Search found 4235 matches

by bsteiner
Sun Sep 15, 2019 7:13 am
Forum: Personal Finance (Not Investing)
Topic: "Estate Planning Checklist" (for all of us)
Replies: 21
Views: 3082

Re: "Estate Planning Checklist" (for all of us)

In California, the consequences of my uncle having only one of his two Fidelity accounts set up as TOD resulted in the assets in the non-TOD account being passed to my father - my uncle’s sole heir - through my uncle’s will. That requires probate. For his fee in handling the probate, the attorney i...
by bsteiner
Sun Sep 15, 2019 6:48 am
Forum: Personal Finance (Not Investing)
Topic: Trust or Will - Single never married
Replies: 1
Views: 123

Re: Trust or Will - Single never married

When I spoke at the Seattle Estate Planning Conference, several trusts and estates lawyers from Seattle said that probating a Will in Washington State wasn't difficult, so that revocable trusts weren't commonly used in Washington. Why did this issue even come up? The far more important issue is the ...
by bsteiner
Sat Sep 14, 2019 8:53 pm
Forum: Personal Finance (Not Investing)
Topic: "Estate Planning Checklist" (for all of us)
Replies: 21
Views: 3082

Re: "Estate Planning Checklist" (for all of us)

... Beneficiaries trump wills so it is very important to name them and to keep them up to date. Except for life insurance and retirement benefits it’s usually better not to name beneficiaries. Why would it be best not to name beneficiaries for anything other than life insurance and retirement benef...
by bsteiner
Fri Sep 13, 2019 6:29 pm
Forum: Personal Finance (Not Investing)
Topic: "Estate Planning Checklist" (for all of us)
Replies: 21
Views: 3082

Re: "Estate Planning Checklist" (for all of us)

Peter Foley wrote:
Fri Jul 28, 2017 7:18 pm
... Beneficiaries trump wills so it is very important to name them and to keep them up to date.
Except for life insurance and retirement benefits it’s usually better not to name beneficiaries.
by bsteiner
Fri Sep 13, 2019 1:40 pm
Forum: Personal Finance (Not Investing)
Topic: Spendthrift Trustee; Bank&Trust or "professional fiduciary"
Replies: 23
Views: 1782

Re: Spendthrift Trustee; Bank&Trust or "professional fiduciary"

... Attorney suggested we add Trust as beneficiary of 403B accounts, however I was told by Fidelity that the administrator of our accounts specifies that that accounts left to a Trust must be distributed within 5 years of death of account holder. ... You could name a trust for the benefit of your d...
by bsteiner
Thu Sep 12, 2019 3:10 pm
Forum: Personal Consumer Issues
Topic: Need ideas for NY Upstate Getaway
Replies: 35
Views: 1913

Re: Need ideas for NY Upstate Getaway

Make sure you fully understand the New York State tax consequences of owning a vacation home in that state. https://www.wsj.com/articles/new-york-hits-out-of-stater-with-hefty-tax-bill-over-vacation-home-11567857600 That's only a problem if you work in New York (or are otherwise in New York more th...
by bsteiner
Thu Sep 12, 2019 1:26 pm
Forum: Personal Finance (Not Investing)
Topic: Medicaid Irrevocable Trust Pros/Cons
Replies: 10
Views: 667

Re: Medicaid Irrevocable Trust Pros/Cons

... Investable Assets: $1M (not retirement) Home: $200K (owned) Income: $80K (SSA, investments) Age: 70, 73 (good health) Person wants to protect principal for heirs and current income meets all expected non-medical needs, have medicare advantage policy. In theory, setting up a medicaid irrevocable...
by bsteiner
Tue Sep 10, 2019 10:45 am
Forum: Personal Finance (Not Investing)
Topic: Inherited Annuity question(s)
Replies: 24
Views: 1329

Re: Inherited Annuity question(s)

There's usually no good solution to an investment-type annuity. If you keep it and take distributions over your lifetime or life expectancy, in addition to continuing to incur the costs of the annuity (which as others have pointed out you can probably reduce), you'll convert the future qualified div...
by bsteiner
Tue Sep 10, 2019 9:05 am
Forum: Personal Finance (Not Investing)
Topic: Opinion on Will / Estate issue?
Replies: 29
Views: 2166

Re: Opinion on Will / Estate issue?

... Basically there are four paragraphs and it is fairly short. This is the abbreviated version, except paragraph 3 First, all debts to be paid Second, all tangible property apparel, jewelry, books, pictures, furniture, etc. divided among the named heirs (5) Third, I am intentionally excluding from...
by bsteiner
Sun Sep 08, 2019 10:21 pm
Forum: Personal Finance (Not Investing)
Topic: Opinion on Will / Estate issue?
Replies: 29
Views: 2166

Re: Opinion on Will / Estate issue?

Thanks for the replies. I realize it's hard to speculate without seeing the will. The executor read the will to my Wife and she asked for a copy but has not received it yet. The brother is saying he can take possession of the house in 30 days. I guess I'm confused why the house would not be conside...
by bsteiner
Sun Sep 08, 2019 10:16 pm
Forum: Personal Finance (Not Investing)
Topic: Spouse/Widow Inheriting My IRA
Replies: 26
Views: 2170

Re: Spouse/Widow Inheriting My Stretch IRA

Without more facts there's no way to know what option is best as of now. In addition, the facts may change between now and your death. If she survives you, she should consult with competent tax/estates counsel who can recommend what's best at that time.
by bsteiner
Sun Sep 08, 2019 10:14 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning Questions
Replies: 2
Views: 416

Re: Estate Planning Questions

I and my spouse will be traveling overseas without kids in October. We were reviewing our estate planning documents and had a few questions. (Residence - Texas) 1. In the will, should we transfer the real estate to a trust or do TODD with our county using deeds.com? 2. I am confused about the pour ...
by bsteiner
Sun Sep 08, 2019 8:55 am
Forum: Personal Finance (Not Investing)
Topic: Girlfriend/Living Will/Trust question...
Replies: 19
Views: 1849

Re: Girlfriend/Living Will/Trust question...

Ask your grandfather to provide for your father in trust rather than outright if he hasn't already so provided.
by bsteiner
Sun Sep 08, 2019 8:20 am
Forum: Personal Finance (Not Investing)
Topic: Surviving Parent Remarrying - What To Do?
Replies: 40
Views: 5125

Re: Surviving Parent Remarrying - What To Do?

Hasn't your deceased parent's part of the trust (presumably an AB trust) become irrevocable? Or is that the question you really want to ask? Or at least up to the estate tax exclusion amount. What does the trust say? If you’re a beneficiary of the credit shelter trust under the trust agreement you ...
by bsteiner
Sat Sep 07, 2019 8:30 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone done a "Life Settlement"
Replies: 20
Views: 3219

Re: Anyone done a "Life Settlement"

If you’re in sufficiently below average health that someone will pay you more than the cash surrender value to buy your policy you should probably keep it if you can. The buyer needs a higher expected return to compensate for the uncertainty and there are some intermediaries who have to get paid.
by bsteiner
Sat Sep 07, 2019 11:08 am
Forum: Personal Investments
Topic: Does a FA make sense at a certain portfolio level?
Replies: 53
Views: 4059

Re: Does a FA make sense at a certain portfolio level?

... How does find a good estate attorney or CPA? That is one of those $64 questions. I think the answer is usually going to be the same as for other professionals such as recommendations from other professionals that you know are good, recommendations from people you know who know a good pro when t...
by bsteiner
Fri Sep 06, 2019 1:49 pm
Forum: Personal Investments
Topic: Multi-generational trust
Replies: 26
Views: 1644

Re: Multi-generational trust

The trustees can decide on distributions each year based on the circumstances from time to time. Most likely they would make distributions based on the needs of the beneficiaries.
by bsteiner
Fri Sep 06, 2019 11:39 am
Forum: Personal Investments
Topic: Advice for 95 year old
Replies: 9
Views: 1221

Re: Advice for 95 year old

She's probably in the zero tax bracket, so some Roth conversions might make sense to fill her zero and 12% brackets, and perhaps more than that.
by bsteiner
Thu Sep 05, 2019 8:14 am
Forum: Personal Finance (Not Investing)
Topic: Need to get a car in a hurry.
Replies: 48
Views: 4771

Re: Need to get a car in a hurry.

... If you are in nj can you share some mechanic names, etc. that you have worked with in the past? Chris Palumbo of New Palumbo in Millburn: http://newpalumbosautorepair.com/home/1796732. It's been in his family since 1947. He's excellent at figuring out what needs to be done. He'll also tell you ...
by bsteiner
Wed Sep 04, 2019 3:57 pm
Forum: Personal Finance (Not Investing)
Topic: Tenants by the Entirety - Florida & Fidelity Investments
Replies: 3
Views: 575

Re: Tenants by the Entirety - Florida & Fidelity Investments

... When I try to add a TOD beneficiary to a brokerage account ..., I can't because I have no State of Residence (since I am overseas). It doesn't matter that it's a US broker and in CA I think. Since the broker knows I am overseas, they say sorry naming a beneficiary is not possible for you (other...
by bsteiner
Wed Sep 04, 2019 8:57 am
Forum: Personal Finance (Not Investing)
Topic: Am I diversified (tax wise) enough?
Replies: 7
Views: 426

Re: Am I diversified (tax wise) enough?

At a tax rate greater than zero, either a Roth or a traditional is better than a taxable. The income and gains in the Roth, and the income and gains on your share (1 minus the tax rate) in the traditional are tax-free. If the tax rate on contributions/conversions is less than, equal to, or not too m...
by bsteiner
Tue Sep 03, 2019 9:20 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning - what instructions to leave for wife to handle finances
Replies: 19
Views: 2194

Re: Estate Planning - what instructions to leave for wife to handle finances

Except for the retirement benefits (which you may want to leave to her outright so she can roll them over into her own IRA), you could provide for her in trust rather than outright so a trustee (or co-trustee with her) can deal with the investments. She can still have a substantial degree of control...
by bsteiner
Tue Sep 03, 2019 4:52 pm
Forum: Personal Finance (Not Investing)
Topic: US tax court and "notice of deficiency"
Replies: 12
Views: 1441

Re: US tax court and "notice of deficiency"

If you are going to pay someone to help you, I suggest you get a lawyer who specializes in IRS tax issues. I've done this in the past, and they were so worth it (and the cost was reasonable). In my case, the amount in question was MUCH larger, but they also did small tasks for me at reasonable rate...
by bsteiner
Tue Sep 03, 2019 4:10 pm
Forum: Personal Finance (Not Investing)
Topic: Do you consider your house as part of your bond portfolio?
Replies: 52
Views: 2216

Re: Do you consider your house as part of your bond portfolio?

If you're trying to categorize it between stocks and bonds, it's somewhere in between a stock and a bond. At least over the long term, it changes in value with inflation and gives you income in the form of imputed income (the rent you would pay if you had to rent a home, or the rent you would get if...
by bsteiner
Tue Sep 03, 2019 2:41 pm
Forum: Personal Finance (Not Investing)
Topic: US tax court and "notice of deficiency"
Replies: 12
Views: 1441

Re: US tax court and "notice of deficiency"

Thanks for the detailed responses! If I pay the CPA to resolve this -- ca $500 or so was the estimate -- presumably he will try to talk to the IRS right away and if successful, rescind -- right? If I don't hire the CPA, could I reasonably *combine* some of these possible courses of action? For exam...
by bsteiner
Tue Sep 03, 2019 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: US tax court and "notice of deficiency"
Replies: 12
Views: 1441

Re: US tax court and "notice of deficiency"

... I've also contacted a tax CPA who says it's not too hard to get the deadline moved. Why did you ask a legal question of an accountant? Why did the accountant try to answer a legal question? At one time the IRS couldn't rescind a notice of deficiency. However, Section 6212(d) now allows the IRS ...
by bsteiner
Tue Sep 03, 2019 11:02 am
Forum: Personal Investments
Topic: Possible to put too much into tax advantaged vs taxable?
Replies: 33
Views: 3531

Re: Possible to put too much into tax advantaged vs taxable?

From a tax standpoint (assuming you have the money available), almost always not. The income and gains on a Roth, and the income and gains on your share (1 minus the tax rate) on a traditional are tax-free, whereas the tax rate on income and gains in a taxable account will always be zero or greater ...
by bsteiner
Mon Sep 02, 2019 6:17 pm
Forum: Personal Finance (Not Investing)
Topic: Death in family (not sure how to proceed)...
Replies: 30
Views: 5291

Re: Death in family (not sure how to proceed)...

If the deceased owned the house in his name alone the house needs to be administered as part of his distributable estate. Don’t pay any bills on the house from personal funds. If there is no will an administrator must be appointed. Wouldn't the house pass to the intestate takers by operation of law...
by bsteiner
Mon Sep 02, 2019 10:35 am
Forum: Personal Investments
Topic: Bank Financial Planner Suggests Market Linked CD
Replies: 11
Views: 833

Re: Bank Financial Planner Suggests Market Linked CD

Thanks, everyone. I was highly skeptical of these CDs and it sounds like you all share my concerns. I will share the article with the trustee which will hopefully help. I keep reminding the trustee that bank planners are not her fiduciary, but she feels obligated to "earn the highest interest rate ...
by bsteiner
Sun Sep 01, 2019 10:46 pm
Forum: Personal Finance (Not Investing)
Topic: Family as estate lawyer?
Replies: 7
Views: 616

Re: Family as estate lawyer?

Unless there is something weird in the trust, the new lawyer should be able to modify without an issue. The legal bill may be a bit higher since the new lawyer has to read the whole trust from scratch to get up to speed. ... It’s usually more efficient to take a quick look at the existing documents...
by bsteiner
Sun Sep 01, 2019 12:02 pm
Forum: Personal Finance (Not Investing)
Topic: New Foreign Service Officer: Who do I talk to about State Domicile
Replies: 14
Views: 1361

Re: New Foreign Service Officer: Who do I talk to about State Domicile

http://afsa.org/residence-and-domicile ... That's a good explanation of domicile. To change your domicile, you have to acquire a new one. In other words, you have to move there with the intention of staying there indefinitely and returning to it when you're away from it. Each case turns on its own ...
by bsteiner
Sun Sep 01, 2019 9:41 am
Forum: Personal Investments
Topic: Timing considerations of non-governmental 457b rollover
Replies: 24
Views: 1088

Re: Timing considerations of non-governmental 457b rollover

I haven't researched the primary sources, but here is some information that may be helpful. There's some information on the wiki: https://www.bogleheads.org/wiki/457(b). Footnote 15 links to an IRS publication: https://www.irs.gov/pub/irs-pdf/p4484.pdf. Page 11 discusses nongovernmental 457(b) plans...
by bsteiner
Sat Aug 31, 2019 6:07 pm
Forum: Personal Finance (Not Investing)
Topic: Personal asset trust question
Replies: 2
Views: 430

Re: Personal asset trust question

Our clients generally provide for their children in trust rather than outright. That keeps the children's inheritances out of their estates for estate tax purposes, and protects their inheritances against their creditors and spouses. However, absent a special circumstance, such as a child with speci...
by bsteiner
Sat Aug 31, 2019 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: I Bonds - How Your Spouse can Quickly Cash in I Bonds
Replies: 51
Views: 3743

Re: I Bonds - How Your Spouse can Quickly Cash in I Bonds

Or she and your executor can accrue the interest on her and your joint return for the year of your death.

Or your executor might accrue the interest on the estate’s income tax return and offset the income with estate administration expenses.
by bsteiner
Fri Aug 30, 2019 2:47 pm
Forum: Personal Finance (Not Investing)
Topic: Spendthrift Trustee; Bank&Trust or "professional fiduciary"
Replies: 23
Views: 1782

Re: Spendthrift Trustee; Bank&Trust or "professional fiduciary"

... the trust would extend to [daughter's] children. The real hornet's nest appears to be figuring out how to leave retirement accounts and preserve the tax favorable stretch on mandatory distributions. Designating the trust as contingent beneficiary (after both spouses are gone) appears to result ...
by bsteiner
Fri Aug 30, 2019 2:32 pm
Forum: Personal Finance (Not Investing)
Topic: Spendthrift Trustee; Bank&Trust or "professional fiduciary"
Replies: 23
Views: 1782

Re: Spendthrift Trustee; Bank&Trust or "professional fiduciary"

... Do corporate trustees continue their services if you met the minimum originally, but then fall below the minimum? ... Yes, though they consider this in deciding whether to accept the trust in the first place. I remember when one well-respected trust company increased their minimum size from $2 ...
by bsteiner
Thu Aug 29, 2019 11:44 am
Forum: Investing - Theory, News & General
Topic: Please explain Generation-Skipping Tax to me (U.S.)
Replies: 4
Views: 692

Re: Please explain Generation-Skipping Tax to me (U.S.)

I've read Wikipedia et al. on the Generation-Skipping Tax, but I'm still not understanding, especially around the actual impact of giving a large amount of money to someone 2+ generations younger and how it interacts with the normal estate tax. Can someone explain in a way that a newbie can underst...
by bsteiner
Thu Aug 29, 2019 10:35 am
Forum: Personal Investments
Topic: To SPIA or not to SPIA? Should We Invest Pension Cash in an Annuity?
Replies: 12
Views: 913

Re: To SPIA or not to SPIA? Should We Invest Pension Cash in an Annuity?

My wife is 59 and a teacher. ... we recently rolled her pension’s cash value of $84,700 into a Vanguard IRA. The reason we withdrew her pension’s cash value was to then purchase a Single Premium Immediate Annuity (SPIA) that will instead pay $390 per month assuming again no survivor benefits (rate ...
by bsteiner
Thu Aug 29, 2019 7:52 am
Forum: Personal Finance (Not Investing)
Topic: Spendthrift Trustee; Bank&Trust or "professional fiduciary"
Replies: 23
Views: 1782

Re: Spendthrift Trustee; Bank&Trust or "professional fiduciary"

Thank you for the excellent advice. The attorney seemed to insinuate that our estate value was borderline of what the bank & trust would be willing to administer, so we went along with her individual fiduciary suggestion. I will call the bank tomorrow to ask about their policies. Even if fees are h...
by bsteiner
Wed Aug 28, 2019 5:03 pm
Forum: Personal Finance (Not Investing)
Topic: Spendthrift Trustee; Bank&Trust or "professional fiduciary"
Replies: 23
Views: 1782

Re: Spendthrift Trustee; Bank&Trust or "professional fiduciary"

Background: Married CA couple, early 60's with ~ $6 million net worth diversified equally among real estate/index funds/bonds/cash in Roth IRAs, 403B's and taxable accounts. Retirement with full pension in several years, plus eventual social security means little/no draw down of savings after retir...
by bsteiner
Wed Aug 28, 2019 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: Should we let go of our Realtor and get a Real Estate Attorney?
Replies: 82
Views: 4162

Re: Should we let go of our Realtor and get a Real Estate Attorney?

An attorney and an agent serve two different purposes. It's not clear why or how you would substitute the former for the latter. I understand and I am trying to grasp how much more does a Real Estate Agent add in terms of value to the process of closing the deal on a house. ... The broker finds a b...
by bsteiner
Wed Aug 28, 2019 10:47 am
Forum: Investing - Theory, News & General
Topic: Brokerages good for tax rates on ADRs? (Foreign withholding)
Replies: 15
Views: 424

Re: Brokerages good for tax rates on ADRs? (Foreign withholding)

The U.S.-Japan treaty is like many if not most treaties. It's 15%, except it's generally 10% for corporations owning at least 10% of the payor corporation. The brokers should be able to deal with this.
by bsteiner
Wed Aug 28, 2019 7:55 am
Forum: Personal Finance (Not Investing)
Topic: Do I need a Will? A Trust? Nothing?
Replies: 22
Views: 1451

Re: Do I need a Will? A Trust? Nothing?

... Actually created a “Lady Bird” deed and had it executed, by chance, less than 24 hours before he passed allowing his house to bypass probate. ..., The homestead wouldn’t have been a probate asset even if he had kept it Please clarify. A home in Florida a absolutely goes through probate for a no...
by bsteiner
Tue Aug 27, 2019 8:18 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need a Will? A Trust? Nothing?
Replies: 22
Views: 1451

Re: Do I need a Will? A Trust? Nothing?

Silk McCue wrote:
Tue Aug 27, 2019 4:05 pm
... Actually created a “Lady Bird” deed and had it executed, by chance, less than 24 hours before he passed allowing his house to bypass probate. ...,
The homestead wouldn’t have been a probate asset even if he had kept it
by bsteiner
Tue Aug 27, 2019 11:04 am
Forum: Personal Finance (Not Investing)
Topic: Buying term life because it's a "deal"?
Replies: 15
Views: 872

Re: Buying term life because it's a "deal"?

You can't compare a 1-year policy to a 10-year policy, especially at age 78. The chance of dying within a year is greater at age 87 (the 10th year of the 10-year policy) than at age 78. If you're looking at it as a "deal," if you a $5 million 1-year policy costs $108,000, the question (ignoring the ...
by bsteiner
Tue Aug 27, 2019 8:18 am
Forum: Personal Finance (Not Investing)
Topic: Estate planning - Attorney vs DIY
Replies: 27
Views: 1969

Re: Estate planning - Attorney vs DIY

Wealth is much more unevenly distributed than income. Most of the population has very little in the way of assets. For many people of modest means and with simple situations, LegalZoom or something similar, or the free of nearly free lawyer through the union or other legal plan, or the $1,500 genera...
by bsteiner
Mon Aug 26, 2019 3:31 pm
Forum: Personal Investments
Topic: Trustee/"CIO"/Money Manager model for trust?
Replies: 11
Views: 600

Re: Trustee/"CIO"/Money Manager model for trust?

It's not unusual to divide the tasks, and have one (whom you're calling the trustee) responsible for administrative matters and distributions, and another (whom you're calling the CIO) responsible for the investments, with the right to hire managers. It's easier to do this in a state that has a sta...
by bsteiner
Mon Aug 26, 2019 3:11 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning - Attorney vs DIY
Replies: 27
Views: 1969

Re: Estate planning - Attorney vs DIY

The $1,500 Will may be appropriate for many people, but it may not be appropriate for someone with an estate of $1.8 million and income of $350,000. (You may want to increase your life insurance.)
by bsteiner
Mon Aug 26, 2019 3:08 pm
Forum: Personal Investments
Topic: Trustee/"CIO"/Money Manager model for trust?
Replies: 11
Views: 600

Re: Trustee/"CIO"/Money Manager model for trust?

It's not unusual to divide the tasks, and have one (whom you're calling the trustee) responsible for administrative matters and distributions, and another (whom you're calling the CIO) responsible for the investments, with the right to hire managers. It's easier to do this in a state that has a stat...
by bsteiner
Sun Aug 25, 2019 9:22 pm
Forum: Personal Finance (Not Investing)
Topic: Trustee questions
Replies: 25
Views: 1712

Re: Trustee questions

I'm not a lawyer, but I do not believe that your brother's creditors can "put his estate into probate". In CA, estates of less than $150,000 do not need to go through probate (although creditors can make claims against an estate of any size.) It is very important to understand which assets are in t...