Search found 3375 matches

by bsteiner
Mon Aug 20, 2018 2:07 pm
Forum: Personal Finance (Not Investing)
Topic: Trust as Beneficiary OF ROTH and Traditional IRA
Replies: 18
Views: 1351

Re: Trust as Beneficiary OF ROTH and Traditional IRA

It may not matter if the trust runs out of beneficiaries. See PLR 201320021: https://www.irs.gov/pub/irs-wd/1320021.pdf. I wrote an article on this in the November 2013 issue of Trusts & Estates: https://www.kkwc.com/wp-content/uploads/2015/04/uf_IRS_Rules_No_Problem_If_IRA_Trust_Runs_Out_of_Ben.pd...
by bsteiner
Mon Aug 20, 2018 1:21 pm
Forum: Personal Finance (Not Investing)
Topic: Trust as Beneficiary OF ROTH and Traditional IRA
Replies: 18
Views: 1351

Re: Trust as Beneficiary OF ROTH and Traditional IRA

... If a person has three children, and the difference in age between the oldest and youngest is four years, then yes the youngest will be "penalized" by the age of the oldest, if the oldest is a successor beneficiary. I was referring to asset protection more so than maximizing stretch payouts. Con...
by bsteiner
Mon Aug 20, 2018 10:58 am
Forum: Personal Finance (Not Investing)
Topic: Trust as Beneficiary OF ROTH and Traditional IRA
Replies: 18
Views: 1351

Re: Trust as Beneficiary OF ROTH and Traditional IRA

If a Roth IRA is left directly to an heir, since taxes were already paid on the funds by deceased parents, please post an example of possible tax ramifications ? Does a trust remove any/all of them ? Assume modest balance, ie. 100k and heir with income below 20k/year. With limited exceptions not li...
by bsteiner
Mon Aug 20, 2018 8:21 am
Forum: Personal Finance (Not Investing)
Topic: Leave an IRA through a Trust?
Replies: 22
Views: 3828

Re: Leave an IRA through a Trust?

... What has been others’ experience setting up or using Vanguard or Fidelity to administer a beneficiary trust for a minor beneficiary, specifically after a parent’s death? Have they answered detailed questions before getting the trust documents? I was not able to get them to answer any questions,...
by bsteiner
Mon Aug 20, 2018 7:59 am
Forum: Personal Finance (Not Investing)
Topic: Trust as Beneficiary OF ROTH and Traditional IRA
Replies: 18
Views: 1351

Re: Trust as Beneficiary OF ROTH and Traditional IRA

bsteiner wrote:It would be easier to name a trust for child A as the beneficiary of 50% and a trust for child B as the beneficiary of 50%. Alternatively, you could name a trust for child A as the beneficiary of the traditional and a trust for child B as the beneficiary of the Roth (with appropriate...
by bsteiner
Thu Aug 16, 2018 9:49 pm
Forum: Investing - Help with Personal Investments
Topic: Inheritance question - beneficiary is a spend thrift
Replies: 13
Views: 1589

Re: Inheritance question - beneficiary is a spend thrift

Asking this for a friend. He is 58, single, one son (25) who would blow through any inheritance. ... Does anyone have any thoughts on the best way to help him accomplish his goals? ... He should provide (in his Will) for his son in trust rather than outright. He may want to give his son some degree...
by bsteiner
Thu Aug 16, 2018 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: Refusing a Portion of Inherited IRA
Replies: 8
Views: 847

Re: Refusing a Portion of Inherited IRA

Your husband can disclaim some or all of the IRA. If he disclaims, unless the beneficiary designation says otherwise, the disclaimed portion will go as if he predeceased the IRA owner, in other words to you as the contingent beneficiary. We do disclaimers for various reasons in a substantial portion...
by bsteiner
Thu Aug 16, 2018 7:51 am
Forum: Personal Finance (Not Investing)
Topic: Are Roth conversions a no-brainer for me?
Replies: 21
Views: 1783

Re: Are Roth conversions a no-brainer for me?

See my article on Roth conversions under the Tax Cuts and Jobs Act in the June 2018 issue of Trusts & Estates: https://www.kkwc.com/wp-content/uploads ... ations.pdf.
by bsteiner
Wed Aug 15, 2018 8:53 am
Forum: Personal Finance (Not Investing)
Topic: What to ask agent when seeking to cash out of Whole-Life policy?
Replies: 28
Views: 1865

Re: What to ask agent when seeking to cash out of Whole-Life policy?

FunnelCakeBob wrote:
Mon Aug 13, 2018 7:38 pm
...At age 61 and 59, no viatical company will want to buy them out. ...
If they're in sufficiently poor health (not merely average minus health), a rational buyer ought to pay more than the cash surrender value.
by bsteiner
Tue Aug 14, 2018 12:23 pm
Forum: Personal Finance (Not Investing)
Topic: Inheritance tax on UK assets owned by non-UK residents?
Replies: 15
Views: 809

Re: Inheritance tax on UK assets owned by non-UK residents?

... More generally, even for UK-domiciled assets, I can't believe that the British happily fork over 40% of everything above GBP 325,000 to the government when they pop off. Happily? No, not at all. It's a ridiculously low exemption, and hasn't been uprated for inflation in decades .... Here's the ...
by bsteiner
Fri Aug 10, 2018 11:25 am
Forum: Personal Finance (Not Investing)
Topic: Draft a will with legalzoom or other online legal help
Replies: 101
Views: 9555

Re: Draft a will with legalzoom or other online legal help

I went to the group workshop given by another attorney yesterday. ... One of the topics she emphasized a lot is Medicaid Planning for nursing home payment. ... She also mentioned the importance of LTC insurance, which we don’t carry at this time and are not sure whether we should buy one. ... At th...
by bsteiner
Fri Aug 10, 2018 8:42 am
Forum: Personal Finance (Not Investing)
Topic: Estate plan question
Replies: 2
Views: 360

Re: Estate plan question

You could set aside some amount in trust for them, with remainder at their deaths to be added to your children's trusts. Or you could include them as beneficiaries of your children's trusts, so that the trustees of each child's trust would have discretion to make distributions to that child and his/...
by bsteiner
Fri Aug 10, 2018 7:52 am
Forum: Personal Finance (Not Investing)
Topic: Trust Investment Policy Statement
Replies: 61
Views: 3053

Re: Trust Investment Policy Statement

... we have seen horror stories of independent trustees run amuck. I believe we recently had a thread where the poster described an actual scenario where the trustee took his 1%, and then hired an "independent" financial advisor who proceeded to churn the portfolio and rack up large expenses. Grant...
by bsteiner
Thu Aug 09, 2018 4:57 pm
Forum: Personal Finance (Not Investing)
Topic: Trust Investment Policy Statement
Replies: 61
Views: 3053

Re: Trust Investment Policy Statement

...there are certainly scenarios where it can be gamed to the advantage of the company. You mention individual securities and index funds, and I understand that for either of those it could work out as you say. However, there is a much broader world of investment options that a trustee with "total ...
by bsteiner
Thu Aug 09, 2018 3:21 pm
Forum: Personal Finance (Not Investing)
Topic: Trust Investment Policy Statement
Replies: 61
Views: 3053

Re: Trust Investment Policy Statement

... Please be aware that such language would be a non-starter with many independent trustees, because their firms only have one approach to investing trust assets, and it's not designed to save the beneficiaries money (i.e. it's where they earn a lot of their profits). It wouldn't affect their prof...
by bsteiner
Thu Aug 09, 2018 1:44 pm
Forum: Personal Finance (Not Investing)
Topic: Quit Claim on inherited house?
Replies: 16
Views: 1577

Re: Quit Claim on inherited house?

In order to quit a claim you have to have a claim. Maybe the hearing is a chance for her to disclaim. .... It's the opposite. A warranty deed says I give you Blackacre and I own it. A quit claim deed says I give you whatever interest, if any, I may have in Blackacre, but I'm not saying I have any i...
by bsteiner
Thu Aug 09, 2018 1:40 pm
Forum: Personal Finance (Not Investing)
Topic: Trust Investment Policy Statement
Replies: 61
Views: 3053

Re: Trust Investment Policy Statement

You can include guidelines. Presumably they would apply to the initial trustees as well as the successor trustees. If you restrict it too tightly (for example, requiring the trustees to invest only in railroad bonds, or requiring the executors and trustees to retain the Kodak stock when most of the ...
by bsteiner
Wed Aug 08, 2018 10:57 pm
Forum: Personal Finance (Not Investing)
Topic: Quit Claim on inherited house?
Replies: 16
Views: 1577

Re: Quit Claim on inherited house?

Where would her share go if she disclaimed it? My wife's father passed and left his highly mortgaged and probably upside down house equally to his three children. My wife's sister is now living there and would like my wife and her brother to sign a quit claim. ... Why a quit claim deed? Does it have...
by bsteiner
Wed Aug 08, 2018 11:11 am
Forum: Personal Consumer Issues
Topic: Selling a used car
Replies: 49
Views: 1993

Re: Selling a used car

Perhaps an ad in the Star-Ledger: https://autos.nj.com/
by bsteiner
Tue Aug 07, 2018 3:20 pm
Forum: Personal Finance (Not Investing)
Topic: step-up basis after a spouse's passing
Replies: 26
Views: 2462

Re: step-up basis after a spouse's passing

... The IRS has an entire publication devoted to the topic of CP. It's interesting how they use the work "generally" in the publication to refer to at most 5 out of 9: "Separate income. Generally, income from separate property is the separate income of the spouse (or the registered domestic partner...
by bsteiner
Mon Aug 06, 2018 2:41 pm
Forum: Personal Finance (Not Investing)
Topic: Gifting to a Bypass Trust
Replies: 5
Views: 282

Re: Gifting to a Bypass Trust

I'm involved in a family situation and am wondering about gifting to a Bypass Trust. Daddy died a few years ago and his assets went into a bypass trust. Momma gets the income and the adult kids will get the principal (currently invested in a 70/30 portfolio, so it should continue to grow even after...
by bsteiner
Mon Aug 06, 2018 1:26 pm
Forum: Personal Finance (Not Investing)
Topic: Universal life policy – continue, contribute, or cash out
Replies: 12
Views: 1169

Re: Universal life policy – continue, contribute, or cash out

NotWhoYouThink wrote:
Mon Aug 06, 2018 11:55 am
If you owned anything else that you could sell for $17000 today, but which would be worthless if you kept it until you were 75, what would you do with it?
Drive it.
by bsteiner
Sun Aug 05, 2018 6:56 pm
Forum: Personal Finance (Not Investing)
Topic: How to find a conscientious/competent estate attorney?
Replies: 49
Views: 3599

Re: How to find a conscientious/competent estate attorney?

... ... you could provide in your Will that anyone who contests it forfeits his/her bequest. You would then have to leave him/her enough money so that he/she has something to lose by contesting it. For example, if your estate is $2 million and you leave him/her $100,000, he/she has to weigh the ris...
by bsteiner
Fri Aug 03, 2018 3:56 pm
Forum: Investing - Help with Personal Investments
Topic: Help with my Parents RMD and my potential future inheritance
Replies: 13
Views: 913

Re: Help with my Parents RMD and my potential future inheritance

... They could convert at 24% for income between $101,400 and $177,000. ... That's probably a good idea. The pension and other income can offset medical expenses if they ever have large medical expenses. Other factors to consider include state income taxes and their beneficiaries' income tax bracke...
by bsteiner
Thu Aug 02, 2018 3:53 pm
Forum: Personal Consumer Issues
Topic: Dental implant in Tijuana
Replies: 37
Views: 3754

Re: Dental implant in Tijuana

I long ago heard that you shouldn't look for the cheapest parachute or toilet paper. I think the same applies to professional services.
by bsteiner
Wed Aug 01, 2018 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: How to find a conscientious/competent estate attorney?
Replies: 49
Views: 3599

Re: How to find a conscientious/competent estate attorney?

Here are some websites that I have found useful in finding competent estate planning attorneys: Martindale.com - you want one that has an AV rating by their peers Superlawyer.com Wealthcounsel.com Eldercounsel.com Martindale ratings are peer ratings. There's no grade inflation. A is good. SuperLawy...
by bsteiner
Wed Aug 01, 2018 11:51 am
Forum: Personal Finance (Not Investing)
Topic: How to find a conscientious/competent estate attorney?
Replies: 49
Views: 3599

Re: How to find a conscientious/competent estate attorney?

THANK YOU so much bsteiner for so wonderfully answering all minute details of my questions!!! Revocable trusts are not commonly used in New York. Is there some particular reason for one in your case? The most common situation for one in New York is where someone doesn't know who his/her nearest rel...
by bsteiner
Wed Aug 01, 2018 8:57 am
Forum: Personal Finance (Not Investing)
Topic: Choosing a trustee
Replies: 29
Views: 1992

Re: Choosing a trustee

Gill or bsteiner could elaborate but their is something called a directed trustee. The bank or trust company holds the assets and does the administration. It does not manage the investments. Instead, an investment committee or an outside advisor makes the investment decisions. You get to pick more ...
by bsteiner
Tue Jul 31, 2018 11:05 pm
Forum: Personal Finance (Not Investing)
Topic: How to find a conscientious/competent estate attorney?
Replies: 49
Views: 3599

Re: How to find a conscientious/competent estate attorney?

... Wonder why I no longer want a trust? It's an enormous, nonstop job to re-title each financial account, and repeat it when I move them into same or other banks, also each move must be written into the Trust so each time I enter an account I have to pay the lawyer's fee...Additionally one must fi...
by bsteiner
Tue Jul 31, 2018 10:06 pm
Forum: Investing - Help with Personal Investments
Topic: 60 day indirect rollover - does deadline end on trade date or settlement?
Replies: 9
Views: 626

Re: 60 day indirect rollover - does deadline end on trade date or settlement?

... The Slott report article seems to infer that if the 60 days expires on a weekend or holiday, the deadline can be missed. However, that does not appear to be the case according to Sec 7503 of the tax code: ... I would think so, but the IRS has granted waivers where the 60th day was a weekend or ...
by bsteiner
Tue Jul 31, 2018 3:12 pm
Forum: Personal Finance (Not Investing)
Topic: Use attorney or software for simple will
Replies: 35
Views: 2557

Re: Use attorney or software for simple will

What I don't understand is that the software (and language in the will produced by the software) is vetted by lawyers. Quicken's Willmaker is thru NOLO and is written by lawyers. Why should we believe lawyers on BH vs the lawyers of Willmaker? A nationally prominent trusts and estates lawyer, now r...
by bsteiner
Tue Jul 31, 2018 10:29 am
Forum: Personal Finance (Not Investing)
Topic: Choosing a trustee
Replies: 29
Views: 1992

Re: Choosing a trustee

The primary reason I would never name a corporate trustee is, as I found from personal experience, once they're named, they've got that account forever and can do whatever they want and the beneficiaries have no recourse .... There can be flexibility if appropriate. Since 1995, you can permit your ...
by bsteiner
Tue Jul 31, 2018 10:15 am
Forum: Personal Finance (Not Investing)
Topic: Use attorney or software for simple will
Replies: 35
Views: 2557

Re: Use attorney or software for simple will

Thanks for all the replies, you have given me some things to think about such as whether we want to leave our kids money outright or in a trust. Up until now, we have been using wills from quicken software program and the bulk of our assets are in retirement accounts for which the kids are named as...
by bsteiner
Tue Jul 31, 2018 8:33 am
Forum: Personal Consumer Issues
Topic: Attn: Buffalo area Bogleheads --> St. Catharines
Replies: 7
Views: 661

Re: Attn: Buffalo area Bogleheads --> St. Catharines

Take an UBER or taxi or perhaps local bus from the airport about 3 miles to the Buffalo-Depew Amtrak station at 55 Dick Road in Depew. Then take Amtrak to St. Catherines. Amtrak is by reservation. Check amtrak.com for schedules and fares. Fares are often lower the farther in advance you buy. Train s...
by bsteiner
Tue Jul 31, 2018 8:04 am
Forum: Personal Finance (Not Investing)
Topic: Choosing a trustee
Replies: 29
Views: 1992

Re: Choosing a trustee

... Vanguard will not settle an estate and the last time I looked they would not contract out managing real estate. They simply would not accept a trust if it held real estate. For a bank that would settle an estate and deal with real estate I am not sure that those costs are covered under the stan...
by bsteiner
Mon Jul 30, 2018 1:34 pm
Forum: Personal Finance (Not Investing)
Topic: Choosing a trustee
Replies: 29
Views: 1992

Re: Choosing a trustee

Short of having copious amounts of trustworthy blood relatives. It seems extremely nauseating. It seems like the corporate entity trustee always has control to make tons of money for themselves, no way to lock in to this 2 or 3 fund portfolio, jerk. Trustworthy non-relatives. They'll usually be pai...
by bsteiner
Mon Jul 30, 2018 1:22 pm
Forum: Personal Finance (Not Investing)
Topic: Choosing a trustee
Replies: 29
Views: 1992

Re: Choosing a trustee

You may select any one or more individuals and/or a bank or trust company. The trustees' job is to invest the assets (or hire someone to invest the assets), and to decide on distributions. If you don't have any suitable individuals, then you'll have to consider a bank or trust company. They'll charg...
by bsteiner
Mon Jul 30, 2018 11:32 am
Forum: Personal Finance (Not Investing)
Topic: Use attorney or software for simple will
Replies: 35
Views: 2557

Re: Use attorney or software for simple will

My husband and I have 2 kids who are responsible adults. We own a modest house and have less than $3m in investments. What are the benefits to having an attorney draw up a will instead of using software such as quicken will program? With only about $120K networth, and no kids, we decided to go for ...
by bsteiner
Sun Jul 29, 2018 10:42 pm
Forum: Personal Finance (Not Investing)
Topic: What Should I Do About A Dying Friend's Assets?
Replies: 62
Views: 5335

Re: What Should I Do About A Dying Friend's Assets?

... Thank you very much for this! So, just to verify, he could set up a trust for his sister with discretionary distributions with the balance at her death going to or in further trust for whomever he would leave his estate to if she predeceased him. Should he name someone as executor to distribute...
by bsteiner
Sun Jul 29, 2018 9:38 pm
Forum: Personal Finance (Not Investing)
Topic: What Should I Do About A Dying Friend's Assets?
Replies: 62
Views: 5335

Re: What Should I Do About A Dying Friend's Assets?

If he wants to provide for his sister (even though as a practical matter, as you point out, it may not accomplish anything), he should provide for her in trust rather than outright, with the balance at her death going to or in further trust for whomever he would leave his estate to if she predeceas...
by bsteiner
Sun Jul 29, 2018 9:10 pm
Forum: Personal Finance (Not Investing)
Topic: What Should I Do About A Dying Friend's Assets?
Replies: 62
Views: 5335

Re: What Should I Do About A Dying Friend's Assets?

If he wants to provide for his sister (even though as a practical matter, as you point out, it may not accomplish anything), he should provide for her in trust rather than outright, with the balance at her death going to or in further trust for whomever he would leave his estate to if she predecease...
by bsteiner
Sun Jul 29, 2018 8:04 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Paper on Roth Conversion Analysis
Replies: 123
Views: 9170

Re: Vanguard Paper on Roth Conversion Analysis

... a better rule of thumb would be that you should convert to the extent you can at a tax rate less than, equal to, or not too much higher than the tax rate that would otherwise apply to the distributions. ... It is best to have SOME traditional money, as in it’s superior to Roth, in order to fill...
by bsteiner
Sun Jul 29, 2018 7:50 pm
Forum: Personal Finance (Not Investing)
Topic: Updating wills - when do they need to be more complicated?
Replies: 13
Views: 1199

Re: Updating wills - when do they need to be more complicated?

HI, I don't know about making a Will more complicated, but if your children are sensible creatures, you could instruct in your Will that in case both parents pass they should receive each, half of the estate when they both reach 21 years of age (or older if you estimate it's better). What if a chil...
by bsteiner
Sun Jul 29, 2018 10:18 am
Forum: Investing - Theory, News & General
Topic: Vanguard Paper on Roth Conversion Analysis
Replies: 123
Views: 9170

Re: Vanguard Paper on Roth Conversion Analysis

... For a lot of people the convert up to 12% guideline works pretty well. Correct. Indeed that works well for most people. For people in the next level up the chain, who won't ever be in less than 22%, converting up to 24% will usually work well. Finally, for people who will always be in a high br...
by bsteiner
Sun Jul 29, 2018 8:48 am
Forum: Investing - Theory, News & General
Topic: Vanguard Paper on Roth Conversion Analysis
Replies: 123
Views: 9170

Re: Vanguard Paper on Roth Conversion Analysis

... This is effectively a comparison of marginal rates today to marginal rates in the future, but it must be based on existing balances today, expectations about future growth and contributions, and expectations about the total tax life cycle in retirement. That's a good starting point. But at a co...
by bsteiner
Sat Jul 28, 2018 8:48 pm
Forum: Investing - Help with Personal Investments
Topic: Help With Beneficiaries: Single, No Children, Two Siblings
Replies: 12
Views: 1272

Re: Help With Beneficiaries: Single, No Children, Two Siblings

57Ab90tH4 wrote:
Sat Jul 28, 2018 5:12 pm
A trust should never be the beneficiary of an IRA.
...
See my article on trusts as beneficiaries of retirement benefits in the March 2004 issue of BNA Tax Management's Estates, Gifts & Trusts Journal: https://www.kkwc.com/wp-content/uploads ... 132954.pdf.
by bsteiner
Sat Jul 28, 2018 7:55 pm
Forum: Personal Finance (Not Investing)
Topic: Updating wills - when do they need to be more complicated?
Replies: 13
Views: 1199

Re: Updating wills - when do they need to be more complicated?

After doing some quick reading, it looks like a testamentary trust would be the best/simplest solution. If we don't create one, how do the courts decide what happens with the funds for minor children? ... A properly drafted Will would say that if any property passes to a minor, the executors may di...
by bsteiner
Fri Jul 27, 2018 3:15 pm
Forum: Personal Finance (Not Investing)
Topic: Needed appraisal of farm land?
Replies: 18
Views: 1105

Re: Needed appraisal of farm land?

To answer a question. The land was obtained through a life estate. So, at the time of my mother's passing there was no lawyer involved in this. ... If she previously owned the property and gave it away and retained a life estate, then it would be included in her estate for estate tax purposes, so t...
by bsteiner
Fri Jul 27, 2018 7:54 am
Forum: Personal Finance (Not Investing)
Topic: Best vehicle to administer budget for sil [sister-in-law]
Replies: 42
Views: 2467

Re: Best vehicle to administer budget for sil

She could create a trust for her own benefit, with your wife as trustee. She would only be able to amend or revoke the trust with the consent of someone else such as your wife. The trustees would have discretion to distribute the income and principal to her or for her benefit, or, alternatively, she...
by bsteiner
Thu Jul 26, 2018 12:02 pm
Forum: Personal Finance (Not Investing)
Topic: Ex-Spouse and Will Executor Hasn't Paid Bequest
Replies: 33
Views: 4213

Re: Ex-Spouse and Will Executor Hasn't Paid Bequest

PoundCake wrote:
Thu Jul 26, 2018 11:31 am
There have been several comments here about probate processes being closely watched by the courts, ....
That varies considerably from state to state.

The original poster might start by asking the lawyer who contacted her.