Search found 317 matches

by Indianrock
Tue Sep 19, 2023 8:33 am
Forum: Personal Investments
Topic: RMD QCD Tax withholding
Replies: 11
Views: 737

Re: RMD QCD Tax withholding

prd1982 wrote: Tue Sep 19, 2023 8:16 am From a tax withholding perspective, you can do both the QCD and the remainder in one session. VG ignores your withholding information when you ask for a QCD check. Of course,you have to submit one withdrawal for each QCD check and one for the remainder. But no need to set the withholding to 0 when asking for a QCD check.
thanks
by Indianrock
Tue Sep 19, 2023 8:14 am
Forum: Personal Investments
Topic: RMD QCD Tax withholding
Replies: 11
Views: 737

Re: RMD QCD Tax withholding

PinotGris wrote: Tue Sep 19, 2023 7:36 am I take our QCD at the early part of the year. Wait till Oct/Nov to take our RMD and withhold taxes. I have not done it by myself, somehow i am unable to withold in dollar amounts that reflects the QCD. This year i did it with the Rep. and regardless of the amount I wanted withheld he the taxes were witheld for the WHOLE RMD. It is annoying because it took us 10 months to get our refund which was a significant amount. Electronic filing helps get it back sooner, I learnt.
The withholding form I saw on Vanguard yesterday only allowed a percentage entry. For the amount I want withheld for taxes it would be 19.86% but I didn't try it to see if it only took whole numbers.
by Indianrock
Tue Sep 19, 2023 8:12 am
Forum: Personal Investments
Topic: RMD QCD Tax withholding
Replies: 11
Views: 737

Re: RMD QCD Tax withholding

mbres60 wrote: Tue Sep 19, 2023 7:35 am Last year I started doing QCDs. I waited about 6 weeks or more before taking out the rest of the RMD which would be taxable. This was strictly so the money could sit longer in the IRA tax deferred. Yesterday, I did my QCDs. The rest will be taken out in November or December.
Good thinking. There's no great reason for me to try and get my entire annual RMD done in one day. The only thing, this year, with waiting until November is the possibility that a government shutdown could knock the markets down for quite a while, so you'd be selling at a bad time.
by Indianrock
Tue Sep 19, 2023 7:08 am
Forum: Personal Investments
Topic: RMD QCD Tax withholding
Replies: 11
Views: 737

Re: RMD QCD Tax withholding

You said it is a 2 step process. I assume you mean (1) sell the funds & deposit the proceeds into the settlement fund, (2) withdrawal the money from the IRA. That is true. I don’t understand why you are removing the money from the IRA in 2 parts. Are you doing a QCD plus a regular withdrawal where you withhold taxes? If that is the case, VG ignores your tax withholding settings when you ask for a QCD check. If you are doing 2 regular distributions, but only want withholding from one, I don’t know if you should wait between them. I suspect not, but it would not hurt to wait 1 day. Two-step in that my entire year's distribution is done in two parts. First a partial distribution to QCD check ( no withholding), and then the remainder of th...
by Indianrock
Tue Sep 19, 2023 7:04 am
Forum: Personal Investments
Topic: RMD QCD Tax withholding
Replies: 11
Views: 737

Re: RMD QCD Tax withholding

avburns wrote: Tue Sep 19, 2023 7:02 am If you're concerned about Vanguard possibly mixing things up, it doesn't hurt to wait a couple of days for peace of mind.
Yes, no reason not to. I usually do all of this in November but with the possibility of a government shutdown and market repercussions, decided to do it earlier this year.
by Indianrock
Tue Sep 19, 2023 6:43 am
Forum: Personal Investments
Topic: RMD QCD Tax withholding
Replies: 11
Views: 737

RMD QCD Tax withholding

I've found it best to think of my RMDs as a two-transaction process and now wondering if there is a need to wait a few days between the two. So this year I took a partial distribution to a Qualified Charitable Distribution and specified zero withholding. I'm waiting a few days before taking the rest, less an amount for my annual tax withholding( to avoid the low/no withholding penalty).
The "reason" for waiting is a concern that when I take the 2nd distribution and specify a percentage for tax withholding, Vanguard might apply that to the previous distribution/QCD that has not completed. Is that a concern?
by Indianrock
Wed Mar 08, 2023 12:25 pm
Forum: Personal Investments
Topic: Redeem and move a CD earning 2% ?
Replies: 23
Views: 2139

Re: Redeem and move a CD earning 2% ?

I didn't think about callable CDs. A callable CD means the bank can call it back and not offer it anymore after you purchased it. I would only look at non-callable and compare those. Adding a link for a better description of callable CDs. There might be something in the Wiki about them. You also might consider a treasury. They are fairly simple to purchase at Vanguard. https://www.bankdealguy.com/callable-cd/ Adding a link from The Finance Buff on buying treasuries in case you are interested. https://thefinancebuff.com/buy-treasury-secondary-market.html If you decide to buy a brokered CD or treasury from Vanguard, you need to have a brokerage account. [/quote] I poked around looking at what Callable CDs are and on Vanguard noticed some say...
by Indianrock
Wed Mar 08, 2023 9:45 am
Forum: Personal Investments
Topic: Redeem and move a CD earning 2% ?
Replies: 23
Views: 2139

Re: Redeem and move a CD earning 2% ?

gotoparks wrote: Tue Mar 07, 2023 4:31 pm The link has the rates I am referring to. You can get directly from Vanguard. I am pointing this out because you mentioned having a Vanguard account.

https://personal.vanguard.com/us/FixedIncomeHome
There would be significantly better return by going with a JP Morgan Chase , brokered CD on Vanguard, at 5.5% for two years as opposed to trying to bump the current 2.5% to 4.3% CD at Capital One. So I'm not sure it's even worth calling Capital One to ask that the current CD be bumped up to that 4.3%


By breaking your existing CD and reinvesting your remaining balance into the new CD, you will have $87,905.94 at the end of 50 months (vs $78,936.64 if you do not break the CD).

Therefore, you will gain $8,969.30 if you break the CD.
by Indianrock
Wed Mar 08, 2023 6:38 am
Forum: Personal Investments
Topic: Redeem and move a CD earning 2% ?
Replies: 23
Views: 2139

Re: Redeem and move a CD earning 2% ?

Looking at CDs available at Vanguard, it appears there isn't a commision unless it's a secondary ( buying somebody else's CD). One offering was a 2-year CD from JP Morgan Chase Bank at 5.5%. What does "Callable 06/23@100 mean" ?

How about Settles 3/17/2023 ??
by Indianrock
Tue Mar 07, 2023 6:40 pm
Forum: Personal Investments
Topic: Redeem and move a CD earning 2% ?
Replies: 23
Views: 2139

Re: Redeem and move a CD earning 2% ?

gotoparks wrote: Tue Mar 07, 2023 4:31 pm The link has the rates I am referring to. You can get directly from Vanguard. I am pointing this out because you mentioned having a Vanguard account.

https://personal.vanguard.com/us/FixedIncomeHome
I'll have to log in because I want to see what the commissions look like.
by Indianrock
Tue Mar 07, 2023 6:26 pm
Forum: Personal Investments
Topic: Redeem and move a CD earning 2% ?
Replies: 23
Views: 2139

Re: Redeem and move a CD earning 2% ?

gotoparks wrote: Tue Mar 07, 2023 4:31 pm The link has the rates I am referring to. You can get directly from Vanguard. I am pointing this out because you mentioned having a Vanguard account.

https://personal.vanguard.com/us/FixedIncomeHome
Those Vanguard offerings are better than what CapOne is offering. And the CDs are FDIC backed.
by Indianrock
Tue Mar 07, 2023 3:24 pm
Forum: Personal Investments
Topic: Redeem and move a CD earning 2% ?
Replies: 23
Views: 2139

Re: Redeem and move a CD earning 2% ?

gotoparks wrote: Tue Mar 07, 2023 1:07 pm Have you thought about treasuries? They have pretty good rates.

I just looked on Vanguard and brokered CDs aren't bad either.
I have an I Bond that my father gave me years ago and it's currently paying over 8%
by Indianrock
Tue Mar 07, 2023 3:23 pm
Forum: Personal Investments
Topic: Redeem and move a CD earning 2% ?
Replies: 23
Views: 2139

Re: Redeem and move a CD earning 2% ?

Unfortunately we don't itemize our taxes so I probably wouldn't be able to deduct the early withdrawal penalty
[/quote]
You don't need to itemize. It is offset against any of your other interest received.
[/quote]

Thanks for that info. I'll double-check that with the IRS.
by Indianrock
Tue Mar 07, 2023 12:49 pm
Forum: Personal Investments
Topic: Redeem and move a CD earning 2% ?
Replies: 23
Views: 2139

Re: Redeem and move a CD earning 2% ?

BarbK wrote: Tue Mar 07, 2023 11:48 am For sure, plus the penalty is tax deductible.

Here is a link for you to test for yourself:https://www.depositaccounts.com/tools/b ... lator.aspx
Unfortunately we don't itemize our taxes so I probably wouldn't be able to deduct the early withdrawal penalty
by Indianrock
Tue Mar 07, 2023 12:07 pm
Forum: Personal Investments
Topic: Redeem and move a CD earning 2% ?
Replies: 23
Views: 2139

Re: Redeem and move a CD earning 2% ?

The calculator definitely indicates worth making a change. Here is what Capone is currently offering.

5.00 % APY
11 month online CDs
5.00% Annual Percentage Yield (APY)

4.30 % APY
2 year online CDs
4.30% Annual Percentage Yield (APY)

4.10 % APY
5 year online CDs
4.10% Annual Percentage Yield (APY)
by Indianrock
Tue Mar 07, 2023 11:38 am
Forum: Personal Investments
Topic: Redeem and move a CD earning 2% ?
Replies: 23
Views: 2139

Re: Redeem and move a CD earning 2% ?

Good idea
by Indianrock
Tue Mar 07, 2023 11:23 am
Forum: Personal Investments
Topic: Redeem and move a CD earning 2% ?
Replies: 23
Views: 2139

Redeem and move a CD earning 2% ?

I started a 5-year CD early last year with Capital One at 2%. Obvious mistake given our inflationary environment. Looks like it would cost about $700 to redeem it early so I have to weigh that against other places for the funds. My wife isn't in favor of putting more of our assets into stocks. The CD is $70k. We have about $820k in IRAs and other funds at Vanguard. We've liquidated real estate with a view to simple inheritance and want to keep it that way.

"For a CD with a term greater than twelve (12) months, the penalty is six (6) months of interest regardless of when you redeem the account prior to maturity."
by Indianrock
Tue Feb 21, 2023 10:11 am
Forum: Personal Investments
Topic: Transferring between Vanguard taxable accounts
Replies: 9
Views: 1163

Re: Transferring between Vanguard taxable accounts

The joint taxable account has existed for years and has received inputs from IRA RMDs, dividends and transfers from an external bank. I'm pretty sure we created the new individual accounts online and were then able to set up beneficiaries on those. Now we're in the process of moving all of the joint account shares into the individual accounts, online.
by Indianrock
Tue Feb 21, 2023 9:57 am
Forum: Investing - Theory, News & General
Topic: Bogle as Socialist
Replies: 12
Views: 1731

Re: Bogle as Socialist

firebirdparts wrote: Tue Feb 21, 2023 9:47 am
Indianrock wrote: Tue Feb 21, 2023 9:45 am Here's the thing: For that to happen, companies can't have shareholders in common.
Wrong. Simple as that. The idea that the shareholders are the source is just wrong.
That needs some explanation -- something more than an assertion.
by Indianrock
Tue Feb 21, 2023 9:45 am
Forum: Investing - Theory, News & General
Topic: Bogle as Socialist
Replies: 12
Views: 1731

Re: Bogle as Socialist

I'll quote from the article just so conclusions aren't drawn merely on my meager original post. ( and yes it's from 2019, just new to me) "But now consider shareholders' specific role in capitalism: They elect the board and the CEO and vote on major company governance decisions; in other words, they run the business. And because shareholders want maximum profits, they'll drive their individual company to participate as ferociously in the deathmatch as possible. For capitalism to work as advertised, shareholders must be caught within capitalism's competitive paradox as much as their companies. Here's the thing: For that to happen, companies can't have shareholders in common. If competitors are both owned by the same group of stockholder...
by Indianrock
Tue Feb 21, 2023 9:41 am
Forum: Investing - Theory, News & General
Topic: Bogle as Socialist
Replies: 12
Views: 1731

Re: Bogle as Socialist

I lean towards the traditional definition of Socialism where the government owns all means of production. Today the term is often applied to those who don't subscribe to the "totally free enterprise" economic model ( which has never really existed given that entrepreneurs found out early that they stood a better chance of survival by colluding with other business owners.)

If mutual funds tend to dampen competition, I doubt that is something Bogle was aiming for in founding Vanguard.
by Indianrock
Tue Feb 21, 2023 9:02 am
Forum: Investing - Theory, News & General
Topic: Bogle as Socialist
Replies: 12
Views: 1731

Bogle as Socialist

The article discusses how mutual funds owning very similar companies may affect competition.

"Co-operatives aren't that common, but maybe they should be. Reinvigorating unions or mandating worker representation on corporate boards are other ways to marginalize the influence shareholders have over corporate governance.

Ironically, such efforts often get derided as socialism. But if you follow the logic, they may actually be the most pro-capitalism thing in the world."

https://theweek.com/articles/818272/joh ... -socialist
by Indianrock
Tue Feb 21, 2023 8:33 am
Forum: Personal Investments
Topic: Transferring between Vanguard taxable accounts
Replies: 9
Views: 1163

Re: Transferring between Vanguard taxable accounts

If vanguard would allow TOD beneficiaries on joint accounts none of this would be needed. I'm trying to make sure my son, executor of our wills, has as easy a time as possible when we die, especially if we both go down in an airliner at the same time.
Also, that our Wills do precious little so as to avoid probate court delays and costs. From my perspective, I want my Will do divide up household goods and not much more --- and definitely deal with less than $100k in assets, again, to avoid probate court.
Easier in our case since we already liquidated owned real estate.
by Indianrock
Tue Feb 21, 2023 7:51 am
Forum: Personal Investments
Topic: Transferring between Vanguard taxable accounts
Replies: 9
Views: 1163

Re: Transferring between Vanguard taxable accounts

It didn't in my case. We are moving shares from our joint taxable account to two individual accounts to allow transfer on death beneficiaries. For reasons I won't go into, my individual account is receiving shares that will go first to my wife, then to one child. Hers will go first to me, then other children. When I made my transfer, it only required my DocuSign signature, I guess because there is common ownership between source and destination.
by Indianrock
Tue Feb 21, 2023 7:31 am
Forum: Personal Investments
Topic: Transferring between Vanguard taxable accounts
Replies: 9
Views: 1163

Re: Transferring between Vanguard taxable accounts

This appears to be the process, not the easiest to find:
Log in Vanguard, choose Forms in very top right menu. Search for Change of Ownership
Find #4 "Change of Ownership between existing Vanguard Nonretirement Accounts"

then you should see
"A faster, easier way to complete Vanguard forms!
Simply follow these steps:" click Accept and continue
by Indianrock
Mon Feb 20, 2023 4:12 pm
Forum: Personal Investments
Topic: Transferring between Vanguard taxable accounts
Replies: 9
Views: 1163

Transferring between Vanguard taxable accounts

My wife and I have had a joint, taxable account for several years, at Vanguard. In order to allow Transfer On Death Beneficiaries we created two new Individual taxable accounts, mine and hers. We then set up beneficiaries as desired and I transferred shares from the joint to my individual. Today she was trying to move the balance of the "joint" shares to her individual account and it wasn't allowed on the Vanguard site.
I suspect she'll need to call, but wondered why since they were identical operations?
by Indianrock
Fri Feb 03, 2023 7:25 am
Forum: Personal Investments
Topic: How long do change of ownership processes take at VG?
Replies: 0
Views: 278

How long do change of ownership processes take at VG?

I completed the Vanguard online "DocuSign" process to change ownership on a portion of our joint/taxable account. The message indicates Vanguard acknowledges that completion and will advise if they need anything else from me. Wondering how long that typically takes?

This was done to allow some specific TOD beneficiary assignments my wife and I are doing as we work to keep almost everything out of our Wills except household goods. ( transfer on death beneficiaries can't be assigned on joint taxable accounts)
by Indianrock
Wed Feb 01, 2023 8:38 pm
Forum: Personal Investments
Topic: Internal Vanguard transfer by DocuSign form
Replies: 4
Views: 539

Re: Internal Vanguard transfer by DocuSign form

Just don't recall doing anything like that online before. Thanks for the feedback
by Indianrock
Wed Feb 01, 2023 7:20 pm
Forum: Personal Investments
Topic: Internal Vanguard transfer by DocuSign form
Replies: 4
Views: 539

Internal Vanguard transfer by DocuSign form

I started a transfer today from a joint taxable non-retirement account into a new individual taxable account at vanguard.
I was surprised to see it present me with an 8 page form that had been filled in from the questionnaire and then allowed me to sign using DocuSign .
I'm assuming this means I'm not going to get a big form in the mail that I need to fill out and mail back in.
by Indianrock
Mon Jan 30, 2023 2:32 pm
Forum: Personal Finance (Not Investing)
Topic: Witness signature on Will?
Replies: 35
Views: 3082

Re: Witness signature on Will?

It appears that here in Washington State you can have the Will notarized instead of witnessed. Our insurance agent will do this for free -- easier than hassling my friends.
by Indianrock
Mon Jan 30, 2023 12:57 pm
Forum: Personal Finance (Not Investing)
Topic: Witness signature on Will?
Replies: 35
Views: 3082

Re: Witness signature on Will?

I have friends who can serve witnesses and I realize that there can be unforeseen circumstances that could lead to a will being inspected by a probate court for example .
But ideally the court never needs to see it.
by Indianrock
Mon Jan 30, 2023 12:03 pm
Forum: Personal Finance (Not Investing)
Topic: Witness signature on Will?
Replies: 35
Views: 3082

Witness signature on Will?

Note: we've liquidated all real estate just for the purpose of making our Wills simple and minimal effort for my son, the executor. Did you get your Will signed by witnesses? What I'm trying to do is get things to where our Wills only divide up household items ( easier for us since we don't own real estate). This task will be complete this week. We're in Washington state now and I think our former state, California is the same where if all bank accounts etc have Pay on Death beneficiaries ( which take precedence over anything the Will says) , and if any assets not covered by POD are worth less than $100k, you don't need probate. ( and no real estate) To me that means the only person who will ever see your Will, besides yourself, is your exe...
by Indianrock
Mon Jan 30, 2023 7:34 am
Forum: Personal Investments
Topic: Transfer-in-Kind Individual->Joint Fully Online - Vanguard? Fidelity?
Replies: 13
Views: 1572

Re: Transfer-in-Kind Individual->Joint Fully Online - Vanguard? Fidelity?

Changed the joint taxable account to Specific ID cost basis. In a day or two when that rolls through, I can make the transfers in kind from joint to the two new individual accounts where we've assigned the desired beneficiary structure. :D

Customer Support/change of ownership confirmed that since it's all remaining in the same fund at Vanguard, VTSAX, we aren't actually selling shares so no negative aspects.
by Indianrock
Mon Jan 30, 2023 7:33 am
Forum: Personal Investments
Topic: Cost Basis -- transferring Vanguard to Vanguard
Replies: 10
Views: 1062

Re: Cost Basis -- transferring Vanguard to Vanguard

Changed the joint taxable account to Specific ID cost basis. In a day or two when that rolls through, I can make the transfers in kind from joint to the two new individual accounts where we've assigned the desired beneficiary structure. :D

Customer Support/change of ownership confirmed that since it's all remaining in the same fund at Vanguard, VTSAX, we aren't actually selling shares so no negative aspects.
by Indianrock
Sat Jan 28, 2023 6:42 pm
Forum: Personal Investments
Topic: Transfer-in-Kind Individual->Joint Fully Online - Vanguard? Fidelity?
Replies: 13
Views: 1572

Re: Transfer-in-Kind Individual->Joint Fully Online - Vanguard? Fidelity?

I'm going to call Monday because I'm hoping to do an in-kind transfer from a joint taxable account at Vanguard to two individual taxable accounts at Vanguard. It's only on individual accounts you can set up beneficiaries -- my main goal.
by Indianrock
Sat Jan 28, 2023 11:02 am
Forum: Personal Investments
Topic: Transfer-in-Kind Individual->Joint Fully Online - Vanguard? Fidelity?
Replies: 13
Views: 1572

Re: Transfer-in-Kind Individual->Joint Fully Online - Vanguard? Fidelity?

I don't see that anyone answered this question with regard to a totally Vanguard transfer. E.g. Vanguard taxable Joint to Vanguard taxable individual?? Elsewhere on this forum it was suggested that a phone call might be in order due to possible capital gain or other considerations you might not handle as intended doing it all online.
by Indianrock
Fri Jan 27, 2023 4:16 pm
Forum: Personal Investments
Topic: Cost Basis -- transferring Vanguard to Vanguard
Replies: 10
Views: 1062

Re: Cost Basis -- transferring Vanguard to Vanguard

Doctor Rhythm wrote: Fri Jan 27, 2023 4:04 pm I would strongly recommend SLID as your cost basis method. There are no downsides to doing this, and no extra record-keeping or efforts required from you if you never sell. If you do sell, selecting lots will take an extra two minutes of your busy day, but potentially save you thousands in taxes. This is especially true if the government

I use SLID at Vanguard, bought and sold shares maybe a dozen times last year. I keep no records of my funds’ cost basis.
Is this needed if I do an "in kind" transfer? ( assuming that's possible here)
by Indianrock
Fri Jan 27, 2023 3:40 pm
Forum: Personal Investments
Topic: Cost Basis -- transferring Vanguard to Vanguard
Replies: 10
Views: 1062

Re: Cost Basis -- transferring Vanguard to Vanguard

Murdock7591 wrote: Fri Jan 27, 2023 3:32 pm
jebmke wrote: Fri Jan 27, 2023 3:26 pm I strongly urge you to call VG and do this by phone to avoid triggering a capital gain. Explain what you are trying to do
Agree call Vanguard, I did something similar recently and was able to do a "In Kind" transfer. No selling and no capital gains.
Calling again. I was just talking to them and they walked me through creating the individual account but didn't mention questions that would come up transferring. I was able to get the TOD beneficiaries set up the way I wanted. Wife will have to take the same steps for hers.
by Indianrock
Fri Jan 27, 2023 3:20 pm
Forum: Personal Investments
Topic: Cost Basis -- transferring Vanguard to Vanguard
Replies: 10
Views: 1062

Re: Cost Basis -- transferring Vanguard to Vanguard

Thanks, all of this money is in VTSAX and I expect it to stay that way. But I don't think I want to keep track of lots. So far in retirement we're just putting all RMDs into this joint taxable account ( which will change if we essentially split them into two individual accounts so we can assign beneficiaries). Those RMD transfers are pretty much the only "trades" we do.
I already pay income tax on the dividends from this account. As individual accounts we can set up TOD beneficiaries and keep this aspect out of our Will.
I know some say do it in the Will and go through probate but that's not my choice.
by Indianrock
Fri Jan 27, 2023 2:49 pm
Forum: Personal Investments
Topic: Cost Basis -- transferring Vanguard to Vanguard
Replies: 10
Views: 1062

Cost Basis -- transferring Vanguard to Vanguard

I'm dividing our taxable/brokerage account at Vanguard into two individual accounts to facilitate adding beneficiaries. I'm unfamiliar with cost basis and wondering which to choose as I begin these transfers to new individual accounts. We're required by law to report your cost basis to the IRS on your Form 1099-B for mutual fund shares acquired on or after January 1, 2012. Our records show that you haven't chosen a preferred cost basis method for this holding. Vanguard's default method for mutual funds is average cost. Unless you select another method prior to requesting this transaction, the default method will be applied to this and future transactions until you select another method. Please make a selection below. Do you want to use ave...
by Indianrock
Fri Jan 27, 2023 11:21 am
Forum: Personal Finance (Not Investing)
Topic: Do I need to create a trust?
Replies: 39
Views: 2893

Re: Do I need to create a trust?

Thanks for the feedback I'll give vanguard a call on how to achieve what I want to do ... I've done some more reading on probate in Washington state and although they state that it only happens on a small percentage of estates they go on to say that if you own real estate or have assets subject to probate exceeding $100,000 you may very well need to go through that process
assets that have pay on death type beneficiaries are not probatable as I understand what I read on the Washington State website
by Indianrock
Fri Jan 27, 2023 7:30 am
Forum: Personal Finance (Not Investing)
Topic: Do I need to create a trust?
Replies: 39
Views: 2893

Re: Do I need to create a trust?

What steps would I need to take to split my joint/taxable/brokerage account into two, one for wife and one for me? It's all in VTSAX Vanguard Total Stock Market Index Fund and I don't have a strong reason currently to change that.

The goal being to be able to name TOD beneficiaries.
by Indianrock
Fri Jan 27, 2023 6:55 am
Forum: Personal Finance (Not Investing)
Topic: Do I need to create a trust?
Replies: 39
Views: 2893

Re: Do I need to create a trust?

@bsteiner Interesting cases. I'm not ruling out a trust or legal advice ( yet ) but both sons remain happily married to their original spouses -- same for my wife and I after 50+ years. We no longer own real estate and our estate is below Washington state and federal estate tax thresholds. Nothing is going to charity or elsewhere. All to surviving spouse then equal division between sons after we're both gone.
by Indianrock
Thu Jan 26, 2023 6:57 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need to create a trust?
Replies: 39
Views: 2893

Re: Do I need to create a trust?

Speaking just of the vanguard taxable account which is held jointly with my wife the easiest thing to do in the short run may be to not attempt to name beneficiaries by splitting the fund between us somehow but to rely on the will and from what was said above about cost basis and so forth perhaps the concern about tax consequences for heirs are overblown.. But it might be worth looking into a trust for funds held in certificates of deposit elsewhere that might become a large single year tax hit for heirs. Why would CD's create a large tax hit for the heirs? Only the interest is taxable to you, initially. The principal is not taxable. I'm not sure whether CD's are grossed up somehow when they pass to heirs. I leave further elucidation to th...
by Indianrock
Thu Jan 26, 2023 6:06 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need to create a trust?
Replies: 39
Views: 2893

Re: Do I need to create a trust?

Speaking just of the vanguard taxable account which is held jointly with my wife the easiest thing to do in the short run may be to not attempt to name beneficiaries by splitting the fund between us somehow but to rely on the will and from what was said above about cost basis and so forth perhaps the concern about tax consequences for heirs are overblown.. But it might be worth looking into a trust for funds held in certificates of deposit elsewhere that might become a large single year tax hit for heirs. Why would CD's create a large tax hit for the heirs? Only the interest is taxable to you, initially. The principal is not taxable. I'm not sure whether CD's are grossed up somehow when they pass to heirs. I leave further elucidation to th...
by Indianrock
Thu Jan 26, 2023 6:02 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need to create a trust?
Replies: 39
Views: 2893

Re: No TOD beneficiaries at Vanguard

celia wrote: Thu Jan 26, 2023 5:34 pm
Indianrock wrote: Thu Jan 26, 2023 4:33 pm I really don't want a taxable account at Vanguard to become a probate asset ( over $100k in Washington state) . . .
Why don’t you want probate? Are you trying to avoid paying what you owe and don’t want to pay for a trust?
It's not clear to me why anybody would want to go through probate with potential delays and cost if they can avoid it... it's not a matter of avoiding taxes just delay and having the probate process eat up estate assets .. and possibly additional hassle for my executor...perhaps today or in some states that's no longer the case
by Indianrock
Thu Jan 26, 2023 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need to create a trust?
Replies: 39
Views: 2893

Re: No TOD beneficiaries at Vanguard

RubyTuesday wrote: Thu Jan 26, 2023 5:20 pm
Indianrock wrote: Thu Jan 26, 2023 4:33 pm I really don't want a taxable account at Vanguard to become a probate asset ( over $100k in Washington state) so may need to think about selling those shares and reinvesting with Fidelity in a taxable account. ( where transfer on death beneficiaries can be listed) Future RMDs from IRAs at Vanguard would need to go there.
If you do move, why sell rather than transfer in kind (ACATS)?
Well that's the problem with people who set up an allocation mix and let it sit for years with all RMDs going to a taxable account. I'm not learning details like those you mention since I never "trade" and rarely change anything.
by Indianrock
Thu Jan 26, 2023 5:29 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need to create a trust?
Replies: 39
Views: 2893

Re: No TOD beneficiaries at Vanguard

bsteiner wrote: Thu Jan 26, 2023 5:16 pm Why? When I spoke at the Seattle Estate Planning Conference a few years ago the local lawyers said that probating a Will in Washington State isn’t difficult, expensive or burdensome.
Good to hear. I'd thought of just listing that taxable, joint account in the Will with specifics like account number and distribution details, but if the account number changed I'd have to re-do the will and get it witnessed again , possibly notarized.
by Indianrock
Thu Jan 26, 2023 5:27 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need to create a trust?
Replies: 39
Views: 2893

Re: No TOD beneficiaries at Vanguard

Makefile wrote: Thu Jan 26, 2023 4:48 pm I believe you will only run into that issue if it is a joint (taxable) account. Is that the case?
Yes it is. To split that into two individual accounts, or not, I guess is the question. Or move elsewhere.
by Indianrock
Thu Jan 26, 2023 4:33 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need to create a trust?
Replies: 39
Views: 2893

No TOD beneficiaries at Vanguard

[Thread merged into here --admin LadyGeek]

I really don't want a taxable account at Vanguard to become a probate asset ( over $100k in Washington state) so may need to think about selling those shares and reinvesting with Fidelity in a taxable account. ( where transfer on death beneficiaries can be listed) Future RMDs from IRAs at Vanguard would need to go there.