Search found 2923 matches

by bsteiner
Fri Dec 15, 2017 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning in PA with Revocable Living Trust? Special Needs?
Replies: 10
Views: 488

Re: Estate Planning in PA with Revocable Living Trust? Special Needs?

... Do you have an opinion on whether establishing trusts for individual heirs would be prudent? Except possibly as set forth in the next paragraph, you would provide in your Will that each child would have a separate trust (actually two trusts, one for his/her share of the retirement assets and on...
by bsteiner
Fri Dec 15, 2017 9:21 am
Forum: Personal Finance (Not Investing)
Topic: Estate Planning in PA with Revocable Living Trust? Special Needs?
Replies: 10
Views: 488

Re: Estate Planning in PA with Revocable Living Trust? Special Needs?

... hopeful bsteiner can chime in as his insight seem especially knowledgeable.... Thanks for the kind words. The trust for the child with special needs is similar to the trusts for the other children. The difference is that, depending on the nature of the disability, the child with special needs m...
by bsteiner
Wed Dec 13, 2017 9:44 pm
Forum: Personal Finance (Not Investing)
Topic: S-Corp 2553 vs Start a new S-Corp
Replies: 3
Views: 263

Re: S-Corp 2553 vs Start a new S-Corp

Ask your lawyer whether Section 368(a)(1)(F) would apply?
by bsteiner
Wed Dec 13, 2017 10:08 am
Forum: Personal Finance (Not Investing)
Topic: Trusts and asset protection
Replies: 6
Views: 755

Re: Trusts and asset protection

Does the current beneficiary have a power of appointment that he/she can exercise it to appoint the remainder in further trust rather than outright at 25? If not, can the trustees decant the trust to keep it in further trust for the remainder beneficiaries? No, there is no power of appointment. Thi...
by bsteiner
Tue Dec 12, 2017 2:47 pm
Forum: Personal Finance (Not Investing)
Topic: Trusts and asset protection
Replies: 6
Views: 755

Re: Trusts and asset protection

Does the current beneficiary have a power of appointment that he/she can exercise it to appoint the remainder in further trust rather than outright at 25?

If not, can the trustees decant the trust to keep it in further trust for the remainder beneficiaries?
by bsteiner
Tue Dec 12, 2017 12:24 pm
Forum: Personal Consumer Issues
Topic: NYC restaurant suggestion
Replies: 38
Views: 2017

Re: NYC restaurant suggestion

Near you and good for the price is Le Rivage on 46th Street between 8th and 9th Avenue, $39 prix fixe until 7:30 p.m. and then $29, http://www.lerivagenyc.com/menus/index.html. It's the opposite of what you would expect since it's in the theatre district so it's busier earlier in the evening. There ...
by bsteiner
Tue Dec 12, 2017 8:58 am
Forum: Personal Finance (Not Investing)
Topic: your inheritance for young kids
Replies: 33
Views: 5270

Re: your inheritance for young kids

... Made-up example: Say the trust beneficiary now acting as Sole trustee takes $30K from the trust and... 1. ...uses $10K for her own school tuition. 2. ...takes $10K for personal expenses (food, furniture/travel/language lessons/etc) 3. ...uses $10K for beneficiary's child's school tuition. Is th...
by bsteiner
Tue Dec 12, 2017 8:54 am
Forum: Investing - Help with Personal Investments
Topic: Early Retirement - Lump Sum vs. Annuity
Replies: 41
Views: 2744

Re: Early Retirement - Lump Sum vs. Annuity

The payout on the annuity is about 5%. If you take the lump sum, there's a good chance you can earn 5% a year. If you earn 5% a year, and you withdraw 5% a year, you'll have the same payments and you'll still have your $1 million at the end. The lump sum, if rolled over, also provides some tax benef...
by bsteiner
Mon Dec 11, 2017 4:19 pm
Forum: Personal Finance (Not Investing)
Topic: 1031 Exchange vs Charitable Remainder Trust
Replies: 6
Views: 380

Re: 1031 Exchange vs Charitable Remainder Trust

... Option (iii) I don't understand enough about 1031 exchanges to make an assessment. I thought the critical factor was cash flow while holding the property. Suppose I sell my property in exchange for purchasing Property B at $300K and then 5 years later sell Property B for $200K in exchange for p...
by bsteiner
Mon Dec 11, 2017 9:48 am
Forum: Personal Finance (Not Investing)
Topic: your inheritance for young kids
Replies: 33
Views: 5270

Re: your inheritance for young kids

we wouldn't mandate distribution at age 35. That would throw the assets into the beneficiary's estate for estate tax purposes, and expose the assets to the beneficiary's potential creditors, including spouses. We would have the client instead give the beneficiary effective control over the trust at...
by bsteiner
Sat Dec 09, 2017 6:06 pm
Forum: Personal Consumer Issues
Topic: Please suggest a dry hands product
Replies: 82
Views: 3465

Re: Please suggest a dry hands product

Non-Drying Cleansing Lotion, $14 for 8 ounces on Amazon.
by bsteiner
Sat Dec 09, 2017 5:44 pm
Forum: Personal Finance (Not Investing)
Topic: 1031 Exchange vs Charitable Remainder Trust
Replies: 6
Views: 380

Re: 1031 Exchange vs Charitable Remainder Trust

The choices are (i) keep the property, (ii) sell and pay the tax, (iii) Section 1031 exchange and keep the new property until death, or (iv) charitable remainder trust (CRT). The CRT doesn't avoid the tax. It effectively defers the tax. Some people like it because they can effectively make a charita...
by bsteiner
Fri Dec 08, 2017 11:06 am
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 270
Views: 19579

Re: Prepayment of SALT Taxes? [State and Local]

In Revenue Ruling 82-208, the taxpayer paid $11,000 of state income taxes in December 1981 even though he had no reasonable basis to believe he would owe the money. He received a refund of the $11,000 in 1982. Presumably he did this because under the Economic Recovery Tax Act of 1981, the tax rates...
by bsteiner
Fri Dec 08, 2017 10:50 am
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 270
Views: 19579

Re: Prepayment of SALT Taxes? [State and Local]

The payment is only deductible if it's a reasonable estimate of taxes owed. Revenue Ruling 82-208, 1982-2 C.B. 58, http://www.legalbitstream.com/scripts/isyswebext.dll?op=get&uri=/isysquery/irl4c6/2/doc. In Revenue Ruling 82-208, the taxpayer paid $11,000 of state income taxes in December 1981 even ...
by bsteiner
Fri Dec 08, 2017 9:08 am
Forum: Personal Finance (Not Investing)
Topic: Executor responsibilities
Replies: 44
Views: 2930

Re: Executor responsibilities

... It is just one of my pet peeves that the whole probate/estate thing is "spun" so that everyone thinks that they have to have legal assistance. In my one experience they wanted 5K to fill out about 12 simple forms. Of course, in my case the 3 kids all got along and all it required was some docum...
by bsteiner
Thu Dec 07, 2017 5:11 pm
Forum: Personal Finance (Not Investing)
Topic: Executor responsibilities
Replies: 44
Views: 2930

Re: Executor responsibilities

... He moved earlier in the year to a neighboring state where he could live near his oldest son in a memory care facility (advanced dementia). He changed his mailing address to his son's so he could see his mail, but we knew this would be a short term situation when he moved. The lawyer seemed quit...
by bsteiner
Thu Dec 07, 2017 10:06 am
Forum: Investing - Help with Personal Investments
Topic: Help with Inherited Roth, no will no beneficiary
Replies: 7
Views: 764

Re: Help with Inherited Roth, no will no beneficiary

Since it's a Roth, and since the stretch isn't available, the decision to accept or disclaim is the same for the Roth as for his other assets.
by bsteiner
Tue Dec 05, 2017 9:27 am
Forum: Investing - Help with Personal Investments
Topic: Best fund(s) for Special Needs Trust
Replies: 17
Views: 1247

Re: Best fund(s) for Special Needs Trust

I recently created a Special Needs Trust ... Funding should be approximately $28K per year (gift limit for a couple)... How do you get the gift tax annual exclusion for a special needs trust without jeopardizing the means-tested government benefits. To get the annual exclusion, the child has to hav...
by bsteiner
Tue Dec 05, 2017 9:10 am
Forum: Personal Finance (Not Investing)
Topic: Trust or Will
Replies: 14
Views: 1583

Re: Trust or Will

In my experience, the larger the estate and more complicated the family dynamics, the greater the need for a well constructed trust. Larger estates can be constructed to best tax benefit. IE: QTIP, Bypass/Credit Shelter, etc. Suggest further consult with your legal counsel. Some helpful books. Will...
by bsteiner
Mon Dec 04, 2017 2:24 pm
Forum: Personal Finance (Not Investing)
Topic: Any reason to keep my Life Insurance (FEGLI)?
Replies: 17
Views: 1141

Re: Any reason to keep my Life Insurance (FEGLI)?

You get to keep 25% of the coverage after you retire at no cost. So if you're sufficiently close to retiring, it can be a good deal.
by bsteiner
Mon Dec 04, 2017 10:02 am
Forum: Personal Finance (Not Investing)
Topic: Umbrella insurance when assets mainly in trusts
Replies: 34
Views: 1649

Re: Umbrella insurance when assets mainly in trusts

Thanks to everyone for the kind words. I don't know how to quantify this. The chance of a large loss is small, or else the premium would be much huigherer than in the hundreds. biggest risk is probably an auto accident. Most auto accidents are minor. But there could be a major one. I know a surgeon ...
by bsteiner
Sun Dec 03, 2017 6:15 pm
Forum: Personal Finance (Not Investing)
Topic: Trust or Will
Replies: 14
Views: 1583

Re: Trust or Will

The tax consequences are not materially different either way.
by bsteiner
Sun Dec 03, 2017 6:12 pm
Forum: Investing - Help with Personal Investments
Topic: Just downsized at age 60...input appreciated
Replies: 29
Views: 3614

Re: Just downsized at age 60...input appreciated

... My brother is strongly recommending that my wife (age 54) and I pay 1% annually to a financial adviser to manage our $2 million nest egg of taxable investments and provide addl services (e.g., devise a comprehensive financial/estate plan). ... [/quote] You and others have already solved the inve...
by bsteiner
Sun Dec 03, 2017 9:27 am
Forum: Personal Consumer Issues
Topic: Used Car Buying Help
Replies: 20
Views: 1397

Re: Used Car Buying Help

Are there still any new 2017 Camrys available? They were heavily discounted because the 2018 Camry is redesigned.
by bsteiner
Fri Dec 01, 2017 3:01 pm
Forum: Personal Finance (Not Investing)
Topic: Bypass trust from 2009. I'm trustee. Questions about distributions, tax implications, and maybe decanting it?
Replies: 14
Views: 908

Re: Bypass trust from 2009. I'm trustee. Questions about distributions, tax implications, and maybe decanting it?

RetiredNow wrote:
Fri Dec 01, 2017 11:53 am
...
Suffolk County
Two people in our office said Suffolk tends to be efficient, and one said it tends to be slow. They may be willing to expedite the matter given your father's age and health.
by bsteiner
Fri Dec 01, 2017 11:45 am
Forum: Personal Finance (Not Investing)
Topic: Bypass trust from 2009. I'm trustee. Questions about distributions, tax implications, and maybe decanting it?
Replies: 14
Views: 908

Re: Bypass trust from 2009. I'm trustee. Questions about distributions, tax implications, and maybe decanting it?

Thanks so much for the insights and possible path forward, bsteiner. It's clearly a multi-step process. Do you have any thoughts on how long the process is likely to take if I am able to get the wheels turning right away? Weeks, months, longer? ... 1. Adding an independent trustee to the existing t...
by bsteiner
Fri Dec 01, 2017 9:01 am
Forum: Personal Finance (Not Investing)
Topic: Bypass trust from 2009. I'm trustee. Questions about distributions, tax implications, and maybe decanting it?
Replies: 14
Views: 908

Re: Bypass trust from 2009. I'm trustee. Questions about distributions, tax implications, and maybe decanting it?

Hi bsteiner. Thank you so much. I appreciate your sharing your knowledge. I've benefitted from reading your posts over the years, and one of your posts on another thread is what caused me to realize that there might not be basis step up and dig out the trust document to reread it in the not-too-dis...
by bsteiner
Thu Nov 30, 2017 5:13 pm
Forum: Personal Finance (Not Investing)
Topic: Bypass trust from 2009. I'm trustee. Questions about distributions, tax implications, and maybe decanting it?
Replies: 14
Views: 908

Re: Bypass trust from 2009. I'm trustee. Questions about distributions, tax implications, and maybe decanting it?

We were hoping for Bogleheads’ insights into some questions about a credit shelter (bypass) trust established in 2003 under New York law and funded in 2009 with $500,000 in proceeds from a home sale. The trust is FBO of the surviving spouse, and I’m the trustee (the child of the decedent and surviv...
by bsteiner
Thu Nov 30, 2017 6:44 am
Forum: Personal Finance (Not Investing)
Topic: Who are heirs? No will.
Replies: 38
Views: 3360

Re: Who are heirs? No will.

Did Robert's predeceased child have any children?
by bsteiner
Tue Nov 28, 2017 3:52 pm
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4364

Re: Independent Trustee Actively Managing Trust Account

Vanguard is 0.55% on the first $5 million, and less above $5 million: https://personal.vanguard.com/pdf/s341.pdf?2210071322. (See page 11.) Has anyone had any experience with Vanguard as trustee where someone named Vanguard as a trustee and has died so that the trusts under his/her Will have taken ...
by bsteiner
Tue Nov 28, 2017 2:09 pm
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4364

Re: Independent Trustee Actively Managing Trust Account

Banks and trust companies typically charge about 1%, a bit more on small trusts and less on large ones. That includes the investment management. The bank or trust company would say that their fee is primarily for the investment management, since they would charge about the same (perhaps slightly le...
by bsteiner
Tue Nov 28, 2017 11:00 am
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4364

Re: Independent Trustee Actively Managing Trust Account

Are you paying 1% for investments in addition to a fee to manage the trust? Or is the 1% the all in fee? If the latter then you are getting a good deal. Many institutions charge twice that. Banks and trust companies typically charge about 1%, a bit more on small trusts and less on large ones. That ...
by bsteiner
Mon Nov 27, 2017 11:25 pm
Forum: Personal Finance (Not Investing)
Topic: Forming an LLC without an attorney
Replies: 24
Views: 2505

Re: Forming an LLC without an attorney

Curious as to why people consider forming an LLC in the state where the property is located? Why not form in your home state and have that entity own the property? For those forming an LLC and transferring the property into the LLC, do you get written confirmation or an endorsement that your title ...
by bsteiner
Mon Nov 27, 2017 8:22 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning question (should we add beneficiaries to savings account?)
Replies: 33
Views: 1926

Re: Estate planning question (should we add beneficiaries to savings account?)

Having paid out over six digits in estate litigation, I would advise not changing the accounts at the credit union (unless great care is taken). In our instance, we had one party who was "added" to accounts for convenience of helping with bills when the deceased was still living. After, they died, ...
by bsteiner
Mon Nov 27, 2017 2:44 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning question (should we add beneficiaries to savings account?)
Replies: 33
Views: 1926

Re: Estate planning question (should we add beneficiaries to savings account?)

I am thinking more in the line of the bank account and not the IRA. In VA probate is only 10 bps on an asset of that size (the bank account), so the probate cost is not than significant when compared to potential control issues with the sisters. The concern is that the OP's wife needs funds to main...
by bsteiner
Mon Nov 27, 2017 11:10 am
Forum: Personal Finance (Not Investing)
Topic: [US collecting estate taxes from a non-US person]
Replies: 10
Views: 769

Re: [US collecting estate taxes from a non-US person]

... In 2013, across all 300 million Americans, only 4,700 people had to pay estate taxes. It is unlikely that most know a US based person who had to pay an estate tax. Only 22 people not in the US had to pay estate taxes in 2013. Since "not in the US" includes US citizens who are living overseas, t...
by bsteiner
Mon Nov 27, 2017 9:43 am
Forum: Investing - Help with Personal Investments
Topic: Help with estate planning
Replies: 21
Views: 2161

Re: Help with estate planning

... In my area the CPAs to most of the 706 work. Obviously some tax attorneys as well but in my personal experience it's more CPAs. The key is someone who does a lot of 706s and not someone who dabbles in them. You must be in California. Since attorneys' fees in estates in California are limited to...
by bsteiner
Sun Nov 26, 2017 7:48 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement personal advisor
Replies: 14
Views: 1530

Re: Retirement personal advisor

... I need advise from income analysis, investment planning, legal tax deduction strategy and estate planning. Was forced to retire at age 59 to take care of my wife diagnosed with early on-set of Alzheimer. No time to actively manage my IRA. Income analysis -- what is that? Investment planning -- ...
by bsteiner
Sun Nov 26, 2017 6:31 pm
Forum: Investing - Theory, News & General
Topic: Basis question regarding generation skipping trusts
Replies: 3
Views: 283

Re: Basis question regarding generation skipping trusts

If the trust was GST taxable (not exempt) then there's a basis step-up under Section 2654(a)(2).

The trust assets should continue in further trust for G3 for asset protection and to keep them out of G3's estates.
by bsteiner
Sun Nov 26, 2017 5:39 pm
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4364

Re: Independent Trustee Actively Managing Trust Account

It seems odd that the decedent would mandate a corporate trustee but also mandate distributions at specified ages. Perhaps the trustees would agree to decant the trust to eliminate the mandated distributions and have the bank cease to act at the ages when distributions are presently mandated. Comin...
by bsteiner
Sun Nov 26, 2017 5:29 pm
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4364

Re: Independent Trustee Actively Managing Trust Account

It seems odd that the decedent would mandate a corporate trustee but also mandate distributions at specified ages.

Perhaps the trustees would agree to decant the trust to eliminate the mandated distributions and have the bank cease to act at the ages when distributions are presently mandated.
by bsteiner
Sun Nov 26, 2017 11:14 am
Forum: Investing - Help with Personal Investments
Topic: Donor Advised Fund costs
Replies: 22
Views: 1026

Re: Donor Advised Fund costs

The donor advised fund is useful in some cases: Contributions in excess of the 30% limit for private foundations. Amounts too small to warrant a foundation. Foreign grants. Anonymous grants. Contributions of assets that are fully deductible if to a donor advised fund but not if to a foundation. But ...
by bsteiner
Fri Nov 24, 2017 4:42 pm
Forum: Investing - Help with Personal Investments
Topic: Variable Annuity - Time to Surrender ?
Replies: 64
Views: 3488

Re: Variable Annuity - Time to Surrender ?

nedsaid wrote:
Fri Nov 24, 2017 1:14 pm
.. The 3-4% annual fee drag is a lot to overcome.
...
That's a large portion of your expected return to pay for the privilege of turning your qualified dividends and capital gains into ordinary income.
by bsteiner
Fri Nov 24, 2017 2:45 pm
Forum: Investing - Help with Personal Investments
Topic: Advice welcome-VERY unusual circumstance: lien, NOL
Replies: 20
Views: 1674

Re: Advice welcome-VERY unusual circumstance: lien, NOL

The NOL is carried back 2 years unless they waived the carryback. Tax assessments expire after 10 years unless the government files suit on them. Absent some unusual circumstances, the government usually lets them expire. So the taxpayer has to weigh the inconvenience of the tax liability (including...
by bsteiner
Fri Nov 24, 2017 12:19 pm
Forum: Investing - Help with Personal Investments
Topic: Help with estate planning
Replies: 21
Views: 2161

Re: Help with estate planning

He (or his mother if she's the executor) should have a lawyer ( obviously a lawyer other than the one who planned his father's estate ) do the estate tax return. Do you recommend this as a general policy or because you have questions about the ability of the specific firm based on the posts here? B...
by bsteiner
Fri Nov 24, 2017 11:42 am
Forum: Investing - Help with Personal Investments
Topic: Help with estate planning
Replies: 21
Views: 2161

Re: Help with estate planning

Certainly you need to follow up on bsteiner's advice and look for evidence that additional estate planning is already in place. Absent other options I think disclaiming all, or a good portion of, the IRA is a good idea. I would be inclined to disclaim the entire amount. If there isn't a disclaimer ...
by bsteiner
Fri Nov 24, 2017 8:05 am
Forum: Investing - Help with Personal Investments
Topic: Help with estate planning
Replies: 21
Views: 2161

Re: Help with estate planning

Why didn't he leave $5,490,000 to a credit shelter trust? While there's portability for the Federal estate tax, there's no portability for the GST tax (and with $11 million and you and your sister both doing fine financially) you're likely to have taxable estates. You should check to see whether he ...
by bsteiner
Thu Nov 23, 2017 9:39 pm
Forum: Investing - Help with Personal Investments
Topic: Charitable Annuities
Replies: 7
Views: 447

Re: Charitable Annuities

If you want something similar but you want a better deal then create a charitable reminder trust, assuming the amount involved is sufficient to warrant the cost of creating it and doing the annual tax returns.