Search found 9187 matches

by bsteiner
Thu Mar 28, 2024 8:24 am
Forum: Personal Finance (Not Investing)
Topic: Father Has Passed; Do we need an Appraisal?
Replies: 25
Views: 2645

Re: Father Has Passed; Do we need an Appraisal?

... The property is currently titled "Mr & Mrs. Family Trust". It was created in 1996. Mr. and Mrs. are Trustors originally, and named as co-trustees. Should either die or become incapacitated, the two kids are named as joint co-trustees. It explicitly notes that the contents titled in the trust should be construed as community property. Mr. has passed. It is now an irrevocable trust, called Trust B. I believe we need to file to have the property moved from the current titling into Trust B, yes? And having an appraisal would be smart, if the current irrevocable trust means that there is no additional step up in basis when Mrs. passes. Correct? This sounds like a California type joint revocable trust. The surviving spouse's se...
by bsteiner
Thu Mar 28, 2024 8:18 am
Forum: Personal Finance (Not Investing)
Topic: Why does a discussion of Financial Planning almost always turns into buying Whole life insurance?
Replies: 54
Views: 2946

Re: Why does a discussion of Financial Planning almost always turns into buying Whole life insurance?

While they don't (or at least shouldn't) draft legal documents, other people besides lawyers are involved in estate planning. Insurance agents (which is whom the original poster met with) sell life insurance for estate planning purposes. Accountants, appraisers, bank trust officers and various financial people are also involved in various aspects of estate planning.
by bsteiner
Wed Mar 27, 2024 9:56 pm
Forum: Personal Investments
Topic: Help | 85 Year Old about to Lose Home
Replies: 25
Views: 1907

Re: Help | 85 Year Old about to Lose Home

Jovby wrote: Wed Mar 27, 2024 9:55 pm
The_Dude wrote: Wed Mar 27, 2024 9:00 pm
3. We are considering using an irrevocable trust, paying off the loan, and letting her live there with a small cash stipend. Need help understanding the implications of this.

What are your thoughts? She is family to us.
Rules about step up in basis and irrevocable trusts changed last year. I think it is still possible, but you'll want to use an attorney who has specific knowledge in this area.
Nothing changed.
by bsteiner
Wed Mar 27, 2024 6:49 pm
Forum: Personal Finance (Not Investing)
Topic: Why does a discussion of Financial Planning almost always turns into buying Whole life insurance?
Replies: 54
Views: 2946

Re: Why does a discussion of Financial Planning almost always turns into buying Whole life insurance?

TimDex wrote: Wed Mar 27, 2024 6:40 pm Whole life could be useful for funding a trust for a disabled child, or possibly as part of a business partnership agreement, but outside of that, I would be very wary of it. You’re turning your compounded growth over to a company and they’re taking their commissions out of it.
Wouldn’t the trust for the disabled child have substantially more money if you didn’t buy the whole life insurance (and bought term insurance until you accumulated enough money)?
by bsteiner
Wed Mar 27, 2024 3:55 pm
Forum: Personal Finance (Not Investing)
Topic: Why does a discussion of Financial Planning almost always turns into buying Whole life insurance?
Replies: 54
Views: 2946

Re: Why does a discussion of Financial Planning almost always turns into buying Whole life insurance?

sailaway wrote: Wed Mar 27, 2024 3:49 pm I bet every advisor is using the same cherry picked couple, probably looking at their equity heavy portfolio at the bottom of a crash.

I would just not agree to talk to the "advisors." Sounds like your attorney is also getting a kickback from referrals, if they have pushed this multiple times. I would drop such an attorney.
We're not allowed to share in the insurance agent's commissions.

Given the size of your estate, you should work with a trusts and estates lawyer in a firm that has a strong trusts and estates group for whom estates of that size are a routine matter.
by bsteiner
Wed Mar 27, 2024 3:13 pm
Forum: Personal Finance (Not Investing)
Topic: Form 1041 (Estate Income Tax) Questions: Deductions and Pass-Throughs
Replies: 12
Views: 811

Re: Form 1041 (Estate Income Tax) Questions: Deductions and Pass-Throughs

... Regarding your question about whether the costs to maintain the house can be deducted, there definitely is a lot of conflicting information. I have had one CPA advise that one can do so, and another CPA (who specializes in estate matters) advise me that you definitely cannot do so. It seems that some people do (whether one should or not) and some absolutely do not. I am choosing not to do this despite the property maintenance costs being considerable - and hence to pay more taxes - because it's just not clear enough that you can. I don't want problems to arise later if this is disallowed. I don't want to fight with the Feds or the State. You may well wish to seek advice from an accountant or have one prepare your return, even if it see...
by bsteiner
Wed Mar 27, 2024 2:41 pm
Forum: Personal Finance (Not Investing)
Topic: Penna. executor's fees for handling will?
Replies: 26
Views: 1419

Re: Penna. executor's fees for handling will?

NotWhoYouThink wrote: Wed Mar 27, 2024 2:39 pm ...
The "income tax" issue above is that the executor fees will be taxable income to the executor. ...
However, the estate will get a deduction for the payment.
by bsteiner
Wed Mar 27, 2024 2:41 pm
Forum: Personal Finance (Not Investing)
Topic: Penna. executor's fees for handling will?
Replies: 26
Views: 1419

Re: Penna. executor's fees for handling will?

trustquestioner wrote: Wed Mar 27, 2024 2:17 pm Doesn’t the executor have to provide an inventory, and don’t all fees have to be approved by the probate court?
They do have a form of inventory: https://www.pacourts.us/Storage/media/p ... 008175.pdf.

I've only had about a half dozen estates in Pennsylvania (with local counsel for the Pennsylvania aspects) but the court didn't pass on the fees in any of them. Of course, a beneficiary may seek relief in the court if he/she can't reach an agreement with the executor.
by bsteiner
Wed Mar 27, 2024 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Form 1041 (Estate Income Tax) Questions: Deductions and Pass-Throughs
Replies: 12
Views: 811

Re: Form 1041 (Estate Income Tax) Questions: Deductions and Pass-Throughs

... Regarding your question about whether the costs to maintain the house can be deducted, there definitely is a lot of conflicting information. I have had one CPA advise that one can do so, and another CPA (who specializes in estate matters) advise me that you definitely cannot do so. It seems that some people do (whether one should or not) and some absolutely do not. I am choosing not to do this despite the property maintenance costs being considerable - and hence to pay more taxes - because it's just not clear enough that you can. I don't want problems to arise later if this is disallowed. I don't want to fight with the Feds or the State. You may well wish to seek advice from an accountant or have one prepare your return, even if it see...
by bsteiner
Wed Mar 27, 2024 1:14 pm
Forum: Personal Finance (Not Investing)
Topic: Penna. executor's fees for handling will?
Replies: 26
Views: 1419

Re: Penna. executor's fees for handling will?

The estate can also get a small discount on the inheritance tax by paying most of it (by making a reasonable estimate) within a certain number of months (nine?) of the date of death. In Pennsylvania, inheritance tax payments are due upon the death of the decedent and become delinquent nine months after the individual's death. If inheritance tax is paid within three months of the decedent's death, a 5 percent discount is allowed. So for the 5% discount you just need to make an estimated inheritance tax payment in the first 3 months after death. Have 9 months to file the actual inheritance tax return. Is that common? I've only had about a half dozen Pennsylvania estates (either Pennsylvania residents or persons elsewhere who had real estate ...
by bsteiner
Wed Mar 27, 2024 1:10 pm
Forum: Personal Finance (Not Investing)
Topic: Penna. executor's fees for handling will?
Replies: 26
Views: 1419

Re: Penna. executor's fees for handling will?

I believe (based on my state, not PA) that all this information must be submitted to the probate court and that all beneficiaries will be notified by the probate court and given a period to object before court approval. If this is the case in PA, one option to consider is to quietly hire a good estate attorney now to review all this information and to raise a timely objection, if fees are excessive, with the estate attorney/court. This removes you from needing to communicate with your brother and having legal representation strengthens your position. Condolences on your loss and the difficult estate process with your sibling. That depends on the state. In many states, the court doesn't get involved unless someone asks the court for somethi...
by bsteiner
Wed Mar 27, 2024 1:06 pm
Forum: Personal Finance (Not Investing)
Topic: Another NJ Tax Loss Harvesting negative?
Replies: 7
Views: 671

Re: Another NJ Tax Loss Harvesting negative?

It may be worth having the lawyer check as to whether the house passed to the beneficiaries (subject to the executors' power to sell it if needed to pay debts, taxes, expenses and preresiduary bequests).
by bsteiner
Wed Mar 27, 2024 1:04 pm
Forum: Personal Finance (Not Investing)
Topic: Father Has Passed; Do we need an Appraisal?
Replies: 25
Views: 2645

Re: Father Has Passed; Do we need an Appraisal?

I'm not sure you understand what a B trust is. It's short for bypass. It was common in the 90's, but today, most couples opt for the disclaimer trust. The survivor's trust is what a joint trust becomes without the bypass trust being funded. It has other names too. But the second basis adjustment relies upon mom having the general power to appoint. Am I correct in that assets in a B trust do not receive an additional step up in basis at the death of the surviving spouse? Most of the time, but if the lawyer was good, they could have given an independent trustee the discretion to give the spouse a general testamentary power of appointment over the assets allowing a second adjustment. But that's fairly rare IME. I haven't seen one outside of m...
by bsteiner
Wed Mar 27, 2024 9:03 am
Forum: Personal Finance (Not Investing)
Topic: Penna. executor's fees for handling will?
Replies: 26
Views: 1419

Re: Penna. executor's fees for handling will?

Appreciate that. He is currently saying that all fees (inheritance tax, lawyer fees etc including his fee) are 20%, which sounds outrageous to me, esp given the inheritance tax is 4.5%. Maybe the lawyer is screwing us over? Each estate is different. We've had small estates with high fees and large estates with low fees. We have one where we claimed about 0.25% for legal fees and about 0.5% for executors' commissions. There was an unexpected complexity so the legal fees will be about 0.35%. We've had others where the legal fees were 5% or more. It would be unusual for the total expenses to be 20%, unless you count the funeral expenses and the brokerage commissions to sell the house. But it's possible. We had one where the legal fees in conn...
by bsteiner
Wed Mar 27, 2024 8:59 am
Forum: Personal Finance (Not Investing)
Topic: Form 1041 (Estate Income Tax) Questions: Deductions and Pass-Throughs
Replies: 12
Views: 811

Re: Form 1041 (Estate Income Tax) Questions: Deductions and Pass-Throughs

secondcor521 wrote: Tue Mar 26, 2024 10:56 pm
bsteiner wrote: Tue Mar 26, 2024 10:08 pm
secondcor521 wrote: Tue Mar 26, 2024 9:58 pm ...
Since it sounds like you haven't yet filed an income tax return for the estate, the executor seemingly has the option to choose a fiscal tax year.
More than seemingly. Treas. Reg. § 1.441-1(c): https://www.law.cornell.edu/cfr/text/26/1.441-1.
I was being cautious because I am not one of the best trust and estate attorneys in the country. :sharebeer
Thanks for the kind words.

You were right to be cautious since the current regulation was not always the case. I remember that for many years you could only pick a fiscal year on the first return if it was timely filed. Of course, in this case, there may not have been enough income to have required a return until now.
by bsteiner
Wed Mar 27, 2024 8:57 am
Forum: Personal Finance (Not Investing)
Topic: Another NJ Tax Loss Harvesting negative?
Replies: 7
Views: 671

Re: Another NJ Tax Loss Harvesting negative?

To add to the complexity, unlike most states, the New Jersey income tax is not based on the Federal income tax.
by bsteiner
Tue Mar 26, 2024 10:08 pm
Forum: Personal Finance (Not Investing)
Topic: Form 1041 (Estate Income Tax) Questions: Deductions and Pass-Throughs
Replies: 12
Views: 811

Re: Form 1041 (Estate Income Tax) Questions: Deductions and Pass-Throughs

secondcor521 wrote: Tue Mar 26, 2024 9:58 pm ...
Since it sounds like you haven't yet filed an income tax return for the estate, the executor seemingly has the option to choose a fiscal tax year.
More than seemingly. Treas. Reg. § 1.441-1(c): https://www.law.cornell.edu/cfr/text/26/1.441-1.
by bsteiner
Tue Mar 26, 2024 9:58 pm
Forum: Personal Finance (Not Investing)
Topic: Father Has Passed; Do we need an Appraisal?
Replies: 25
Views: 2645

Re: Father Has Passed; Do we need an Appraisal?

The lawyer who's doing the estate tax return should be able to recommend how best to determine the value of the property.

If it's community property, and you want to divide the assets non pro rata to get all of the house into the credit shelter trust, are there enough other assets to give to your mother?
by bsteiner
Tue Mar 26, 2024 8:39 pm
Forum: Personal Finance (Not Investing)
Topic: Form 1041 (Estate Income Tax) Questions: Deductions and Pass-Throughs
Replies: 12
Views: 811

Re: Form 1041 (Estate Income Tax) Questions: Deductions and Pass-Throughs

How could you probate the Will if there was no Will?

Why didn’t your lawyer either advise as to the tax issues or bring in co-counsel who could? As this thread illustrates, there are several tax issues here. You may want to consult with a trusts and estates lawyer who can advise on them.
by bsteiner
Tue Mar 26, 2024 8:57 am
Forum: Personal Finance (Not Investing)
Topic: Analysis of an Annuity
Replies: 13
Views: 1126

Re: Analysis of an Annuity

It's a form of insurance. Like any insurance, the odds favor the insurance company. You buy it if you need or want the insurance. It lets you plan only to age 85 (at least in part), so (like any annuity) you can more freely spend your other money.

You get additional deferral because the QLAC isn't included in calculating RMDs but I haven't tried to calculate whether that outweighs the costs.

Of course, in evaluating it, you would have to decide whether to use a low interest rate because it's safe (ignoring the risks of how long you live), or a high interest rate because it's not marketable.

I'm not aware of any QLACs that are indexed for inflation during the period between purchase and when the payments begin.
by bsteiner
Tue Mar 26, 2024 6:59 am
Forum: Personal Finance (Not Investing)
Topic: Approaching parents about removing oneself from their estate
Replies: 35
Views: 3898

Re: Approaching parents about removing oneself from their estate

Mr. Rumples wrote: Tue Mar 26, 2024 5:11 am In VA a person can disclaim part or the entirety of an inheritance. …

I did this in disclaiming property which was full of asbestos and lead. I just didn't want to deal with it.
You may disclaim anywhere.
by bsteiner
Mon Mar 25, 2024 7:00 pm
Forum: Personal Finance (Not Investing)
Topic: Book Recommendation on LLCs, Trust, Estate Planning and Wills
Replies: 5
Views: 531

Re: Brook Recommendation on LLCs, Trust, Estate Planning and Wills

I am not aware of any good books on this. It would be difficult to write one. You should focus on your objectives: the degree of control you want your spouse to have, the age (if at all) each child should control his/her share, executors, trustees, guardians.
by bsteiner
Mon Mar 25, 2024 4:32 pm
Forum: Personal Finance (Not Investing)
Topic: Setting up a trust
Replies: 5
Views: 771

Re: Setting up a trust

... what if both of us pass at the same time? We often drive/travel together and accidents do happen so my main concern is what will happen when we both pass at the same time. What if you die separately? If you're not a dentist and you can fill a cavity in your tooth then you can learn how to prepare a trust. But if you expect to have a taxable estate, the cost of the lawyer or the dentist shouldn't be a major concern. If you don't expect to have a taxable estate, then unless you're in a state like California where probating a Will is difficult, or Delaware where it's expensive, you could put the dispositive provisions you want in your Wills, though the likely cost at a law firm with a good trusts and estates group would probably be more t...
by bsteiner
Mon Mar 25, 2024 9:55 am
Forum: Personal Investments
Topic: Those complimentary dinners for retirees by investment advisors
Replies: 139
Views: 10242

Re: Those complimentary dinners for retirees by investment advisors

If you go to the free dinner seminar and you're the one who buys the annuity, the living trust, the timeshare or the bridge, you paid for the free dinners for everyone in the room.
by bsteiner
Mon Mar 25, 2024 9:06 am
Forum: Personal Finance (Not Investing)
Topic: Approaching parents about removing oneself from their estate
Replies: 35
Views: 3898

Re: Approaching parents about removing oneself from their estate

If your share is in a trust that you control (as almost all of our clients provide for their children) you could appoint it to or in trust for her.
by bsteiner
Mon Mar 25, 2024 8:21 am
Forum: Personal Finance (Not Investing)
Topic: Off-market home purchase - best practices?
Replies: 33
Views: 1978

Re: Off-market home purchase - best practices?

Have your lawyer negotiate the contract with the seller or the seller's lawyer. The contract could require the seller to deliver the property free of occupants. The owner has a very low capacity to handle life, let alone working through this sale. She will also certainly not have an attorney. I want to make the process as easy as possible for her, to get it done quickly and not scare her off. This is why I don't want to approach her with a lawyer and a 20-page sales contract. I think a very simple 1-page contract would be ideal and I could get a lawyer to review it. And yes, require the property to be vacant! I don't do residential real estate but in general it takes much more time (and costs much more money) to review a document that wasn...
by bsteiner
Mon Mar 25, 2024 8:03 am
Forum: Personal Finance (Not Investing)
Topic: Question about house sale, estates, who pays taxes
Replies: 8
Views: 790

Re: Question about house sale, estates, who pays taxes

Since the home was sold by the estate it should be reported on the estate income tax return Form 1041. Since the will specified that the sales proceeds be distributed to the 3 named beneficiaries, that should be done. Each of the 3 beneficiaries should receive a K-1 from the estate 1041 that shows their 1/3 share of the gain on the sale which is included in the proceeds they received from the estate. The estate will get an income distribution deduction on the 1041 so that the gain is not double-taxed. Would the estate have to be wound up in the same taxable year as the sale for the gain to pass through to the beneficiaries? No, the capital gain should be included in DNI if the will or trust document specifies that the proceeds from the sal...
by bsteiner
Mon Mar 25, 2024 7:58 am
Forum: Personal Finance (Not Investing)
Topic: Off-market home purchase - best practices?
Replies: 33
Views: 1978

Re: Off-market home purchase - best practices?

Have your lawyer negotiate the contract with the seller or the seller's lawyer.

The contract could require the seller to deliver the property free of occupants.
by bsteiner
Sun Mar 24, 2024 8:52 pm
Forum: Personal Finance (Not Investing)
Topic: Question about house sale, estates, who pays taxes
Replies: 8
Views: 790

Re: Question about house sale, estates, who pays taxes

Since the home was sold by the estate it should be reported on the estate income tax return Form 1041. Since the will specified that the sales proceeds be distributed to the 3 named beneficiaries, that should be done. Each of the 3 beneficiaries should receive a K-1 from the estate 1041 that shows their 1/3 share of the gain on the sale which is included in the proceeds they received from the estate. The estate will get an income distribution deduction on the 1041 so that the gain is not double-taxed. Would the estate have to be wound up in the same taxable year as the sale for the gain to pass through to the beneficiaries? We don’t know what the estate’s taxable year is, or whether it has filed a return to elect a taxable year yet. Of cou...
by bsteiner
Sun Mar 24, 2024 7:24 pm
Forum: Personal Finance (Not Investing)
Topic: Controling Assets From the Grave
Replies: 31
Views: 3639

Re: Controling Assets From the Grave

... I was talking about leaving assets to my first/only husband who is my children’s father. I was wondering if it might be feasible to leave a portion, but not all, of my assets in trust for him (with our adult kids as final beneficiaries) so that if there is a second wife, she won’t have claim to the trust assets. So split his inheritance — a trust account for his benefit and the remainder to him directly. That makes it easier. He and your children can be the trustees of the trust for his benefit. Could you leave the IRA to him outright and the other assets in trust for him? The IRA is by far the largest asset. Can it be split between a trust and outright? Thank you. Yes, but the portion in trust will have to be distributed within 10 yea...
by bsteiner
Sun Mar 24, 2024 6:40 pm
Forum: Personal Finance (Not Investing)
Topic: Controling Assets From the Grave
Replies: 31
Views: 3639

Re: Controling Assets From the Grave

delamer wrote: Sun Mar 24, 2024 2:13 pm ... I was talking about leaving assets to my first/only husband who is my children’s father. I was wondering if it might be feasible to leave a portion, but not all, of my assets in trust for him (with our adult kids as final beneficiaries) so that if there is a second wife, she won’t have claim to the trust assets.

So split his inheritance — a trust account for his benefit and the remainder to him directly.
That makes it easier. He and your children can be the trustees of the trust for his benefit.

Could you leave the IRA to him outright and the other assets in trust for him?
by bsteiner
Sun Mar 24, 2024 2:18 pm
Forum: Personal Finance (Not Investing)
Topic: Annuity for spendthrift brother on mom's death?
Replies: 52
Views: 4177

Re: Annuity for spendthrift brother on mom's death?

floridasandy wrote: Sun Mar 24, 2024 2:01 pm [quote=bsteiner post_id=7784308 time=1711303944 user_id=40603

Will he consent to your holding his share in a trust for his benefit?
But then he's coming to me (or my kids if I'm gone) for disbursements, right? This is uncomfortable. Any way around it that you can you see?
[/quote]


Someone else as trustee.

Someone has to control, either him, you, or someone else.
by bsteiner
Sun Mar 24, 2024 1:12 pm
Forum: Personal Finance (Not Investing)
Topic: Annuity for spendthrift brother on mom's death?
Replies: 52
Views: 4177

Re: Annuity for spendthrift brother on mom's death?

Have you discussed such an arrangement with "Bob"? Is he getting the house? Will he be able to live on the payments from the annuity? I don't think you can just unilaterally decide he's buying an annuity with his inheritance. You might have to look at a spendthrift trust if he doesn't consent. I think you need to spend a few bucks to talk to an trusts and estates lawyer. It's all complicated by your mother's condition as well. I don't envy you. It's a difficult position to be in. I am going to double check that I can do whatever I want when she passes. There was a lot of trust in me, when the trust was written, to handle this however it was appropriate at the time. But I do need to check, thank you! Will he consent to your holdin...
by bsteiner
Sun Mar 24, 2024 1:09 pm
Forum: Personal Finance (Not Investing)
Topic: Will/Trust lawyer in Charlotte NC area
Replies: 11
Views: 921

Re: Will/Trust lawyer in Charlotte NC area

3more years wrote: Sun Mar 24, 2024 12:50 pm If you use Fidelity they keep a list of lawyers they vet. Fidelity has their own lawyers you can schedule phone meetings to help guide but not advise for free. I think a minimum in taxable is needed for that. I found it helpful.
Their list includes some who are excellent, some who are good, and some who are neither of the above. In my area it also includes many whose names I don’t recognize.
by bsteiner
Sun Mar 24, 2024 12:18 pm
Forum: Personal Finance (Not Investing)
Topic: Controling Assets From the Grave
Replies: 31
Views: 3639

Re: Controling Assets From the Grave

... Let’s say I had accounts worth $1 million at my death. Practically speaking, would it be feasible to give $500,000 directly to my spouse and put $500,000 in trust (with a HEMS clause) for my spouse with my adult kid(s) as trustees and the final beneficiaries? Does having the money largely in tax-advantaged retirement accounts change the options? Thanks for your expertise. It's feasible but suboptimal. HEMS and children from the first marriage as trustees for the second spouse is an invitation to litigation. Must the spouse use his/her income first? Must the spouse use his/her other assets first? Must the trustee pay for HEMS or are they merely allowed to? We're about to file suit in such a case. You could instead make the trust discret...
by bsteiner
Sun Mar 24, 2024 12:13 pm
Forum: Personal Finance (Not Investing)
Topic: Annuity for spendthrift brother on mom's death?
Replies: 52
Views: 4177

Re: Annuity for spendthrift brother on mom's death?

This is one more illustration of why Mom should have provided for her children in trust rather than outright.
by bsteiner
Sun Mar 24, 2024 9:01 am
Forum: Personal Finance (Not Investing)
Topic: Controling Assets From the Grave
Replies: 31
Views: 3639

Re: Controling Assets From the Grave

... what happens with a remarriage can be a tough one. If I am first to go, I would not have an objection to all assets being used to support my spouse in another marriage (if there was one - your solution of just not getting remarried may work, doesn't prevent a new partner coming into the picture - but life is funny, we can't fully predict what happens). But, once that remarriage is done I would not want those assets to go to the new spouse's kids, I would want any remaining assets to go to my kids. I guess that raises the question of what if the surviving spouse pre-deceases the new marital partner, do the assets continue to support that partner? I guess so. I think your solution of leaving some, and putting some in trust may be workabl...
by bsteiner
Sun Mar 24, 2024 8:52 am
Forum: Personal Finance (Not Investing)
Topic: Please recommend a basic Course on Trusts and Estate Planning
Replies: 6
Views: 974

Re: Please recommend a basic Course on Trusts and Estate Planning

Thank you to Lee_WSP, ccieemeritus, Iorek, and bsteiner !! I appreciate your thoughtful responses. I may take the 12 week NYU SPS online course below on Estate Planning, one of 7 courses offered for people pursuing a career in Financial Planning (not me). https://www.sps.nyu.edu/professional-pathways/courses/FINA1-CE9946-fp-6-estate-planning.html I will also ask the organizers of the Bogleheads Conference 2024 to consider devoting a half day to Trusts and taxation. Depending on who teaches it, that might be a good one. The New York State Bar Association has these programs available online whenever you want: https://nysba.org/nysba-online-store/nysba-store-catalog/?format=online-on-demand&practice-area=estate-planning&get_page=1. I ...
by bsteiner
Sat Mar 23, 2024 8:16 pm
Forum: Personal Finance (Not Investing)
Topic: Will/Trust lawyer in Charlotte NC area
Replies: 11
Views: 921

Re: Will/Trust lawyer in Charlotte NC area

We’ve found it hard to find good local counsel in North Carolina. Even though it’s a large state by population (about 10 million) there’s no city with 1 million or more.
by bsteiner
Sat Mar 23, 2024 8:13 pm
Forum: Personal Finance (Not Investing)
Topic: Use of LLCs and Trusts for Primary Residence - purpose and when?
Replies: 15
Views: 1281

Re: Use of LLCs and Trusts for Primary Residence - purpose and when?

NYCaviator wrote: Fri Mar 22, 2024 3:37 pm
MarkNYC wrote: Fri Mar 22, 2024 11:53 am
NYCaviator wrote: Fri Mar 22, 2024 11:15 am Doesn’t using an LLC prevent you from claiming any mortgage interest or property tax as a deduction on your taxes?
I think in most cases either a revocable (grantor) trust or single member LLC would be used, because only the use of a disregarded entity preserves the ability to claim a principal residence exclusion upon sale.
Could a joint revocable trust own the LLC and still have full passthrough taxation? In a lot of states the LLCs are totally anonymous assuming you nominate a third party as the registered agent.
New York (where I assume you are from your user name) is not a community property state. Do you have community property from when you lived in a community property state?
by bsteiner
Sat Mar 23, 2024 7:03 pm
Forum: Personal Finance (Not Investing)
Topic: section 645 election
Replies: 1
Views: 188

Re: section 645 election

My mother passed away in Sept 2023. She had a revocable grantor trust with Fidelity brokerage. My brother and I are beneficiaries, I am the trustee. We opened the new brokerage account for her now irrevocable trust with her new EIN and moved the money. Since it was so close to the end of the year we decided to not take distributions into our sub trust accounts until Jan 2024 as neither of us needed the additional income. We have since opened our own sub trusts under our own EINs, divided and moved the money. I told my CPA that I wanted to take the section 645 election and have the trust have a fiscal year end of August 2024. He told me that we would have to have a probate estate to make this election, not just a regular estate. He also sai...
by bsteiner
Sat Mar 23, 2024 3:18 pm
Forum: Personal Finance (Not Investing)
Topic: Controling Assets From the Grave
Replies: 31
Views: 3639

Re: Controling Assets From the Grave

We plan to see a local estate planning attorney soon to develop a formal estate plan and want to get a better understanding of the relevant issues prior to that meeting. A living trust appears to be the right thing to use as the centerpiece of a plan. We have an old, basic set of DIY documents, made with the help of Nolo Press publications, including health care POAs, advance directives for healthcare and wills. With Nolo’s help, we also created a couple of potential DIY living trust documents (unfunded) to see what we could come up with. Frankly, these documents seem useful and well thought-out, but there’s a twist to our situation which may not make a cookie-cutter trust advisable: Both spouses’ assets are separate property as per prenup...
by bsteiner
Sat Mar 23, 2024 12:08 pm
Forum: Investing - Theory, News & General
Topic: Great news! No more [fixed real estate] agent commission
Replies: 238
Views: 22607

Re: Great news! No more [fixed real estate] agent commission

... I'm really confused how attorneys can get together and establish a 30-40% retainer fee on a case, then send $1.67 to the people they supposedly represented and completely screw a bunch of vets and first time homebuyers and for it to NOT be an antitrust violation. ... We can't get together to fix our fees. That ended in 1975 with the Supreme Court decision in Goldfarb v. Virginia State Bar: https://scholar.google.com/scholar_case?case=13155838236565589433&q=goldfarb+v+virginia+state+bar&hl=en&as_sdt=3,31. Previously, many bar associations had minimum fee schedules, so that lawyers wouldn't compete on price. However, in some cases, there's an upper limit on legal fees without court approval. Here's the New York maximum on per...
by bsteiner
Sat Mar 23, 2024 11:03 am
Forum: Personal Finance (Not Investing)
Topic: Will/Trust lawyer in Charlotte NC area
Replies: 11
Views: 921

Re: Will/Trust lawyer in Charlotte NC area

NaliniPagedar wrote: Sat Mar 23, 2024 9:44 am I would like a recommendation for a good lawyer experienced in wills and trusts in Charlotte NC area. I have read a lot of information on both topics. But can’t decide which way to go. So I would like to talk to someone who can advise me in more detail on both issues to help make a decision.
There are many more important issues to consider when doing your estate planning.
by bsteiner
Sat Mar 23, 2024 11:00 am
Forum: Personal Finance (Not Investing)
Topic: If you don't have a will made out...do it. Now. Please.
Replies: 24
Views: 4328

Re: If you don't have a will made out...do it. Now. Please.

jebmke wrote: Sat Mar 23, 2024 8:55 am
tibbitts wrote: Sat Mar 23, 2024 8:50 am
rene wrote: Fri Mar 22, 2024 11:18 pm Replace ‘Will’ with ‘Trust’
I haven't found universal agreement among attorneys that trusts are necessarily a better choice than a will. The recommendation for one or the other is very common, but the choice of which one seems to be client-specific.
and maybe state-specific
Revocable trusts make sense in some cases and in some states but not in most cases in most states.

Probating a Will and dealing with the court is difficult in some states, notably California, and is expensive in some states, notably Delaware since the court fee in Delaware is 1.75% of the value of the estate, not counting the real estate. They get attention because California is the largest state by population, and is a media center.
by bsteiner
Fri Mar 22, 2024 4:52 pm
Forum: Personal Finance (Not Investing)
Topic: Please recommend a basic Course on Trusts and Estate Planning
Replies: 6
Views: 974

Re: Please recommend a basic Course on Trusts and Estate Planning

I need to learn more about trusts for my own estate planning. I just found a course that would have been perfect for me. Sadly, the course was offered in July 2023 ! Can anyone recommend a conference or online course devoted to trusts and estate planning ? Thank you. Here is the link to what I missed... https://www.sps.nyu.edu/homepage/academics/divisions-and-departments/division-of-programs-in-business/finance-law-taxation/conferences/tax-conferences-in-july/introduction-to-trusts-estates/agenda-2023.html The one you posted a link to looks like it was a good one. Many of the speakers are excellent. I know most of them. I see they had an advanced version of it in 2022, also with excellent speakers, many of whom I know: https://www.sps.nyu....
by bsteiner
Fri Mar 22, 2024 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: What should a taxpayer expect a CPA to do?
Replies: 27
Views: 2979

Re: What should a taxpayer expect a CPA to do?

4nursebee wrote: Fri Mar 22, 2024 11:49 am ...
I think of our CPA as a partner. There is give and take, things to be managed. This CPA told us to spend our Roth money first to keep taxes low.
...
Many accountants aren't sufficiently familiar with the benefits of Roth IRAs.
by bsteiner
Fri Mar 22, 2024 12:47 pm
Forum: Personal Finance (Not Investing)
Topic: What should a taxpayer expect a CPA to do?
Replies: 27
Views: 2979

Re: What should a taxpayer expect a CPA to do?

carolinaman wrote: Fri Mar 22, 2024 11:43 am ...
The only time I ever paid someone other than TurboTax was for my mother's estate return. The rules for estate returns are different, and as executor, I did not want to screw up the return. So I paid a CPA to do it. Money well spent.
It might or might not have been money well spent. Estate tax returns are usually done by law firms. We do them regularly. There are various legal judgments that go into an estate tax return. Very few nonlawyers do enough of them to be good at them. I've never been happy with any that I've seen that were done by nonlawyers. In one case, the elections made in a return prepared by a nonlawyer cost the family about $3 million of unnecessary estate tax.