Search found 3520 matches

by bsteiner
Sun Nov 18, 2018 1:58 pm
Forum: Investing - Theory, News & General
Topic: Ed Slott & Roth Conversions
Replies: 39
Views: 2758

Re: Ed Slott & Roth Conversions

One thing I always warn about yet seldom see mentioned by the "experts" is ignoring end-of-life medical expenses as a way to spend down a TIRA at 0%. My parents did not have long-term care insurance yet both end-up in a nursing home. We spent around $400k of deductible medical expenses over their l...
by bsteiner
Sun Nov 18, 2018 12:22 pm
Forum: Investing - Help with Personal Investments
Topic: Canadian Citizen with noticeable tax deferred investments and home equity, considering moving outside US before 60
Replies: 14
Views: 781

Re: Canadian Citizen with noticeable tax deferred investments and home equity, considering moving outside US before 60

The Roth conversion may work well, assuming you can convert at not too high a tax bracket. Tax rates in the U.S. are generally lower than in Canada or Japan. Retirement benefits mesh well between the U.S. and Canada under the 2007 Protocol (amendment) to the U.S.-Canada tax treaty. But you may want ...
by bsteiner
Sun Nov 18, 2018 9:29 am
Forum: Investing - Theory, News & General
Topic: Ed Slott & Roth Conversions
Replies: 39
Views: 2758

Re: Ed Slott & Roth Conversions

... At a constant tax rate, the conversion always wins. For example, assuming a constant 30% (Federal and state) tax rate, suppose you have a $100 traditional IRA and $30 of cash. If you convert, you have a $100 Roth IRA. Over some period of time it grows to $200, all of which is tax-free. If you d...
by bsteiner
Sat Nov 17, 2018 11:04 pm
Forum: Investing - Theory, News & General
Topic: Ed Slott & Roth Conversions
Replies: 39
Views: 2758

Re: Ed Slott & Roth Conversions

... The correct decision depends on the current vs. future marginal tax rate on traditional withdrawals. Thus, yes, what you do now should depend on your current tax rate and what you think your future tax rate will be. ... That's an important factor. But there are other benefits to the Roth conver...
by bsteiner
Sat Nov 17, 2018 9:40 pm
Forum: Investing - Help with Personal Investments
Topic: Perform 12% Roth conversions or realize 0% long term capital gains during low income years???
Replies: 17
Views: 1541

Re: Perform 12% Roth conversions or realize 0% long term capital gains during low income years???

No one knows what the future will bring. But Roth conversions at 12% are likely to add substantial value.
by bsteiner
Sat Nov 17, 2018 6:12 pm
Forum: Investing - Theory, News & General
Topic: Ed Slott & Roth Conversions
Replies: 39
Views: 2758

Re: Ed Slott & Roth Conversions

There are lots of benefits to the Roth conversion. See my articles on this in the April 2013 https://www.kkwc.com/wp-content/uploads/2015/04/uf_Roth_Conversions_Are_More_Attractive_Under_ATRA.pdf, and June 2018 https://www.kkwc.com/wp-content/uploads/2018/08/Tax-Reform-Opens-Window-for-Roth-Conversa...
by bsteiner
Fri Nov 16, 2018 11:47 am
Forum: Personal Finance (Not Investing)
Topic: Why I plan on buying a life annuity - even if it is a stupid idea
Replies: 88
Views: 7389

Re: Why I plan on buying a life annuity - even if it is a stupid idea

Would a trust offer similar financial protections without relinquishing the capital to an annuity? Assuming an honest trustee, the trust could disperse assets to the beneficiary on a predetermined basis without allowing the beneficiary (with diminishing mental capacity) access to the trust and its ...
by bsteiner
Thu Nov 15, 2018 10:26 pm
Forum: Personal Finance (Not Investing)
Topic: Finding an Attorney with Demonstrated, Credentialed Expertise In Elderlaw
Replies: 15
Views: 956

Re: Finding an Attorney with Demonstrated, Credentialed Expertise In Elderlaw

... Bsteiner, who often posts on this site, is also a NY attorney skilled in Wills/Trusts. He knows his stuff, but I don't know if he also specializes in elder law. While there's some overlap, trusts and estates law on the one hand, and elder law (Medicaid and guardianships) on the other hand, are ...
by bsteiner
Wed Nov 14, 2018 11:01 pm
Forum: Personal Consumer Issues
Topic: Structure of a Will. Accompanying Attorney's Fees. Also POA and HCP.
Replies: 3
Views: 534

Re: Structure of a Will. Accompanying Attorney's Fees. Also POA and HCP.

My wife and I will be seeing an elderlaw attorney (NYS) for a consultation re estate planning, viz ., a will. ... Why not a trusts and estates lawyer for this? ... Is a mutual will the best option to accomplish this? Or would it be a joint will? ... A Will for you and a Will for her. ... What can w...
by bsteiner
Wed Nov 14, 2018 12:15 pm
Forum: Personal Finance (Not Investing)
Topic: Parents as trustees for child beneficiary of irrevocable trust.
Replies: 3
Views: 412

Re: Parents as trustees for child beneficiary of irrevocable trust.

Giving them control without mandating distributions would provide the desired protection. Mandating distributions will defeat their objective of providing protection. If they haven't made any gifts yet, it's easy to fix it. If they've made some gifts to the trust, they could create a new one for fut...
by bsteiner
Wed Nov 14, 2018 9:44 am
Forum: Personal Finance (Not Investing)
Topic: Parents as trustees for child beneficiary of irrevocable trust.
Replies: 3
Views: 412

Re: Parents as trustees for child beneficiary of irrevocable trust.

It doesn't make sense to limit distributions to a specified age or ages, and then to mandate distributions. Why not make the trust fully discretionary, and give the beneficiary control over the trust at the specified age? It's hard to know what if any problems may arise by naming someone else as the...
by bsteiner
Wed Nov 14, 2018 9:41 am
Forum: Investing - Theory, News & General
Topic: Annuities
Replies: 25
Views: 2510

Re: Annuities

For someone who needs or wants an annuity, an annuity from a retirement plan is usually a better deal than buying an annuity individually from an insurance company. However, there's still some cost to the annuity, as well as some loss of flexibility. Annuities from a retirement plan are unisex price...
by bsteiner
Sun Nov 11, 2018 3:25 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage with or without spouse?
Replies: 26
Views: 1971

Re: Mortgage with or without spouse?

One spouse can be on the note if his/her credit is sufficient to satisfy the lender. But the lender will want all of the owners of the property on the mortgage. The lender doesn't want to have to foreclose on one owner's interest and not be able to force a sale of the entire property.
by bsteiner
Sun Nov 11, 2018 10:48 am
Forum: Personal Finance (Not Investing)
Topic: Massachusetts Estate Tax
Replies: 8
Views: 1121

Re: Massachusetts Estate Tax

... I had to file a MA estate tax return for my dad after he passed in 2013. There were marital and family trusts involved and I was quoted $5,000 to do the return for relatively simple assets - home, brokerage accounts, CDs, and an IRA. ... In estates where an estate tax return is needed (or filed...
by bsteiner
Sun Nov 11, 2018 10:36 am
Forum: Personal Finance (Not Investing)
Topic: real estate transaction without a realtor in NJ
Replies: 2
Views: 171

Re: real estate transaction without a realtor in NJ

The broker's job is to find a buyer. If the seller has already found a buyer, he/she doesn't need a buyer. Real estate practices vary from state to state, and in some states (including New Jersey) within the state. Parties use lawyers more often in North Jersey than in South Jersey. The legal fees f...
by bsteiner
Thu Nov 08, 2018 7:17 pm
Forum: Investing - Help with Personal Investments
Topic: Help - Expect to inherit relatively large sum
Replies: 12
Views: 2145

Re: Help - Expect to inherit relatively large sum

Have the person provide for you in a trust that you control rather than outright, to keep your inheritance out of your estate for estate tax purposes, and to better protect it against your potential creditors and spouses.
by bsteiner
Wed Nov 07, 2018 11:30 pm
Forum: Personal Finance (Not Investing)
Topic: Handling and stretching an IRA through TWO trusts?
Replies: 7
Views: 806

Re: Handling and stretching an IRA through TWO trusts?

The facts could be clearer, but it looks like the IRA owner ran the IRA through an administrative trust that paid out to or in trust for the ultimate beneficiaries. Other than adding some additional complexity, it probably won't cause any harm, though that will depend on the terms of the trust. Ther...
by bsteiner
Wed Nov 07, 2018 11:26 pm
Forum: Personal Finance (Not Investing)
Topic: Massachusetts Estate Tax
Replies: 8
Views: 1121

Re: Massachusetts Estate Tax

That's a pretty good summary. The $1 million trust is a nonmarital trust. Regardless of how much it grows during the surviving spouse's lifetime, it will pass to or in further trust for the children free of estate tax at the surviving spouse's death. Massachusetts adopted both the Uniform Probate Co...
by bsteiner
Wed Nov 07, 2018 6:17 pm
Forum: Personal Finance (Not Investing)
Topic: Long-term Care Insurance
Replies: 184
Views: 8806

Re: Long-term Care Insurance

There's a fairly narrow 'sandwiched' group for whom LTC insurance might be worthwhile. They are between those who must more-or-less default automatically to Medicaid-assistance (i.e. those who have amassed under something like $500k) and those with $2-3 million or more who can very likely cover any...
by bsteiner
Mon Nov 05, 2018 1:51 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Documents
Replies: 32
Views: 2634

Re: estate Documents

I read it, found it very helpful to understand the estate process, as well as how often a lawyer might be motivated to ensure that the client, or client's heirs, need to come back for more services, whether with a will or a trust, and how the client can take steps upfront to discourage/remove that ...
by bsteiner
Mon Nov 05, 2018 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Documents
Replies: 32
Views: 2634

Re: estate Documents

I'd suggest that instead of looking for documents to fill out, you do some reading to understand what estate planning consists of. I suggest you read this very easy to understand book, Living Trusts For Everyone .... Estate planning is not as simple as filling in forms. That doesn't sound like a bo...
by bsteiner
Mon Nov 05, 2018 10:12 am
Forum: Personal Finance (Not Investing)
Topic: Deal fell through and didn't get escrow money.....
Replies: 56
Views: 5898

Re: Deal fell through and didn't get escrow money.....

The procedures for residential real estate transactions vary from state to state, and sometimes between different parts of the same state. I've been involved in 4 residential real estate transactions. In one, the buyer put 10% down, held in escrow by the seller's lawyer. In one, the buyer put 10% do...
by bsteiner
Sun Nov 04, 2018 4:40 pm
Forum: Personal Finance (Not Investing)
Topic: Attorney vs Willmaker for simple estate planning
Replies: 6
Views: 720

Re: Attorney vs Willmaker for simple estate planning

There seems to be some disagreement on bogleheads about how trustworthy Willmaker should be for simple estate planning purposes. Some people seem to strongly suggest having a professional attorney review things even after doing it on Willmaker. Our family/financial/estate situation seems to be fair...
by bsteiner
Sun Nov 04, 2018 1:13 pm
Forum: Investing - Help with Personal Investments
Topic: Life estate deeds
Replies: 4
Views: 270

Re: Life estate deeds

You probate the Will, not the asset. The decedent already gave away that asset during his lifetime. His life estate ended at his death. The property now belongs to the remainderperson(s). During his lifetime he could have disposed of his life estate, but it no longer matters since his life estate en...
by bsteiner
Fri Nov 02, 2018 4:44 pm
Forum: Personal Finance (Not Investing)
Topic: Roth in a high tax bracket
Replies: 14
Views: 1511

Re: Roth in a high tax bracket

If you're confident that you and your beneficiaries will always be in a high bracket, and you have other assets with which to pay the tax on the conversion, then the conversion will probably make sense. By paying the tax out of other assets, you're effectively contributing additional assets to your ...
by bsteiner
Fri Nov 02, 2018 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: Stock basis for widow
Replies: 32
Views: 1024

Re: Stock basis for widow

Are you in a community property state? From an earlier post of yours it appears you may be a Minnesota resident, a common law state. I’m surprised the broker made this change on their own volition. If they had a joint revocable trust, they were probably in a community property state when they creat...
by bsteiner
Thu Nov 01, 2018 3:33 pm
Forum: Personal Finance (Not Investing)
Topic: Tell me about establishing trusts for our minor children
Replies: 28
Views: 2703

Re: Tell me about establishing trusts for our minor children

It isn’t just a question of the kid’s maturity at 18 — a lawsuit, a divorce, or a disability can happen at any point in adulthood. Protecting the kid’s money against those possibilities is part of the reason for a trust. In my state, an inherited IRA would protect most of OP's assets against lawsui...
by bsteiner
Thu Nov 01, 2018 7:13 am
Forum: Personal Finance (Not Investing)
Topic: Selling House Directly to Buyer
Replies: 28
Views: 2646

Re: Selling House Directly to Buyer

The broker’s job is to find a buyer.
by bsteiner
Tue Oct 30, 2018 9:17 pm
Forum: Personal Finance (Not Investing)
Topic: Tell me about establishing trusts for our minor children
Replies: 28
Views: 2703

Re: Tell me about establishing trusts for our minor children

... My wife's single brother will act as primary trustee and also our children's guardian should they still be minors. He lives in Chile but is a high-level investment banker with a large European bank and manages billions of dollars of investments throughout Latin America. ... If he's not a U.S. c...
by bsteiner
Tue Oct 30, 2018 9:27 am
Forum: Personal Finance (Not Investing)
Topic: Annuity, trusts, and taxes
Replies: 1
Views: 189

Re: Annuity, trusts, and taxes

A complicated question for the tax experts and attorneys. An annuity that has a trust as beneficiary must be distributed at the owner's death either as a lump sum or over a 5 year period. All gains are then taxed as ordinary income (no step up in basis or capital gains treatment). Since trust incom...
by bsteiner
Tue Oct 30, 2018 9:05 am
Forum: Personal Finance (Not Investing)
Topic: Will or Trust?
Replies: 13
Views: 1603

Re: Will or Trust?

... What are the reasons for creating a revocable trust vs creating the trust via the will? Revocable trusts are overhyped and oversold, and aren't necessary for most people in most states. However, there are lots of reasons to create a revocable trust in particular cases: 1. In some states, you ha...
by bsteiner
Tue Oct 30, 2018 8:14 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard as a trustee
Replies: 33
Views: 3074

Re: Vanguard as a trustee

... Is there a usual maintenance, education and health (MEH) standard that is normal-based on what circumstances? Where might such a trust go wrong? How flexible is Vanguard with respect to the trust stipulations? ... I'm not sure how usual it is, but such provisions are fairly common. However, any...
by bsteiner
Sun Oct 28, 2018 5:50 pm
Forum: Personal Finance (Not Investing)
Topic: sold condo that was given to me, taxes owed?
Replies: 17
Views: 1379

Re: sold condo that was given to me, taxes owed?

One other thing to do is to make sure that the house title was updated to take your name off of the official paperwork. It is not unheard of for families to try to do transactions like this with various quitclaim deeds that might not get filed in a timely manner. In some areas this can be checked o...
by bsteiner
Sun Oct 28, 2018 11:01 am
Forum: Investing - Help with Personal Investments
Topic: Another Annuity inside a IRA question
Replies: 6
Views: 434

Re: Another Annuity inside a IRA question

If you buy it outside an IRA, in exchange for paying 2.5% or 3% a year, you get to convert your qualified dividends and long-term capital gains to ordinary income and you give up the basis step-up at death. If you buy it in an IRA, you don't get these income tax consequences. However, since it's in ...
by bsteiner
Wed Oct 24, 2018 10:26 pm
Forum: Personal Finance (Not Investing)
Topic: Living Revocable Trust
Replies: 15
Views: 1557

Re: Living Revocable Trust

Probating a Will in Pennsylvania is sufficiently simple that revocable trusts are not commonly used in Pennsylvania. The lawyer would run up more billable hours preparing revocable trusts than he/she would to probate your Wills. You can't avoid probating your Will "as much as possible." Either your ...
by bsteiner
Wed Oct 24, 2018 8:27 am
Forum: Investing - Help with Personal Investments
Topic: Is TLH in 12% bracket less worthwhile?
Replies: 22
Views: 1830

Re: Is TLH in 12% bracket less worthwhile?

If you're in a low bracket now, but expect to be in a higher bracket in future years, you might want to consider doing some Roth conversions to the extent you can do so in a low bracket.
by bsteiner
Tue Oct 23, 2018 8:53 pm
Forum: Investing - Help with Personal Investments
Topic: How to inherit an IRA from a spouse
Replies: 8
Views: 1346

Re: How to inherit an IRA from a spouse

I would add that a spouse < 59.5 should only use an Inherited IRA if they will need the IRA money prior to age 59.5. One downside of an inherited IRA in this case is that if that spouse then dies prior to taking ownership of the IRA. The beneficiaries can not use their own age for lifetime distribu...
by bsteiner
Tue Oct 23, 2018 10:35 am
Forum: Personal Finance (Not Investing)
Topic: Trust vs Will Gotchas
Replies: 24
Views: 3432

Re: Trust vs Will Gotchas

... So we have this trust and a pour-over will - and just the house is in the trust. If we don't do anything else are we really that bad off? If my parents pass before they place anything else in the trust - and we still have the pour-over will - is there any gotcha we're facing? Both my brother an...
by bsteiner
Mon Oct 22, 2018 10:35 pm
Forum: Personal Finance (Not Investing)
Topic: Simple question about 2018 gift giving
Replies: 4
Views: 583

Re: Simple question about 2018 gift giving

Dave, the transfer of the car is not a completed gift so ignore it for gift reporting purposes. Your mother can give you up to $15,000 of the mutual fund and nothing has to be reported. That's true (except in New York) for joint accounts, but not for assets registered in joint names. Treas. Reg. § ...
by bsteiner
Mon Oct 22, 2018 10:17 am
Forum: Personal Finance (Not Investing)
Topic: Can you include this in a will?
Replies: 23
Views: 3583

Re: Can you include this in a will?

"But be careful in relying on this type of clause because in some states, including Florida, they are unenforceable. In other states there are exceptions that can render the clause useless." https://www.thebalance.com/tips-for-avoiding-a-will-contest-3505204 There are a number of other tips in that...
by bsteiner
Sun Oct 21, 2018 11:50 am
Forum: Personal Finance (Not Investing)
Topic: Can you include this in a will?
Replies: 23
Views: 3583

Re: Can you include this in a will?

I'd just get the will done right so that a challenge is not going to be successful. That's the best way to discourage a fight. ... The most common grounds for a contest are lack of capacity and undue influence. Having a lawyer supervise the execution of the Will is helpful, but there could still be...
by bsteiner
Sun Oct 21, 2018 11:38 am
Forum: Personal Finance (Not Investing)
Topic: Problem opening testamentary trust account at Ally
Replies: 14
Views: 775

Re: Problem opening testamentary trust account at Ally

Given the current level of the estate tax exclusion amount (and the level of the estate tax exclusion amount in recent years), the vast majority of the trusts we create are by Will. A copy of the Will containing the trust, together with a court certificate in those states where the court issues lett...
by bsteiner
Sat Oct 20, 2018 3:47 pm
Forum: Investing - Help with Personal Investments
Topic: Do Any Annuities Offer a "Free Lunch"?
Replies: 21
Views: 1961

Re: Do Any Annuities Offer a "Free Lunch"?

... Ask your advisor-friend to let you read the Prospectus (1,752 pages) ... I can sum up the 1,752 pages in one sentence: in exchange for paying about 2.5% to 3% a year, you get to convert your qualified dividends and long-term capital gains to ordinary income and you give up the basis step-up at ...
by bsteiner
Sat Oct 20, 2018 3:22 pm
Forum: Personal Finance (Not Investing)
Topic: Long-term Care Insurance
Replies: 184
Views: 8806

Re: Long-term Care Insurance

Either buy the insurance or don't buy the insurance (and withdraw from your IRA as needed when you're in the nursing home0 and offset the income with a medical expense deduction. But don't cash in a $1 million IRA (even if over 4 or 5 years) to put the after-tax proceeds into an income-only trust. I...
by bsteiner
Fri Oct 19, 2018 10:04 am
Forum: Personal Finance (Not Investing)
Topic: Can you include this in a will?
Replies: 23
Views: 3583

Re: Can you include this in a will?

Some legal eagles here will chime in about whether those clauses are enforceable. They're strictly construed but enforceable except in Florida. Of course, you have to leave the person enough so that they have an incentive not to bring a contest. For example, if you have $1 million and 2 children, a...
by bsteiner
Thu Oct 18, 2018 3:53 pm
Forum: Personal Finance (Not Investing)
Topic: Federal Blue Cross Basic or Standard for Knee Surgery
Replies: 8
Views: 1037

Re: Federal Blue Cross Basic or Standard for Knee Surgery

Which are the most robust FEHB plans for someone who wants the smallest out-of-pocket expense?

Which are the least expensive FEHB plans that pick up what Medicare B doesn't pay, for a retiree who has Medicare B?
by bsteiner
Thu Oct 18, 2018 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Helping out with early onset Alzheimer's
Replies: 15
Views: 1785

Re: Helping out with early onset Alzheimer's

He/she should get his/her estate planning done while he/she can.

He/she should pick who he/she wants to handle his/her affairs when he/she will no longer be able to.
by bsteiner
Wed Oct 17, 2018 4:39 pm
Forum: Personal Finance (Not Investing)
Topic: Where would you go for financial guidance if you win the Megamillions?
Replies: 188
Views: 16853

Re: Where would you go for financial guidance if you win the Megamillions?

You won't actually get $900 million or whatever amount they advertise. They'll discount the annual payments to present value if you take a lump sum. Then you'll pay income taxes (37% Federal plus state and local, if any). They may not withhold the full amount but you'll still have to pay it. It's u...