Search found 4773 matches

by bsteiner
Mon May 25, 2020 1:03 pm
Forum: Personal Finance (Not Investing)
Topic: Last-minute lien on home found - sign (as seller) anyway?
Replies: 12
Views: 1175

Re: Last-minute lien on home found - sign (as seller) anyway?

The buyer might be willing to close (in other words, the title company may be willing to let the buyer close) if the title company holds an ample amount in escrow to cover the possible amount due. Once the lender gives the title company a satisfaction of the mortgage, or records a satisfaction of th...
by bsteiner
Sun May 24, 2020 6:35 pm
Forum: Personal Finance (Not Investing)
Topic: New here, need help with creating a nest egg for my autistic son
Replies: 18
Views: 1342

Re: New here, need help with creating a nest egg for my autistic son

In our case, our daughters SNT isnt funded until both of us parents die. Our wills direct half our assets to our nondisabled son and the other half to our disabled daughters SNT. ... We had a special needs atty draft our documents. It was too important for us to risk not getting the language right ...
by bsteiner
Sun May 24, 2020 5:00 pm
Forum: Personal Finance (Not Investing)
Topic: New here, need help with creating a nest egg for my autistic son
Replies: 18
Views: 1342

Re: New here, need help with creating a nest egg for my autistic son

... Hubby has a private term life policy of 1.5 million with Prudential - should we convert it to a whole life with son's special needs trust as beneficiary so there's a guaranteed pay out to the trust when hubby passes on? That would guarantee the minimum amount even if he were to die the day afte...
by bsteiner
Sun May 24, 2020 11:52 am
Forum: Personal Consumer Issues
Topic: Should we drop our Long Term Care Insurance?
Replies: 15
Views: 1168

Re: Should we drop our Long Term Care Insurance?

It would be better if it covered an unlimited duration, but not the first 3 years.
by bsteiner
Sun May 24, 2020 11:50 am
Forum: Personal Consumer Issues
Topic: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!
Replies: 70
Views: 2629

Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

anoop wrote:
Sun May 24, 2020 11:10 am
Truecar prices are normally average, but good enough for me. ....
If you use PenFed's buying service (which is their private label version of TrueCar) you can get financing through them at 1.14%.
by bsteiner
Sun May 24, 2020 8:58 am
Forum: Personal Finance (Not Investing)
Topic: New here, need help with creating a nest egg for my autistic son
Replies: 18
Views: 1342

Re: New here, need help with creating a nest egg for my autistic son

Instead of your money having to last only for your possible lifetime (or the possible lifetimes of you and your spouse), it has to also last for the possible lifetime of the child. So you either have to accumulate more money or use a lower withdrawal rate. The trust in your Will for the child with s...
by bsteiner
Fri May 22, 2020 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard as Trustee of Estate Trust
Replies: 99
Views: 5497

Re: Vanguard as Trustee of Estate Trust

As discussed above, not all attempts to get at the assets are for reasons that would be covered by umbrella insurance. In addition to divorce, there can be claims based on business deals that went bad. Yes, I was reading a well known attorney giving examples of why people need trusts. One of his cl...
by bsteiner
Thu May 21, 2020 10:06 pm
Forum: Personal Finance (Not Investing)
Topic: Tax attorney weirdness
Replies: 40
Views: 3197

Re: Tax attorney weirdness

galawdawg wrote:
Thu May 21, 2020 6:54 pm
It sounds like you might be looking for an Accredited Tax Advisor.
The Accredited Tax Advisor (ATA) is a leading national credential for practitioners who handle sophisticated tax planning issues, .....
...
??? Who are they? Why do they think they're "leading"?
by bsteiner
Thu May 21, 2020 5:49 pm
Forum: Personal Finance (Not Investing)
Topic: Tax attorney weirdness
Replies: 40
Views: 3197

Re: Tax attorney weirdness

Except for Roth conversions, we're more likely to do tax planning for business transactions, tax planning for estates and trusts, and tax controversies.
by bsteiner
Thu May 21, 2020 4:20 pm
Forum: Personal Finance (Not Investing)
Topic: Child inheritance -change executor?
Replies: 20
Views: 1384

Re: Child inheritance -change executor?

Here is the North Carolina statute on trustees' compensation: https://www.ncleg.net/EnactedLegislatio ... icle_6.pdf.
by bsteiner
Thu May 21, 2020 7:34 am
Forum: Personal Finance (Not Investing)
Topic: Child inheritance -change executor?
Replies: 20
Views: 1384

Re: Child inheritance -change executor?

NotWhoYouThink wrote:
Thu May 21, 2020 7:09 am
Just like you offer cash for keys to get deadbeats out of your house, you should strongly consider paying him to resign as trustee.
...
We have done that.
by bsteiner
Thu May 21, 2020 6:36 am
Forum: Personal Finance (Not Investing)
Topic: Child inheritance -change executor?
Replies: 20
Views: 1384

Re: Child inheritance -change executor?

My two children recently inherited a sum of money in the low 6 figures. It is being placed in a trust which will be opened to them at age 35 (20 years from now). The executor of the will claims he is the only one who can administer the trust until they turn 35. .... He is a 55 year old, permanently...
by bsteiner
Wed May 20, 2020 10:16 pm
Forum: Personal Finance (Not Investing)
Topic: How specific should I be in my will with regards to investing?
Replies: 13
Views: 979

Re: How specific should I be in my will with regards to investing?

Another question, wouldn’t prudent investor rules imply indexing? Most of the country thinks prudent investing is paying a salesman 1-2% all-in (fees + expense ratios + tax churn / tax drag) to complexify your holdings. We (bogleheads, low-cost indexers) are a bit of a cult. People think we're the ...
by bsteiner
Wed May 20, 2020 1:02 pm
Forum: Personal Finance (Not Investing)
Topic: Testamentary Trust: What age to become co-Trustee, then Trustee
Replies: 44
Views: 1885

Re: Testamentary Trust: What age to become co-Trustee, then Trustee

... I think I have a pretty good understanding of the requirements for a trust to qualify as a see through accumulation trust for inheritance and stretch of qualified retirement assets. I've read the trust chapter in Natalie's book several times and we've had some good discussions around this here ...
by bsteiner
Wed May 20, 2020 11:42 am
Forum: Personal Finance (Not Investing)
Topic: Testamentary Trust: What age to become co-Trustee, then Trustee
Replies: 44
Views: 1885

Re: Testamentary Trust: What age to become co-Trustee, then Trustee

If a trust company is added later on, it should be possible to change the situs and governing law. If not, then the trustees could decant the trust into a new trust, which would have the same effect. Am I correct in understanding the power of the trustees to "decant the trust into a new trust" as s...
by bsteiner
Wed May 20, 2020 11:40 am
Forum: Personal Finance (Not Investing)
Topic: Transfer on Death MN help
Replies: 9
Views: 602

Re: Transfer on Death MN help

It won't be cheaper if one wants to keep it and one wants to sell it. We had two such cases in recent years where the real estate passed directly to the beneficiaries. The legal fees in each case were several hundred thousand dollars. Minnesota is a Uniform Probate Code state, which means simplified...
by bsteiner
Wed May 20, 2020 9:43 am
Forum: Personal Finance (Not Investing)
Topic: Transfer on Death MN help
Replies: 9
Views: 602

Re: Transfer on Death MN help

What if you didn't own it (or all of it) at the time of the deed, but you later acquired it? See this law review article on this subject: https://scholar.smu.edu/cgi/viewcontent.cgi?article=3994&context=smulr. Do you really want to leave your house to your 4 children? What if one wants to stay there...
by bsteiner
Wed May 20, 2020 8:44 am
Forum: Personal Finance (Not Investing)
Topic: Testamentary Trust: What age to become co-Trustee, then Trustee
Replies: 44
Views: 1885

Re: Testamentary Trust: What age to become co-Trustee, then Trustee

That's a good summary afan. Thanks for posting it. I know SD comes up a lot. We've also talked about Nevada. I believe that there are trust companies in these states that will perform bare minimum trustee tasks (likely to exclude any investment or distribution decisions), at very small prices, in o...
by bsteiner
Tue May 19, 2020 3:52 pm
Forum: Personal Finance (Not Investing)
Topic: Testamentary Trust: What age to become co-Trustee, then Trustee
Replies: 44
Views: 1885

Re: Testamentary Trust: What age to become co-Trustee, then Trustee

That's a good summary afan. Thanks for posting it. I know SD comes up a lot. We've also talked about Nevada. I believe that there are trust companies in these states that will perform bare minimum trustee tasks (likely to exclude any investment or distribution decisions), at very small prices, in o...
by bsteiner
Tue May 19, 2020 3:46 pm
Forum: Personal Finance (Not Investing)
Topic: Trusts, k1s, and state taxes
Replies: 9
Views: 355

Re: Trusts, k1s, and state taxes

Different states have different ways of determining when a trust is taxable in that state. Some look to where the grantor or testator is or was. Some look to where the trustees are. There are variations among these categories. So it's possible that a trust could be taxable in two or more states, or ...
by bsteiner
Mon May 18, 2020 11:22 am
Forum: Personal Finance (Not Investing)
Topic: Beyond The Grave "Transparent Trust"
Replies: 7
Views: 990

Re: Beyond The Grave "Transparent Trust"

If a beneficiary had the power to distribute to himself/herself, there wouldn't be any purpose to the trust. The beneficiary would be taxable on the trust's income and gains, the trust would be included in the beneficiary's estate, and the trust would be subject to the beneficiary's creditors. For ...
by bsteiner
Mon May 18, 2020 10:21 am
Forum: Personal Finance (Not Investing)
Topic: Testamentary Trust: What age to become co-Trustee, then Trustee
Replies: 44
Views: 1885

Re: Testamentary Trust: What age to become co-Trustee, then Trustee

The 3 rights/powers that you can give them are (i) the right to become a trustee, (ii) the power to remove and replace their co-trustee (provided the replacement trustee isn't a close relative or subordinate employee, and (iii) the power to appoint (give or leave) the trust assets to anyone they wa...
by bsteiner
Mon May 18, 2020 8:23 am
Forum: Personal Finance (Not Investing)
Topic: Beyond The Grave "Transparent Trust"
Replies: 7
Views: 990

Re: Beyond The Grave "Transparent Trust"

Transparent trust is another term for a trust that the beneficiary (in this case, the child) effectively controls. Unless there's a reason not to do so in a given case, our clients almost always provide for their children and grandchildren in this way if they would have otherwise left the assets to...
by bsteiner
Sun May 17, 2020 6:23 pm
Forum: Personal Finance (Not Investing)
Topic: How did you set up your trust distributions?
Replies: 39
Views: 2481

Re: How did you set up your trust distributions?

Almost all of our clients give the trustees complete discretion as to distributions. No one knows what the future will bring. Thanks for posting that (again) Bruce. It is outstanding advice, and I continue to be baffled by the number of forum members who either miss it or just choose to disregard i...
by bsteiner
Sun May 17, 2020 4:59 pm
Forum: Personal Finance (Not Investing)
Topic: SECURE Act - Special Needs Trusts
Replies: 51
Views: 4778

Re: SECURE Act - Special Needs Trusts

With the exception of trusts for disabled or chronically ill persons, the subsequent beneficiaries still have to be individuals (or other trusts for individuals) in order to get the 10-year stretch rather than 5 years. However, there's no restriction on who may be a remainder beneficiary of a trust...
by bsteiner
Sun May 17, 2020 1:49 pm
Forum: Personal Investments
Topic: Large inheritance -- looking for advice
Replies: 65
Views: 9913

Re: Large inheritance -- looking for advice

I wouldn't mind understanding why naming beneficiaries on taxable accounts can be a bad thing for an estate? There may not be enough money in the estate to pay debts, expenses and taxes. The executors may have to chase the TOD beneficiaries. Some may resist. That will result in unnecessary expense....
by bsteiner
Sun May 17, 2020 1:23 pm
Forum: Personal Finance (Not Investing)
Topic: How did you set up your trust distributions?
Replies: 39
Views: 2481

Re: How did you set up your trust distributions?

Almost all of our clients give the trustees complete discretion as to distributions. No one knows what the future will bring. Thanks for posting that (again) Bruce. It is outstanding advice, and I continue to be baffled by the number of forum members who either miss it or just choose to disregard i...
by bsteiner
Sun May 17, 2020 10:54 am
Forum: Personal Investments
Topic: Large inheritance -- looking for advice
Replies: 65
Views: 9913

Re: Large inheritance -- looking for advice

I wouldn't mind understanding why naming beneficiaries on taxable accounts can be a bad thing for an estate? There may not be enough money in the estate to pay debts, expenses and taxes. The executors may have to chase the TOD beneficiaries. Some may resist. That will result in unnecessary expense....
by bsteiner
Sun May 17, 2020 7:12 am
Forum: Personal Finance (Not Investing)
Topic: How did you set up your trust distributions?
Replies: 39
Views: 2481

Re: How did you set up your trust distributions?

Almost all of our clients give the trustees complete discretion as to distributions. No one knows what the future will bring. A few of our clients have named Vanguard as a trustee in their Wills. However, none of them has died yet. So we don't have any experience as to whether dealing with them will...
by bsteiner
Sat May 16, 2020 8:40 pm
Forum: Personal Finance (Not Investing)
Topic: Tax efficient real estate gift
Replies: 10
Views: 601

Re: Tax efficient real estate gift

Is it a marital trust from your grandfather that would be included in your grandmother’s estate so it would get a basis step-up at her death?

Or is it a credit shelter trust so that it wouldn’t?

If it’s a credit shelter trust, would distributing it to her result in more estate tax in her estate?
by bsteiner
Sat May 16, 2020 10:23 am
Forum: Personal Finance (Not Investing)
Topic: Cost of revocable trusts, wills, estate planning
Replies: 25
Views: 1891

Re: Cost of revocable trusts, wills, estate planning

If you expect to grow your retirement plans significantly, than you may wish consider leaving them in trust to your heirs. Most boilerplate revocable trusts allow for this using a conduit trust approach which has never provided good asset protection and now, with the SECURE act, even less. If you d...
by bsteiner
Fri May 15, 2020 7:04 pm
Forum: Personal Finance (Not Investing)
Topic: Shopping for Title Insurance
Replies: 29
Views: 1318

Re: Shopping for Title Insurance

Blueskies123 wrote:
Fri Aug 23, 2019 5:26 pm
Yeah, it is interesting there are only a few companies writing title insurance and they all charge about the same price. Sometimes the lawyer will share some of the (large) commission they get.
We don’t get commissions on title insurance. If we did we would give it to our clients.
by bsteiner
Fri May 15, 2020 12:01 pm
Forum: Personal Finance (Not Investing)
Topic: Will confusion
Replies: 2
Views: 455

Re: Will confusion

It's a pecuniary marital/residuary credit shelter formula. Ignoring prior gifts or assets passing outside the Will, and ignoring post-death changes in value, the marital share gets the excess above $11,580,000, and the residuary credit shelter trust gets the rest ($11,580,000). Alternatively, you co...
by bsteiner
Fri May 15, 2020 10:10 am
Forum: Personal Finance (Not Investing)
Topic: Estate Tax Question
Replies: 6
Views: 637

Re: Estate Tax Question

My in-laws live in Minnesota and are struggling to set up a will because my FIL has been wanting to give it more thought for about the last 8 years, in addition to being quite frugal and not wanting to pay a lawyer/accountant. A proper estate plan might cost ~$5k-10k, but it is worth every penny. ....
by bsteiner
Fri May 15, 2020 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Testamentary Trust: What age to become co-Trustee, then Trustee
Replies: 44
Views: 1885

Re: Testamentary Trust: What age to become co-Trustee, then Trustee

For simplicity, since it's easier to give someone these powers over an entire trust all at once, most of our clients give their children these powers over their entire trust at one time. However, it's possible to do it in stages by dividing the trust into two trusts, giving them these powers over o...
by bsteiner
Fri May 15, 2020 8:31 am
Forum: Personal Finance (Not Investing)
Topic: Testamentary Trust: What age to become co-Trustee, then Trustee
Replies: 44
Views: 1885

Re: Testamentary Trust: What age to become co-Trustee, then Trustee

... We have two young adult children (late 20's), neither of whom is married. Both live in HCOL area and are employed in the non-profit sector (i.e. low-paying) but living within their means. Our current estate asset value ~$10million (not including life insurance). Right now our current revocable ...
by bsteiner
Thu May 14, 2020 9:40 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Tax Question
Replies: 6
Views: 637

Re: Estate Tax Question

One possibility is for him to leave $3 million to a credit shelter trust for his wife and issue and the rest to his wife. The income and growth on the $3 million won’t be in her estate so her estate will be under $3 million.

There could be some variations on this but the concept would be the same.
by bsteiner
Thu May 14, 2020 3:32 pm
Forum: Personal Finance (Not Investing)
Topic: Should we create a testamentary trust for $6M estate?
Replies: 198
Views: 8884

Re: Should we create a testamentary trust for $6M estate?

... FOURTH (A) The residue of the property owned by me at my death, real and personal and wherever situate, I devise and bequeath to my wife, if she survives me; provided, that, if my wife survives me but disclaims the right to take any portion of or interest in my residuary estate, I give such dis...
by bsteiner
Thu May 14, 2020 10:27 am
Forum: Personal Finance (Not Investing)
Topic: Husband Died and Spouse lack of knowledge.
Replies: 37
Views: 6132

Re: Husband Died and Spouse lack of knowledge.

Great idea to hire an attorney, but make sure they are experienced estate attorneys. There are different types, from big outfits whose partners charge a whole lot by the hour and their paralegals can charge a lot as well; to sole proprietor attorneys; to ones in between. Word of mouth is probably t...
by bsteiner
Thu May 14, 2020 9:28 am
Forum: Personal Finance (Not Investing)
Topic: Should we create a testamentary trust for $6M estate?
Replies: 198
Views: 8884

Re: Should we create a testamentary trust for $6M estate?

... We have a testamentary trust and that is my understanding, and one of the main reasons we set it up. In the event of my death, the assets go to the trust at a stepped up basis, with my wife is the trustee (the way we have it set up). Same in the event of her death, but with me as the trustee. S...
by bsteiner
Thu May 14, 2020 8:38 am
Forum: Personal Finance (Not Investing)
Topic: Husband Died and Spouse lack of knowledge.
Replies: 37
Views: 6132

Re: Husband Died and Spouse lack of knowledge.

The trusts and estates section of the New York State Bar Association has an active electronic discussion group. While it's a long shot, it's worth having a memnber post a query asking if anyone on the list has the Will. His checkbook will be a good source of information. It will show payments to the...
by bsteiner
Wed May 13, 2020 9:50 pm
Forum: Personal Finance (Not Investing)
Topic: Should we create a testamentary trust for $6M estate?
Replies: 198
Views: 8884

Re: Should we create a testamentary trust for $6M estate?

... We have a testamentary trust and that is my understanding, and one of the main reasons we set it up. In the event of my death, the assets go to the trust at a stepped up basis, with my wife is the trustee (the way we have it set up). Same in the event of her death, but with me as the trustee. S...
by bsteiner
Wed May 13, 2020 8:23 pm
Forum: Personal Finance (Not Investing)
Topic: Need help with probate / estate situation
Replies: 7
Views: 531

Re: Need help with probate / estate situation

My mom unexpectedly passed away last year. She owned a home in Colorado and a second home in Florida. Her home in Colorado is valued at around $420K, and it was originally purchased for around $200K. A few years ago she used the equity in the Colorado home to purchase the Florida home. Because she ...
by bsteiner
Wed May 13, 2020 5:50 pm
Forum: Personal Finance (Not Investing)
Topic: Cost of revocable trusts, wills, estate planning
Replies: 25
Views: 1891

Re: Cost of revocable trusts, wills, estate planning

Is there a reason to do revocable trusts? They're appropriate in some cases and in some states, but you haven't mentioned anything that would suggest that they would be appropriate in your case. ... There may not be a significant legal reason. It may be more emotional or psychological. ... There's ...
by bsteiner
Wed May 13, 2020 4:53 pm
Forum: Personal Finance (Not Investing)
Topic: Should we create a testamentary trust for $6M estate?
Replies: 198
Views: 8884

Re: Should we create a testamentary trust for $6M estate?

This is probably the part of the program where I remind viewers that, however generous the Federal exclusion currently is, some states are much stingier. MA’s lifetime exclusion is $1M, and it’s a cliff exclusion with a tax rate that quickly climbs to 16%. One wonders how such a law with a cliff ex...
by bsteiner
Wed May 13, 2020 3:56 pm
Forum: Personal Finance (Not Investing)
Topic: Should we create a testamentary trust for $6M estate?
Replies: 198
Views: 8884

Re: Should we create a testamentary trust for $6M estate?

... With this much $ it should be obvious but use experienced professionals i.e. lawyers, CPA, trustees, financial advisors. ... TBH the internet is not the best place to get anything more than the most general advice. Some of the information either misinformed or wrong. ... I agree that the commen...
by bsteiner
Wed May 13, 2020 3:43 pm
Forum: Personal Finance (Not Investing)
Topic: Cost of revocable trusts, wills, estate planning
Replies: 25
Views: 1891

Re: Cost of revocable trusts, wills, estate planning

I wanted to see if I could get some guidance from others on the cost of estate planning documents. I understand every situation will vary. In our case it is mostly straightforward - married, two kids, <$2.5M all assets w life insurance included if both die. We wanted wills, POA, healthcare stuff, a...
by bsteiner
Wed May 13, 2020 2:21 pm
Forum: Personal Finance (Not Investing)
Topic: Should we create a testamentary trust for $6M estate?
Replies: 198
Views: 8884

Re: Should we create a testamentary trust for $6M estate?

This is probably the part of the program where I remind viewers that, however generous the Federal exclusion currently is, some states are much stingier. MA’s lifetime exclusion is $1M, and it’s a cliff exclusion with a tax rate that quickly climbs to 16%. One wonders how such a law with a cliff ex...
by bsteiner
Tue May 12, 2020 1:54 pm
Forum: Personal Finance (Not Investing)
Topic: Naming Beneficiaries at Vanguard
Replies: 15
Views: 974

Re: Naming Beneficiaries at Vanguard

Your language was better than theirs.

They would probably want you to sign something saying that they may rely on the certification of someone (typically your executors) as to the identity of your issue.
by bsteiner
Tue May 12, 2020 10:46 am
Forum: Personal Finance (Not Investing)
Topic: Should we create a testamentary trust for $6M estate?
Replies: 198
Views: 8884

Re: Should we create a testamentary trust for $6M estate?

... https://www.investmentnews.com/dynasty-trusts-a-way-to-let-the-wealthy-duck-estate-gift-taxes-forever-37813 “Jeffrey Thomasson, 52, may pass on more than $100 million to heirs using an estate-planning strategy for avoiding gift and estate taxes. Thomasson, who lives in Indianapolis, said he’s f...