Search found 3642 matches

by Gill
Sat Dec 09, 2017 9:26 pm
Forum: Investing - Help with Personal Investments
Topic: Need to invest adult siblings trust money
Replies: 22
Views: 1238

Re: Need to invest adult siblings trust money

-ages mid 50s and late 40s -financial circumstances posted above -they both know they have no real say in the money and I think are OK with that, as they know this is how my parents wanted it. - as both live on very limited incomes, $300 a month allows for them to pay for a few xtras. I hope this w...
by Gill
Sat Dec 09, 2017 8:57 pm
Forum: Investing - Help with Personal Investments
Topic: Need to invest adult siblings trust money
Replies: 22
Views: 1238

Re: Need to invest adult siblings trust money

I agree with Luckywon’s comment about distributing the trusts as quickly as possible. They really seem to make little sense as trusts. If you are distributing income monthly from a $50,000 trust it might be $100 a month - hardly worthwhile.
Gill
by Gill
Sat Dec 09, 2017 8:13 pm
Forum: Investing - Help with Personal Investments
Topic: Need to invest adult siblings trust money
Replies: 22
Views: 1238

Re: Need to invest adult siblings trust money

Can you invade principal for the beneficiaries? A monthly remittance from trusts of this size will be very small. Is the money coming to the trust added to principal?
Gill
by Gill
Sat Dec 09, 2017 3:36 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes and Rental Income from Live-In Significant Other
Replies: 8
Views: 559

Re: Taxes and Rental Income from Live-In Significant Other

This is not a for profit business arrangement but merely expense sharing of the cost of occupying a residence. It doesn't enter into your tax return at all.
Gill
by Gill
Fri Dec 08, 2017 8:38 pm
Forum: Personal Finance (Not Investing)
Topic: Executor responsibilities
Replies: 44
Views: 2703

Re: Executor responsibilities

... It is just one of my pet peeves that the whole probate/estate thing is "spun" so that everyone thinks that they have to have legal assistance. In my one experience they wanted 5K to fill out about 12 simple forms. Of course, in my case the 3 kids all got along and all it required was some docum...
by Gill
Thu Dec 07, 2017 9:26 pm
Forum: Personal Finance (Not Investing)
Topic: Should I file taxes w/o her?
Replies: 44
Views: 2253

Re: Should I file taxes w/o her?

That’s the cost of marrying a spouse with a high income. Maybe she can reimburse you for the amount by which your taxes increased as a result of marrying her.

How did you apportion the total tax liability on the return you filed?
Gill
by Gill
Thu Dec 07, 2017 9:06 pm
Forum: Personal Finance (Not Investing)
Topic: Should I file taxes w/o her?
Replies: 44
Views: 2253

Re: Should I file taxes w/o her?

How did you figure you were murdered? Did you pro rate the tax between the two of you? Your income tax is affected by your wife’s income, but married filing separately is rarely the answer.
Gill
by Gill
Thu Dec 07, 2017 6:53 pm
Forum: Personal Finance (Not Investing)
Topic: At what age your investments start making more money than you?
Replies: 107
Views: 7069

Re: At what age your investments start making more money than you?

livesoft wrote:
Thu Dec 07, 2017 2:28 pm
Ha! At what age did you start making LESS money than your investments? I wasn't working at age 18, so it was back then. Savings accounts were paying about 10% to 15%, too.
When was that? I never remember savings accounts paying over 5%

Gill
by Gill
Wed Dec 06, 2017 9:19 pm
Forum: Personal Consumer Issues
Topic: I received a speeding ticket via mail from IA - should I pay it?
Replies: 72
Views: 4742

Re: I received a speeding ticket via mail from IA - should I pay it?

13 miles over limit. You got off easy. Pay it.
Gill
by Gill
Wed Dec 06, 2017 11:26 am
Forum: Personal Consumer Issues
Topic: Cat sitter info
Replies: 21
Views: 982

Re: Cat sitter info

Google "National Association of Professional Pet Sitters".
Gill
by Gill
Tue Dec 05, 2017 6:30 pm
Forum: Personal Consumer Issues
Topic: Dad Needs Help Buying Wedding Liquor
Replies: 53
Views: 4384

Re: Dad Needs Help Buying Wedding Liquor

Can’t help you with brands, but I’ve bought liquor for business receptions and arranged with the store to return any unopened bottles.
Gill
by Gill
Sun Dec 03, 2017 8:46 pm
Forum: Personal Finance (Not Investing)
Topic: Umbrella insurance when assets mainly in trusts
Replies: 34
Views: 1624

Re: Umbrella insurance when assets mainly in trusts

Aren’t you really talking peanuts for the annual premium? I carry $3 million for a $500 premium and I own a house which you don’t. It will cost you more to call Bruce. :happy
Gill
by Gill
Sun Dec 03, 2017 8:12 pm
Forum: Personal Finance (Not Investing)
Topic: Umbrella insurance when assets mainly in trusts
Replies: 34
Views: 1624

Re: Umbrella insurance when assets mainly in trusts

By any definition, you've had a superb attorney draw up your trust so your answer is with him. The way that I understand it, and this may have some degree of state-specificity, is that revocable trusts would not protect the assets from creditors. If it's an irrevocable trust, the assets are more pr...
by Gill
Sun Dec 03, 2017 8:10 pm
Forum: Personal Finance (Not Investing)
Topic: Umbrella insurance when assets mainly in trusts
Replies: 34
Views: 1624

Re: Umbrella insurance when assets mainly in trusts

It appears this is a trust created by a decedent for your benefit. Most likely it is not subject to claims of your creditors. Nevertheless, with your other information and potential I’d still stick with $3 million as I said above. Gill You're probably right. The trust can basically be used for any ...
by Gill
Sun Dec 03, 2017 8:05 pm
Forum: Personal Finance (Not Investing)
Topic: Umbrella insurance when assets mainly in trusts
Replies: 34
Views: 1624

Re: Umbrella insurance when assets mainly in trusts

It appears this is a trust created by a decedent for your benefit. Most likely it is not subject to claims of your creditors. Nevertheless, with your other information and potential I’d still stick with $3 million as I said above.
Gill
by Gill
Sun Dec 03, 2017 7:51 pm
Forum: Personal Finance (Not Investing)
Topic: Umbrella insurance when assets mainly in trusts
Replies: 34
Views: 1624

Re: Umbrella insurance when assets mainly in trusts

The cost is so reasonable, I’d stick with at least $3 million. What are the terms and the purpose of the trust?
Gill
by Gill
Sun Dec 03, 2017 7:43 pm
Forum: Personal Finance (Not Investing)
Topic: Umbrella insurance when assets mainly in trusts
Replies: 34
Views: 1624

Re: Umbrella insurance when assets mainly in trusts

Are you certain your assets in trust can’t be reached by a judgment creditor? What type of trust is it?
Gill
by Gill
Sun Dec 03, 2017 4:18 pm
Forum: Investing - Help with Personal Investments
Topic: Just downsized at age 60...input appreciated
Replies: 29
Views: 3521

Re: Just downsized at age 60...input appreciated

One solution that might give you the best of both worlds would be to take a portion of your portfolio and have it managed through a trusted advisor. That way you can leverage his knowledge and yet do so with only a portion of your money under management ($$). The challenge is finding someone you tr...
by Gill
Sun Dec 03, 2017 2:19 pm
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4326

Re: Independent Trustee Actively Managing Trust Account

Does the law firm have a durable power of attorney from you as trustee so it can handle the real estate? Or are you simply counting on your being able to function and just hire the law firm to do the legal work? Interesting. Can a trustee give a power-of-attorney to another absent specific language...
by Gill
Sun Dec 03, 2017 12:44 pm
Forum: Personal Finance (Not Investing)
Topic: Question on inheriting real estate from parents
Replies: 24
Views: 2756

Re: Question on inheriting real estate from parents

You speak in terms of "they". Is your mother or his wife still living also? Would their combined estates exceed $10 million or so? If not, they really have no worry about Federal estate tax, although possibly there could be state estate tax.
Gill
by Gill
Sat Dec 02, 2017 3:53 pm
Forum: Investing - Help with Personal Investments
Topic: Help me Help mom
Replies: 29
Views: 1495

Re: Help me Help mom

Are you saying she has about 150 individual holdings of stocks and bonds? Staggering! I think the best thing you can do for your mother is get out of all those holdings and invest the proceeds in a single Fidelity fund. It may take some time because it might make sense to just let some of the short ...
by Gill
Fri Dec 01, 2017 9:02 pm
Forum: Personal Finance (Not Investing)
Topic: Financial Advice Needed
Replies: 16
Views: 1124

Re: Financial Advice Needed

You mention small side jobs. I assume that was reported as income. If not, you might not want to deposit it now.
Gill
by Gill
Thu Nov 30, 2017 5:43 pm
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4326

Re: Independent Trustee Actively Managing Trust Account

If it makes any difference to anyone, the usual practice of charging trustee fees based either on the trust agreement or state law is to charge half to principal and half to income. I know this doesn't make the fee any less, but at least half is being paid by the remainderman and half by the income ...
by Gill
Thu Nov 30, 2017 5:05 pm
Forum: Personal Finance (Not Investing)
Topic: How are SPIA's taxed if taken from taxable or taxed deferred?
Replies: 31
Views: 1692

Re: How are SPIA's taxed if taken from taxable or taxed deferred?

Earl Lemongrab wrote:
Thu Nov 30, 2017 3:55 pm
If the annuity is in an IRA, can the distributions stay in there, or must them come out?
An SPIA purchased with IRA funds pays out directly to the annuitant, not to the original IRA account.
Gill
by Gill
Thu Nov 30, 2017 3:34 pm
Forum: Personal Finance (Not Investing)
Topic: How are SPIA's taxed if taken from taxable or taxed deferred?
Replies: 31
Views: 1692

Re: How are SPIA's taxed if taken from taxable or taxed deferred?

Lynette wrote:
Thu Nov 30, 2017 2:14 pm
Thanks Alan. It is also my understanding that the payout of a SPIA may increase if the tax rate goes up. Also when I'm older the payout will will be higher so it may be worth waiting a while.
How do tax rates affect the payout of an annuity? Do you mean interest rates?
Gill
by Gill
Thu Nov 30, 2017 11:32 am
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4326

Re: Independent Trustee Actively Managing Trust Account

Given your background, I thought you would be uniquely able to comment on the differences between the way a traditional trust department operates and what Vanguard does. I'll tell you one huge difference, and that is the people. At my last employer, a major and centuries old financial institution w...
by Gill
Thu Nov 30, 2017 10:51 am
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4326

Re: Independent Trustee Actively Managing Trust Account

If the trust is less than a year old, you are premature in rocking the boat. Give it a year or two to establish a track record. It is early, but the active management is clear as are the high costs. The OP is right that the bank is not doing right by the trust. The only question is whether the bene...
by Gill
Wed Nov 29, 2017 8:39 pm
Forum: Investing - Help with Personal Investments
Topic: Individual vs Joint Account
Replies: 2
Views: 276

Re: Individual vs Joint Account

With a joint account the other owner can withdraw fund and takes in the event of your death. You lose the ability to leave the account in your will. It is also subject to the claims of their creditors.
Gill
by Gill
Wed Nov 29, 2017 5:30 pm
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4326

Re: Independent Trustee Actively Managing Trust Account

Are all of Vanguard's economies on the lack of physical branches? Or do they save money elsewhere, behind the scenes? Would the places you worked have been able to compete with Vanguard on price? The reason for Vanguard's low costs have been discussed extensively on Bogleheads. As for my prior affi...
by Gill
Wed Nov 29, 2017 3:31 pm
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4326

Re: Independent Trustee Actively Managing Trust Account

Gill, Very interesting. A few questions What is different about the Vanguard operation that makes management think they can break even or turn a profit while charging much lower rates than traditional banks? Is all the money saved by doing business online and over the phone, without having clients ...
by Gill
Wed Nov 29, 2017 2:59 pm
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4326

Re: Independent Trustee Actively Managing Trust Account

When they bank acts in a fiduciary capacity they are held to those standards, i.e., they can't profit through self dealing. What you describe is just that. Respectfully, no it isn't. By your description, the only excluded instance would be if Vanguard, say, is the corporate trustee and custodian an...
by Gill
Wed Nov 29, 2017 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4326

Re: Independent Trustee Actively Managing Trust Account

It sounds to me like you have an inflated impression of the integrity of this industry. Hopefully it's a realistic view of the business where I spent a 35-year career. Yes, banks like to make a profit just like anyone else, but as a fiduciary they are held to very high standards which are enforced ...
by Gill
Wed Nov 29, 2017 12:32 pm
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4326

Re: Independent Trustee Actively Managing Trust Account

Are you saying that because the corporate (bank) trustee takes 1% for serving as trustee , that they subtract any ER from their "cut"? :D And if they were to invest in actively-managed international small-cap (for example) that they would pay out-of-pocket for any ER above and beyond 1%? :D No, I s...
by Gill
Wed Nov 29, 2017 11:57 am
Forum: Personal Finance (Not Investing)
Topic: selling stock to an individual
Replies: 6
Views: 611

Re: selling stock to an individual

You have what is called a bargain sale which would be part sale and part gift. If you're selling at your basis there would be no gain or loss to you and the buyer would take the shares at that cost. The balance would be a gift which you should report if it exceeds $14,000. As for the mechanics, I wo...
by Gill
Wed Nov 29, 2017 11:12 am
Forum: Personal Finance (Not Investing)
Topic: Living Trusts - Distribution Options and Strategies
Replies: 5
Views: 380

Re: Living Trusts - Distribution Options and Strategies

Your distribution options are no different than with a will.
Gill
by Gill
Tue Nov 28, 2017 8:46 pm
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4326

Re: Independent Trustee Actively Managing Trust Account

Many seem to be expressing an attitude that confirms suspicions regarding corporate trustees. Beneficiaries are greedy brats, good thing the old man hired the bank to save them from themselves. 34 individual stocks is terrible management, period. The OP is completely justified in wanting it simplif...
by Gill
Tue Nov 28, 2017 7:00 pm
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4326

Re: Independent Trustee Actively Managing Trust Account

Acting as an asset manager and as a trustee are two quite different things.
Gill
by Gill
Tue Nov 28, 2017 4:44 pm
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4326

Re: Independent Trustee Actively Managing Trust Account

Since I am a trustee I can assure you that it is far, far more than just investment management. I agree - that is the easy part. It’s the rest which takes time, thought, and effort, to say nothing of the liability exposure. Most trust departments, at least during my career, were set up with two off...
by Gill
Tue Nov 28, 2017 4:35 pm
Forum: Personal Finance (Not Investing)
Topic: Inheritance question: Inheriting something you aren't supposed to sell
Replies: 22
Views: 2760

Re: Inheritance question: Inheriting something you aren't supposed to sell

There's an outside chance that either our sets of parents might end up leave her or myself an item (piece of real estate) with the condition it not be sold, as her/my portion of inheritance. How is this possible in the absence of a trust with an independent trustee? Legally it could be done without...
by Gill
Mon Nov 27, 2017 9:44 pm
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4326

Re: Independent Trustee Actively Managing Trust Account

If you were meant to have control of the trust assets the testator would have left them to you outright. The trust was established for good reason by the decedent and the trustee is being compensated a very normal trustee’s fee. You have no authority to direct investment of the trust. Quite likely ...
by Gill
Mon Nov 27, 2017 9:08 pm
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4326

Re: Independent Trustee Actively Managing Trust Account

If you were meant to have control of the trust assets the testator would have left them to you outright. The trust was established for good reason by the decedent and the trustee is being compensated a very normal trustee’s fee. You have no authority to direct investment of the trust. Quite likely t...
by Gill
Mon Nov 27, 2017 8:35 pm
Forum: Investing - Help with Personal Investments
Topic: Can I afford a $1,400,000 house
Replies: 93
Views: 8461

Re: Can I afford a $1,400,000 house

You have a deficit net worth. Notwithstanding your high income, you have a ways to go before you should consider a house in this price range.
Gill
by Gill
Mon Nov 27, 2017 3:49 pm
Forum: Personal Finance (Not Investing)
Topic: Amend 2015 taxes based on a new K-1 two years later?
Replies: 35
Views: 1779

Re: Amend 2015 taxes based on a new K-1 two years later?

Earl Lemongrab wrote:
Mon Nov 27, 2017 3:41 pm
pshonore wrote:
Mon Nov 27, 2017 3:10 pm
Does anyone think tax documents received by the IRS can be safely ignored ?? That's just asking for trouble
What was received from the IRS? This is a K1 from the executor.
Yes, but the IRS receives a copy.
Gill
by Gill
Sun Nov 26, 2017 6:26 pm
Forum: Investing - Theory, News & General
Topic: Basis question regarding generation skipping trusts
Replies: 3
Views: 278

Re: Basis question regarding generation skipping trusts

The answer is that it depends. It’s possible that the trust was included in the estate of the income beneficiary and therefore a change in basis.

Gill
by Gill
Sun Nov 26, 2017 5:32 pm
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4326

Re: Independent Trustee Actively Managing Trust Account

It seems odd that the decedent would mandate a corporate trustee but also mandate distributions at specified ages. Perhaps the trustees would agree to decant the trust to eliminate the mandated distributions and have the bank cease to act at the ages when distributions are presently mandated. Comin...
by Gill
Sun Nov 26, 2017 5:26 pm
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4326

Re: Independent Trustee Actively Managing Trust Account

In the last statement I counted 34 holdings including individual stocks and two bond funds. As I stated previously, I do not need or want this level of active management; I want 100% VTSAX without the trustee active management fee. Sorry, but what you want is not entirely relevant. I'll guarantee y...
by Gill
Sun Nov 26, 2017 5:24 pm
Forum: Personal Finance (Not Investing)
Topic: Independent Trustee Actively Managing Trust Account
Replies: 96
Views: 4326

Re: Independent Trustee Actively Managing Trust Account

You have a copy of the trust, right? What does it say about how the trustee should manage the money? What does it say about appointing a different independent trustee? What other duties does the trustee have? Tax reporting? Are there other trustees? Only among this group of die hard independent inv...
by Gill
Sun Nov 26, 2017 3:19 pm
Forum: Investing - Help with Personal Investments
Topic: Estimating Cost basis
Replies: 6
Views: 360

Re: Estimating Cost basis

As I have posted here before, and had my knuckles rapped by a few, assuming a basis of zero is crazy. Quite simply, as had been discussed above, you can do better than that. The IRS will accept a reasonable estimate whereas using zero is giving away too much. As I have done on many occasions with cl...
by Gill
Sun Nov 26, 2017 11:29 am
Forum: Personal Finance (Not Investing)
Topic: Donor Advised Fund for 2018 Planned Donations?
Replies: 29
Views: 2062

Re: Donor Advised Fund for 2018 Planned Donations?

But paying next year's State Income tax on income you have not earned is beyond me. You have no liability for it in 2017. Would you have a problem with someone paying their entire year's state estimated tax for 2018 in March of 2018? Even if they hadn't yet realized the income that would create tha...