
Views: 6781

Re: Should I convert a large IRA to a Roth IRA and incur large taxes

... One should take note that almost EVERY major Republican candidate is either proposing a low flat tax or dramatically decreasing the top marginal rate. Granted to accomplish this, there will have to be Republican control of the Presidency, House, and Senate, and maybe more than just a 1-2 vote m...
by bsteiner
Tue Apr 05, 2016 1:22 pm
Forum: Personal Finance (Not Investing)
Topic: Any states that tax Roth withdrawals?
Replies: 49
Views: 3510

Re: Any states that tax Roth withdrawals?

The New York income tax generally follows the Federal. If you're over age 59 1/2, New York has a $20,000 exclusion for retirement benefits. New York is about to become a low tax state for middle income taxpayers. The new budget bill will reduce the top income tax rate for middle income taxpayers (wh...

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