Search found 2306 matches

by bsteiner
Sat Feb 18, 2017 7:46 pm
Forum: Personal Finance (Not Investing)
Topic: How to Split $10K Fed Tax Bill Between Husband and Wife
Replies: 38
Views: 1949

Re: How to Split $10K Fed Tax Bill Between Husband and Wife

Treas. Reg. 20.2053-6(f) says that you figure what the tax would be on separate returns, and then prorate the tax on the joint return: https://www.law.cornell.edu/cfr/text/26/20.2053-6. That's mainly relevant when one spouse dies and leaves his/her estate other than to the surviving spouse (such as ...
by bsteiner
Wed Feb 15, 2017 4:44 pm
Forum: Investing - Help with Personal Investments
Topic: How & when to sell lots of a single stock with huge capital gains
Replies: 40
Views: 2663

Re: How & when to sell lots of a single stock with huge capital gains

There are several choices: hold the stock until death and take the investment risk, sell and pay the tax, use an exchange fund (which has expenses and other disadvantages), or a charitable remainder trust (which has some cost and inflexibility, and defers rather than eliminates the tax). It's not al...
by bsteiner
Sun Feb 12, 2017 3:44 pm
Forum: Personal Consumer Issues
Topic: Terrible negotiator - need help with words to use [Buying a car]
Replies: 81
Views: 5025

Re: Terrible negotiator - need help with words to use [Buying a car]

... I also agree with earlier posters that getting a good deal is sufficient. No need to over do it to save several hundred dollars. ... Many of the buying services appear to be private label versions of Truecar. Pentagon Federal gives you back a portion of the fee the dealer pays Truecar in the fo...
by bsteiner
Sun Feb 12, 2017 10:41 am
Forum: Investing - Help with Personal Investments
Topic: Investing a foundation's endowment
Replies: 15
Views: 1180

Re: Investing a foundation's endowment

... Are there experienced investors on the board? Are stakeholders more worried about capital preservation or inflation protection (longevity of the contribution)? How involved will stakeholders be in ongoing decisions? Do they have the knowledge and capacity to take a long-term approach or will sh...
by bsteiner
Fri Feb 10, 2017 9:18 am
Forum: Investing - Help with Personal Investments
Topic: Investing a foundation's endowment
Replies: 15
Views: 1180

Investing a foundation's endowment

A propos this article in today's New York Times on how a small college did better investing passively than larger universities, https://www.nytimes.com/2017/02/09/business/college-endowment-investment-returns.html?ref=todayspaper, how would you recommend that a charitable foundation invest a $5 mill...
by bsteiner
Thu Feb 09, 2017 10:23 pm
Forum: Personal Finance (Not Investing)
Topic: Putting timeshare in a living trust
Replies: 24
Views: 1736

Re: Putting timeshare in a living trust

This may not help here since the timeshare owner lives in California, but if the timeshare owner lived in another state, Hawaii doesn't require ancillary probate. It's sufficient to file with the court in Hawaii an authenticated copy of the personal representative's appointment in the home state, a...
by bsteiner
Thu Feb 09, 2017 1:22 pm
Forum: Personal Finance (Not Investing)
Topic: Life estate at death
Replies: 20
Views: 1610

Re: Life estate at death

can you define a 'life estate' for a layperson? A life estate is the ownership of an asset for a person's lifetime. The holder of a life estate (called the "life tenant") can use the property during his/her lifetime, can sell his/her life estate (though there wouldn't be much of a market ...
by bsteiner
Thu Feb 09, 2017 12:02 pm
Forum: Personal Finance (Not Investing)
Topic: Putting timeshare in a living trust
Replies: 24
Views: 1736

Re: Putting timeshare in a living trust

This may not help here since the timeshare owner lives in California, but if the timeshare owner lived in another state, Hawaii doesn't require ancillary probate. It's sufficient to file with the court in Hawaii an authenticated copy of the personal representative's appointment in the home state, an...
by bsteiner
Thu Feb 09, 2017 11:52 am
Forum: Personal Finance (Not Investing)
Topic: Life estate at death
Replies: 20
Views: 1610

Re: Life estate at death

... I would have expected irrevocably vested remainder interests to be treated as completed gifts, but the IRS plays by its own rules. ... Congress makes the rules, or at least passes the laws. The estate tax and the gift tax are different. If you give away the remainder but keep the life estate, i...
by bsteiner
Wed Feb 08, 2017 9:34 am
Forum: Personal Finance (Not Investing)
Topic: Parents estate plan questions
Replies: 1
Views: 400

Re: Parents estate plan questions

I'm reviewing the estate plans that my parents have set up and I have a few questions... If one dies first, the assets that the deceased has goes to the other in a trust where I'm a trustee. The income from this trust can be used to provide for the survivor. As far as I can tell, the principal can'...
by bsteiner
Mon Feb 06, 2017 10:42 pm
Forum: Personal Finance (Not Investing)
Topic: Real Estate in the name of the parents or adult children
Replies: 15
Views: 1053

Re: Real Estate in the name of the parents or adult children

... bsteiner - in looking into this more a few questions for you: ... as for the separate Trusts with IRA's - I don't see info on how that can work. (I don't know enough on trusts but) It seems like we would be forced to take distributions and pay taxes pretty quickly. Is that not true with a trust...
by bsteiner
Mon Feb 06, 2017 10:36 pm
Forum: Personal Finance (Not Investing)
Topic: tIRA to Charity
Replies: 30
Views: 1329

Re: tIRA to Charity

... I made my existing Donor Advised Charitable Fund the SECONDARY beneficiary of my Vanguard tIRA. I explained to my adult kids ... that if they accept the inheritance, they'd probably only net 20-30% and the government would get 70-80%. ... It's not that bad. If the stretch is available and they ...
by bsteiner
Mon Feb 06, 2017 11:50 am
Forum: Personal Finance (Not Investing)
Topic: tIRA to Charity
Replies: 30
Views: 1329

Re: tIRA to Charity

... Is there a Fidelity Charitable or Vanguard equivalent for foundations? That is low cost, turnkey setup and management for the most common cookie cutter foundation that's adequate for starting foundation. What are minimums you'd consider for perpetual foundation vs time limited? (vs. just accept...
by bsteiner
Mon Feb 06, 2017 9:23 am
Forum: Personal Finance (Not Investing)
Topic: tIRA to Charity
Replies: 30
Views: 1329

Re: tIRA to Charity

... according to James Langue, an IRA Guru often referenced here, there is a huge likelihood that IRAs will have to be withdrawn and taxed over only 5 years by non-spousal heirs. If you leave your IRA to charity, this won't be relevant. I know Jim Lange, and have been a guest on his radio show seve...
by bsteiner
Sun Feb 05, 2017 6:13 pm
Forum: Personal Finance (Not Investing)
Topic: tIRA to Charity
Replies: 30
Views: 1329

Re: tIRA to Charity

You might want to consider leaving your IRA to a foundation or a donor advised fund. With $700,000 you could reasonably do either one. The foundation takes more effort to set up but gives the family more control and will probably have lower ongoing costs. If your wife died recently, there may be som...
by bsteiner
Sun Feb 05, 2017 2:52 pm
Forum: Personal Finance (Not Investing)
Topic: Real Estate in the name of the parents or adult children
Replies: 15
Views: 1053

Re: Real Estate in the name of the parents or adult children

NotWhoYouThink wrote:... I assume there are as many sharks in Florida as there always have been, and that some of their friends and neighbors are getting terrible investment and estate advice, to the benefit of the advisors. ....


Your assumptions are correct.
by bsteiner
Sun Feb 05, 2017 1:38 pm
Forum: Personal Finance (Not Investing)
Topic: Real Estate in the name of the parents or adult children
Replies: 15
Views: 1053

Re: Real Estate in the name of the parents or adult children

... I can't imagine when it [giving their apartments to their children] would be appropriate to do. When would this be a good idea? ... Not sure why he thinks it may be the right thing to do and I'm sure it's because someone in his senior community mentioned that they did it with their kids for som...
by bsteiner
Sun Feb 05, 2017 1:34 pm
Forum: Personal Finance (Not Investing)
Topic: Real Estate in the name of the parents or adult children
Replies: 15
Views: 1053

Re: Real Estate in the name of the parents or adult children

My parents (age 80) own two apartments currently in both of their names (joint owners). They currently spend 6 months in each location. In terms of taxes, my parents receive the bulk of their income from my fathers pension. He left his job with a disability and his pension income ($7k month) is not...
by bsteiner
Fri Feb 03, 2017 9:03 am
Forum: Personal Finance (Not Investing)
Topic: Bank accounts, broker accounts and 401K access to beneficiary
Replies: 5
Views: 558

Re: Bank accounts, broker accounts and 401K access to beneficiary

I would be more concerned about the car ride to the airport (unless you're able to get to the airport by train) than the flight. Occasionally someone wants to do a stopgap Will before they go on vacation, with a view toward doing a regular Will when they return. However, it's almost as much work to ...
by bsteiner
Thu Feb 02, 2017 4:42 pm
Forum: Personal Finance (Not Investing)
Topic: Contesting a will or trust
Replies: 31
Views: 1480

Re: Contesting a will or trust

As others have pointed out, you can challenge a Will on the grounds of forgery (we once challenged a Will on that ground), fraud, undue influence, or lack of capacity. It's generally difficult to challenge a Will. However, each case turns on its own facts. We have no children. We have 6 assorted nie...
by bsteiner
Thu Feb 02, 2017 11:31 am
Forum: Personal Finance (Not Investing)
Topic: Are Defined Benefit Plans a rip off?
Replies: 49
Views: 3966

Re: Are Defined Benefit Plans a rip off?

There are two basic types of retirement plans: defined benefit and defined contribution. In a defined benefit plan, the benefit is defined, but you don't have your own account. For example, 1% or 2% of the average of your highest 3 years' salary, multiplied by the number of years you worked for the ...
by bsteiner
Wed Feb 01, 2017 3:49 pm
Forum: Personal Finance (Not Investing)
Topic: Spendthrift Daughter
Replies: 44
Views: 3347

Re: Spendthrift Daughter

Don't do it. Instead establish a schedule where she receives a little at a time so she doesn't spend it all at once. Don't establish a schedule. Let the trustees decide. You don't know what the future will bring. ... Read 'Beyond the Grave' by Jeffrey Condon. Then see a lawyer who specializes in th...
by bsteiner
Tue Jan 31, 2017 4:56 pm
Forum: Personal Finance (Not Investing)
Topic: Search 1099's claimed against you?
Replies: 17
Views: 1017

Re: Search 1099's claimed against you?

You can mail or fax Form 4506-T to the IRS and check box 8 and they'll tell you: https://www.irs.gov/pub/irs-pdf/f4506t.pdf.
by bsteiner
Mon Jan 30, 2017 12:58 pm
Forum: Personal Finance (Not Investing)
Topic: Credit Shelter Trusts in the Era of Portability
Replies: 14
Views: 1249

Re: Credit Shelter Trusts in the Era of Portability

You are correct that you only get the DSUE (the portability amount) from your last deceased spouse. So if you remarry someone with assets, and your new spouse then dies and leaves his/her estate to his/her children, you lose your DSUE. However, you can use it to make gifts while your new spouse is ...
by bsteiner
Mon Jan 30, 2017 12:54 pm
Forum: Personal Finance (Not Investing)
Topic: MFJ vs. MFS
Replies: 5
Views: 730

Re: MFJ vs. MFS

tomd37 wrote:My experience ... is that in 98% of the cases taxpayers will pay more taxes filing separately than filing jointly. ....


That sounds about right. However, if you think you might be in the remaining 2%, it's worth running the numbers both ways.
by bsteiner
Fri Jan 27, 2017 11:01 am
Forum: Personal Finance (Not Investing)
Topic: How much does a Trust cost these days?
Replies: 22
Views: 2240

Re: How much does a Trust cost these days?

look to see if your employer offers a pre or post tax benefit called "Hyatt Legal Plans" a Metlife company. For $200 a year I signed up for this, and trust / wills / real estate transactions / anything else, is covered under this. Really great perk... That might be sufficient for many peo...
by bsteiner
Fri Jan 27, 2017 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Credit Shelter Trusts in the Era of Portability
Replies: 14
Views: 1249

Re: Credit Shelter Trusts in the Era of Portability

I am reviving this thread...I am the original poster. I am also wondering something else about Credit Shelter Trusts...once established, can the surviving spouse make gifts to the trust? Let's say there's a surviving spouse and two adult children. Can the surviving spouse gift each child $14,000 pe...
by bsteiner
Thu Jan 26, 2017 11:59 am
Forum: Investing - Theory, News & General
Topic: Whole life & Annuities
Replies: 11
Views: 1018

Re: Whole life & Annuities

If you buy both life insurance and an annuity, isn't it like betting on both teams in the same game?
by bsteiner
Thu Jan 26, 2017 11:00 am
Forum: Personal Finance (Not Investing)
Topic: How much does a Trust cost these days?
Replies: 22
Views: 2240

Re: How much does a Trust cost these days?

... what is a reasonable amount to pay for a "Joint Revocable Living Trust"? The lawyer we met with quoted us a flat-fee of $4600. That number seemed very high to me, but maybe that's what it costs these days for a good/qualified lawyer to correctly draft something like this up. ... You c...
by bsteiner
Wed Jan 25, 2017 4:17 pm
Forum: Personal Consumer Issues
Topic: Visiting Princeton/Philadelphia, where to stay
Replies: 24
Views: 1419

Re: Visiting Princeton/Philadelphia, where to stay

conundrum wrote:Since most of our sightseeing will be in Philadelphia, would it be reasonable to stay in Philadelphia and just drive out to visit Princeton? ...


You can also go by train: SEPTA from Philadelphia to Trenton and then NJ Transit from Trenton to Princeton.
by bsteiner
Wed Jan 25, 2017 11:19 am
Forum: Personal Finance (Not Investing)
Topic: Looking for some links/advice on medicaid trusts
Replies: 10
Views: 740

Re: Looking for some links/advice on medicaid trusts

Typically in these trusts someone puts assets into a trust in which he/she gets the income but can't get principal. After five years, the principal is protected, though the person will have to use the income toward his/her care. Since they get pensions and social security, which they would have to u...
by bsteiner
Wed Jan 25, 2017 7:53 am
Forum: Personal Finance (Not Investing)
Topic: Need advice about permanent life insurance policies
Replies: 7
Views: 700

Re: Need advice about permanent life insurance policies

Jim Hunt
Janet (JJ) MacNab
Peter Kaat
Glenn Daily
by bsteiner
Tue Jan 24, 2017 9:31 am
Forum: Investing - Help with Personal Investments
Topic: Pickle - how to disengage advisory services
Replies: 19
Views: 2005

Re: Pickle - how to disengage advisory services

If you have $800,000 and you're paying 2% a year, that's $16,000 a year. If you sell everything and have a $180,000 capital gain, assuming it's all long-term, at worst you'll pay 20% Federal capital gains tax, 3.8% net investment income tax, and state and local income tax (if applicable). Say it's 3...
by bsteiner
Mon Jan 23, 2017 11:43 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard as trustee
Replies: 14
Views: 1431

Re: Vanguard as trustee

Has anyone actually had a case where Vanguard or Fidelity was acting as a trustee? If so, how did it work out? How did they manage the assets? How did they deal with the beneficiaries? Did they work well with the attorney?
by bsteiner
Mon Jan 23, 2017 11:41 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage-Trust Question
Replies: 7
Views: 471

Re: Mortgage-Trust Question

... The lender will want to review your trust agreement to verify that the trust is revocable, that the settlor is also a trustee and a beneficiary of the trust (i.e: that you set up the trust for your own benefit) and that the trustee has the ability to mortgage property on behalf of the trust. .....
by bsteiner
Mon Jan 23, 2017 5:03 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard as trustee
Replies: 14
Views: 1431

Re: Vanguard as trustee

Here are Fidelity's trustee's fees: https://fiws.fidelity.com/app/literature/view?itemCode=790970&renditionType=pdf. See page 7. Here are Vanguard's trustee's fees: https://personal.vanguard.com/pdf/eptsb.pdf. See page 8. I wasn't able to find Schwab's. This is in addition to the expenses of the...
by bsteiner
Sun Jan 22, 2017 5:00 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to find a <good> accountant?
Replies: 20
Views: 2116

Re: Best way to find a <good> accountant?

... if ... the main reason for filing an estate tax return is to enable portability of the DSUE, it is possible that a competent accountant or enrolled agent may be sufficient. .... It's possible, though the law firm handling the estate probably does far more of them. ... Any recommendations on the...
by bsteiner
Sat Jan 21, 2017 10:14 pm
Forum: Personal Finance (Not Investing)
Topic: Questions about probate and tax returns after MIL's passing
Replies: 15
Views: 1499

Re: Questions about probate and tax returns after MIL's passing

Arizona is a Uniform Probate Code state, which means the probate procedures are simple, and probably the least of your concerns.
by bsteiner
Sat Jan 21, 2017 9:12 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to find a <good> accountant?
Replies: 20
Views: 2116

Re: Best way to find a <good> accountant?

I agree with the suggestions that you find a tax pro through referrals from friends and colleagues. But if that does not work, you should consider an Enrolled Agent. ... ... the concept looks good for specific demands like my family filing an estate tax return and trust tax returns upon my eventual...
by bsteiner
Sat Jan 21, 2017 6:07 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to find a <good> accountant?
Replies: 20
Views: 2116

Re: Best way to find a <good> accountant?

I agree with the suggestions that you find a tax pro through referrals from friends and colleagues. But if that does not work, you should consider an Enrolled Agent. ... ... the concept looks good for specific demands like my family filing an estate tax return and trust tax returns upon my eventual...
by bsteiner
Fri Jan 20, 2017 12:34 pm
Forum: Investing - Theory, News & General
Topic: Forever Stamps as an Investment?
Replies: 72
Views: 8567

Re: Forever Stamps as an Investment?

... when I was a kid in the 1950s many businesses, mail-order businesses in particular, did de facto accept stamps. In fact I recall TV commercials tell you to "send cash, stamps or money orders." However I'm sure this was only true because all businesses used enough postage stamps that t...
by bsteiner
Thu Jan 19, 2017 8:52 am
Forum: Personal Finance (Not Investing)
Topic: How do I determine if I need to consult with an attorney about whether I need a trust?
Replies: 22
Views: 1567

Re: How do I determine if I need to consult with an attorney about whether I need a trust?

Some (many?) attorneys will give you a one hour free consult in the hope of signing you up as a client. Are those the ones you want? In my case, yes and no. The vast majority, if not all, of the estate attorney's in my area offer a free initial consultation. Unfortunately, I had to meet with severa...
by bsteiner
Wed Jan 18, 2017 9:44 pm
Forum: Personal Finance (Not Investing)
Topic: Let's say you are dying this year
Replies: 46
Views: 6745

Re: Let's say you are dying this year

Whether the trustees may, must or can't distribute depends on the terms of the Will or trust agreement. In general, it's best to give the trustees discretion as to distributions, since you don't know what the future will bring. ... Ah, for some reason I thought trusts 'had' to distribute income to ...
by bsteiner
Wed Jan 18, 2017 6:30 pm
Forum: Personal Finance (Not Investing)
Topic: How do I determine if I need to consult with an attorney about whether I need a trust?
Replies: 22
Views: 1567

Re: How do I determine if I need to consult with an attorney about whether I need a trust?

Some (many?) attorneys will give you a one hour free consult in the hope of signing you up as a client. Are those the ones you want? I suggest you read the book ... Beyond the Grave by Condon. ... It provides some useful information, but it's geared to community property, and in particular to Calif...
by bsteiner
Wed Jan 18, 2017 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: Let's say you are dying this year
Replies: 46
Views: 6745

Re: Let's say you are dying this year

...Bruce, I have taken the liberty of snipping from your other response in another thread. The underlined portion helps me understand the advantage of converting to Roths. As long as the conversion can be done at a total rate less than 39.6%, the conversion is advantageous; and even if done at that...
by bsteiner
Wed Jan 18, 2017 12:28 pm
Forum: Personal Finance (Not Investing)
Topic: IRA in Trust?
Replies: 23
Views: 1542

Re: IRA in Trust?

You can't transfer your IRA while you're alive. After your death, you may leave your IRA however you want. You may leave it to your children either outright or in trust for their benefit. Our clients almost always provide for their children in separate trusts for their benefit. In this way, the chi...
by bsteiner
Wed Jan 18, 2017 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: Let's say you are dying this year
Replies: 46
Views: 6745

Re: Let's say you are dying this year

How would we decide if IRA conversions are wise? We are all roughly in the same tax brackets (mid-high 30s including various state taxes), but their assets will be left in trust. ... If you and your sister and the trusts for her and your benefit will be in relatively high tax brackets, then the con...
by bsteiner
Tue Jan 17, 2017 6:01 pm
Forum: Personal Finance (Not Investing)
Topic: Updating our wills
Replies: 5
Views: 929

Re: Updating our wills

My wife and I are meeting with our estate lawyer this Friday - our wills are several years out of date, and provisions for a (then) minor child need to be updated. We are both mid-50s and healthy, but obviously want to be prepared for negative events - current estate value is ~$6.5mm. I'm intereste...
by bsteiner
Tue Jan 17, 2017 4:42 pm
Forum: Investing - Help with Personal Investments
Topic: Placing loan in self directed IRA
Replies: 2
Views: 140

Re: Placing loan in self directed IRA

Your lawyer should be able to help you do this.

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