Search found 4261 matches

by Lee_WSP
Fri Apr 23, 2021 12:25 am
Forum: Personal Finance (Not Investing)
Topic: Trusts
Replies: 16
Views: 1229

Re: Trusts

It seems like people are split close to 50/50 on the need for a trust. If I ask a lawyer who specializes in trusts I assume he will recommend one. I spoke with "advisors" at Fidelity and TIAA (casual conversations over Zoom-I am not paying either of them a fee) and they were both of the m...
by Lee_WSP
Fri Apr 23, 2021 12:14 am
Forum: Personal Finance (Not Investing)
Topic: Sole Beneficiary of Revocable Trust
Replies: 10
Views: 836

Re: Sole Beneficiary of Revocable Trust

I am not an estate attorney, and one of the attorneys in this forum can correct me if i’m wrong, but just because property is listed in the trust doesn’t make it so. The title of the property needs to be retitled in the name of the trust. The financial accounts can be changed to payable on death to...
by Lee_WSP
Thu Apr 22, 2021 7:02 pm
Forum: Personal Finance (Not Investing)
Topic: Should a trust always allow for a change of successor trustee?
Replies: 15
Views: 888

Re: Should a trust always allow for a change of successor trustee?

What does the successor trustee clause say? Or was was that it?
by Lee_WSP
Thu Apr 22, 2021 5:58 pm
Forum: Personal Finance (Not Investing)
Topic: Conclusions: tIRAs, trusts, and the SECURE Act
Replies: 30
Views: 2458

Re: Conclusions: tIRAs, trusts, and the SECURE Act

It’s your estate plan. You aren’t paying me. Feel free to do and think what you want. You seem to think I’m not about trusts. Contrarily I’m all for trusts. I am thinking of the TIRA issue holistically because I’ve run the scenarios, read through the commentary and studied the best practices. Leavin...
by Lee_WSP
Thu Apr 22, 2021 4:20 pm
Forum: Personal Consumer Issues
Topic: Struggling with car purchase
Replies: 31
Views: 1613

Re: Struggling with car purchase

If you can’t pay cash for a want, then I don’t think it’s affordable by my definition.
by Lee_WSP
Thu Apr 22, 2021 4:11 pm
Forum: Personal Finance (Not Investing)
Topic: Should a trust always allow for a change of successor trustee?
Replies: 15
Views: 888

Re: Should a trust always allow for a change of successor trustee?

[ Nowhere in the document does it mention the ability of our beneficiary to change the corporate trustee and it didn't occur to me to include that until reading some of the posts on this forum. I have the sinking feeling that we will need to do yet another amendment in the coming years. Does the tr...
by Lee_WSP
Thu Apr 22, 2021 2:44 pm
Forum: Personal Finance (Not Investing)
Topic: Forced liquidation of an LLC ?
Replies: 8
Views: 562

Re: Forced liquidation of an LLC ?

You can always buy member #3 out Yes, that is an option but even that goes against the agreed upon situation when the LLC was formed. In all honesty, I want to know if my hand or the other LLC owners hand can be forced to do anything (legally) by the other owner (minority owner to me). That would r...
by Lee_WSP
Thu Apr 22, 2021 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: Conclusions: tIRAs, trusts, and the SECURE Act
Replies: 30
Views: 2458

Re: Conclusions: tIRAs, trusts, and the SECURE Act

I simply disagree with the notion of half trusting a beneficiary. In other words, I personally don't see a beneficiary who needs an accumulation trust turning around an investing half the distributed earnings. It's my opinion only; and each beneficiary is an individual and individuals can change or...
by Lee_WSP
Thu Apr 22, 2021 1:53 pm
Forum: Personal Finance (Not Investing)
Topic: Are Roth Accounts Overrated?
Replies: 92
Views: 7101

Re: Are Roth Accounts Overrated?

[ Regarding #4, I have posted about this in a separate thread, but I think we are in a rather unique tax environment in 2021 with the $3,600 child tax credits. My marginal rate is 22% but these credits ($1,600 over the old ones, so $3,200 total) effectively take care of about $17,000 in income taxe...
by Lee_WSP
Thu Apr 22, 2021 1:31 pm
Forum: Personal Finance (Not Investing)
Topic: Are Roth Accounts Overrated?
Replies: 92
Views: 7101

Re: Are Roth Accounts Overrated?

[ Regarding #4, I have posted about this in a separate thread, but I think we are in a rather unique tax environment in 2021 with the $3,600 child tax credits. My marginal rate is 22% but these credits ($1,600 over the old ones, so $3,200 total) effectively take care of about $17,000 in income taxe...
by Lee_WSP
Thu Apr 22, 2021 1:23 pm
Forum: Personal Finance (Not Investing)
Topic: Forced liquidation of an LLC ?
Replies: 8
Views: 562

Re: Forced liquidation of an LLC ?

You can always buy member #3 out
by Lee_WSP
Thu Apr 22, 2021 1:20 pm
Forum: Personal Finance (Not Investing)
Topic: Should a trust always allow for a change of successor trustee?
Replies: 15
Views: 888

Re: Should a trust always allow for a change of successor trustee?

Unless the beneficiary is severely disabled (addiction, mental health, etc) I don’t think tying their hands beyond what afan suggested is beneficial. The trust document should spell out when distributions are allowed. If you don’t trust the complete discretion of a corporate trustee, then limit disc...
by Lee_WSP
Thu Apr 22, 2021 1:12 pm
Forum: Personal Finance (Not Investing)
Topic: Are Roth Accounts Overrated?
Replies: 92
Views: 7101

Re: Are Roth Accounts Overrated?

[ Left Over: $48,500 --> it is these funds where I'm trying to figure out to Roth/brokerage/529. Note that I also have a Solo 401k for my solo law practice that I don't use (yet); I previously thought I could not contribute to both a 457 and a Solo 401k, but I can contribute to both. I've weighed t...
by Lee_WSP
Thu Apr 22, 2021 11:37 am
Forum: Personal Finance (Not Investing)
Topic: Trusts
Replies: 16
Views: 1229

Re: Trusts

I'd suggest talking to your children and an estate planning professional.
by Lee_WSP
Thu Apr 22, 2021 10:28 am
Forum: Personal Finance (Not Investing)
Topic: Crazy Situation - Acura Dealer Gave Me Car With Wrong VIN Number - Wants to Swap Cars?
Replies: 99
Views: 6307

Re: Crazy Situation - Acura Dealer Gave Me Car With Wrong VIN Number - Wants to Swap Cars?

Seems like they sold the legal title to the car on the lot, but gave you actual possession of a different car (the typo problem). If the car you have legal title to is either better or equal to the car you're giving back, I see no reason not to take possession of the car you have legal title to. Oth...
by Lee_WSP
Thu Apr 22, 2021 9:24 am
Forum: Personal Finance (Not Investing)
Topic: Are Roth Accounts Overrated?
Replies: 92
Views: 7101

Re: Are Roth Accounts Overrated?

...those currently in the 12% bracket who are also likely to remain there in retirement aren't likely to see much benefit from using Roth over taxable.... Except for that pesky Taxation of Social Security benefits , which can cause federal tax effects for qualified dividends and LTCG, even when one...
by Lee_WSP
Thu Apr 22, 2021 9:19 am
Forum: Personal Finance (Not Investing)
Topic: Gift amount from a joint trust
Replies: 8
Views: 540

Re: Gift amount from a joint trust

HueyLD wrote: Thu Apr 22, 2021 7:54 am Separate property placed into a joint trust is still separate property,
Only if you’re able to distinguish the two and you didn’t commingle the property or arguably mean to. Probably not a great idea if you really want to keep it separate.
by Lee_WSP
Thu Apr 22, 2021 9:11 am
Forum: Personal Finance (Not Investing)
Topic: Conclusions: tIRAs, trusts, and the SECURE Act
Replies: 30
Views: 2458

Re: Conclusions: tIRAs, trusts, and the SECURE Act

I simply disagree with the notion of half trusting a beneficiary. In other words, I personally don't see a beneficiary who needs an accumulation trust turning around an investing half the distributed earnings. It's my opinion only; and each beneficiary is an individual and individuals can change or...
by Lee_WSP
Wed Apr 21, 2021 9:50 pm
Forum: Personal Finance (Not Investing)
Topic: Are Roth Accounts Overrated?
Replies: 92
Views: 7101

Re: Are Roth Accounts Overrated?

I think this is not correct under the conditions specified. If AGI is below $80k, there is no 15% tax rate. Qualified dividends would have 0% rate, and the small amount ordinary dividends most funds/etfs pay would be taxed at 12%. While I do not like quoting nerdwallet and investopedia, the IRS doe...
by Lee_WSP
Wed Apr 21, 2021 9:36 pm
Forum: Personal Finance (Not Investing)
Topic: Are Roth Accounts Overrated?
Replies: 92
Views: 7101

Re: Are Roth Accounts Overrated?

Deleted
by Lee_WSP
Wed Apr 21, 2021 8:48 pm
Forum: Personal Finance (Not Investing)
Topic: Are Roth Accounts Overrated?
Replies: 92
Views: 7101

Re: Are Roth Accounts Overrated?

I think your math is off by a couple decimal places as the tax is on the dividend, not the dividend yield. Say you have $1,000 in taxable with a 2% dividend - closer to historical average and easier math ;). The dividend would be $20. 15% tax on that would be $3 or 0.3%. And that's not factoring in...
by Lee_WSP
Wed Apr 21, 2021 8:05 pm
Forum: Personal Finance (Not Investing)
Topic: Are Roth Accounts Overrated?
Replies: 92
Views: 7101

Re: Are Roth Accounts Overrated?

Alright, I was curious, so I did the math. Looks like the qualified dividend tax rate is the same as the LTCG and approximately the same brackets. So, if your AGI if married filing jointly is below 80k, then the drag is non existent. However, it is 15% of ~1.5% or 0.00225% or less than the expense ...
by Lee_WSP
Wed Apr 21, 2021 6:40 pm
Forum: Personal Finance (Not Investing)
Topic: Are Roth Accounts Overrated?
Replies: 92
Views: 7101

Re: Are Roth Accounts Overrated?

Alright, I was curious, so I did the math. Looks like the qualified dividend tax rate is the same as the LTCG and approximately the same brackets. So, if your AGI if married filing jointly is below 80k, then the drag is non existent. However, it is 15% of ~1.5% or 0.00225% or less than the expense ...
by Lee_WSP
Wed Apr 21, 2021 6:27 pm
Forum: Personal Finance (Not Investing)
Topic: Gift amount from a joint trust
Replies: 8
Views: 540

Re: Gift amount from a joint trust

Would the answer be different if parents created an irrevocable trust and made distributions to the kids from that? The exclusion is applicable to an individual. If parents as trustee gifted money in the trust, they’re gifting someone else’s money. In other words, can’t say without additional infor...
by Lee_WSP
Wed Apr 21, 2021 6:24 pm
Forum: Personal Finance (Not Investing)
Topic: joint trust protection from lawsuit?
Replies: 7
Views: 516

Re: joint trust protection from lawsuit?

So unimportant that I don’t even mention it when giving advice.
by Lee_WSP
Wed Apr 21, 2021 5:57 pm
Forum: Personal Finance (Not Investing)
Topic: Are Roth Accounts Overrated?
Replies: 92
Views: 7101

Re: Are Roth Accounts Overrated?

Alright, I was curious, so I did the math.

Looks like the qualified dividend tax rate is the same as the LTCG and approximately the same brackets. So, if your AGI if married filing jointly is below 80k, then the drag is non existent. However, it is 15% of ~1.5% or 0.225%

Fairly significant.
by Lee_WSP
Wed Apr 21, 2021 5:37 pm
Forum: Personal Finance (Not Investing)
Topic: Are Roth Accounts Overrated?
Replies: 92
Views: 7101

Re: Are Roth Accounts Overrated?

In any event, are you aware of any online calculators that can estimate dividends and their applicable taxes? Seems to me like the dividends on index funds are extremely small (maybe $1,000/year for every $100,000 invested)? I can’t really tell in my Personal Capital account. One of our 401k’s has ...
by Lee_WSP
Wed Apr 21, 2021 4:00 pm
Forum: Personal Finance (Not Investing)
Topic: Are Roth Accounts Overrated?
Replies: 92
Views: 7101

Re: Are Roth Accounts Overrated?

If your question is whether tax advantaged Roth accounts are overrated vs taxable accounts, unless you're asking whether people promote them too much, the answer is a resounding no. Unless you're going to need the cap gains before retirement age, taxable has no advantage over Roth cetaris parabis, a...
by Lee_WSP
Tue Apr 20, 2021 11:58 am
Forum: Personal Finance (Not Investing)
Topic: Conclusions: tIRAs, trusts, and the SECURE Act
Replies: 30
Views: 2458

Re: Conclusions: tIRAs, trusts, and the SECURE Act

Unless you have need to place the assets in trust, the math is clearly on the side of leaving it directly. I do not concur with this statement, see Model C above. The funds that come out of the tIRA directly to a beneficiary are likely to be taxed to them at federal rates not that much lower than t...
by Lee_WSP
Mon Apr 19, 2021 7:05 pm
Forum: Personal Finance (Not Investing)
Topic: When is a lawyer needed for creating a will?
Replies: 24
Views: 1919

Re: When is a lawyer needed for creating a will?

While I can’t say that the actual end product will be any different as far as the wording and legal substance, software can’t give you advice and guidance.
by Lee_WSP
Mon Apr 19, 2021 3:19 pm
Forum: Personal Finance (Not Investing)
Topic: Conclusions: tIRAs, trusts, and the SECURE Act
Replies: 30
Views: 2458

Re: Conclusions: tIRAs, trusts, and the SECURE Act

Yet another "trust purpose". The first thing I said was if you need a trust, use a trust. Otherwise leaving a TIRA to a beneficiary is going to be more efficient*. There are plenty of good reasons for leaving assets in trust. But once you made the decision to keep the assets in trust, the ...
by Lee_WSP
Mon Apr 19, 2021 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: Conclusions: tIRAs, trusts, and the SECURE Act
Replies: 30
Views: 2458

Re: Conclusions: tIRAs, trusts, and the SECURE Act

Having a trust does not require paying a trustee. The right beneficiaries can do this for themselves. Or, for much less money, have a law firm bill by the hour for administrative work and the beneficiary can manage the investments. Yes, but since the trust comparisons are a protection/accumulation ...
by Lee_WSP
Mon Apr 19, 2021 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: Conclusions: tIRAs, trusts, and the SECURE Act
Replies: 30
Views: 2458

Re: Conclusions: tIRAs, trusts, and the SECURE Act

If a trust is needed, the purpose for needing the trust is going to outweigh trying to maximize any financial efficiency. I do not concur with this either, as both the advantages of trust protections and oversight and financial efficiencies are possible, with accumulation trusts and CRTs and variat...
by Lee_WSP
Sat Apr 17, 2021 7:22 pm
Forum: Personal Consumer Issues
Topic: A/C in the garage
Replies: 23
Views: 2115

Re: A/C in the garage

Personally, I’d try a swamp cooler first and if that didn’t work, either rent a commercial space or shut down for the summer. Garages are not meant to stay conditioned.
by Lee_WSP
Sat Apr 17, 2021 7:09 pm
Forum: Personal Finance (Not Investing)
Topic: Conclusions: tIRAs, trusts, and the SECURE Act
Replies: 30
Views: 2458

Re: Conclusions: tIRAs, trusts, and the SECURE Act

Unless you have need to place the assets in trust, the math is clearly on the side of leaving it directly. If a trust is needed, the purpose for needing the trust is going to outweigh trying to maximize any financial efficiency.
by Lee_WSP
Thu Apr 15, 2021 1:24 pm
Forum: Personal Finance (Not Investing)
Topic: Prenuptial arrangements
Replies: 123
Views: 8950

Re: Prenuptial arrangements

I am curious what is your source for this statement? I have seen this a few times on this forum and I think it is misinformed. From a data perspective, over half of the states have adopted a form of the Uniform Premarital Agreements Act which codifies the validity of these agreements by statute and...
by Lee_WSP
Thu Apr 15, 2021 1:16 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth - SIMPLE IRA
Replies: 2
Views: 125

Re: Backdoor Roth - SIMPLE IRA

No, not worth it for you.
by Lee_WSP
Wed Apr 14, 2021 7:11 pm
Forum: Personal Finance (Not Investing)
Topic: Biggest expenses in life
Replies: 50
Views: 4131

Re: Biggest expenses in life

Children, housing, auto, entertainment, food in that order.

So far, not an issue for me, but health would be another one. Taxes too.
by Lee_WSP
Wed Apr 14, 2021 7:00 pm
Forum: Personal Finance (Not Investing)
Topic: Irrevocable trust proposed for parent with early dementia
Replies: 18
Views: 2093

Re: Irrevocable trust proposed for parent with early dementia

Finding out about the loss of the capital gains exclusion cemented the rejection of doing an irrevocable trust. If the trustee buys the house from the Grantors, does it receive a step up in basis and a capital gains exclusion? edit: You mean if the child/beneficiary buys the house from the grantors...
by Lee_WSP
Wed Apr 14, 2021 3:39 pm
Forum: Personal Finance (Not Investing)
Topic: Irrevocable trust proposed for parent with early dementia
Replies: 18
Views: 2093

Re: Irrevocable trust proposed for parent with early dementia

Finding out about the loss of the capital gains exclusion cemented the rejection of doing an irrevocable trust. If the trustee buys the house from the Grantors, does it receive a step up in basis and a capital gains exclusion? edit: You mean if the child/beneficiary buys the house from the grantors?
by Lee_WSP
Wed Apr 14, 2021 12:25 pm
Forum: Personal Finance (Not Investing)
Topic: "Nobody's ever regretted paying off the mortgage."
Replies: 492
Views: 33057

Re: "Nobody's ever regretted paying off the mortgage."

If mortgage rates were 6%, we'd be having a very different discussion. Low rates are a historical anomaly.
by Lee_WSP
Tue Apr 13, 2021 7:08 pm
Forum: Personal Finance (Not Investing)
Topic: Any happy lawyers out there?
Replies: 138
Views: 12814

Re: Any happy lawyers out there?

I think you can spot the pattern OP. The more control over our daily lives we have and the greater the ability to choose our clients, the happier we report our job satisfaction.
by Lee_WSP
Tue Apr 13, 2021 7:04 pm
Forum: Personal Finance (Not Investing)
Topic: Prenuptial arrangements
Replies: 123
Views: 8950

Re: Prenuptial arrangements

It's a sliding scale. On one end someone holds a gun to your head, on the other they just say they won't do the deed unless you sign, and in the middle they drop it on the unsuspecting spouse right before the ceremony. Right, I've heard of cases where it was hours before the ceremony and someone tr...
by Lee_WSP
Tue Apr 13, 2021 6:03 pm
Forum: Personal Finance (Not Investing)
Topic: Prenuptial arrangements
Replies: 123
Views: 8950

Re: Prenuptial arrangements

It's a sliding scale. On one end someone holds a gun to your head, on the other they just say they won't do the deed unless you sign, and in the middle they drop it on the unsuspecting spouse right before the ceremony.
by Lee_WSP
Tue Apr 13, 2021 5:09 pm
Forum: Personal Finance (Not Investing)
Topic: Prenuptial arrangements
Replies: 123
Views: 8950

Re: Prenuptial arrangements

Where are you getting that prenups are "thrown out all the time"? Do you have any statistics? Prenups are far more likely to be held up than not. Most of the "headlines" for prenups not holding up are unusual cases, like when Steven Spielberg had one signed on a napkin. Usually ...
by Lee_WSP
Tue Apr 13, 2021 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: Prenuptial arrangements
Replies: 123
Views: 8950

Re: Prenuptial arrangements

The only great answer if you are the spouse with the inheritance and your spouse doesn't want to sign and there's no other way to come up with the down payment is to stay married. But given this scenario, I find it hard to imagine that the recalcitrant spouse would have signed a pre nuptial in eith...
by Lee_WSP
Tue Apr 13, 2021 2:05 pm
Forum: Personal Finance (Not Investing)
Topic: Prenuptial arrangements
Replies: 123
Views: 8950

Re: Prenuptial arrangements

I see your point, but disagree on both counts. But let us work with the home down payment hypothetical we're already discussing. Option 1) spouse signs post nup, everyone is slightly happy Option 2) spouse refuses to sign, no house is purchased today, everyone loses Option 3) spouse refuses to sign...
by Lee_WSP
Tue Apr 13, 2021 1:54 pm
Forum: Personal Finance (Not Investing)
Topic: Prenuptial arrangements
Replies: 123
Views: 8950

Re: Prenuptial arrangements

I see your point, but disagree on both counts. But let us work with the home down payment hypothetical we're already discussing. Option 1) spouse signs post nup, everyone is slightly happy Option 2) spouse refuses to sign, no house is purchased today, everyone loses Option 3) spouse refuses to sign...
by Lee_WSP
Tue Apr 13, 2021 1:46 pm
Forum: Personal Finance (Not Investing)
Topic: Prenuptial arrangements
Replies: 123
Views: 8950

Re: Prenuptial arrangements

The same can be said of any contract. So I'm not sure what your point there is. The difference is, a prenup is a conditional for marriage (i.e. if they don't sign the prenup, no marriage). By definition, a postnup won't work this way. I see your point, but disagree on both counts. But let us work w...
by Lee_WSP
Tue Apr 13, 2021 12:25 pm
Forum: Personal Finance (Not Investing)
Topic: Prenuptial arrangements
Replies: 123
Views: 8950

Re: Prenuptial arrangements

The words mean an agreement before marriage and an agreement after marriage. The only reason to make an agreement before marriage is generally to agree on how to split things, and historically it's been used to disenfranchise a less wealthy spouse. A post nuptial by broad definition is any agreemen...