Bogleheads.org

WannabeAgAlum

My wife is the beneficiary of all accounts in my name. As soon as the institutions have my death certificate, the money is hers. No probate would be needed. Nice way to avoid probate without the need for trusts to accomplish this transfer. Simplicity is usually a good thing. Yes but what happens wh...

WannabeAgAlum

I will try to limit my response to address the question about creditor protection as it relates to who should act as trustee. I think in this context there is an important distinction between a professional trustee and an independent trustee, though they generally go together. I think the independe...

WannabeAgAlum

Hey Everyone My parents have asked me and my twin sister to serve as trustees for their Dynasty trust. In the first meeting with the lawyer, she (lawyer) told us that she would be the 3rd trustee and would take a 1.25% fee of the assets per year. After research this seems pretty standard. The trust...

WannabeAgAlum

When parents pay for a child's wedding and receptions and honeymoon, is that considered a "gift" to the child? Or only the money given for the down payment to the child will be considered "gift"? Many of the weddings that I have attended are multiple hundred thousand dollar extr...

WannabeAgAlum

Check out Boise, Idaho and surrounding towns. Hidden gem. Not as cold as you might think due to the relatively low elevation. Just big enough to have everything you need except the beach. Off the beaten path. Eagle, Idaho is particularly nice. Sawtooths are not too far away. Ketchum/Hailey/Sun Valle...

WannabeAgAlum

I carry 1 credit card, driver's license and parking garage key card in phone case. Best wallet decision I've ever made. G. Costanza wallett is kept at home in safe or in locked glove box.

Wannabe

WannabeAgAlum

This is easy. If you will eventually divorce, keep things separate. If not, do one pot. Same thing applies to prenups.

Oh, you'll need a crystal ball.

Wannabe.

WannabeAgAlum

Son to potential future coworkers: So what's the starting salary, benefits, etc.?

Worker 1: X. At least that is what I started with.

Worker 2: Me too.

...

Company: We'd like to offer you Y.

WannabeAgAlum

Is the trust a grantor trust or a non-grantor trust for income tax purposes? If it's a grantor trust, then the grantor (ie, the person who set up the trust) is responsible for the income taxes if he or she is still living. So the trustee (assuming trustee is a different person) who pays the tax from...

WannabeAgAlum

If you are trying to save $ by not seeing a good estate planning lawyer, please note that there is a good chance the lawyer will get a much bigger fee dealing with a DIY estate plan at death. Uncle Sam might see more too. For details, see a lawyer.

WannabeAgAlum

What kid says: "Mom and Dad, now that you're getting older, I think you should save more and spend less."

What parents hear: "Save more of that nice retirement income so you'll have something to pass on to me."

WannabeAgAlum

Buying new means virtually no miles. Unless you are very patient, buying used means many more miles, thus less life. Obviously the earlier miles are more expensive than the later miles. Yes, the moment you drive it off the lot you lose $ in depreciation. But good luck finding one of those cars for s...

WannabeAgAlum

"Form 709" seems like the type of form many people might not file even though they should. What would be the consequences of such miscreancy? If the oversight was unintentional, nothing unless the IRS did a full audit. Audit of what, your check register? Like much of the tax code, this se...

WannabeAgAlum

Thanks! I have removed that statement, which is the last paragraph in: The Federal Gift Tax—How Much Will You Have to Pay? (I cited the article to show my source) See: Gift tax Is there a better (accurate) way to state the purpose of Form 709? The IRS wording does not make the point clear. The prio...

WannabeAgAlum

Stated earlier, I didn't want to lose this in the discussion. Is the new wiki page OK? We have a new wiki page. See: Gift tax Please review. Comments / questions / corrections are welcome. Wiki editors should edit the page directly. I just added a statement that tax returns aren't needed unless the...

WannabeAgAlum

The lifetime exemption is currently scheduled to fall as a matter of law to a level that many people in this forum will hit, or at least may hit. (It is of course also subject to change by legislation.) Therefore, it's not a waste of time to try to figure out ways to structure a gift so that it fal...

WannabeAgAlum

"Form 709" seems like the type of form many people might not file even though they should. What would be the consequences of such miscreancy? If the oversight was unintentional, nothing unless the IRS did a full audit. Audit of what, your check register? Like much of the tax code, this se...

WannabeAgAlum

I don't know why, but gift taxes seem to be one of the most misunderstood topics in the tax code. The quote below neatly sums up the issue. You do NOT have to pay taxes on gifts larger than $15k per year per recipient; the amount over $15k merely counts against your $11.4 million (as of 2019; the a...

WannabeAgAlum

"Form 709" seems like the type of form many people might not file even though they should. What would be the consequences of such miscreancy? If the oversight was unintentional, nothing unless the IRS did a full audit. Audit of what, your check register? Like much of the tax code, this se...

WannabeAgAlum

About "dynasty trusts": Also commonly called, with varying degrees of overlap, irrevocable trust, SLATS (spousal lifetime access trusts), IDGTs, Gift Trusts, ILITs, etc. Usually means assets can be held for more than one generation in trust for as long as state law allows (from lifetime pl...

WannabeAgAlum

Employee: "I quit because [insert Charlie Brown teacher voice]...."

Boss's thoughts: Dang. Poached again...

Boss: "Well, we have really enjoyed working with you and ...."

WannabeAgAlum

Simple and Elegant and Accurate response! :sharebeer Right, the whole thing is begging the question while deciding that because the question is theoretical that all the things that are not "all else being equal" don't matter. The question is what is the point. The point is in the first se...

WannabeAgAlum

"If we assume $X is used to but a personal residence and an additional $X is invested in a Roth IRA, and they both appreciate to $Y net of costs and tax free, does $Y = $Y?" Yes. Simple and Elegant and Accurate response! :sharebeer Right, the whole thing is begging the question while deci...

WannabeAgAlum

"If we assume $X is used to but a personal residence and an additional $X is invested in a Roth IRA, and they both appreciate to $Y net of costs and tax free, does $Y = $Y?"

Yes.

WannabeAgAlum

Often beneficiary designation forms for retirement plans ask for a social.

WannabeAgAlum

Holy smokes. You have dismissed all those manufacturers for those reasons. I hesitate to say this for fear of leaving you with no options, but have you heard about the Toyota accelerator problem from a few years ago? Yes, as far as I know, it got fixed. The GM ignition switches went on for 10 years...

WannabeAgAlum

We are hoping that a second baby will join our family soon and with that expectation comes the need for a family car. My cousins in law swear by their Toyota Sequoia (a 2007 that has lasted forever) so we are looking at getting one, hopefully used, for ourselves. Is there a reason why you want to b...

WannabeAgAlum

Appraisers.

WannabeAgAlum

In case they are not included in your definition of "family": pets.

WannabeAgAlum

Always prudent to have an attorney help with amendments of any sort unless instructed otherwise by the attorney if you want to minimize the possibility of confusion and extra expense. Plenty of examples of people DIY with seemingly simple amendments that just provides ammo for litigation. Going back...

WannabeAgAlum

Good question. Unless you consult an experienced estate planning attorney (or someone with the same knowledge), you will never know if it was "OK" to use the software. Your heirs and those in charge of administering your assets after your death will very quickly realize whether it was &quo...

WannabeAgAlum

What will be estate tax (fed and state) when parents die? How much extra liquidity will be needed to pay the tax? What are costs of taking either approach? If it were me I would make a best guess as to what exemptions will be at date of death knowing they are quite large now but set to be cut in hal...

WannabeAgAlum

On the initial question of whether to pick an inherited retirement plan or CD, and ignoring effect on parent and parent's estate, I am not convinced that the CD is the right answer 100% of the time for everyone, although it seems like the right answer in this case. I wonder, if the beneficiary is y...

WannabeAgAlum

On the initial question of whether to pick an inherited retirement plan or CD, and ignoring effect on parent and parent's estate, I am not convinced that the CD is the right answer 100% of the time for everyone, although it seems like the right answer in this case. I wonder, if the beneficiary is yo...

WannabeAgAlum

Bogley McBogleface

WannabeAgAlum

You could make all or part of the $50,000 a loan to avoid a gift tax return. So $15,000 as gift from you (another $15,000 from spouse?) with the balance a loan. Have son execute a promissory note for the loan part. Could be a balloon note at AFR with interest only payments due annually. In subsequen...

WannabeAgAlum

I agree with what has been said about keeping the $7,000,000 in trust for the child, which is the big issue here. In 2026 the exemption amount will be less than that. What will the $7 million grow to by 2026 and beyond? Child will thank parent for not having to engage in his/her own estate planning ...

WannabeAgAlum

Okay.

I'm guessing you thought of this, but is there no way to do two accounts with 14.5k each?

If not, you can still gift split with just one account but will need a 709 wherein you elect gift split with spouse.

Wannabe

WannabeAgAlum

Ah, I see it's a 529. Agreed.

If bilperk is married, bilperk and spouse can split the gift (up to $15k each) and avoid the 709.

Wannabe

WannabeAgAlum

I don't know anything about the program you are referring to, but I will note the often overlooked exception found in Internal Revenue Code Section 2503(e) that allows you to pay tuition directly to an educational organization without it counting against your annual exclusion amount or your lifetime...

WannabeAgAlum

My spouse and I each gifted stocks to our child. From each of our own brokerage accounts. Each of us gifted just slightly less than $14k for a total just under $28k. The stocks are publicly traded so there is no question as to their value. Unlike real estate or other assets where the IRS can come b...

WannabeAgAlum

I am absolutely not trying to avoid tax. We will never ever reach a gifting level of $5m- Just to be current, the lifetime exemption has been doubled and is just over $11 million now, or about $22 million for a married couple. This is true but set to expire in 2026. Unless you know you will die bef...

WannabeAgAlum

My spouse and I each gifted stocks to our child. From each of our own brokerage accounts. Each of us gifted just slightly less than $14k for a total just under $28k. The stocks are publicly traded so there is no question as to their value. Unlike real estate or other assets where the IRS can come b...

WannabeAgAlum

Greenhorn, thank you. Let's say the trust has $100 of rmd, the beneficiary's tax bracket is 20% and the trust's is 40%. So your attorney would say in all cases let's mandatorily give the beneficiary the $100 or else the government would get $20 too much. I think there are situations where it makes s...

WannabeAgAlum

This can be a tough call, and depends heavily on the beneficiary's future behavior, which can be hard to predict. If we know we have a spendthrift beneficiary, then I would have no problem doing an accumulation trust. I would also consider an accumulation trust if the beneficiaries will be minors or...

WannabeAgAlum

No problem - I didn't mean to sound snarky, so sorry if it sounded that way. I like using ctrl. f to search the instructions. I fall asleep if I try reading through them from beginning to end. I do not want to make a habit out of defending the IRS and their 709 Instructions, but I will note that &qu...

WannabeAgAlum

The answers to these questions are all found in the 709 instructions: https://www.irs.gov/pub/irs-pdf/i709.pdf. I've copied and pasted the answers from the instructions: 1. "If you need more space, attach a separate sheet using the same format as Schedule A." 2. [I assume the securities ar...

WannabeAgAlum

The moderation team doesn't take to kindly to poking fun at other members. Tread lightly. :) I for one am tire d of all the jokes. The bad puns will continue unless the stock market regains some traction. Agreed. But that could lead to too much inflation, which could cause the wheels to come off. (...

WannabeAgAlum

Like 1987, doomsday at the time but eventually just a blimp on the chart. Wilson Things will get better--1988 turned out to be a goodyear. The moderation team doesn't take to kindly to poking fun at other members. Tread lightly. :) I for one am tire d of all the jokes. The bad puns will continue un...

WannabeAgAlum

That attorney is right about this: you should consider updating your plan. You should probably do this even if you'll stick with your revocable trust. Most older trusts have credit shelter trusts and marital trusts. Usually in the older revocable trust documents the credit shelter trust gets filled ...

Search found 103 matches