Search found 3715 matches

by bsteiner
Wed Feb 20, 2019 5:16 pm
Forum: Personal Investments
Topic: Spousal Inherited IRA, Partial Rollover, Vanguard
Replies: 6
Views: 221

Re: Spousal Inherited IRA, Partial Rollover, Vanguard

Why not leave it all in an inherited IRA until you're 70 1/2 (except for any amounts you want to convert to a Roth)? That way there won't be any required distributions until your husband would have reached 70 1/2. If you die in the interim, your beneficiaries will still be entitled to the stretch.
by bsteiner
Tue Feb 19, 2019 4:49 pm
Forum: Personal Finance (Not Investing)
Topic: Do we need a will/trust/etc?
Replies: 51
Views: 2696

Re: Do we need a will/trust/etc?

... I am quite certain the OP and/or OP's spouse will survive long enough for at least one child to make it to eighteen (assuming the children don't also die). I am even more certain that they will not die (and/or lose mental competence) at the same time before their children turn eighteen (allowin...
by bsteiner
Tue Feb 19, 2019 12:11 pm
Forum: Personal Finance (Not Investing)
Topic: Do we need a will/trust/etc?
Replies: 51
Views: 2696

Re: Do we need a will/trust/etc?

I get that we need to put a will together. I am confused about a trust. Many people here suggested a trust. I didn't really see a good explanation for what a trust would do for our family? One mentioned estate taxes, but with the current estate tax limit being around $11 million, I don't think that...
by bsteiner
Mon Feb 18, 2019 3:21 pm
Forum: Personal Investments
Topic: Mega Backdoor Roth Questions
Replies: 64
Views: 2810

Re: CPA Says I Need Specialist - Does this sound right?

An accountant might be a good accountant even though he/she isn't familiar with this. If you control the employer, then you can design the plan to allow this. If your plan is an off-the-shelf plan and it doesn't allow for this, an actuary can design a plan that provides for this. Some companies in t...
by bsteiner
Mon Feb 18, 2019 2:02 pm
Forum: Personal Finance (Not Investing)
Topic: Changing Guardian of Minor Children in a Living Trust
Replies: 12
Views: 650

Re: Changing Guardian of Minor Children in a Living Trust

NotWhoYouThink wrote:
Mon Feb 18, 2019 1:13 pm
...
We had to change the successor trustee if we both die before our kids are 30. It took an unreasonably long time, guess it just wasn't a high priority.
Successor trustee or initial trustee?

What if your death occurs after your children have reached age 30?
by bsteiner
Sun Feb 17, 2019 2:12 pm
Forum: Personal Investments
Topic: non qualified variable annuity
Replies: 6
Views: 286

Re: non qualified variable annuity

The annuity was within an inherited trust which is being distributed equally to the beneficiarys Other than to take away the stretch as an option for the annuity (not to say it's better or worse than lump-sum or over 5 years), what is the purpose of creating a trust that's immediately terminated an...
by bsteiner
Sun Feb 17, 2019 12:16 pm
Forum: Personal Investments
Topic: non qualified variable annuity
Replies: 6
Views: 286

Re: non qualified variable annuity

I have inherited a non qualified variable annuity along with my siblings.We have elected to take distributions over a 4 year period for tax purposes. Profits from the mostly US stocks have come to a little over $500,000. Cost basis and yearly premiums for the annuity are about $365,000. We took our...
by bsteiner
Thu Feb 14, 2019 5:09 pm
Forum: Personal Finance (Not Investing)
Topic: Do I Pay Tax on Husband’s Bonus Check Received the Year After He Died?
Replies: 16
Views: 2805

Re: Do I Pay Tax on Husband’s Bonus Check Received the Year After He Died?

It's taxable to his estate, except to the extent the estate made distributions to beneficiaries, it will be taxable to the beneficiaries to the extent the estate had income.
by bsteiner
Wed Feb 13, 2019 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: 754 election - a no brainer?
Replies: 3
Views: 220

Re: 754 election - a no brainer?

The partnership has to make the election (if it chooses to do so).
by bsteiner
Wed Feb 13, 2019 1:41 pm
Forum: Personal Finance (Not Investing)
Topic: Can I file jointly with my girlfriend
Replies: 32
Views: 4009

Re: Can I file jointly with my girlfriend

A common law marriage is a marriage. If you enter into one, you are married even if your state no longer allows couples to enter into common law marriages or you move to another state that doesn’t allow couples to enter into common law marriages. There’s no common law divorce. We litigated a common ...
by bsteiner
Sat Feb 09, 2019 11:21 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning Nightmare [Problem with estate planning attorney]
Replies: 32
Views: 3409

Re: Estate Planning Nightmare

... Since I am my brother's trustee and I have full discretion to make distributions there will be no problem there. There was a power of appointment in the original trusts but that was removed by my father before his death due to my brother's financial irresponsibility, 3 marriages, and a bankrupt...
by bsteiner
Sat Feb 09, 2019 9:47 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning Nightmare [Problem with estate planning attorney]
Replies: 32
Views: 3409

Re: Estate Planning Nightmare

... Excellent points as always Mr. Steiner especially about the possibility of decanting my brother's trusts for when my children inherit. Those trusts have a Massachusetts situs while I am a North Carolina resident as are my children. My brother does not have a power of appointment. This was one o...
by bsteiner
Sat Feb 09, 2019 8:11 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning Nightmare [Problem with estate planning attorney]
Replies: 32
Views: 3409

Re: Estate Planning Nightmare

Would be interested in bsteiner's input on how to properly vet an estate planning attorney. Like any other service, you can ask appropriate people for recommendations. When you have some names, you can check their bios on their websites, as well as what their firms focus on. That should give you a ...
by bsteiner
Fri Feb 08, 2019 5:26 pm
Forum: Personal Finance (Not Investing)
Topic: Marital trust created by will
Replies: 12
Views: 1362

Re: Marital trust created by will

We moved from California (community property state), where we had created a revocable trust to include our joint assets to Georgia (common law state) in 2016 where our attorney here recommended exactly the same scenario as the OP. Perhaps the only difference is that I understand the testamentary tr...
by bsteiner
Fri Feb 08, 2019 7:40 am
Forum: Personal Finance (Not Investing)
Topic: Living Trust, Living Hell
Replies: 8
Views: 2197

Re: Living Trust, Living Hell

Any comments on their value in Florida? Probating a Will in Florida is generally not difficult, expensive or burdensome. We probate lots of Wills throughout Florida. The forms are the same in all counties and they’re filled electronically. So in most cases we don’t do revocable trusts in Florida. T...
by bsteiner
Thu Feb 07, 2019 11:15 pm
Forum: Personal Finance (Not Investing)
Topic: Living Trust, Living Hell
Replies: 8
Views: 2197

Re: Living Trust, Living Hell

I read his book when it came out many years ago. I thought it was as misleading as the books that promote living trusts. They're a tool in the toolbox, and in some but not most cases and in some but not most states they're the right tool. They don't provide any protection against creditors, spouses ...
by bsteiner
Thu Feb 07, 2019 8:53 am
Forum: Personal Finance (Not Investing)
Topic: Pension valuation: is $100 really worth $18,000?
Replies: 87
Views: 7761

Re: Pension valuation: is $100 really worth $18,000?

The value depends on the interest rate you use to compare the present value to the expected future payments. You could use a low interest rate because the payments are safe, or a high interest rate because you can't sell the pension and the uncertainty of how long you'll live.
by bsteiner
Wed Feb 06, 2019 9:29 pm
Forum: Personal Finance (Not Investing)
Topic: Was I over-taxed by my employer?
Replies: 5
Views: 801

Re: Was I over-taxed by my employer?

I think there’s a way to get New Jersey to refund the excess, or at least there was when I looked at this many years ago.
by bsteiner
Tue Feb 05, 2019 10:29 pm
Forum: Personal Finance (Not Investing)
Topic: Understanding how to manage irrevocable trust
Replies: 11
Views: 1132

Re: Understanding how to manage irrevocable trust

Might the trust be eligible for tax-exempt status under Section 501(c)(3)?
by bsteiner
Tue Feb 05, 2019 4:04 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to leave money to a grandchild
Replies: 37
Views: 3730

Re: Best way to leave money to a grandchild

hoops777 wrote: Here is where it might get a little bit tricky.I have no children of my own and he is my step grandson and we are very close.I have also earned most of the money we have saved.I believe she will be ok with it as I have mentioned we can use my Roth to help pay for college to no objec...
by bsteiner
Tue Feb 05, 2019 2:07 pm
Forum: Personal Finance (Not Investing)
Topic: Need CPA wizard. LTCG or marginal tax rate?
Replies: 5
Views: 505

Re: Need CPA wizard to answer difficult question

I'm not an accountant (why are you asking legal questions of an accountant?) but your friend may want to ask his lawyer what if instead of selling the partnership interests the partnership sold its assets. Why is this a difficult question? I am asking a tax strategist if there is any way to optimiz...
by bsteiner
Tue Feb 05, 2019 1:31 pm
Forum: Personal Finance (Not Investing)
Topic: Need CPA wizard. LTCG or marginal tax rate?
Replies: 5
Views: 505

Re: Need CPA wizard to answer difficult question

I'm not an accountant (why are you asking legal questions of an accountant?) but your friend may want to ask his lawyer what if instead of selling the partnership interests the partnership sold its assets.

Why is this a difficult question?
by bsteiner
Tue Feb 05, 2019 11:27 am
Forum: Personal Finance (Not Investing)
Topic: Is Long Term Care Insurance worth it?
Replies: 318
Views: 12876

Re: Is Long Term Care Insurance worth it?

... Just out of curiosity, how much do you think it would cost for you to self-fund 5 years of long-term care? And, which assets would you liquidate first? Probably around $600k. Out of my tIRA, and some of it would tax deductible. [/quote] More than that in the NYC metropolitan area. I know someon...
by bsteiner
Tue Feb 05, 2019 11:08 am
Forum: Personal Finance (Not Investing)
Topic: Are You Really Supposed to Use Stupid Tax Table?
Replies: 26
Views: 3106

Re: Are You Really Supposed to Use Stupid Tax Table?

I think the IRS uses the tables to counter the obsessive-compulsive who will spend hours obsessing over a couple cents. With the tables, the obsession will at least be over a minimum 10 bucks - real money. I think it's to reduce the number of mathematical errors. The tables only go up to $100,000. ...
by bsteiner
Tue Feb 05, 2019 9:47 am
Forum: Personal Consumer Issues
Topic: How exactly are eligible deaths determined for term life insurance
Replies: 27
Views: 1775

Re: How exactly are eligible deaths determined for term life insurance

Occasionally (for example, a death certificate from a country known for fraudulent death certificates) the insurance company will wait until they investigate to confirm that the insured has in fact died. If there's a benefit or an additional benefit for death in an accident, or death on business tra...
by bsteiner
Mon Feb 04, 2019 10:30 pm
Forum: Personal Finance (Not Investing)
Topic: H&R Block Efile Error for Retired Military in Oklahoma
Replies: 6
Views: 332

Re: H&R Block Efile Error for Retired Military in Oklahoma

Occasionally there are bugs in the software. It happens more often with state programs than with the Federal program because different states have different rules, and some of the state situations don't come up as often, For example, there are probably fewer taxpayers who file Oklahoma returns and h...
by bsteiner
Mon Feb 04, 2019 9:19 am
Forum: Personal Finance (Not Investing)
Topic: Has anyone used software to write a Will?
Replies: 66
Views: 4449

Re: Has anyone used software to write a Will?

But if your "bunch of stocks, bonds, mutual funds and a home" is "multi million dollar financial assets" then it may not be sufficient. In that case, you may want to provide for your children in trust rather than outright, to keep their inheritances out of their estates, and to protect their inheri...
by bsteiner
Sun Feb 03, 2019 4:26 pm
Forum: Personal Finance (Not Investing)
Topic: Has anyone used software to write a Will?
Replies: 66
Views: 4449

Re: Has anyone used software to write a Will?

Most wills are not complicated. We wrote our wills using Nolo WillMaker Plus which you can either buy or borrow at many public libraries (the program disk is in the back of the book). It works fine. I am surprised that so many on here manage multi million dollar financial assets themselves but are ...
by bsteiner
Sun Feb 03, 2019 2:35 pm
Forum: Personal Finance (Not Investing)
Topic: Has anyone used software to write a Will?
Replies: 66
Views: 4449

Re: Has anyone used software to write a Will?

JGoneRiding wrote:
Sun Feb 03, 2019 1:04 pm
I used software yes. But it's my understanding if you are going to have a lawyer "review" it's cheaper to just let them write it.
...
It would cost much more to review and revise someone's draft than to prepare a Will in the first instance.
by bsteiner
Sun Feb 03, 2019 8:08 am
Forum: Personal Finance (Not Investing)
Topic: Best way to leave money to a grandchild
Replies: 37
Views: 3730

Re: Best way to leave money to a grandchild

Is there a rule of thumb on the minimum amount necessary to warrant setting up a trust? It depends on whether you have people willing and able to act as trustees without charge. In this case, perhaps one or both of the grandson's parents might be able to act as trustees. It also depends on whether ...
by bsteiner
Sat Feb 02, 2019 10:51 pm
Forum: Personal Investments
Topic: Vanguard Trust accounts
Replies: 7
Views: 705

Re: Vanguard Trust accounts

I have a trust account at PNC. I pay them a trust management fee of 1.2 percent. They have an investment advisor that manages the money mainly by using 20 or so actively managed funds averaging a 1 percent expense ratio. He also has the trust invested in multiple individual stocks and bonds. I am t...
by bsteiner
Sat Feb 02, 2019 10:07 pm
Forum: Personal Finance (Not Investing)
Topic: Has anyone used software to write a Will?
Replies: 66
Views: 4449

Re: Has anyone used software to write a Will?

... I'd love to find some software to help me through the process, with the intention of having a lawyer review it once it is mostly complete. Has anybody had a good experience with any of the programs out there? We use Word. A nationally prominent trusts and estates lawyer, now retired, tried Lega...
by bsteiner
Sat Feb 02, 2019 10:02 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to leave money to a grandchild
Replies: 37
Views: 3730

Re: Best way to leave money to a grandchild

While it's not simple, if the amount is enough to warrant administering a trust, a trust for his benefit. The trust can be in your Will or in a separate trust instrument. There are some special rules for trusts that receive retirement benefits. See my article on this subject in the March 2004 issue ...
by bsteiner
Sat Feb 02, 2019 9:51 pm
Forum: Personal Investments
Topic: Roth Conversion during semi-retirement
Replies: 19
Views: 1133

Re: Roth Conversion during semi-retirement

Probably. See my article on this subject in the June 2018 issue of Trusts & Estates: https://www.kkwc.com/wp-content/uploads ... ations.pdf.
by bsteiner
Sat Feb 02, 2019 6:07 pm
Forum: Personal Finance (Not Investing)
Topic: How to report POD interest income between death and retitling?
Replies: 14
Views: 824

Re: How to report POD interest income between death and retitling?

The post-death income on a joint account belongs to the surviving joint tenant. The post-death income on a TOD or POD account belongs to the beneficiary or beneficiaries. That's one more reason not to use TOD or POD for taxable accounts in most cases. It precludes the ability to offset the income wi...
by bsteiner
Fri Feb 01, 2019 4:52 pm
Forum: Non-US Investing
Topic: Help! Resident Alien, need investment tax advice
Replies: 3
Views: 321

Re: Help! Resident Alien, need investment tax advice

It may depend on the country you might move to, and on whether you might be subject to the covered expatriate rules.
by bsteiner
Fri Feb 01, 2019 3:30 pm
Forum: Personal Finance (Not Investing)
Topic: Inheritance and Divorce
Replies: 17
Views: 2459

Re: Inheritance and Divorce

Is there an established precedent as to how an inheritance (received during marriage) might be treated in case of a divorce? Is it subject to division? ... It is in about 1/4 of the states. Assuming you can trace the assets, it isn't in about 3/4 of the states. That's one reason our clients general...
by bsteiner
Fri Feb 01, 2019 3:28 pm
Forum: Investing - Theory, News & General
Topic: Protect Against Longevity Tail Risk with Annuities
Replies: 64
Views: 4453

Re: Protect Against Longevity Tail Risk with Annuities

... In the case of SPIAs, it is variously estimated the insurance company "load" is 2-10%, i.e. you receive something like 90-98% of what you would receive if they took nothing .... The President's Council of Economic Advisors estimated it to be between 10% and 15%: https://obamawhitehouse.archives...
by bsteiner
Thu Jan 31, 2019 10:48 pm
Forum: Personal Finance (Not Investing)
Topic: Inheritance and Divorce
Replies: 17
Views: 2459

Re: Inheritance and Divorce

Is there an established precedent as to how an inheritance (received during marriage) might be treated in case of a divorce? Is it subject to division? ... It is in about 1/4 of the states. Assuming you can trace the assets, it isn't in about 3/4 of the states. That's one reason our clients general...
by bsteiner
Thu Jan 31, 2019 12:02 pm
Forum: Personal Finance (Not Investing)
Topic: Setting up Will, do we need trust?
Replies: 50
Views: 3501

Re: Setting up Will, do we need trust?

This was an item I said I was going to do this year! Currently No will. Married and no kids, NY. House is to survivor. All ROTH and tax deferred have spouse as beneficiary. Primary goal is to make sure the spouse is taken care of. IMO that is done by transferring everything to the spouse. Secondary...
by bsteiner
Thu Jan 31, 2019 11:19 am
Forum: Personal Finance (Not Investing)
Topic: Setting up Will, do we need trust?
Replies: 50
Views: 3501

Re: Setting up Will, do we need trust?

3. Leave them to the spouse but enter into an agreement with your spouse whereby you each agree to leave the retirement benefits equally between the two sides. Is this agreement a separate document or part/addendum of the Will? An agreement would be a separate document. The existence of this separa...
by bsteiner
Thu Jan 31, 2019 11:05 am
Forum: Personal Finance (Not Investing)
Topic: Setting up Will, do we need trust?
Replies: 50
Views: 3501

Re: Setting up Will, do we need trust?

LSLover wrote:
Thu Jan 31, 2019 10:59 am
bsteiner wrote:
Thu Jan 31, 2019 10:15 am

3. Leave them to the spouse but enter into an agreement with your spouse whereby you each agree to leave the retirement benefits equally between the two sides.
Is this agreement a separate document or part/addendum of the Will?
An agreement would be a separate document.
by bsteiner
Thu Jan 31, 2019 10:15 am
Forum: Personal Finance (Not Investing)
Topic: Setting up Will, do we need trust?
Replies: 50
Views: 3501

Re: Setting up Will, do we need trust?

This was an item I said I was going to do this year! Currently No will. Married and no kids, NY. House is to survivor. All ROTH and tax deferred have spouse as beneficiary. Primary goal is to make sure the spouse is taken care of. IMO that is done by transferring everything to the spouse. Secondary...
by bsteiner
Thu Jan 31, 2019 9:20 am
Forum: Personal Finance (Not Investing)
Topic: Setting up Will, do we need trust?
Replies: 50
Views: 3501

Re: Setting up Will, do we need trust?

I didn’t have time or energy to shop around much. The first three probate attorneys I called in California all charged the statuatory cap. To probate a single property worth under $300k cost $7500. It seemed like a lot to me, given the work was basically just filling out a few forms. Not really jud...
by bsteiner
Wed Jan 30, 2019 10:06 pm
Forum: Personal Finance (Not Investing)
Topic: Setting up Will, do we need trust?
Replies: 50
Views: 3501

Re: Setting up Will, do we need trust?

But attorney fees in California are set by statute as a fairly high percentage of the size of the estate. Avoid/minimize if possible. The California schedule is a cap rather than a mandatory fee. The lawyer needs court approval to charge more than the schedule. If an executor thinks a given estate ...
by bsteiner
Wed Jan 30, 2019 9:49 pm
Forum: Personal Finance (Not Investing)
Topic: Setting up Will, do we need trust?
Replies: 50
Views: 3501

Re: Setting up Will, do we need trust?

... 3. Avoiding state income taxes. Most if not all states that have a state income tax treat the estate of a domiciliary as a resident estate for state income tax purposes. However, different states have different ways of determining when a trust is treated as a resident trust. Are you referring t...
by bsteiner
Wed Jan 30, 2019 5:16 pm
Forum: Personal Finance (Not Investing)
Topic: Setting up Will, do we need trust?
Replies: 50
Views: 3501

Re: Setting up Will, do we need trust?

On another topic, some people have been conflating whether to provide for beneficiaries in trust rather than outright (almost all of our clients do that) with whether to create a trust for one's own benefit (some but not most of our clients do that). When you say for one's own benefit, are you refe...
by bsteiner
Wed Jan 30, 2019 4:01 pm
Forum: Personal Finance (Not Investing)
Topic: Setting up Will, do we need trust?
Replies: 50
Views: 3501

Re: Setting up Will, do we need trust?

I am in the same boat and want to ask input from everyone. If one has very young kids, what are the options other than trust? Can a secondary beneficiary on ERISA/brokerage account/Home be minor? How does it work. ... If the amount involved is too small to warrant administering a trust, you could p...
by bsteiner
Wed Jan 30, 2019 3:41 pm
Forum: Personal Finance (Not Investing)
Topic: Setting up Will, do we need trust?
Replies: 50
Views: 3501

Re: Setting up Will, do we need trust?

I would only recommend a trust if there are (a) extenuating circumstances where you are nervous about how an heir may spend the money or (b) you have more than $10 million total to leave to a group of beneficiaries. I'm the beneficiary of a small trust and our very simple situation is creating a lo...