Search found 10371 matches

by Lee_WSP
Thu Mar 28, 2024 1:02 pm
Forum: Personal Finance (Not Investing)
Topic: Why does a discussion of Financial Planning almost always turns into buying Whole life insurance?
Replies: 67
Views: 3617

Re: Why does a discussion of Financial Planning almost always turns into buying Whole life insurance?

With the exception of Louisiana and other weird states, I’m pretty sure they all have self proving affidavit statutes.

It’s likewise unethical for lawyers to have financial advisors in the firm doing that work. Vice versa may be okay.

I’m not sure how prevalent it is for lawyers to mention life insurance, but I think it’s a dying and outdated and didn’t even really work without 20% interest rates anyway.
by Lee_WSP
Wed Mar 27, 2024 1:44 pm
Forum: Personal Finance (Not Investing)
Topic: Age and probability of needing long term care?
Replies: 258
Views: 25909

Re: Age and probability of needing long term care?

kavm wrote: Wed Mar 27, 2024 1:37 pm If I misattributed something to you - it was inadvertent. I hope we can move past that.

Whoever raised the 55-60% probability of needing LTC, the simple event of needing LTC is a red herring in an individual's decision to acquire LTCi or not. It is the duration of LTC that is relevant. Therefore, it is the probability of needing LTC for a long enough duration that is relevant.
:beer :sharebeer

Have you taken a look at the data in the report and managed to draw conclusions or guidelines based off of the statistics? I'd be interested in your new opinion now that you have access to the data.
by Lee_WSP
Wed Mar 27, 2024 12:55 pm
Forum: Personal Finance (Not Investing)
Topic: Father Has Passed; Do we need an Appraisal?
Replies: 25
Views: 2686

Re: Father Has Passed; Do we need an Appraisal?

I'm not sure you understand what a B trust is. It's short for bypass. It was common in the 90's, but today, most couples opt for the disclaimer trust. The survivor's trust is what a joint trust becomes without the bypass trust being funded. It has other names too. But the second basis adjustment relies upon mom having the general power to appoint. Am I correct in that assets in a B trust do not receive an additional step up in basis at the death of the surviving spouse? Most of the time, but if the lawyer was good, they could have given an independent trustee the discretion to give the spouse a general testamentary power of appointment over the assets allowing a second adjustment. But that's fairly rare IME. I haven't seen one outside of m...
by Lee_WSP
Wed Mar 27, 2024 12:15 pm
Forum: Personal Finance (Not Investing)
Topic: Father Has Passed; Do we need an Appraisal?
Replies: 25
Views: 2686

Re: Father Has Passed; Do we need an Appraisal?

I'm not sure you understand what a B trust is. It's short for bypass. It was common in the 90's, but today, most couples opt for the disclaimer trust. The survivor's trust is what a joint trust becomes without the bypass trust being funded. It has other names too. But the second basis adjustment relies upon mom having the general power to appoint.
by Lee_WSP
Wed Mar 27, 2024 9:37 am
Forum: Personal Finance (Not Investing)
Topic: Age and probability of needing long term care?
Replies: 258
Views: 25909

Re: Age and probability of needing long term care?

The fraction requiring LTC is not particularly informative. What matters is how long the LTC is needed. The level and quantity of usage is what drives the costs. The fact that only 25% need it for 1 year or more suggests that 60% is the wrong number to focus on. None of the stats are going to inform you on what will happen in the future. They just give you an idea of what could happen. Dig deep into the stats yourself and figure out which scenario you’re most afraid of. I gave you the information, dig through it. I’m not here to make any recommendations. Sorry - never asked you or anyone else for any recommendation on this topic. We have a good quality LTCi with a coverage period of 10 years and are quite happy with it. There are others re...
by Lee_WSP
Tue Mar 26, 2024 11:08 pm
Forum: Personal Finance (Not Investing)
Topic: Age and probability of needing long term care?
Replies: 258
Views: 25909

Re: Age and probability of needing long term care?

I believe WoW2012 has a valid point. If we use the probabilities shared earlier by IDpilot - LTCi has a 180 days period before it comes into play. So, 25% get some payoff. But, a good portion don't get much as they pass off. Of those, 10% have 1-2 years. 2-5 year of LTC costs do likely add up for the insurance companies - but that's 11% of 65+. But, it is the 7% who need it for 5 or more years that face a large (and in some cases, catastrophic) costs. So, what WoW2012 said makes sense. I do not know where 60% is coming from. He's getting his stats from summaries of this data: https://aspe.hhs.gov/sites/default/files/documents/08b8b7825f7bc12d2c79261fd7641c88/ltss-risks-financing-2022.pdf 56% of people age 65 or older will need it. Not quit...
by Lee_WSP
Tue Mar 26, 2024 10:43 pm
Forum: Personal Finance (Not Investing)
Topic: Age and probability of needing long term care?
Replies: 258
Views: 25909

Re: Age and probability of needing long term care?

The probability that an insured person will need care is NOT high. If the probability that an insured person would need care was high, long term care insurance could not exist. The probability of an insured person needing long term care is lower, much lower, than the probability of someone in the general population needing care. 60% is pretty high and that's just the general population, not the self selecting buyers of the optional insurance. I believe WoW2012 has a valid point. If we use the probabilities shared earlier by IDpilot - 52% of people 65+ will need some LTC 25% of people 65+ will need LTC for less than 1 year 10% of people 65+ will need LTC for 1 to 2 years 11% of people 65+ will need LTC for 2 to 5 years 7% of people 65+ will...
by Lee_WSP
Tue Mar 26, 2024 10:40 pm
Forum: Personal Investments
Topic: I think my Mom, recently widowed, is looking at a tax bomb
Replies: 28
Views: 4941

Re: I think my Mom, recently widowed, is looking at a tax bomb

I think I should have been more careful with my words initially - maybe I should have called it a "widows penalty" rather than "tax bomb"? The spirit of my post was more about the realization that RMDs are going to hit mom sooner than she anticipated (due to now being a widow), that they will occur under a new filing status, and what if anything should be done about it. From my mom's perspective, this "feels" like a bomb since she wasn't expecting to be doing this at all right now. I've learned a lot about post retirement concerns this last month and I hope this thread also helps others in similar situations down the road. I know it'll help me with planning my retirement in about 25 years. Mom and Dad didn't h...
by Lee_WSP
Tue Mar 26, 2024 8:46 pm
Forum: Personal Investments
Topic: I think my Mom, recently widowed, is looking at a tax bomb
Replies: 28
Views: 4941

Re: I think my Mom, recently widowed, is looking at a tax bomb

This is an extension of sorts from a thread I made earlier in the month over in 'Personal Finance': https://www.bogleheads.org/forum/viewtopic.php?t=425871&start=50 - I figured this question is specific enough to investing that it required its own thread in 'Personal Investments'; but mods please let me know otherwise. In short, I'm looking for a sanity check to assert that I'm indeed correct that a tax-bomb is waiting for my mom now that she is a widow and, if so, did I correctly cover the options available to her to that minimize impact. Some facts: Dad died last month. He was retired and would have been 70 later this year (in September) Mom, the survivor, is retired and is turning 75 later this year (in May) Mom has a managed Rollov...
by Lee_WSP
Tue Mar 26, 2024 7:11 pm
Forum: Personal Finance (Not Investing)
Topic: Gift tax?
Replies: 7
Views: 624

Re: Gift tax?

Even if it’s below the AFR, it’s only a gift of the uncollected interest, which is far below the annual exemption.
by Lee_WSP
Tue Mar 26, 2024 5:56 pm
Forum: Personal Finance (Not Investing)
Topic: Age and probability of needing long term care?
Replies: 258
Views: 25909

Re: Age and probability of needing long term care?

There’s no right or wrong answer, it’s optional insurance just like an umbrella policy is optional.
by Lee_WSP
Tue Mar 26, 2024 2:42 pm
Forum: Investing - Theory, News & General
Topic: Looking for advice on unhappy experience in VG short term bond fund
Replies: 67
Views: 5717

Re: Looking for advice on unhappy experience in VG short term bond fund

PS, back to "Looking for advice..." Virtually my entire fixed-income position is in this VG Short Term Bond fund, which has been underwater since 2022. The 2x duration - 1 is useful, but what happens if rates make a run higher while waiting for the formula to bring you back to even? If I change horses now I lock-in the current losses, and if I stand-pat waiting for the formula to work I may compound it. Is eat-the-loss-and-move-on still the only sure-fire way escape this dilemma? This is the core of my ongoing unhappiness with this investment. Knowing more than I did a few years ago, my current thinking is that it's not 2n-1 per SE, but 2n-1 AFTER rates start going up. As such, you'd better really understand that bond fund before...
by Lee_WSP
Mon Mar 25, 2024 11:01 pm
Forum: Personal Finance (Not Investing)
Topic: Age and probability of needing long term care?
Replies: 258
Views: 25909

Re: Age and probability of needing long term care?

To insure or not to insure, that is the question. Well, it’s not car insurance, we don’t have to do it. And it’s not health insurance, but it’s kind of close. The probability that any one insured person needs it is rather high, which means that if one’s individual risk is lower, you should opt out. Past that, I have no further insights. See the statistics I’ve already linked to and come to your own conclusions. The probability that an insured person will need care is NOT high. If the probability that an insured person would need care was high, long term care insurance could not exist. The probability of an insured person needing long term care is lower, much lower, than the probability of someone in the general population needing care. 60%...
by Lee_WSP
Mon Mar 25, 2024 11:01 pm
Forum: Personal Finance (Not Investing)
Topic: Age and probability of needing long term care?
Replies: 258
Views: 25909

Re: Age and probability of needing long term care?

To insure or not to insure, that is the question. Well, it’s not car insurance, we don’t have to do it. And it’s not health insurance, but it’s kind of close. The probability that any one insured person needs it is rather high, which means that if one’s individual risk is lower, you should opt out. Past that, I have no further insights. See the statistics I’ve already linked to and come to your own conclusions. The probability that an insured person will need care is NOT high. If the probability that an insured person would need care was high, long term care insurance could not exist. The probability of an insured person needing long term care is lower, much lower, than the probability of someone in the general population needing care. 60%...
by Lee_WSP
Mon Mar 25, 2024 9:48 pm
Forum: Personal Finance (Not Investing)
Topic: Age and probability of needing long term care?
Replies: 258
Views: 25909

Re: Age and probability of needing long term care?

To insure or not to insure, that is the question. Well, it’s not car insurance, we don’t have to do it. And it’s not health insurance, but it’s kind of close. The probability that any one insured person needs it is rather high, which means that if one’s individual risk is lower, you should opt out. Past that, I have no further insights. See the statistics I’ve already linked to and come to your own conclusions. The probability that an insured person will need care is NOT high. If the probability that an insured person would need care was high, long term care insurance could not exist. The probability of an insured person needing long term care is lower, much lower, than the probability of someone in the general population needing care. 60%...
by Lee_WSP
Mon Mar 25, 2024 8:24 pm
Forum: Personal Finance (Not Investing)
Topic: Age and probability of needing long term care?
Replies: 258
Views: 25909

Re: Age and probability of needing long term care?

To insure or not to insure, that is the question.

Well, it’s not car insurance, we don’t have to do it. And it’s not health insurance, but it’s kind of close.

The probability that any one insured person needs it is rather high, which means that if one’s individual risk is lower, you should opt out. Past that, I have no further insights.

See the statistics I’ve already linked to and come to your own conclusions.
by Lee_WSP
Mon Mar 25, 2024 2:03 pm
Forum: Investing - Theory, News & General
Topic: Looking for advice on unhappy experience in VG short term bond fund
Replies: 67
Views: 5717

Re: Looking for advice on unhappy experience in VG short term bond fund

cjcerny wrote: Mon Mar 25, 2024 1:52 pm Maybe a bond fund with a shorter duration? There are bond ETF's out there with durations of around 6 months or 3 months or 1 month. XHLF looks like a bargain.
I looked into that recently. The yield on those more or less mirrors a HYS or MMF. I didn't see a functional difference between the three.
by Lee_WSP
Mon Mar 25, 2024 1:36 pm
Forum: Personal Finance (Not Investing)
Topic: Wife's name not on the deed
Replies: 6
Views: 1166

Re: Wife's name not on the deed

You won’t get a basis adjustment. It is probably separate property in case of divorce.
by Lee_WSP
Mon Mar 25, 2024 1:13 pm
Forum: Investing - Theory, News & General
Topic: Looking for advice on unhappy experience in VG short term bond fund
Replies: 67
Views: 5717

Re: Looking for advice on unhappy experience in VG short term bond fund

PS, back to "Looking for advice..." Virtually my entire fixed-income position is in this VG Short Term Bond fund, which has been underwater since 2022. The 2x duration - 1 is useful, but what happens if rates make a run higher while waiting for the formula to bring you back to even? If I change horses now I lock-in the current losses, and if I stand-pat waiting for the formula to work I may compound it. Is eat-the-loss-and-move-on still the only sure-fire way escape this dilemma? This is the core of my ongoing unhappiness with this investment. Knowing more than I did a few years ago, my current thinking is that it's not 2n-1 per SE, but 2n-1 AFTER rates start going up. As such, you'd better really understand that bond fund before...
by Lee_WSP
Mon Mar 25, 2024 1:12 pm
Forum: Investing - Theory, News & General
Topic: Looking for advice on unhappy experience in VG short term bond fund
Replies: 67
Views: 5717

Re: Looking for advice on unhappy experience in VG short term bond fund

Random Musings wrote: Mon Mar 25, 2024 12:44 pm However, with respect to the OP, my concern is that switching from nominal to real bonds could result, again, in buyers remorse if nominal outperforms; we just don't know. A solid written investment plan where you stick to that plan is the key, otherwise one could just be performance chasing bonds. If keeping up with inflation in his bond component is one component of their goals, then a TIPS ladder is one serious option to consider.

RM
Underperformance is always going to be an issue regardless of what you choose. If that's the root issue, it's unsolvable.
by Lee_WSP
Sun Mar 24, 2024 5:38 pm
Forum: Personal Finance (Not Investing)
Topic: Understanding Inherited IRA with delayed RMDs
Replies: 17
Views: 888

Re: Understanding Inherited IRA with delayed RMDs

If you count this year, I believe you do have 8 opportunities to do a withdrawal in a different tax year. If you take out 8 roughly equal payments (1/8, 1/7, etc) it will empty the account by year 10 and spread out the taxes over the ten years. Unless you're facing some tax cliffs, this is the simplest and easiest way to do it. Emptying the account this way is going to be greater than any RMD unless the decedent was nearly 100 years old or greater. Haven't actually looked at the tables recently to know which age is equal to 1/8, but it's pretty high in number.
by Lee_WSP
Sun Mar 24, 2024 2:40 pm
Forum: Personal Finance (Not Investing)
Topic: Annuity for spendthrift brother on mom's death?
Replies: 52
Views: 4179

Re: Annuity for spendthrift brother on mom's death?

floridasandy wrote: Sun Mar 24, 2024 2:01 pm
bsteiner wrote: Sun Mar 24, 2024 1:12 pm
Will he consent to your holding his share in a trust for his benefit?
But then he's coming to me (or my kids if I'm gone) for disbursements, right? This is uncomfortable. Any way around it that you can you see?
That's the only way to ensure it's not mishandled or spent quickly. Haven't you seen those JG Wentworth commercials? No annuity is safe from transference. Someone's figured out a way and the payout is going to be a lot smaller due to the complexity. So, it'd be a double whammy.

If you love your brother and want to protect him from himself, this is what it takes. Otherwise, give him the money and be done with it. If he's smart, he'll buy the annuity on his own.
by Lee_WSP
Sat Mar 23, 2024 8:40 pm
Forum: Personal Finance (Not Investing)
Topic: Can I really really afford a 3 million mortgage?
Replies: 104
Views: 9022

Re: Can I really really afford a 3 million mortgage?

Maybe? But what’s the alternative?

Sounds kind of dumb to buy a 3 million dollar town home.
by Lee_WSP
Sat Mar 23, 2024 12:21 pm
Forum: Personal Finance (Not Investing)
Topic: Please help me help my uncle with an inherited 401K
Replies: 28
Views: 3110

Re: Please help me help my uncle with an inherited 401K

In this lawyer's opinion, it seems like a probate action would be a whole heck of a lot quicker and easier. My .02 dollars.
by Lee_WSP
Sat Mar 23, 2024 11:55 am
Forum: Investing - Theory, News & General
Topic: Looking for advice on unhappy experience in VG short term bond fund
Replies: 67
Views: 5717

Re: Looking for advice on unhappy experience in VG short term bond fund

PS. Apologies, I thought I had raised this question recently on a related thread, but wasn't finding it. Now I just did find it. Thanks again to Kevin M, Elysium, loukycpa, and a couple others who weighed-in with substantive responses then. Obviously I'm still not comfortable with the product, and nervous about TIPS too. There's a small possibility a TIP bond will actually yield a negative nominal return, but that's because of deflation, so in real terms, you didn't lose any purchasing power. The issue with your investment, VSBSX, is that it's got an average effective duration of 2 years, so the 2x - 1 point of indifference has yet to pass since 2022, that's going to be in January 2026 assuming you purchased in January of 2022. Here's wher...
by Lee_WSP
Sat Mar 23, 2024 10:14 am
Forum: Personal Finance (Not Investing)
Topic: Should we have Long Term Care Insurance?
Replies: 34
Views: 2966

Re: Should we have Long Term Care Insurance?

EricGold wrote: Sat Mar 23, 2024 7:02 am
Lee_WSP wrote: Fri Mar 22, 2024 8:01 pm
The odds of needing any level of LTC is nearly 60%.

https://aspe.hhs.gov/sites/default/file ... g-2022.pdf

So, what you’re insuring against is the 22% odds of needing it longer than 5 years, except most policies cap the payouts to five years. So… it’s pretty much worthless except as a peace of mind salve.
Nice find -- thanks.
But that is everybody. I'm willing to wager that the fraction of insured that use the insurance is much higher
If so, that would be a contra indication to purchase. Insurance companies price it so the expected value to them is positive.
by Lee_WSP
Fri Mar 22, 2024 11:57 pm
Forum: Personal Finance (Not Investing)
Topic: Please help me help my uncle with an inherited 401K
Replies: 28
Views: 3110

Re: Please help me help my uncle with an inherited 401K

I fear that your work gathering so many death certificates is going to be ultimately in vain because the only way your uncle gets to keep the account is if there’s some very odd clause in the contract which states that the default beneficiaries will be X, Y, and then living siblings. That would be extremely unusual and as an attorney, I can’t imagine it would be included. Instead, what your family needs to do is to probate this matter. If there’s a small estate affidavit or procedure available in your state, do that. If not, you need to decide if it’s even worthwhile. It’s most likely going to be split amongst the 9 families by right of representation. At such a small dollar amount, it’s hardly worth the legal fees for any one person to ta...
by Lee_WSP
Fri Mar 22, 2024 8:36 pm
Forum: Personal Finance (Not Investing)
Topic: Please recommend a basic Course on Trusts and Estate Planning
Replies: 6
Views: 977

Re: Please recommend a basic Course on Trusts and Estate Planning

I need to learn more about trusts for my own estate planning. I just found a course that would have been perfect for me. Sadly, the course was offered in July 2023 ! Can anyone recommend a conference or online course devoted to trusts and estate planning ? Thank you. Here is the link to what I missed... https://www.sps.nyu.edu/homepage/academics/divisions-and-departments/division-of-programs-in-business/finance-law-taxation/conferences/tax-conferences-in-july/introduction-to-trusts-estates/agenda-2023.html That is most certainly not a course for lay persons. I can’t say that any options for lay people are any good. But I haven’t read them all. People’s estates are either extraordinarily simple or very complex with not a lot in between. And...
by Lee_WSP
Fri Mar 22, 2024 8:14 pm
Forum: Personal Finance (Not Investing)
Topic: Please help me help my uncle with an inherited 401K
Replies: 28
Views: 3110

Re: Please help me help my uncle with an inherited 401K

I fear that your work gathering so many death certificates is going to be ultimately in vain because the only way your uncle gets to keep the account is if there’s some very odd clause in the contract which states that the default beneficiaries will be X, Y, and then living siblings. That would be extremely unusual and as an attorney, I can’t imagine it would be included. Instead, what your family needs to do is to probate this matter. If there’s a small estate affidavit or procedure available in your state, do that. If not, you need to decide if it’s even worthwhile. It’s most likely going to be split amongst the 9 families by right of representation. At such a small dollar amount, it’s hardly worth the legal fees for any one person to tak...
by Lee_WSP
Fri Mar 22, 2024 8:01 pm
Forum: Personal Finance (Not Investing)
Topic: Should we have Long Term Care Insurance?
Replies: 34
Views: 2966

Re: Should we have Long Term Care Insurance?

My opinion is a qualitative estimate of the value of insurance ... Insurance will always cost more than not for large group averages, simply due to cost of doing business and profit. It has a place in covering high risk, low prevalence events -- read that as 'spreading the risk.' LTC is something that the lion's share of buyers will consume so there is no risk spread. There is some risk spread regarding duration of LTC but I doubt insurers are interested in selling that provision without a lot of caveats or high price because it encourages policy redemption Maybe ... ??? You can find an LTC plan that offers partial coverage for extended stays -------- I'm personally a lot more inclined to mitigate the odds of needing whatever the insurance...
by Lee_WSP
Fri Mar 22, 2024 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: Final Tax filing
Replies: 27
Views: 2952

Re: Final Tax filing

I am preparing my mother's final 1040. Her brokerage firm was notified of her death about a week after she passed away during 2023, but the Consolidated 1099 form includes income (dividends, interest, and sales) for a three month period following her death. This interim period ended when the assets were distributed to the heirs' accounts. The 1099-B includes a bond purchased on the date of her death and "sold" at the close of this interim period; this transaction is classified as long term. This is what clued me in to the inclusion of post death transactions on the form. Do I need to segregate the pre and post death amounts and report only the pre-death items on her final 1040? If so, does anyone know if I might be successful get...
by Lee_WSP
Thu Mar 21, 2024 5:25 pm
Forum: Personal Finance (Not Investing)
Topic: Long-Term Care/Protecting Assests
Replies: 89
Views: 5009

Re: Long-Term Care/Protecting Assests

That’s interesting. Didn’t know they did that. I’m pretty sure not going after non probate transfers was simply a policy decision and they can change it at any time. They have a lot more incentive now.
by Lee_WSP
Thu Mar 21, 2024 4:46 pm
Forum: Personal Finance (Not Investing)
Topic: Long-Term Care/Protecting Assests
Replies: 89
Views: 5009

Re: Long-Term Care/Protecting Assests

… I also plan, as a last resort, to setup a trust with Medicaid estate planning in mind , so I will transfer key assets to it before the Medicaid lookback period. I fortunately live in a state that does not seek recovery from assets that bypass probate and thus do not need to setup an irrevocable trust . I will keep that last part in mind if I ever decide to downsize to move to a lower cost of living state. … Doesn’t a trust set up to protect assets (in your case, key assets) from Medicaid always need to be an irrevocable trust? I also noted from the article linked by Lee_WSP that the grantor is only entitled to use the income from the assets placed in a Medicaid-compliant irrevocable trust. So the principal is unavailable to the grantor t...
by Lee_WSP
Thu Mar 21, 2024 3:40 pm
Forum: Personal Investments
Topic: Highly Concentrated Position In Zero Cost Basis Holding
Replies: 23
Views: 1450

Re: Highly Concentrated Position In Zero Cost Basis Holding

A2_MI wrote: Thu Mar 21, 2024 3:20 pm Is there anything that can be done with options to offset the risk without having to sell the shares? Something like put options that lock in a sell price if the stock goes down? I don’t know much about options but maybe someone who is more knowledgeable can weigh in.
That’s a good idea. It’s a lot of concentrated risk right now. Hedging against it will prevent a black swan event.

The other thing to do is fill up the 0%cap gains bracket if available.
by Lee_WSP
Thu Mar 21, 2024 3:23 pm
Forum: Personal Finance (Not Investing)
Topic: Long-Term Care/Protecting Assests
Replies: 89
Views: 5009

Re: Long-Term Care/Protecting Assests

… High quality LTC facilities are available for around the following (total costs per month). There are certainly others that cost less or more and it is all market dependent. Independent Living - $4,000 Assisted Living - $7,000 Alzheimer’s/Dementia Care - $8,500 Which state are you quoting costs for? Costs vary significantly by state. Unfortunately my state is in the top 5 for most expensive care. The current private pay costs in my state are significantly higher for high quality (and poor quality) facilities: In-home aides - $25-$40/hour, minimum of 4 hour shifts Independent living - $6,000 Assisted Living - $8,000 - $11,000 (depending on level of care package) Memory care (dementia) - $14,500 - $18,500 (depending on level of care, patie...
by Lee_WSP
Thu Mar 21, 2024 2:51 pm
Forum: Personal Finance (Not Investing)
Topic: Long-Term Care/Protecting Assests
Replies: 89
Views: 5009

Re: Long-Term Care/Protecting Assests

… I also plan, as a last resort, to setup a trust with Medicaid estate planning in mind , so I will transfer key assets to it before the Medicaid lookback period. I fortunately live in a state that does not seek recovery from assets that bypass probate and thus do not need to setup an irrevocable trust . I will keep that last part in mind if I ever decide to downsize to move to a lower cost of living state. … Doesn’t a trust set up to protect assets (in your case, key assets) from Medicaid always need to be an irrevocable trust? I also noted from the article linked by Lee_WSP that the grantor is only entitled to use the income from the assets placed in a Medicaid-compliant irrevocable trust. So the principal is unavailable to the grantor t...
by Lee_WSP
Thu Mar 21, 2024 1:16 pm
Forum: Personal Finance (Not Investing)
Topic: Long-Term Care/Protecting Assests
Replies: 89
Views: 5009

Re: Long-Term Care/Protecting Assests

Medicare actually covers hospice, FYI.
by Lee_WSP
Thu Mar 21, 2024 1:14 pm
Forum: Personal Finance (Not Investing)
Topic: Long-Term Care/Protecting Assests
Replies: 89
Views: 5009

Re: Long-Term Care/Protecting Assests

TLL24 wrote: Thu Mar 21, 2024 1:09 pm
Lee_WSP wrote: Thu Mar 21, 2024 1:05 pm There’s a difference between garden variety assisted living (not too expensive, you just need a thousand or so each month on top of social security to pay for it) and the level of care which qualifies you for Medicaid. Medicaid requires the loss of at least two ADL’s (activity of daily living) (4-10k a month).
$4k to $10k for care for two ADL’s, or does that include rent? If only care, feels skewed to a high end or is assuming the two ADL’s are the most labor intensive to support (I.e. 2 caregivers needed to escort/bath/dress/etc).
That’s the all in costs. In home care is more expensive than a facility for 24/7 care.
by Lee_WSP
Thu Mar 21, 2024 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: Long-Term Care/Protecting Assests
Replies: 89
Views: 5009

Re: Long-Term Care/Protecting Assests

There’s a difference between garden variety assisted living (not too expensive, you just need a thousand or so each month on top of social security to pay for it) and the level of care which qualifies you for Medicaid. Medicaid requires the loss of at least two ADL’s (activity of daily living) (4-10k a month).
by Lee_WSP
Thu Mar 21, 2024 12:16 pm
Forum: Personal Finance (Not Investing)
Topic: Long-Term Care/Protecting Assests
Replies: 89
Views: 5009

Re: Long-Term Care/Protecting Assests

Not sure if it's behind a paywall, but this article is written for attorneys and outlines some strategies we use.

https://www.naela.org/NewsJournalOnline ... x?subid=74
by Lee_WSP
Thu Mar 21, 2024 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: Long-Term Care/Protecting Assests
Replies: 89
Views: 5009

Re: Long-Term Care/Protecting Assests

DireStraits wrote: Thu Mar 21, 2024 12:04 pm
Lee_WSP wrote: Thu Mar 21, 2024 9:52 am There's also Medicaid crisis planning whereby you can save approximately half the assets. And not all states enforce the estate recovery option on the house.
Can you elaborate or point me in the right direction?

Both of you posts contain good advice, thanks Lee.
Best non attorney website or trade article on the subject.

https://www.medicaidplanningassistance. ... -loaf/amp/

Either way, most definitely not a DIY thing. Find a lawyer at NAELA.org
by Lee_WSP
Thu Mar 21, 2024 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Long-Term Care/Protecting Assests
Replies: 89
Views: 5009

Re: Long-Term Care/Protecting Assests

There's also Medicaid crisis planning whereby you can save approximately half the assets. And not all states enforce the estate recovery option on the house.
by Lee_WSP
Wed Mar 20, 2024 7:52 pm
Forum: Personal Investments
Topic: Crummey Trust - Who Reports the Income?
Replies: 6
Views: 672

Re: Crummey Trust - Who Reports the Income?

However, I spoke to a trust lawyer recently and he advised me otherwise. The grandchildren need to report the income "as the owner of any income attributable to contributions made to the trust that are subject to the power. " Furthermore, "If the power holder (beneficiary) allows the withdrawal power to lapse, but retains an interest in the trust property (the usual case), the beneficiary will continue to be treated as the owner of that portion of the trust." He provided with this article https://www.thetaxadviser.com/issues/2014/nov/case-study-nov2014.html as the source. The article also mentions IRS letter ruling 200022035, which seems to confirm that the beneficiary (grand kids) should report the income from the Crum...
by Lee_WSP
Wed Mar 20, 2024 6:01 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Plan in Colorado - Will v Trust?
Replies: 15
Views: 1359

Re: Estate Plan in Colorado - Will v Trust?

In UPC states, Other than initial filling packet and state specific disclosures, there's no difference between trust and probate administration. You can try to diy either. You can run into the same headaches with either.
by Lee_WSP
Wed Mar 20, 2024 5:11 pm
Forum: Personal Consumer Issues
Topic: Bought a new Lexus - can't get a second key for 3-5 months???
Replies: 54
Views: 6182

Re: Bought a new Lexus - can't get a second key for 3-5 months???

dagsboro wrote: Wed Mar 20, 2024 5:06 pm I would find it risky to get only one key with a new vehicle I bought and if I knew that ahead of time, I would not buy that vehicle. If enough prospective buyers delayed purchase, I suspect second keys would be forthcoming faster than they are now?
Last year many Lexus models were pre-sold before they even hit the lot. By December, they had built up inventories of a few models, say the gas RX350. Today, I think the situation is still improving, but there's still a lot of demand for Lexus vehicles. The lack of a key fob is not going to deter enough people. Lexus made the right choice in delaying the second fob from their perspective.
by Lee_WSP
Wed Mar 20, 2024 4:22 pm
Forum: Personal Finance (Not Investing)
Topic: Would you sign a real estate agent contract with 5% commission today?
Replies: 11
Views: 1057

Re: Would you sign a real estate agent contract with 5% commission today?

You have a timeline, you don't have as much negotiating power as you think.

Commissions will not start declining until agents start undercutting each other to garner business.

Have you looked at discount brokers? Redfine, Home or something, etc.
by Lee_WSP
Wed Mar 20, 2024 4:21 pm
Forum: Personal Consumer Issues
Topic: Bought a new Lexus - can't get a second key for 3-5 months???
Replies: 54
Views: 6182

Re: Bought a new Lexus - can't get a second key for 3-5 months???

Not much we can do but wait or pay extra for the "third" key.
by Lee_WSP
Wed Mar 20, 2024 2:30 pm
Forum: Personal Finance (Not Investing)
Topic: Long-Term Care/Protecting Assests
Replies: 89
Views: 5009

Re: Long-Term Care/Protecting Assests

I work in this field and I have no such plan. I hope to die quickly and painlessly, but if I'm stuck in a dementia ward, so be it. I won't be myself anyway and my descendants will be the ones making the decisions.

I hope to have enough to just private pay. But if not, that's life. I'll gift them enough while alive to give them a large leg up anyway.
by Lee_WSP
Wed Mar 20, 2024 1:36 pm
Forum: Investing - Theory, News & General
Topic: Which industry will benefit from new real estate commission fee structure?
Replies: 120
Views: 9465

Re: Which industry will benefit from new real estate commission fee structure?

In a free market, equilibrium tends towards a single price that (absent thorough market analysis) is entirely indistinguishable from the single price set by a cartel - so how do you know the price today will actually go down? I have a bachelor's in economics and I've never heard that definition. That flies in the face of basic economic theory. I'm not sure what definition you are referencing since there is none in the part of my response you quoted. If you are suggesting what I quoted flies in the face of basic economic theory I think you probably just didn't understand it. In basic economic theory, market equilibrium results in all competitive players charging the same price just as an oligopoly market one would - without thorough analysi...