Search found 3644 matches

by bsteiner
Wed Jan 23, 2019 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: Setting up Will, do we need trust?
Replies: 12
Views: 957

Re: Setting up Will, do we need trust?

Our clients usually provide for their children in separate trusts for their benefits. The trusts are included in the Will.

In some but not most cases, and in some but most states, it makes sense to create a revocable trust.
by bsteiner
Mon Jan 21, 2019 8:05 am
Forum: Personal Finance (Not Investing)
Topic: "Buy term life because it is cheap"
Replies: 21
Views: 2654

Re: "Buy term life because it is cheap"

It should cost what it takes for the insurance company to pay the claims, run the insurance company, and earn a profit or accumulate some surplus. For a 34-year-old man in the best of health, a $1 million policy would be about $400 to $450 for 20 years or about $750 to $800 a year for 30 years. So $...
by bsteiner
Sun Jan 20, 2019 9:46 pm
Forum: Personal Finance (Not Investing)
Topic: Accessing CPA expertise like an hourly financial advisor?
Replies: 6
Views: 631

Re: Accessing CPA expertise like an hourly financial advisor?

Like lawyers, most accountants work on a time basis.
by bsteiner
Sun Jan 20, 2019 5:19 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need an attorney to open up S Corp?
Replies: 16
Views: 659

Re: Do I need an attorney to open up S Corp?

As is often the case, doing it is the easier part. The decision making is the harder part. You might or might not need advice as to whether to form a corporation or an LLC, if a corporation whether to make an S election, if an LLC whether to elect to be treated as a corporation for tax purposes (and...
by bsteiner
Sun Jan 20, 2019 3:28 pm
Forum: Personal Finance (Not Investing)
Topic: Physicians: did you incorporate yourself? Is it worth it?
Replies: 15
Views: 1521

Re: Physicians: did you incorporate yourself? Is it worth it?

Doctors had to be C corporations before 1984 in order to maximize retirement plan contributions and benefits. The limitations for self-employed and S corporations were much lower. A group might incorporate (or, now that LLCs exist, become an LLC or the equivalent for professionals). While that won't...
by bsteiner
Sun Jan 20, 2019 12:31 pm
Forum: Personal Finance (Not Investing)
Topic: Wills- Options other than family/charities?
Replies: 33
Views: 1639

Re: Wills- Options other than family/charities?

Organizations that you would like to support, but aren't "charities" in the broad sense: ACLU, Planned Parenthood, for example. Must be others. Planned Parenthood is a Section 501(c)(3) exempt organization contributions to which are deductible. They have a sister organization, Planned Parenthood Ac...
by bsteiner
Sun Jan 20, 2019 12:17 pm
Forum: Personal Consumer Issues
Topic: Buy house without agent
Replies: 55
Views: 4362

Re: Buy house without agent

It's up to the seller whether he/she wants to hire a broker to find a buyer. While there's a cost to hiring a broker, the broker may be better able to find a buyer. If the buyer gets a mortgage loan, the lender will require title insurance. If there's no mortgage loan, it's up to the buyer whether t...
by bsteiner
Sat Jan 19, 2019 9:15 pm
Forum: Personal Consumer Issues
Topic: Buy house without agent
Replies: 55
Views: 4362

Re: Buy house without agent

... I've always thought title insurance here is a rip off. I mean, they do all these title searches so the chances of something being missed is quite small. I wonder what the actual pay out rate is. ... Much of what you're paying is for the search. They have to search the chain of title, and for an...
by bsteiner
Sat Jan 19, 2019 3:08 pm
Forum: Personal Finance (Not Investing)
Topic: Bank As Executor Of Will?
Replies: 26
Views: 1432

Re: Bank As Executor Of Will?

... I don't exactly have a "small" estate (it's over 100K, and actually over 200K, but it's not 1 MIL), but compared to someone with 1MIL, I guess it is small to them. One poster here suggested that I seek out a small local bank to do this who has low minimum requirements, but that would mean trans...
by bsteiner
Fri Jan 18, 2019 10:45 pm
Forum: Personal Finance (Not Investing)
Topic: Bank As Executor Of Will?
Replies: 26
Views: 1432

Re: Bank As Executor Of Will?

JPMorgan Chase has several groups that handle estates and trust. One group, which I call the A team (that's my term for it, not theirs) generally requires a $25 million minimum. The people in that group are excellent, and the service there is excellent. Another group, which I call the B team (that's...
by bsteiner
Fri Jan 18, 2019 5:26 pm
Forum: Personal Finance (Not Investing)
Topic: Parents never paid non-resident state tax for rental property
Replies: 15
Views: 1944

Re: Parents never paid non-resident state tax for rental property

Make sure to file the 2015 Maryland refund claim by April 15, 2019. This isn't relevant if the reason for the MD amended return is an assessment of taxes by another state. From the Maryland 502X instructions" : "A claim for refund resulting from a credit for taxes paid to another state must be file...
by bsteiner
Thu Jan 17, 2019 3:30 pm
Forum: Investing - Help with Personal Investments
Topic: Help needed escaping from Ameriprise [Denmark]
Replies: 6
Views: 600

Re: Help needed escaping from Ameriprise [Denmark]

... I know that the RVS annuity and VUL life insurance are both pretty crap instruments .... Buying life insurance and an annuity is like betting on both teams in the same game. ... Does citizenship matter? ... If he's a U.S. citizen, then it does. He's still taxable in the U.S. on his worldwide in...
by bsteiner
Thu Jan 17, 2019 1:04 pm
Forum: Personal Finance (Not Investing)
Topic: Parents never paid non-resident state tax for rental property
Replies: 15
Views: 1944

Re: Parents never paid non-resident state tax for rental property

Make sure to file the 2015 Maryland refund claim by April 15, 2019.
by bsteiner
Wed Jan 16, 2019 10:36 pm
Forum: Personal Finance (Not Investing)
Topic: Auto Owned By Revocable Living Trust
Replies: 15
Views: 946

Re: Auto Owned By Revocable Living Trust

Probate in Pennsylvania is trivial. Why would you create a revocable trust to avoid it? That would be more effort and cost more than it would cost to probate your Will.
by bsteiner
Wed Jan 16, 2019 10:12 am
Forum: Investing - Theory, News & General
Topic: Sell an undiversified investment with unrealized capital gains?
Replies: 11
Views: 407

Re: Sell an undiversified investment with unrealized capital gains?

Factors to consider include your age, your health, the volatility of the asset (e.g., whether it's Berkshire Hathaway or bitcoins), and how easy or hard it would be to diversify around it. Another possibility is a charitable remainder trust, which effectively spread out the tax over a number of years.
by bsteiner
Wed Jan 16, 2019 8:02 am
Forum: Personal Finance (Not Investing)
Topic: Which Type of Annuities Did You Choose and Why
Replies: 18
Views: 1073

Re: Which Type of Annuities Did You Choose and Why

Deferring Social Security to 70.
by bsteiner
Mon Jan 14, 2019 12:05 pm
Forum: Personal Finance (Not Investing)
Topic: Secure a foreign tax credit carry forward?
Replies: 23
Views: 2559

Re: Secure a foreign tax credit carry forward?

So OP, do you understand that a foreign tax credit carry forward is essentially worthless? ... if you really get into the nitty gritty of how Form 1116 works, you'll discover that it is extremely unlikely that you'll ever be in a situation that you'll ever get to take advantage of a foreign tax cre...
by bsteiner
Sat Jan 12, 2019 7:30 pm
Forum: Personal Finance (Not Investing)
Topic: How Long Should I Keep Financial Records of Deceased Relatives
Replies: 20
Views: 1431

Re: How Long Should I Keep Financial Records of Deceased Relatives

PDF is fine, though for some people paper is easier.
by bsteiner
Sat Jan 12, 2019 5:27 pm
Forum: Personal Finance (Not Investing)
Topic: How Long Should I Keep Financial Records of Deceased Relatives
Replies: 20
Views: 1431

Re: How Long Should I Keep Financial Records of Deceased Relatives

I would keep the estate tax returns, since they show the basis information, GST exemption allocations, and other useful information.
by bsteiner
Tue Jan 08, 2019 12:00 pm
Forum: Investing - Help with Personal Investments
Topic: RMD planning
Replies: 19
Views: 1704

Re: RMD planning

The way it was explained to me (by my brother the executor, my SIL the MBA and the probate attorney's office) is that my mom died with some of her monies still in tax-deferred accounts. These accounts were liquidated and thus taxes have to be paid by the heirs. I'm told I will need to file a schedu...
by bsteiner
Tue Jan 08, 2019 7:49 am
Forum: Personal Finance (Not Investing)
Topic: What does 1 million @Vanguard get you ?
Replies: 35
Views: 7056

Re: What does 1 million @Vanguard get you ?

Flagship gets you a person who can help you navigate when something out of the ordinary comes up.
by bsteiner
Mon Jan 07, 2019 6:27 pm
Forum: Personal Finance (Not Investing)
Topic: Trusting Up
Replies: 8
Views: 848

Re: Trusting Up

It will probably be a completed gift.

It will be included in your estate.

It won’t be an adjusted taxable gift so you won’t be taxed on it twice.
by bsteiner
Mon Jan 07, 2019 4:40 pm
Forum: Personal Finance (Not Investing)
Topic: Selling home to S Corp
Replies: 5
Views: 747

Re: Selling home to S Corp

randomguy wrote:
Mon Jan 07, 2019 4:24 pm
...
Would love to know what the IRS thinks. ...
The IRS is usually happy when people put real estate into an S corporation.

If you want to make the IRS even happier, you can put real estate into a C corporation.
by bsteiner
Sun Jan 06, 2019 9:17 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone affected by the government shutdown?
Replies: 35
Views: 3016

Re: Anyone affected by the government shutdown?

Yes. The IRS gives us blocks of taxpayer identification numbers to assign to estates and trusts. When we use them up, we tell them the name of the estate or trust to which we've assigned each of the numbers, and they send us a new block of numbers. We can't get new blocks of numbers that way during ...
by bsteiner
Wed Jan 02, 2019 11:28 pm
Forum: Personal Finance (Not Investing)
Topic: How long before real estate becomes stale? (Advice)
Replies: 14
Views: 1766

Re: How long before real estate becomes stale? (Advice)

A client in the residential real estate business in NYC told me that values have been dropping for a while. So you may want to consider the best of the offers.
by bsteiner
Wed Jan 02, 2019 11:24 pm
Forum: Personal Finance (Not Investing)
Topic: Autistic sister being targeted by Nigerian scammers
Replies: 84
Views: 6634

Re: Autistic sister being targeted by Nigerian scammers

The estate planning part of this should be a routine matter.

The trust for her benefit is essentially the same as the trust for your benefit except she won’t get to control her trust.

Your parents will have to consider who they want to control her trust.
by bsteiner
Wed Jan 02, 2019 10:17 am
Forum: Personal Finance (Not Investing)
Topic: How to find a quality Estate Planning Attorney?
Replies: 31
Views: 3253

Re: How to find a quality Estate Planning Attorney?

Remember that there is no requirement that your estate attorney be local. ... some well qualified attorneys will do estate planning in other states as well. I think bsteiner does this. ... The state is less important than many people think. It's easier to ascertain the law on something in another s...
by bsteiner
Wed Jan 02, 2019 10:11 am
Forum: Investing - Theory, News & General
Topic: Absurd Adviser Fees!
Replies: 16
Views: 2507

Re: Absurd Adviser Fees!

If they're charging a management fee, shouldn't they be working for the client and selecting low cost funds?
by bsteiner
Tue Jan 01, 2019 10:25 pm
Forum: Personal Finance (Not Investing)
Topic: Will question re: Fidelity acct beneficiaries
Replies: 17
Views: 1237

Re: Will question re: Fidelity acct beneficiaries

Remember that beneficiaries are per account, not per brokerage. If you have a traditional ira, a Roth IRA, and a taxable account at fidelity, that is three accounts. Make sure to update beneficiaries on all 3 accounts. ... Or, in most cases, delete any beneficiaries on taxable accounts. They can ea...
by bsteiner
Tue Jan 01, 2019 2:22 pm
Forum: Personal Finance (Not Investing)
Topic: Will question re: Fidelity acct beneficiaries
Replies: 17
Views: 1237

Re: Will question re: Fidelity acct beneficiaries

IRAs, other retirement benefits and life insurance should pass by beneficiary designation, for creditor protection, and in the case of retirement benefits to qualify for the stretch. It's generally better not to have beneficiary designations on other assets. As you point out, naming beneficiaries f...
by bsteiner
Mon Dec 31, 2018 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: Last Minute Inherited IRA RMD
Replies: 24
Views: 1565

Re: Last Minute Inherited IRA RMD

Since the IRS rarely acts, probably not worth the effort to make this unnessarily complicated, particularly since the IRS has never issued detailed guidance on Form 5329 and rarely levies the 50% penalty. Alan -- have you ever seen an instance where the IRS has assessed the 50% penalty tax against ...
by bsteiner
Mon Dec 31, 2018 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Father with Dementia Took a Full IRA Distribution
Replies: 56
Views: 5488

Re: Father with Dementia Took a Full IRA Distribution

... It sounds like it may cost $20k in IRS fee and legal fees to reinstate the $200k IRA. If successful, the IRA will still eventually be taxed through RMDs or other redemptions. There seems to be marginal benefit at best to reinstate the IRA. ... If they fit into Revenue Procedure 2016-47, they wo...
by bsteiner
Mon Dec 31, 2018 9:05 am
Forum: Personal Finance (Not Investing)
Topic: How to find a quality Estate Planning Attorney?
Replies: 31
Views: 3253

Re: How to find a quality Estate Planning Attorney?

... Here’s what I would look for: 1. If they advise on getting a revocable trust, ask for specific examples of what tangible benefit it would provide .... Probating a Will in Pennsylvania is sufficiently simple that revocable trusts are rarely used in Pennsylvania. It's unlikely to come up in the d...
by bsteiner
Sun Dec 30, 2018 9:50 pm
Forum: Personal Finance (Not Investing)
Topic: Father with Dementia Took a Full IRA Distribution
Replies: 56
Views: 5488

Re: Father with Dementia Took a Full IRA Distribution

... We met with an estate attorney for a free consult, discussed his approach to things, then agreed to hire him. The initial consult was not charged at all. ,,, It wasn't free. It was added to the price of the work. Otherwise the lawyer would be spending a large portion of his time on nonbillable ...
by bsteiner
Sun Dec 30, 2018 11:01 am
Forum: Personal Finance (Not Investing)
Topic: Father with Dementia Took a Full IRA Distribution
Replies: 56
Views: 5488

Re: Father with Dementia Took a Full IRA Distribution

If you are outside of the 60 day window, as stated previously: 1. Seek legal counsel asap. 2. Contact your father's doctors. Gather all medical data, etc. 3. Meet with IRS. 4. See #1 5. No guarantee of success but wouldn't hurt to try. Sorry to hear of your father's declining health. j Yes, already...
by bsteiner
Sun Dec 30, 2018 10:57 am
Forum: Personal Finance (Not Investing)
Topic: Wiki page UPGRADE: Backdoor Roth
Replies: 76
Views: 5499

Re: Wiki: Backdoor Roth IRA (conversion formula)

... The way I like to think about these conversions..........if I add antifreeze (non-deductible) to water (deductible) so that the mixture is 25%, when I remove an amount to convert, that mixture will always be 25% (assuming no more antifreeze added) which is what your new formula shows. Of course...
by bsteiner
Sat Dec 29, 2018 9:04 pm
Forum: Personal Finance (Not Investing)
Topic: Vacation in Fort Myers
Replies: 16
Views: 1517

Re: Vacation in Fort Myers

This topic is timely. I'll be at the Sanibel Harbour Marriott in Fort Myers in February, speaking at the Society of Financial Services Professionals annual Institute. I'll have some free time two evenings after dinner, and one evening both for dinner and after dinner. I won't have a car -- I'm flyin...
by bsteiner
Sat Dec 29, 2018 5:16 pm
Forum: Investing - Help with Personal Investments
Topic: Opinions sought $3.5 M Net Worth
Replies: 76
Views: 8926

Re: Opinions sought $3.5 M Net Worth

See if the current beneficiary can exercise a power of appointment over the trust, or the trustees can decant the trust, to keep your interest in further trust for you, to keep it out of your estate for estate tax purposes, and to protect it against your creditors and spouses.
by bsteiner
Fri Dec 28, 2018 5:24 pm
Forum: Personal Finance (Not Investing)
Topic: Which State to setup a Trust for my kid?
Replies: 2
Views: 290

Re: Which State to setup a Trust for my kid?

If the amount will be modest, you would probably choose whichever is best among the laws of the state where you live and the states where the trustees live. If the amount will be large, you might want to consider a state that has repealed its rule against perpetuities, and that doesn't tax trusts ba...
by bsteiner
Fri Dec 28, 2018 12:23 pm
Forum: Personal Finance (Not Investing)
Topic: Will question re: Fidelity acct beneficiaries
Replies: 17
Views: 1237

Re: Will question re: Fidelity acct beneficiaries

IRAs, other retirement benefits and life insurance should pass by beneficiary designation, for creditor protection, and in the case of retirement benefits to qualify for the stretch. It's generally better not to have beneficiary designations on other assets. As you point out, naming beneficiaries fo...
by bsteiner
Fri Dec 28, 2018 9:20 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard personal advisor service (PAS) for high net worth?
Replies: 70
Views: 6450

Re: Vanguard personal advisor service (PAS) for high net worth?

That sounds good. While you can replicate the index with individual securities, at least for U.S. large cap stocks, it's easier to use an index. High net worth individuals don't need annuities to protect against living too long and running out of money; and investment-type annuities generally don't ...
by bsteiner
Thu Dec 27, 2018 5:38 pm
Forum: Investing - Help with Personal Investments
Topic: Taking over mother's finances - taxes, asset allocation, and deferred annuity
Replies: 12
Views: 785

Re: Taking over mother's finances - taxes, asset allocation, and deferred annuity

How diversified are the individual stocks? The extent to which they're diversified or concentrated may affect her decision. There's probably no good solution to the annuity, though it's a small part of her total assets. Cashing it in avoids the expenses going forward, and lets her invest it more tax...
by bsteiner
Wed Dec 26, 2018 3:55 pm
Forum: Personal Finance (Not Investing)
Topic: House Protector Trust
Replies: 8
Views: 639

Re: House Protector Trust

You are the trustee but I assume your mom is the beneficiary? So the trust income would either be it's own tax filling or your mom's until she dies. She's actually purposefully NOT the beneficiary. It states something about how the proceeds of the trust are ONLY for her heirs. The idea of the langu...
by bsteiner
Wed Dec 26, 2018 11:42 am
Forum: Personal Finance (Not Investing)
Topic: Niece divorce - house questions
Replies: 16
Views: 2036

Re: Niece divorce - house questions

The options include anything she and her husband agree upon. It's best if they can reach an agreement as to who gets what. If they can't agree, the court will decide who gets what, based on both state law (what's marital property and hence in the pot varies from state to state) and the facts of the ...
by bsteiner
Tue Dec 25, 2018 9:03 pm
Forum: Personal Finance (Not Investing)
Topic: House Protector Trust
Replies: 8
Views: 639

Re: House Protector Trust

nfs wrote:
Tue Dec 25, 2018 6:35 pm
...
I know I need to go find myself a good CPA to help me navigate, but I would appreciate a point in the right direction so I can do some reading on my own first.
I suggest finding a good lawyer who can tell the accountant how to prepare the returns.
by bsteiner
Tue Dec 25, 2018 4:17 pm
Forum: Personal Finance (Not Investing)
Topic: Testamentary Trust, Taxes, and UTMA
Replies: 14
Views: 815

Re: Testamentary Trust, Taxes, and UTMA

It's better to provide for your children in trust rather than outright (or to a custodian under the UTMA). The trustees can take income taxes (and whatever else they deem relevant) into account each year in deciding on distributions. If they think it's best, they can distribute some or all of the in...
by bsteiner
Mon Dec 24, 2018 10:22 am
Forum: Personal Finance (Not Investing)
Topic: Life insurance maximum and Survivor benefits
Replies: 9
Views: 735

Re: Life insurance maximum and Survivor benefits

Social Security can be significant. Social Security retirement benefits can be over $40,000 a year if you're at or near the maximum and you wait until age 70. The formula is sufficiently progressive that even if your income is less than the maximum, you may still receive almost as much.
by bsteiner
Sun Dec 23, 2018 10:12 pm
Forum: Personal Finance (Not Investing)
Topic: Living Trust written in California, good in North Carolina?
Replies: 4
Views: 596

Re: Living Trust written in California, good in North Carolina?

Probating a Will and dealing with the probate courts is said to be difficult in California though not in North Carolina. So someone in California is more likely to create a revocable trust than someone in North Carolina. But there's a major issue for someone moving from California to North Carolina....