Search found 5425 matches

by FIREchief
Mon Oct 03, 2016 11:42 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to manage irrevocable trust?
Replies: 92
Views: 9489

Re: Best way to manage irrevocable trust?

At that point would it make sense to transfer all assets out of the trust into my personal accounts? Would my heirs then regain the stepped-up basis upon my death? If you're talking about assets in a revocable trust, I believe that they are considered to belong to you and will qualify for step up b...
by FIREchief
Mon Oct 03, 2016 10:31 am
Forum: Personal Finance (Not Investing)
Topic: Pension early payout: Age
Replies: 4
Views: 968

Re: Pension early payout: Age

So for the same amount of years in, the older person got 3 times the amount. Is this fair, ("fair" is an ill-defined concept with little meaning in this type of situation) legal, (highly likely) or is this age discrimination against Bob? (most likely not) Thanks for your time!
by FIREchief
Mon Oct 03, 2016 10:21 am
Forum: Investing - Theory, News & General
Topic: 30 yr TIPS Auction: Announced 10/13: yield 0.6%?
Replies: 66
Views: 12085

Re: 30 yr TIPS Auction: Announced 10/13: yield 0.6%?

You could also buy a one year treasury and roll it over thirty times. You would probably get about the same inflation protection and the yields at least for now are similar. I'm a bit unclear on how the yields (total) are similar. The 1 year yield as of last Friday was .59% (with zero inflation adj...
by FIREchief
Mon Oct 03, 2016 10:01 am
Forum: Personal Finance (Not Investing)
Topic: Best way to manage irrevocable trust?
Replies: 92
Views: 9489

Re: Best way to manage irrevocable trust?

2. I am told by my friend (who is a corporate lawyer and not an expert in estates) that being trustee and beneficiary of an irrevocable trust can make it more accessible to creditors. He also claims that there are other ways in which being both trustee and beneficiary can reduce your protection, an...
by FIREchief
Mon Oct 03, 2016 3:11 am
Forum: Personal Finance (Not Investing)
Topic: Best way to manage irrevocable trust?
Replies: 92
Views: 9489

Re: Best way to manage irrevocable trust?

If I were king of things, this would be a legitimate and complete will: "I, bostondan, leave my stuff to my children. They're nice kids and they'll figure out the right way to do it, but it should be split basically evenly. Also, it should be left to them in trust such that it isn't part of th...
by FIREchief
Sat Oct 01, 2016 3:35 am
Forum: Personal Finance (Not Investing)
Topic: Estate planning - unnecessary complexity?
Replies: 46
Views: 5556

Re: Estate planning - unnecessary complexity?

letsgobobby wrote:This is a great thread - following.
Most of these threads regarding trusts are great. This is an area that needs much more discussion. Thanks to bsteiner, we do learn a lot. Hopefully, we'll continue to learn from Bruce and others who really know this area. :sharebeer
by FIREchief
Sat Oct 01, 2016 1:02 am
Forum: Personal Finance (Not Investing)
Topic: Best way to manage irrevocable trust?
Replies: 92
Views: 9489

Re: Best way to manage irrevocable trust?

Any chance of appropriately anonymizing and sharing the rest of his instructions? We all have a lot to learn from him. Here is an abbreviated version of the instructions of what is to come for me. It is moderately specific to my situation, so I'm not sure if it will be terribly useful: 1. File fina...
by FIREchief
Fri Sep 30, 2016 5:35 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning - unnecessary complexity?
Replies: 46
Views: 5556

Re: Estate planning - unnecessary complexity?

The drafts should have the trustee provisions you wanted. At the initial conference you would have discussed the selection of executors, trustees and guardians. That's one of the things that can vary considerably from one client to another. Of course you have a chance to review the documents. The l...
by FIREchief
Fri Sep 30, 2016 3:54 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning - unnecessary complexity?
Replies: 46
Views: 5556

Re: Estate planning - unnecessary complexity?

"You could probably do a better job as a trusts and estates lawyer than most lawyers in that field." "But all of this should be routine for a trusts and estates lawyer." This is a problem as I see things. We "should" be able to rely on a trusts and estates lawyer (beca...
by FIREchief
Fri Sep 30, 2016 12:30 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning - unnecessary complexity?
Replies: 46
Views: 5556

Re: Estate planning - unnecessary complexity?

I think the key points are: a) If the trust allows the beneficiary to serve as sole trustee, they should also be empowered to resign and appoint an independent trustee at any time b) If the beneficiary is serving as trustee, they should only have the ability to distribute for HEMS, and that at thei...
by FIREchief
Fri Sep 30, 2016 12:18 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning - unnecessary complexity?
Replies: 46
Views: 5556

Re: Estate planning - unnecessary complexity?

I think the key points are: a) If the trust allows the beneficiary to serve as sole trustee, they should also be empowered to resign and appoint an independent trustee at any time b) If the beneficiary is serving as trustee, they should only have the ability to distribute for HEMS, and that at thei...
by FIREchief
Fri Sep 30, 2016 12:10 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning - unnecessary complexity?
Replies: 46
Views: 5556

Re: Estate planning - unnecessary complexity?

I suppose. But if one client sets up a living trust and a pour over will and another sets up a will with a testamentary trust, will the first client really pay $3,000 more than the second? Why? Based upon the shopping around I've done in my area, the answer is a clear "no." There is littl...
by FIREchief
Thu Sep 29, 2016 5:56 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning - unnecessary complexity?
Replies: 46
Views: 5556

Re: Estate planning - unnecessary complexity?

Re; HEMS: The issue was whether the trustee COULD pay to or for the beneficiary only for HEMS, or the trustee was REQUIRED to pay for HEMS. If the trustee was REQUIRED to do it, then the amounts that the trustee was obligated to distributed were found to be available. The recommendation was to draf...
by FIREchief
Thu Sep 29, 2016 3:27 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning - unnecessary complexity?
Replies: 46
Views: 5556

Re: Estate planning - unnecessary complexity?

It sounds like you're a ringer. I just assumed that the OP had done his homework. Unfortunately, for every estate attorney such as yourself who really understands everything, there seems to dozens that are clueless. This has forced me on multiple occasions to have to get into the tax codes, state l...
by FIREchief
Thu Sep 29, 2016 3:11 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning - unnecessary complexity?
Replies: 46
Views: 5556

Re: Estate planning - unnecessary complexity?

...it's very common for one sticky asset that someone forgot about to cause probate to happen anyway. Your wills should cover this and say that anything you own not held in the trust is to "pour over" (become owned) by the trust. In fact, your will will probably say this anyway so things ...
by FIREchief
Wed Sep 28, 2016 11:04 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning - unnecessary complexity?
Replies: 46
Views: 5556

Re: Estate planning - unnecessary complexity?

The restriction for the trusts that receive the retirement benefits is that nothing can ever go to anyone older than the person whose life expectancy you want to use to measure the required distributions, for example your older child, or to anyone other than an individual or another trust subject t...
by FIREchief
Wed Sep 28, 2016 1:58 am
Forum: Personal Finance (Not Investing)
Topic: Revocable Marital Trusts - what goes in them?
Replies: 19
Views: 1896

Re: Revocable Marital Trusts - what goes in them?

You should also know that once one non-spouse beneficiary starts taking RMDs from your retirement account, after that beneficiary dies, the successor beneficiary has to continue withdrawals from the same withdrawal schedule. For example, if your non-spouse (say, a grown child) inherits your TIRA at...
by FIREchief
Wed Sep 28, 2016 1:38 am
Forum: Personal Finance (Not Investing)
Topic: Revocable Marital Trusts - what goes in them?
Replies: 19
Views: 1896

Re: Revocable Marital Trusts - what goes in them?

"JoinToday deceased, FBO JoinToday Retirement Plan Trust u/a 1-1-2000." I believe that to specify a trust as a beneficiary, you need to use the exact title of the trust, which is usually listed at the top of the first page. Even after substituting people's names above, I doubt the trust h...
by FIREchief
Tue Sep 27, 2016 8:01 pm
Forum: Personal Finance (Not Investing)
Topic: Revocable Marital Trusts - what goes in them?
Replies: 19
Views: 1896

Re: Revocable Marital Trusts - what goes in them?

I do not believe this is correct. I think you need to be careful about the beneficiaries of the trust and the wording of the trust document, but if done correctly, it is OK (and may be desirable). I have my wife as primary beneficiary of my 401k & IRA, with our trust as contingent beneficiary: ...
by FIREchief
Tue Sep 27, 2016 7:51 pm
Forum: Personal Finance (Not Investing)
Topic: Revocable Marital Trusts - what goes in them?
Replies: 19
Views: 1896

Re: Revocable Marital Trusts - what goes in them?

If you read more about IRAs, you will see why it is important that your wife be the sole primary beneficiary. She can retitle/merge your IRA with hers after you die and not be subject to RMDs until 70.5. You could also list your kids by name as secondary. While this may be true in general, there ar...
by FIREchief
Mon Sep 26, 2016 7:18 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to manage irrevocable trust?
Replies: 92
Views: 9489

Re: Best way to manage irrevocable trust?

You pay estimated taxes in the quarter you did the conversion. The trustee(s) pay the tax from asset within the trust. I don't believe that a trustee can roth convert anything. It has to be done during the lifetime of the IRA owner. There may be a special case where a 401K is inherited, but otherwi...
by FIREchief
Mon Sep 26, 2016 7:14 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to manage irrevocable trust?
Replies: 92
Views: 9489

Re: Best way to manage irrevocable trust?

bostondan wrote: Speaking of taxes, we have been convinced by bsteiner to do a Roth conversion of her entire $3.4 million IRA. He gave us excellent reasoning.
Nice!! :sharebeer
by FIREchief
Mon Sep 26, 2016 3:25 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to manage irrevocable trust?
Replies: 92
Views: 9489

Re: Best way to manage irrevocable trust?

What would count as income from the taxable account in the trust that is taxed at a high rate? Dividends and capital gains are still taxed at a lower rate, correct? I believe you are correct, but I think the trust would still pay out at the maximum capital gains rate (currently 23.8% including IIT?...
by FIREchief
Mon Sep 26, 2016 3:17 pm
Forum: Personal Finance (Not Investing)
Topic: Inheriting a Non-Qualified Annuity
Replies: 3
Views: 702

Re: Inheriting a Non-Qualified Annuity

Sounds like a no-brainer. I would cash that out in the near term. I believe Met-life will issue a 1099-R at the end of the year showing your $20K gain as taxable income. (I am not an accountant)
by FIREchief
Mon Sep 26, 2016 3:14 pm
Forum: Personal Finance (Not Investing)
Topic: Lost cost basis on non-covered stock. Audit what to do
Replies: 7
Views: 1253

Re: Lost cost basis on non-covered stock. Audit what to do

Maybe not what you're looking for, but if you are charitably inclined you could just donate the shares and deduct the entire value as of the day of the donation. There is no need to calculate capital gains in this scenario.
by FIREchief
Mon Sep 26, 2016 3:12 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to manage irrevocable trust?
Replies: 92
Views: 9489

Re: Best way to manage irrevocable trust?

Based on my conversations with Bruce so far it seems like he is in a league of his own (at least compared to our prior attorney). I don't think Bruce in in a "league of his own" but, based on my experience, it is a VERY small league. :sharebeer This is definitely an area where the consume...
by FIREchief
Mon Sep 26, 2016 3:08 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to manage irrevocable trust?
Replies: 92
Views: 9489

Re: Best way to manage irrevocable trust?

OP - As you absorb the other great advice you've already been given, you may also wish to determine if there are options to convert any traditional IRA funds in your mother's estate into roth accounts. Roth funds are the ultimate funding source for a qualified accumulation trust (see afan's post abo...
by FIREchief
Mon Sep 26, 2016 2:54 pm
Forum: Personal Finance (Not Investing)
Topic: Revocable Marital Trusts - what goes in them?
Replies: 19
Views: 1896

Re: Revocable Marital Trusts - what goes in them?

If the plan offers free services from this lawyer, it could be useful or not depending on the OP's needs and the lawyer's skills. If the plan simply pays for legal services from an attorney of the OP's choice, then the OP should look for an appropriate expert. Back at megacorp, we had the option to...
by FIREchief
Mon Sep 26, 2016 12:54 am
Forum: Investing - Theory, News & General
Topic: Financial planner: % of AUM plus commissions?
Replies: 21
Views: 2144

Re: Financial planner: % of AUM plus commissions?

It sounds like your friend is exactly the type of person Warren Buffet has in mind when he suggests just putting 90% in an S&P 500 fund and the remainder in cash or short term treasuries. As soon as we start suggesting that people come to the forum, read the wiki, etc. (all great things), we ris...
by FIREchief
Mon Sep 26, 2016 12:39 am
Forum: Personal Finance (Not Investing)
Topic: Revocable Marital Trusts - what goes in them?
Replies: 19
Views: 1896

Re: Revocable Marital Trusts - what goes in them?

My DW and I were using a benefit of my company legal insurance group policy to update our wills and various directives. When speaking with the lawyer, he recommended that we were good candidates for revocable marital trusts for each of us, with the other being the beneficiary (and kids as secondary...
by FIREchief
Sun Sep 25, 2016 2:34 am
Forum: Personal Finance (Not Investing)
Topic: Listing minors as contingent beneficiary
Replies: 25
Views: 2777

Re: Listing minors as contingent beneficiary

Matter of Rockefeller University , https://scholar.google.com/scholar_case?case=2354371287594447381&q=pulitzer+135+misc.+575&hl=en&as_sdt=4,33, and cases cited therein (but note that Rockefeller University involved the Not-for-Profit Law). This one boarders on both the comical and the d...
by FIREchief
Sun Sep 25, 2016 1:04 am
Forum: Personal Finance (Not Investing)
Topic: Net Worth Milestone Today - $1.5M
Replies: 128
Views: 23441

Re: Net Worth Milestone Today - $1.5M

I was just updating my net worth spreadsheet and realized that our net worth crossed over the $1,500,000 mark. $1,500,492 to be exact. I find it sort of sad and also liberating to think ahead to the future net worth milestones we (hopefully) have to come and realize that they will get less meaningf...
by FIREchief
Sun Sep 25, 2016 12:09 am
Forum: Personal Finance (Not Investing)
Topic: Listing minors as contingent beneficiary
Replies: 25
Views: 2777

Re: Listing minors as contingent beneficiary

A bank or trust company will invest in individual securities to the extent it's practical (for example, large cap stocks), and in low cost mutual funds and ETFs to the extent it's not. Where they use mutual funds, they'll use institutional class fund shares. They'll generally use their own funds, a...
by FIREchief
Sat Sep 24, 2016 10:28 pm
Forum: Personal Finance (Not Investing)
Topic: Listing minors as contingent beneficiary
Replies: 25
Views: 2777

Re: Listing minors as contingent beneficiary

First, you require that the money be invested in "a Federally insured certificate of deposit or government backed security or fund account." Does "government backed" modify both "security" and "fund account"? If so, you're severely restricting the investment ...
by FIREchief
Sat Sep 24, 2016 10:12 pm
Forum: Investing - Theory, News & General
Topic: Merriman knocks TSM
Replies: 34
Views: 5776

Re: Merriman knocks TSM

Isn't this just an argument that market cap weighting fails to invest enough in small cap value stocks? If so, why not just say it that way. To do otherwise just clouds the issue.
by FIREchief
Sat Sep 24, 2016 10:01 pm
Forum: Personal Finance (Not Investing)
Topic: Listing minors as contingent beneficiary
Replies: 25
Views: 2777

Re: Listing minors as contingent beneficiary

First, you require that the money be invested in "a Federally insured certificate of deposit or government backed security or fund account." Does "government backed" modify both "security" and "fund account"? If so, you're severely restricting the investment ...
by FIREchief
Sat Sep 24, 2016 9:55 pm
Forum: Personal Finance (Not Investing)
Topic: Listing minors as contingent beneficiary
Replies: 25
Views: 2777

Re: Listing minors as contingent beneficiary

... That said, as Grantor I want to know exactly what the trust will require before I pass to the great beyond. I know that many just "trust" (no pun intended) their lawyer to draft a trust upon death that will consider their wishes (and clearly stated terms within a will), but I just don...
by FIREchief
Sat Sep 24, 2016 3:01 pm
Forum: Personal Finance (Not Investing)
Topic: Automobile in irrevocable trust to limit liability
Replies: 33
Views: 4444

Re: Automobile in irrevocable trust to limit liability

The following link appears to provide seven different legal opinions on this issue, all suggesting that unless the owner knowingly allowed a dangerous person to drive their car (i.e. "negligent entrustment"), then the owner is not personally liable and therefore not subject to damages beyo...
by FIREchief
Sat Sep 24, 2016 3:10 am
Forum: Personal Finance (Not Investing)
Topic: Listing minors as contingent beneficiary
Replies: 25
Views: 2777

Re: Listing minors as contingent beneficiary

3. Grantor will never know if his wishes are complied with. Grantor is dead. You need to pick someone who is trustworthy as a trustee. Beneficiaries should receive copies of the trust document and will. In my trust, the trustee is required to provide yearly accounting to the beneficiary. Are you su...
by FIREchief
Sat Sep 24, 2016 12:21 am
Forum: Personal Finance (Not Investing)
Topic: Question about using spouse's HSA
Replies: 9
Views: 859

Re: Question about using spouse's HSA

Thanks Spirit Rider. The only thing that confuses me is the scenario where spouse A dies and spouse B is the beneficiary of the HSA. It sounds like the HSA is now considered to belong to spouse B. I don't see how the IRS would allow spouse B to make tax free withdrawals to cover historical expenses...
by FIREchief
Fri Sep 23, 2016 11:12 pm
Forum: Personal Finance (Not Investing)
Topic: Can adult child gift money back to parent?
Replies: 31
Views: 10135

Re: Can adult child gift money back to parent?

If we want to help an adult child with a house down payment, but the child does not want a gift and would rather pay us back over time (yes, basically the child would prefer a loan rather than gift), could we gift the $28,000 limit to the child and allow child to gift money back at a later date or ...
by FIREchief
Fri Sep 23, 2016 10:54 pm
Forum: Personal Finance (Not Investing)
Topic: Listing minors as contingent beneficiary
Replies: 25
Views: 2777

Re: Listing minors as contingent beneficiary

You can create the trusts for your children in your Will. I am aware of this option, but if somebody takes this route, who determines the "terms" of the trust? If it is all spelled out in the will, wouldn't that be the same amount of work as just setting up the trust during the lifetime o...
by FIREchief
Fri Sep 23, 2016 10:45 pm
Forum: Personal Finance (Not Investing)
Topic: Question about using spouse's HSA
Replies: 9
Views: 859

Re: Question about using spouse's HSA

Thanks Spirit Rider. The only thing that confuses me is the scenario where spouse A dies and spouse B is the beneficiary of the HSA. It sounds like the HSA is now considered to belong to spouse B. I don't see how the IRS would allow spouse B to make tax free withdrawals to cover historical expenses ...
by FIREchief
Fri Sep 23, 2016 8:29 pm
Forum: Personal Finance (Not Investing)
Topic: Automobile in irrevocable trust to limit liability
Replies: 33
Views: 4444

Re: Automobile in irrevocable trust to limit liability

This may vary by state law. We asked our attorney who should own our cars. She said that ownership did not matter. In our state the liability goes to the driver, not the owner. YMMV Thanks. It is good to hear feedback from an attorney that seems to make sense. The CA DMV site link seemed to imply t...
by FIREchief
Fri Sep 23, 2016 7:34 pm
Forum: Personal Finance (Not Investing)
Topic: Question about using spouse's HSA
Replies: 9
Views: 859

Re: Question about using spouse's HSA

from Pub 969 Death of HSA Holder You should choose a beneficiary when you set up your HSA. What happens to that HSA when you die depends on whom you designate as the beneficiary. Spouse is the designated beneficiary. If your spouse is the designated beneficiary of your HSA, it will be treated as yo...
by FIREchief
Fri Sep 23, 2016 7:27 pm
Forum: Personal Finance (Not Investing)
Topic: Family Residence Into Credit Shelter Trust
Replies: 4
Views: 617

Re: Family Residence Into Credit Shelter Trust

I think one good idea for leaving the residence in trust is that it may provide asset protection, since a bypass trust is irrevocable. I am not a lawyer.
by FIREchief
Fri Sep 23, 2016 7:11 pm
Forum: Personal Finance (Not Investing)
Topic: Automobile in irrevocable trust to limit liability
Replies: 33
Views: 4444

Re: Automobile in irrevocable trust to limit liability

For the state of California, owner of the car is primarily liable: http://www.dmv.org/insurance/when-another-driver-has-an-accident-in-your-car.php "This means that if you loan out your car to driver who is not excluded on your policy (see “When Could You Be Held Liable?” below), your car insu...
by FIREchief
Fri Sep 23, 2016 6:22 pm
Forum: Personal Consumer Issues
Topic: [500 million Yahoo accounts hacked, what should you do?]
Replies: 86
Views: 10611

Re: What are you YAHOOERS doing?? [due to security breach]

I'm not really doing anything. I don't believe I have ever given them my actual birthday or used any Yahoo email account in conjunction with anything important. At the end of the day, if your security/usernames/passwords at financial institutions are robust, I don't believe much else matters. As an...
by FIREchief
Fri Sep 23, 2016 4:35 pm
Forum: Personal Finance (Not Investing)
Topic: Automobile in irrevocable trust to limit liability
Replies: 33
Views: 4444

Re: Automobile in irrevocable trust to limit liability

Let's say a valet attendant is parking my car and runs over another customer's foot. Since it is my car, am I liable? Granted, my insurance coverage might be pursued, but beyond that are any of my other assets at risk? If the attendant works for Hilton Hotels (or some company with really deep pocke...
by FIREchief
Fri Sep 23, 2016 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: Automobile in irrevocable trust to limit liability
Replies: 33
Views: 4444

Re: Automobile in irrevocable trust to limit liability

I think in general, the person who is hurt and their lawyer come after anyone and everyone they can; whoever has the deepest pockets probably pays the most, even if they are only minimally responsible I believe that you are absolutely correct on this. The question then becomes "Is a vehicle's ...