Search found 851 matches

by ilan1h
Tue Nov 24, 2020 12:23 am
Forum: Personal Finance (Not Investing)
Topic: Best trust for wealthy couples with zero divorce or blended family risk?
Replies: 16
Views: 2274

Re: Best trust for wealthy couples with zero divorce or blended family risk?

we do worry about step up basis, maximizing our tax efficiency, avoiding estate tax when possible etc. I understand that there are trusts that leave some flexibility to the surviving spouse to make certain "elections" that have tax advantages eg: Clayton election, Qtip election. These are...
by ilan1h
Mon Nov 23, 2020 7:40 pm
Forum: Personal Finance (Not Investing)
Topic: Best trust for wealthy couples with zero divorce or blended family risk?
Replies: 16
Views: 2274

Re: Best trust for wealthy couples with zero divorce or blended family risk?

How can the possibility of a surviving spouse remarrying be near zero? No one knows the future. The survivor may live for many years after wards. Plenty of people marry in their 90s. I did not say the risk of remarrying is zero. The risk of divorce is zero. If my wife remarries I don't care who she...
by ilan1h
Mon Nov 23, 2020 6:28 pm
Forum: Personal Finance (Not Investing)
Topic: Best trust for wealthy couples with zero divorce or blended family risk?
Replies: 16
Views: 2274

Re: Best trust for wealthy couples with zero divorce or blended family risk?

How can the possibility of a surviving spouse remarrying be near zero? No one knows the future. The survivor may live for many years after wards. Plenty of people marry in their 90s. I did not say the risk of remarrying is zero. The risk of divorce is zero. If my wife remarries I don't care who she...
by ilan1h
Sun Nov 22, 2020 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: Best trust for wealthy couples with zero divorce or blended family risk?
Replies: 16
Views: 2274

Best trust for wealthy couples with zero divorce or blended family risk?

During my research on trust planning I noted that much lip service is given to the possibility of divorce, blended families, asset protection etc. Also, there is a lot of attention paid to how downstream remainder beneficiaries may interact adversely with the spouse's using up the assets. However, w...
by ilan1h
Sun Nov 22, 2020 1:13 pm
Forum: Personal Finance (Not Investing)
Topic: Calculating Overall Tax Rate
Replies: 15
Views: 1199

Re: Calculating Overall Tax Rate

[ No, a tax bracket is in the tax table according to the taxable income defined by AGI(8b)-Deductions(11a)=Taxable income(11b) Not true if you have taxable dividends or long term capital gains. People really need to look at either their schedule D or tax calculation worksheet to determine their bra...
by ilan1h
Sun Nov 22, 2020 12:22 am
Forum: Personal Finance (Not Investing)
Topic: Unfunded trust. What to do?
Replies: 5
Views: 749

Unfunded trust. What to do?

My parents created an AB Trust several years ago and spent quite some time working on it. After paying a goodly fee to the lawyer who drafted it they proceeded to NOT fund it whatsoever. Yep, nothing went into it other than a small bank account. After a while my father died and I sold their house an...
by ilan1h
Sun Nov 22, 2020 12:15 am
Forum: Personal Finance (Not Investing)
Topic: Theory behind intrafamily loans or Intentionally defective irrev trusts.
Replies: 4
Views: 674

Re: Theory behind intrafamily loans or Intentionally defective irrev trusts.

Thanks for the input. Can I assume that if I loan money to a child and he invests in his own accounts then he is responsible for paying capital gains? Also, can he deduct the interest payments that he has to make back to me? Lastly, what are the implications if somewhere down the road I want to forg...
by ilan1h
Sun Nov 22, 2020 12:08 am
Forum: Personal Finance (Not Investing)
Topic: Calculating Overall Tax Rate
Replies: 15
Views: 1199

Re: Calculating Overall Tax Rate

I think when people speak about their tax brackets, they are generally using total tax paid as numerator and total income as denominator?
by ilan1h
Sun Nov 22, 2020 12:00 am
Forum: Personal Finance (Not Investing)
Topic: Healthcare Sharing(Medishare)-Bogleheads Opinions.
Replies: 12
Views: 1149

Re: Healthcare Sharing(Medishare)-Bogleheads Opinions.

My feeling is that they're probably OK for the occasional dermatological issue or even minor injuries, but what about if there is some major, life-threatening issue? If you're diagnosed with a brain tumor and you need neurological consultation, MRIs, neurosurgery etc? I think there's a good chance y...
by ilan1h
Fri Nov 20, 2020 12:38 am
Forum: Personal Finance (Not Investing)
Topic: Upstream gifting with plan for downstream return
Replies: 8
Views: 589

Re: Upstream gifting with plan for downstream return

MathIsMyWayr wrote: Fri Nov 20, 2020 12:34 am Bogleheads is all about money, money, money,,,,,,,,,
Correct, I post my kombucha recipes and hydroponic questions on different forums.
by ilan1h
Fri Nov 20, 2020 12:36 am
Forum: Personal Finance (Not Investing)
Topic: Upstream gifting with plan for downstream return
Replies: 8
Views: 589

Re: Upstream gifting with plan for downstream return

It is entirely legal and, as long as one year has elapsed, it should work as planned. LOL :P I think you already know the answer to this. 8-) That comment is too cryptic, Firechief. I know that this is a legal strategy because it has been covered by Barrons and many other publications. A previous t...
by ilan1h
Fri Nov 20, 2020 12:18 am
Forum: Personal Finance (Not Investing)
Topic: Upstream gifting with plan for downstream return
Replies: 8
Views: 589

Upstream gifting with plan for downstream return

There have seen a couple of threads on this forum about "upstream gifting". Most articles on the subject seem to describe it as a way to gift appreciated assets to an elderly parent/parents so as to get it back after their death with a step up in basis. It is entirely legal and, as long as...
by ilan1h
Wed Nov 18, 2020 11:54 pm
Forum: Personal Finance (Not Investing)
Topic: Basic estate planning vs. Advanced estate planning
Replies: 9
Views: 891

Re: Basic estate planning vs. Advanced estate planning

In my experience, there are 2 types of trust & estate attorneys - those that deal with large taxable estates, and those that deal with smaller non-taxable estates. Generally speaking, you should seek out a firm that fits your personal situation, and you absolutely should try to work with a sing...
by ilan1h
Wed Nov 18, 2020 7:35 pm
Forum: Personal Finance (Not Investing)
Topic: Basic estate planning vs. Advanced estate planning
Replies: 9
Views: 891

Basic estate planning vs. Advanced estate planning

I recently contacted a few local estate attorneys in CA because I was interested in more advanced estate planning such as SLATs or DAPTs or IDGT or GRATs etc. Two of them told me that they did not do that kind of work but they strongly suggested that I do Basic estate planning first. This involved w...
by ilan1h
Wed Nov 18, 2020 7:19 pm
Forum: Personal Finance (Not Investing)
Topic: Theory behind intrafamily loans or Intentionally defective irrev trusts.
Replies: 4
Views: 674

Re: Theory behind intrafamily loans or Intentionally defective irrev trusts.

Also, if you haven't figured it out, the value of the note is still part of your estate so it's not a great way to avoid estate taxes unless the asset is rapidly appreciating real estate or a business. Can you explain this a little more? If I lend a child $1mill at 0.6% AFR (I'm not sure if that's ...
by ilan1h
Wed Nov 18, 2020 3:33 pm
Forum: Personal Finance (Not Investing)
Topic: Theory behind intrafamily loans or Intentionally defective irrev trusts.
Replies: 4
Views: 674

Theory behind intrafamily loans or Intentionally defective irrev trusts.

I"m trying to wrap my mind around the mechanics or theory behind these vehicles. In both situations you are either loaning money or selling assets in exchange for a promissory note. In the case of an intrafamily loan you can loan $5mill to a child at the very low current rate, and anything that...
by ilan1h
Wed Nov 18, 2020 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: Spouse diagnosed w/ Cancer
Replies: 103
Views: 9960

Re: Spouse diagnosed w/ Cancer

All my best wishes to your husband. As others have said, the outcome is generally very good for most patients and they can go on to lead healthy and long lives. From a medical perspective (and from someone who often sees this from the other side) I have found during my career that the patients who d...
by ilan1h
Wed Nov 18, 2020 12:05 pm
Forum: Personal Finance (Not Investing)
Topic: Buy and Hold, step up basis and estate planning
Replies: 2
Views: 189

Buy and Hold, step up basis and estate planning

I recently reviewed my accounts their "unrealized gains". For a "buy and hold" investor who holds ETF's, mutual funds and stocks for decades this tab is not one that I used very often. Part of "set it and forget it" is that you forget it. However, I realized that by nev...
by ilan1h
Mon Nov 16, 2020 11:19 pm
Forum: Personal Finance (Not Investing)
Topic: Is this a great time for Grantor Retained Annuity Trust (GRATs)?? G
Replies: 5
Views: 690

Re: Is this a great time for Grantor Retained Annuity Trust (GRATs)?? G

This paper has a pretty good overview of GRATs, including the benefits of short term rolling ones (starting page 22): https://www.alliancebernstein.com/Research-Publications/CMA-created-content/PrivateClient/PDFs/GettingALegacyUp_MultigenBB.pdf . It is from 2008, but I think the basic mechanics sti...
by ilan1h
Mon Nov 16, 2020 8:17 pm
Forum: Personal Finance (Not Investing)
Topic: Schwab as a one stop shop
Replies: 87
Views: 14091

Re: Schwab as a one stop shop

If you are a larger client they give you a few more services also. What types of services? How large? I can't fully answer that question. I just know that at a certain point they assign people to your account and they help you out with various problems that you may have. For example, they helped me...
by ilan1h
Mon Nov 16, 2020 8:04 pm
Forum: Personal Finance (Not Investing)
Topic: Question about "Maintenance standard" or HEMS in a trust
Replies: 51
Views: 1998

Re: Question about "Maintenance standard" or HEMS in a trust

... Can you have a situation where the beneficiary has the option to appoint a different trustee if she is getting a hard time? Is giving her this power of appt risky from the perspective of triggering estate inclusion? I have also heard that there is a "nuclear option" available in some ...
by ilan1h
Mon Nov 16, 2020 6:59 pm
Forum: Personal Finance (Not Investing)
Topic: Schwab as a one stop shop
Replies: 87
Views: 14091

Re: Schwab as a one stop shop

Schwab is outstanding. Their customer service is second to none. I think they are also somewhat more available than Vanguard (weekends, nights etc). I am always amazed at how every individual who answer the phone at Schwab always knows the exact answer to my question no matter how complex it is. For...
by ilan1h
Mon Nov 16, 2020 6:38 pm
Forum: Personal Finance (Not Investing)
Topic: Question about "Maintenance standard" or HEMS in a trust
Replies: 51
Views: 1998

Re: Question about "Maintenance standard" or HEMS in a trust

A trustee who's a beneficiary may not participate in decisions to make discretionary distributions in his/her own favor except for health, maintenance, support and education. bsteiner, is the above statement a best practice, or a matter of law? i.e. can one legally create a trust that has sole bene...
by ilan1h
Mon Nov 16, 2020 3:20 pm
Forum: Personal Finance (Not Investing)
Topic: Naming Beneficiary for Vanguard account
Replies: 46
Views: 2972

Re: Naming Beneficiary for Vanguard account

I noticed something else a little strange about Vanguard. I have had accounts at Vanguard and Schwab for 20 years. During this entire time I have been married. Recently I noticed that all of my accounts at Schwab are listed as "community property with rights of survivorship". However, at V...
by ilan1h
Mon Nov 16, 2020 2:02 pm
Forum: Personal Finance (Not Investing)
Topic: Question about "Maintenance standard" or HEMS in a trust
Replies: 51
Views: 1998

Re: Question about "Maintenance standard" or HEMS in a trust

... An officer for the bank & trust we currently have designated said they would approve "a used Toyota rather than a new Mercedes" as an example of the austerity measures in place for distributions. .... Why should there be "austerity measures" for distributions? A bank or ...
by ilan1h
Sun Nov 15, 2020 10:46 pm
Forum: Personal Finance (Not Investing)
Topic: Is this a great time for Grantor Retained Annuity Trust (GRATs)?? G
Replies: 5
Views: 690

Re: Is this a great time for Grantor Retained Annuity Trust (GRATs)?? G

It seems intuitive that since the 7520 rate is at a historic low it should be locked in by a long term GRAT eg: 7-10 years. The hurdle rate of 0.4% (at present value) would therefore apply to all asset appreciation over the 10 years. However, I saw a 2008 article in "Trusts and Estates" in...
by ilan1h
Sun Nov 15, 2020 1:28 pm
Forum: Personal Finance (Not Investing)
Topic: Gifts to children under $15,000
Replies: 69
Views: 4648

Re: Gifts to children under $15,000

"Don't be so confused, Gill." "You guys are easily confused. . . Confusion resolved?" I think the OP would get better answers and less confusion in this thread if he were to include more relevant information in his initial posts. Most people would not understand this, uhm, uniqu...
by ilan1h
Sun Nov 15, 2020 1:20 pm
Forum: Personal Finance (Not Investing)
Topic: Question about "Maintenance standard" or HEMS in a trust
Replies: 51
Views: 1998

Re: Question about "Maintenance standard" or HEMS in a trust

No one knows what the future will bring. It's almost always better to give the trustees complete discretion as to distributions. If you limit distributions to an ascertainable standard, it may create a problem if there's ever a question as to whether a desired distribution is permissible. I have a ...
by ilan1h
Sun Nov 15, 2020 1:10 pm
Forum: Personal Finance (Not Investing)
Topic: Question about "Maintenance standard" or HEMS in a trust
Replies: 51
Views: 1998

Re: Question about "Maintenance standard" or HEMS in a trust

However, how about if she wants to buy an expensive car? Take the entire family on a cruise? Purchase a vacation house? Give gifts to the kids? Does she need to come begging to some third party for everything she wants to do? Can she freely invade the principal if the distributions are not sufficie...
by ilan1h
Sun Nov 15, 2020 12:55 pm
Forum: Personal Finance (Not Investing)
Topic: Question about "Maintenance standard" or HEMS in a trust
Replies: 51
Views: 1998

Re: Question about "Maintenance standard" or HEMS in a trust

We are in the process of researching various types of trusts that would help us minimize future estate taxes. Some of these trusts have provisions where the assets go into an irrevocable trust and where distributions can be made for the "reasonable mainentance, comfort and support" of the...
by ilan1h
Sun Nov 15, 2020 12:21 pm
Forum: Personal Finance (Not Investing)
Topic: Question about "Maintenance standard" or HEMS in a trust
Replies: 51
Views: 1998

Question about "Maintenance standard" or HEMS in a trust

We are in the process of researching various types of trusts that would help us minimize future estate taxes. Some of these trusts have provisions where the assets go into an irrevocable trust and distributions can be made for the "reasonable mainentance, comfort and support" of the benefi...
by ilan1h
Sun Nov 15, 2020 11:55 am
Forum: Personal Finance (Not Investing)
Topic: Transfer on Death for house deeds?
Replies: 17
Views: 1121

Re: Transfer on Death for house deeds?

Big Dog said: “ I've been doing a bunch of research on this over the past few weeks since the CA law sunsets on Dec 31. However, any filings by then will be ok.” Not exactly. Per http://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200SB1305 “ Existing law makes these provisio...
by ilan1h
Sun Nov 15, 2020 11:47 am
Forum: Personal Finance (Not Investing)
Topic: Gifts to children under $15,000
Replies: 69
Views: 4648

Re: Gifts to children under $15,000

:confused Am I the only person scratching my head about this one? :confused +1. I can imagine asking my father for $10,000 to renovate my room. :confused Gill Gill, Don't be so confused Gill. Many adult children live with their parents during this pandemic. They're stuck at home, can't go to univer...
by ilan1h
Sun Nov 15, 2020 3:24 am
Forum: Personal Finance (Not Investing)
Topic: Where should a business owner get health insurance
Replies: 4
Views: 623

Re: Where should a business owner get health insurance

In many cases there is no financial advantages of going through the "exchange". I checked the prices through them and then simply called the individual health insurance companies myself. There was no difference in cost. I prefer to do things outside the exchange. You simply have to decide ...
by ilan1h
Sun Nov 15, 2020 3:19 am
Forum: Personal Finance (Not Investing)
Topic: Transfer on Death for house deeds?
Replies: 17
Views: 1121

Re: Transfer on Death for house deeds?

I also have all financial accounts ToD/PoD -- don't forget savings/checking accounts. I've been doing a bunch of research on this over the past few weeks since the CA law sunsets on Dec 31. However, any filings by then will be ok. It's a rather simple process for extremely simple estates. For joint...
by ilan1h
Sat Nov 14, 2020 11:33 pm
Forum: Personal Finance (Not Investing)
Topic: Avoiding Estate Tax
Replies: 40
Views: 3735

Re: Avoiding Estate Tax

Interesting that virtually no-one actually pays the estate tax ... from taxpolicycenter.org "For decedents in 2018 (with an exemption of $11.18 million), the Urban-Brookings Tax Policy Center estimated that only about 4,000 estate tax returns were filed, of which only 1,900 were taxable. Estat...
by ilan1h
Sat Nov 14, 2020 10:51 pm
Forum: Personal Finance (Not Investing)
Topic: California "Statutory Will"
Replies: 8
Views: 748

California "Statutory Will"

There is a 1-2 page simple statutory will that CA has made available to its residents. The information is bare bones basic ie: I leave all my stuff to my wife, after that to my kids etc. There is also a section on who you appoint as guardians for your kids. There is a section whereby you can toggle ...
by ilan1h
Sat Nov 14, 2020 10:35 pm
Forum: Personal Finance (Not Investing)
Topic: Transfer on Death for house deeds?
Replies: 17
Views: 1121

Transfer on Death for house deeds?

I live in CA where probate is a huge nightmare. All of my accounts at Schwab and Vanguard are TOD (transfer on death). This designation apparently supercedes every other instruction specified in wills or trusts. It's supposed to be pretty seamless. Recently I've been made aware that TOD designation ...
by ilan1h
Sat Nov 14, 2020 10:32 pm
Forum: Personal Finance (Not Investing)
Topic: Naming Beneficiary for Vanguard account
Replies: 46
Views: 2972

Re: Naming Beneficiary for Vanguard account

The difference between transfer on death and beneficiary may be that transfer on death refers to a single individual whereas beneficiary generally allows multiple beneficiaries if desired (and possibly contingent beneficiaries). On our bank accounts the typical TOD designation actually appears in t...
by ilan1h
Sat Nov 14, 2020 9:35 pm
Forum: Personal Finance (Not Investing)
Topic: Help me decide if I want to set up a SLAT (spousal lifetime access trust)
Replies: 13
Views: 1002

Re: Help me decide if I want to set up a SLAT (spousal lifetime access trust)

BTW I get that debating whether this change would be after 2025 or some other date could get contentious, nobody knows, so pointless to debate. OTOH people telling you specifically to wait until 2025 to think about this more seriously are not giving you good advice IMO. As to your earlier question ...
by ilan1h
Sat Nov 14, 2020 8:12 pm
Forum: Personal Finance (Not Investing)
Topic: Gifts to children under $15,000
Replies: 69
Views: 4648

Re: Gifts to children under $15,000

:confused If a child asks for $10,000 to renovate their room, should I just pay for this piecemeal with my own money or should I transfer $10,000 to their bank account and tell them that they can manage the project themselves? Am I the only person scratching my head about this one? :confused +1. I ...
by ilan1h
Sat Nov 14, 2020 7:59 pm
Forum: Personal Finance (Not Investing)
Topic: Gifts to children under $15,000
Replies: 69
Views: 4648

Re: Gifts to children under $15,000

In addition to various gifts they receive, my children ask for money all the time for various projects, expenses etc. I think this is a bigger problem (and harder to solve) than the IRS reporting. How does giving them money whenever they request it help them learn to live within their allowance (if...
by ilan1h
Sat Nov 14, 2020 3:15 pm
Forum: Personal Finance (Not Investing)
Topic: Intrafamily Loans and estate tax consequences.
Replies: 0
Views: 195

Intrafamily Loans and estate tax consequences.

It appears as if the interest rate environment is ideal for intrafamily loans ie: making loans to family members at very low rates without it being deemed a gift. The AFR (IRS rate) is the lowest that it's ever been. The loans have to meet all the rigid standards as any bona fide loan would ie:promi...
by ilan1h
Sat Nov 14, 2020 2:52 pm
Forum: Personal Finance (Not Investing)
Topic: Gifts to children under $15,000
Replies: 69
Views: 4648

Gifts to children under $15,000

I am having a hard time understanding the notion of going through IRS related paperwork if you gift more than $15K to children. This is the statutory amount to remain under the gift exclusion limits. In addition to various gifts they receive, my children ask for money all the time for various projec...
by ilan1h
Fri Nov 13, 2020 8:24 pm
Forum: Personal Finance (Not Investing)
Topic: Is this a great time for Grantor Retained Annuity Trust (GRATs)?? G
Replies: 5
Views: 690

Is this a great time for Grantor Retained Annuity Trust (GRATs)?? G

The Grantor Retained Annuity Trust (GRAT) is a way for people to transfer appreciating assets to the next generation with no gift taxes. They are temporary trusts created to hold assets that are likely to rise in value. The grantor receives regular annuity payments plus interest which is established...
by ilan1h
Fri Nov 13, 2020 6:45 pm
Forum: Personal Finance (Not Investing)
Topic: Help me decide if I want to set up a SLAT (spousal lifetime access trust)
Replies: 13
Views: 1002

Re: Help me decide if I want to set up a SLAT (spousal lifetime access trust)

OK. My question remains as stated. Assuming that the law remains as it is written now ie: exclusion amounts to come down to $5million in 2026, would it be reasonable to assume that any amount that I earmark now above the 5 mill, would in fact give me an additional amount of exclusion going forward?...
by ilan1h
Fri Nov 13, 2020 6:24 pm
Forum: Personal Finance (Not Investing)
Topic: Help me decide if I want to set up a SLAT (spousal lifetime access trust)
Replies: 13
Views: 1002

Re: Help me decide if I want to set up a SLAT (spousal lifetime access trust)

OK. My question remains as stated. Assuming that the law remains as it is written now ie: exclusion amounts to come down to $5million in 2026, would it be reasonable to assume that any amount that I earmark now above the 5 mill, would in fact give me an additional amount of exclusion going forward? ...
by ilan1h
Fri Nov 13, 2020 4:07 pm
Forum: Personal Finance (Not Investing)
Topic: Help me decide if I want to set up a SLAT (spousal lifetime access trust)
Replies: 13
Views: 1002

Re: Help me decide if I want to set up a SLAT (spousal lifetime access trust)

No, this is a grantor trust which means that you pay the income tax at your tax rate. That's the whole point of a grantor trust. It also allows you to continue to reduce your estate because what you pay in income tax is not considered a gift. So your estate is allowed to whittle down while the money...
by ilan1h
Fri Nov 13, 2020 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Help me decide if I want to set up a SLAT (spousal lifetime access trust)
Replies: 13
Views: 1002

Help me decide if I want to set up a SLAT (spousal lifetime access trust)

I have done a lot of research on ways to "lock in" or "freeze" the current high exclusion amounts for estate taxes. It's the highest it's ever been and there is a possibility it will come down. My understanding is that the SLAT (spousal lifetime access trust) is one way to take a...
by ilan1h
Mon Nov 02, 2020 1:24 pm
Forum: Personal Finance (Not Investing)
Topic: Schwab "joint account" vs. community property
Replies: 8
Views: 750

Re: Schwab "joint account" vs. community property

I recently became aware that one of the few financial advantages of living in California was that it was a community property state and that a surviving spouse would get a 100% step up in basis on equities. However, I noticed that my Schwab account is titled "Joint tenancy with transfer of dea...