Search found 5838 matches

by bsteiner
Sat Jun 19, 2021 10:10 pm
Forum: Personal Investments
Topic: Utility of Financial Advisor
Replies: 33
Views: 1640

Re: Utility of Financial Advisor

If you'll provide more details as to his situation (his other assets and his income) you may get some responses as to possible Roth conversions. He's required to take out about $70k per year for RMD, and then he also gets about $30k for Social Security. No other income. His only other major asset i...
by bsteiner
Sat Jun 19, 2021 9:08 pm
Forum: Personal Investments
Topic: Utility of Financial Advisor
Replies: 33
Views: 1640

Re: Utility of Financial Advisor

... Despite my misgivings, I'm inclined to give the advisor a shot and see what he can come up with. There are some complicated issues that he may be better able to deal with. For example, we'd like to slowly move the account to a Roth IRA and do some estate planning. What else are good topics to r...
by bsteiner
Sat Jun 19, 2021 7:38 pm
Forum: Investing - Theory, News & General
Topic: Roth Conversions - McQuarrie study
Replies: 157
Views: 9089

Re: Roth Conversions - McQuarrie study

... One finding is that if you withdraw the money from the Roth before a certain break even period, you didn’t get any benefit. The break even point is 13 to 15 years best case. Which points out a problem that I have noticed in discussions of Roth. The value of the Roth depends on the expected life...
by bsteiner
Sat Jun 19, 2021 4:29 pm
Forum: Personal Finance (Not Investing)
Topic: Questions about Crummey trust
Replies: 3
Views: 560

Re: Questions about Crummey trust

Parents want to open a Crummey Trust for their kid (18+) Parents want to make the trust 'intentionally defective' so parents can pay taxes on the capital gains and dividends Parents want to manage the account The idea is to contribute 15K to 30K per year for a few years. We would like the kid to be...
by bsteiner
Sat Jun 19, 2021 3:43 pm
Forum: Personal Finance (Not Investing)
Topic: Bodily injury claim - Lawyer or DIY?
Replies: 41
Views: 3235

Re: Bodily injury claim - Lawyer or DIY?

... I think, I’ll be asked to name a price to cover copays and estimated future dental bills (one or multiple sets of crowns, bridges, and/or implants). ... I'm a lawyer but I don't do personal injury law. I do tax and trusts and estates. I would no more handle a personal injury claim than I would ...
by bsteiner
Sat Jun 19, 2021 10:30 am
Forum: Investing - Theory, News & General
Topic: Roth Conversions - McQuarrie study
Replies: 157
Views: 9089

Re: Roth Conversions - McQuarrie study

... Someone is one life event away, or one/two divorces away, big medical condition, or disability, or GFC type 50% or worse crash or two away — from falling significantly in tax bracket(s) or amount of tax paid. We all hope/plan, but markets/life deliver. Even if we imagine 22% possible future tax...
by bsteiner
Sat Jun 19, 2021 10:14 am
Forum: Investing - Theory, News & General
Topic: Roth Conversions - McQuarrie study
Replies: 157
Views: 9089

Re: Roth Conversions - McQuarrie study

... it does not seem reasonable, in the general case, that anyone other than a Boglehead would have both maxed out their 401(k) and piled up hundreds of thousands of dollars in taxable funds + saved kid's college + lived in a nice house (e.g., 30% savings rate, where I assumed 15% was the max reaso...
by bsteiner
Sat Jun 19, 2021 10:04 am
Forum: Investing - Theory, News & General
Topic: Roth Conversions - McQuarrie study
Replies: 157
Views: 9089

Re: Roth Conversions - McQuarrie study

... if one is single/widowed, retired living in CA/NY as oft mentioned ... There's another important difference between the two. New York has a state estate tax with an exclusion amount lower than the Federal (it's equal to what the Federal exclusion amount would have been but for the Tax Cuts and ...
by bsteiner
Sat Jun 19, 2021 9:56 am
Forum: Investing - Theory, News & General
Topic: Roth Conversions - McQuarrie study
Replies: 157
Views: 9089

Re: Roth Conversions - McQuarrie study

Bogleheads: Edward McQuarrie here, happy to answer questions directly. An example of the spreadsheet I used to compare outcomes can be downloaded here: http://www.edwardfmcquarrie.com/?p=573. If you don't think my conclusions apply to your particular case, the spreadsheet allows you to confirm that...
by bsteiner
Sat Jun 19, 2021 9:26 am
Forum: Investing - Theory, News & General
Topic: Roth Conversions - McQuarrie study
Replies: 157
Views: 9089

Re: Roth Conversions - McQuarrie study

... One finding is that if you withdraw the money from the Roth before a certain break even period, you didn’t get any benefit. The break even point is 13 to 15 years best case. Which points out a problem that I have noticed in discussions of Roth. The value of the Roth depends on the expected life...
by bsteiner
Sat Jun 19, 2021 9:05 am
Forum: Investing - Theory, News & General
Topic: Roth Conversions - McQuarrie study
Replies: 157
Views: 9089

Re: Roth Conversions - McQuarrie study

... he ... misses the legacy impact of heirs in high tax brackets. Unless you have pension income, I don’t see a lot of reason to convert beyond the current 12% bracket- future 15%. I’ve thought that for awhile. ... The beneficiaries may be in higher brackets than before the SECURE Act since the di...
by bsteiner
Fri Jun 18, 2021 11:21 am
Forum: Personal Finance (Not Investing)
Topic: Utilizing Life insurance as a tax mitigation
Replies: 47
Views: 3118

Re: Utilizing Life insurance as a tax mitigation

One more is where someone won't otherwise make gifts, but is willing to pay the premiums on life insurance owned by an insurance trust or by the children directly, since he/she doesn't think of that as a gift. I am trying to imagine the conversation with a client who will make gifts to an ILIT but ...
by bsteiner
Fri Jun 18, 2021 11:15 am
Forum: Personal Finance (Not Investing)
Topic: Dad wants Wife to live in house left to me and sister after he passes
Replies: 139
Views: 14265

Re: Dad wants Wife to live in house left to me and sister after he passes

mouth wrote: Fri Jun 18, 2021 11:12 am ... I've also suggested to my father that he consider putting the house into a trust with me as successor to avoid any risks of the house being in probate. ...
What risk? Probating a Will is generally not difficult, expensive or burdensome, and in any event you probate the Will, not the assets.
by bsteiner
Fri Jun 18, 2021 5:56 am
Forum: Personal Finance (Not Investing)
Topic: Dad's IRA - beneficiary/tax advice
Replies: 13
Views: 968

Re: Dad's IRA - beneficiary/tax advice

Another downside is that the 10-year period for complete distribution would begin at his death rather than her death, and she’s younger, female and in better health.
by bsteiner
Thu Jun 17, 2021 7:22 pm
Forum: Personal Finance (Not Investing)
Topic: 401k fees (Advisory & RecordKeeping) for small employer (doc group)
Replies: 5
Views: 464

Re: 401k fees (Advisory & RecordKeeping) for small employer (doc group)

Find out what an actuarial firm would charge to administer the plan.

Why do you need a wealth mgmt company?
by bsteiner
Thu Jun 17, 2021 11:05 am
Forum: Personal Finance (Not Investing)
Topic: Utilizing Life insurance as a tax mitigation
Replies: 47
Views: 3118

Re: Utilizing Life insurance as a tax mitigation

There are only a few scenarios where life insurance is better than investing as you can use the same ILIT structure to invest instead of purchase life insurance. All those scenarios involve dying before your life expectancy or the stock market crashing just as you die. There may be other scenarios,...
by bsteiner
Thu Jun 17, 2021 10:20 am
Forum: Personal Finance (Not Investing)
Topic: Utilizing Life insurance as a tax mitigation
Replies: 47
Views: 3118

Re: Utilizing Life insurance as a tax mitigation

Term in an ILIT could make sense if the illiquidity of the holdings is expected to be temporary. If the owner of a business anticipates a sale during their lifetime then at that point the estate would have liquid assets to pay estate taxes when the time came. One could get the benefit of low cost i...
by bsteiner
Thu Jun 17, 2021 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Questions on will / beneficiaries
Replies: 14
Views: 1132

Re: Questions on will / beneficiaries

You could create trusts in your Will for your issue (your daughter and any other issue you may have). You could provide for your girlfriend either outright or in trust, as appropriate. You should revise your beneficiary designations for your life insurance and retirement benefits to leave them to (o...
by bsteiner
Wed Jun 16, 2021 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: Dad wants Wife to live in house left to me and sister after he passes
Replies: 139
Views: 14265

Re: Dad wants Wife to live in house left to me and sister after he passes

... You certainly cannot put something in a will like "you must follow X religion". There is no question in my mind of that, I'm not going to google legal precedent, but you can find it. ... It's not that simple. See In re Estate of Feinberg, 919 N.E.2d 888 (Ill. 2009): https://scholar.go...
by bsteiner
Wed Jun 16, 2021 3:36 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard Trust Services and need for investment direction/suggestion
Replies: 5
Views: 435

Re: Vanguard Trust Services and need for investment direction/suggestion

Your lawyer can try to negotiate with Vanguard as to what they'll accept. However, you know how Vanguard would invest the trust assets. You could give each beneficiary the power to change the corporate trustee of his/her trust. It's hard to direct agents under a power of attorney. However, you may s...
by bsteiner
Wed Jun 16, 2021 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: Dad wants Wife to live in house left to me and sister after he passes
Replies: 139
Views: 14265

Re: Dad wants Wife to live in house left to me and sister after he passes

... I would also suggest that dad send a signed and notarized will to each child as wills left where one lives can mysteriously “disappear”. (There can be more than one “original”.) I’ve read that an original needs to be presented to the court. In that case, ALL of the signed copies must be present...
by bsteiner
Wed Jun 16, 2021 1:27 pm
Forum: Personal Finance (Not Investing)
Topic: Dad wants Wife to live in house left to me and sister after he passes
Replies: 139
Views: 14265

Re: Dad wants Wife to live in house left to me and sister after he passes

Lee is correct. Life estates and remainders are awkward. A trust is more flexible. Policing the son may not be practical. Alternatively, given the modest value of the house, he could simply leave her the house. What state does he live in? Most states give the spouse the right to claim an elective sh...
by bsteiner
Tue Jun 15, 2021 8:33 pm
Forum: Personal Finance (Not Investing)
Topic: Utilizing Life insurance as a tax mitigation
Replies: 47
Views: 3118

Re: Utilizing Life insurance as a tax mitigation

If you live to life expectancy it will reduce your estate tax because you'll have less money (including the insurance proceeds) than you would otherwise have had.
by bsteiner
Tue Jun 15, 2021 3:19 pm
Forum: Personal Finance (Not Investing)
Topic: Ethical to Work with Two Realtors?
Replies: 31
Views: 3624

Re: Ethical to Work with Two Realtors?

... Buyer agency contracts can include some real thorns. Such as the term length being only one aspect of the contract, but a separate clause could state "if the buyer closes on a home shown by (ME) with another realtor within 180 days after representation ends..." How often do buyers act...
by bsteiner
Mon Jun 14, 2021 9:45 pm
Forum: Personal Finance (Not Investing)
Topic: Probate / Trust issues in Florida
Replies: 9
Views: 946

Re: Probate / Trust issues in Florida

... Your father pursued a trust rather than probate to avoid the state allowed default attorney fees in Florida for probate. 1% for estates greater than 10 million, higher percentages for smaller estates. That s a rather high fee for probate unless the estate or will is complicated. First, that sch...
by bsteiner
Mon Jun 14, 2021 4:09 pm
Forum: Personal Finance (Not Investing)
Topic: Probate / Trust issues in Florida
Replies: 9
Views: 946

Re: Probate / Trust issues in Florida

Florida requires that a personal representative be either a relative or a Florida resident. Interesting. Texas also has a residency requirement, but allows an out-of-state executor to serve if he or she designates a resident agent for service of process. The agent's sole function is to receive any ...
by bsteiner
Mon Jun 14, 2021 1:56 pm
Forum: Personal Finance (Not Investing)
Topic: Immediate Annuity, opinions wanted
Replies: 30
Views: 2508

Re: Immediate Annuity, opinions wanted

An annuity is insurance. It protects against the risk of living too long and running out of money, or living meagerly for fear of living too long and running out of money. Like any form of insurance, there's a cost to an annuity, since it costs something to run the insurance company. The present val...
by bsteiner
Mon Jun 14, 2021 1:01 pm
Forum: Personal Finance (Not Investing)
Topic: Probate / Trust issues in Florida
Replies: 9
Views: 946

Re: Probate / Trust issues in Florida

While we generally number pages consecutively, I'm not aware of any requirement that pages be numbered. The personal representative (the Florida term for an executor) should be able to give consent. It would probably be easier just to probate the Will, which you have to do anyway because of the 3 ba...
by bsteiner
Mon Jun 14, 2021 12:52 pm
Forum: Personal Finance (Not Investing)
Topic: Question on physician incorporation
Replies: 10
Views: 768

Re: Question on physician incorporation

The other party has to give you a Form W-2 if you're an employee and has to give you a Form 1099 if you're an independent contractor.

If you're not an employee, you could form a corporation. In that case, how much of the income would be generated other than by reason of your personal services?
by bsteiner
Mon Jun 14, 2021 8:52 am
Forum: Personal Finance (Not Investing)
Topic: Get my name on the deed.
Replies: 3
Views: 687

Re: Get my name on the deed.

My husband bought some land in the country just before we married (35 years ago). Together we built (with our own hands) a cabin. The cabin is in the state of Vermont, not our state of residence. We are putting together our estate plan and documents and are wondering what to do about the deed that ...
by bsteiner
Sat Jun 12, 2021 6:09 am
Forum: Personal Finance (Not Investing)
Topic: Ethical to Work with Two Realtors?
Replies: 31
Views: 3624

Re: Ethical to Work with Two Realtors?

... Buyer agency contracts can include some real thorns. Such as the term length being only one aspect of the contract, but a separate clause could state "if the buyer closes on a home shown by (ME) with another realtor within 180 days after representation ends..." How often do buyers act...
by bsteiner
Fri Jun 11, 2021 6:12 pm
Forum: Personal Investments
Topic: Financial Planner Requiring Custody "for compliance" True?
Replies: 25
Views: 1772

Re: Financial Planner Requiring Custody "for compliance" True?

Neurosphere, a member of this group, is in NYC and works on an hourly basis.
by bsteiner
Fri Jun 11, 2021 2:46 pm
Forum: Personal Finance (Not Investing)
Topic: Real estate agent reluctant to show offers to the seller prior to decision
Replies: 99
Views: 9692

Re: Real estate agent reluctant to show offers to the seller prior to decision

... I'm referring to a situation in which a realtor is acting appropriately. Specifically was referring to the suggestion that a listing agent may hold back information from the seller that a buyer or buyers agent disclosed to the listing agent "in confidence." .... Any real estate lawyer...
by bsteiner
Fri Jun 11, 2021 2:21 pm
Forum: Personal Finance (Not Investing)
Topic: Naming testamentary trust as beneficiary - Vanguard
Replies: 11
Views: 598

Re: Naming testamentary trust as beneficiary - Vanguard

... if for example, I created the "Smith Family Trust" in Ohio, would this be a problem considering that there probably is already a trust of that name? No. Yours would be the Smith Family Trust under the Will of John Smith, or the Smith Family Trust under trust agreement dated July 11, 2...
by bsteiner
Fri Jun 11, 2021 2:18 pm
Forum: Personal Finance (Not Investing)
Topic: Adding secondary beneficiaries to an IRA
Replies: 8
Views: 512

Re: Adding secondary beneficiaries to an IRA

It depends on what you say in the beneficiary designation form (or in a rider to it). If you're providing for children, you would likely want the share of a deceased child to go to (or in trust for) that child's issue. However, if you were providing for cousins or friends, you might (or might not) w...
by bsteiner
Fri Jun 11, 2021 11:54 am
Forum: Personal Finance (Not Investing)
Topic: Naming testamentary trust as beneficiary - Vanguard
Replies: 11
Views: 598

Re: Naming testamentary trust as beneficiary - Vanguard

Are trusts required to have unique names? You need some way to tell them apart. George Foreman named all of his sons George but they're known as George Jr., George III, George IV, George V and George VI: https://en.wikipedia.org/wiki/George_Foreman#Personal_life. If you have a John Smith Trust unde...
by bsteiner
Fri Jun 11, 2021 8:34 am
Forum: Personal Finance (Not Investing)
Topic: Real estate agent reluctant to show offers to the seller prior to decision
Replies: 99
Views: 9692

Re: Real estate agent reluctant to show offers to the seller prior to decision

In New York, the offer would be oral. Once the parties have reached an oral understanding, the lawyers then negotiate the contract.
by bsteiner
Fri Jun 11, 2021 8:27 am
Forum: Personal Finance (Not Investing)
Topic: Real estate agent reluctant to show offers to the seller prior to decision
Replies: 99
Views: 9692

Re: Real estate agent reluctant to show offers to the seller prior to decision

Your agent would not be permitted to enter into a contract on your behalf to not disclose the name to you unless you explicitly granted that authority. And if they aren't an attorney, that's getting dangerously close to the unauthorized practice of law. I recently sold a property in another state w...
by bsteiner
Thu Jun 10, 2021 1:13 pm
Forum: Personal Finance (Not Investing)
Topic: How massive of Roth conversions, given lopsided holdings post-retirement?
Replies: 63
Views: 4840

Re: How massive of Roth conversions, given lopsided holdings post-retirement?

I was an engineer and believe in numbers. While the answer may not be initially palatable, what does i-orp tell you to do (after you find your sweet spot)? I believe most Bogleheads believe in numbers, I also believe most of them would be better off if they had trouble calculating 2+3. Or at least ...
by bsteiner
Thu Jun 10, 2021 10:16 am
Forum: Personal Finance (Not Investing)
Topic: So now you're dead -- how does your executor find all your accounts & bills?
Replies: 107
Views: 13706

Re: So now you're dead -- how does your executor find all your accounts & bills?

... make sure all the accounts have a POD to your beneficiaries. .... Except for life insurance, retirement benefits and small amounts, we generally do the opposite. TOD can defeat a well-designed estate plan. Our clients generally provide for their children in separate trusts rather than outright,...
by bsteiner
Tue Jun 08, 2021 12:03 pm
Forum: Personal Finance (Not Investing)
Topic: $10K SALT deduction cap in Tax Cuts and Jobs Act (TCJA) expires by the end of 2025??
Replies: 18
Views: 1642

Re: $10K SALT deduction cap in Tax Cuts and Jobs Act (TCJA) expires by the end of 2025??

I'm actually quite upset when the TCJA passed that cap my SALT deduction as we live in a state with high state income tax and a sizable property tax bill for our primary home (not to mention our charitable donation as well as our mortgages interest). To put things in perspective, even with the TCJA...
by bsteiner
Tue Jun 08, 2021 5:16 am
Forum: Personal Finance (Not Investing)
Topic: Setting up a trust with an attroney in Maryland
Replies: 22
Views: 1047

Re: Setting up a trust with an attroney in Maryland

Saying you or your friends got quotes for $2,000, $4,000 and $8,000 for estate plans is like saying you saw 3 cars for $2,000, $4,000 and $8,000, or that you saw 3 houses for $200,000, $400,000 and $8,000 They were probably very different cars or houses. The cost will vary depending on the level of ...
by bsteiner
Sun Jun 06, 2021 6:43 pm
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Trusts and Frugal Father
Replies: 31
Views: 2341

Re: Irrevocable Trusts and Frugal Father

... If the beneficiaries are his children and they reside with him, does this [a nongrantor trust that's a separate taxpayer, with a trustee outside California] allow him to "not" pay CA taxes on the irrevocable trust? I'm just assuming the OP is both a CA resident and his children live w...
by bsteiner
Sun Jun 06, 2021 4:57 pm
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Trusts and Frugal Father
Replies: 31
Views: 2341

Re: Irrevocable Trusts and Frugal Father

Yes, you could have a single trust that divides at your death or at the death of the survivor of you and your spouse. bsteiner, from posts in 2016 OP's assets were at that primarily in the form of highly appreciated gifted assets from parents. Given this, do you think a charitable remainder trust m...
by bsteiner
Sun Jun 06, 2021 10:57 am
Forum: Personal Finance (Not Investing)
Topic: Corporate trustee - does state matter? Estate atty prefers local state vs. NH/NV
Replies: 11
Views: 881

Re: Corporate trustee - does state matter? Estate atty prefers local state vs. NH/NV

... Bruce, I’ve known the Dreschler family for a long time. A service like Premier Trust is the best of both worlds. They will handle the distributions and you can have Vanguard PAS manage your investments if that is why you would otherwise use VNTC. This all combined with Nevada situs is the best ...
by bsteiner
Sun Jun 06, 2021 10:51 am
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Trusts and Frugal Father
Replies: 31
Views: 2341

Re: Irrevocable Trusts and Frugal Father

Yes, you could have a single trust that divides at your death or at the death of the survivor of you and your spouse. That's what many if not most people do. Except for Premier's fee and the cost of preparing the tax returns, the cost should be about the same whether you set up more than one trust (...
by bsteiner
Sat Jun 05, 2021 9:19 pm
Forum: Personal Finance (Not Investing)
Topic: Corporate trustee - does state matter? Estate atty prefers local state vs. NH/NV
Replies: 11
Views: 881

Re: Corporate trustee - does state matter? Estate atty prefers local state vs. NH/NV

... I am using Premier Trust as my successor corporate trustee. My grandfather used them and they were excellent and their fees extremely reasonable. I have a good relationship with Premier Trust in Nevada and have been satisfied with them. However, people generally use trustees such as Premier Tru...
by bsteiner
Sat Jun 05, 2021 9:16 pm
Forum: Personal Finance (Not Investing)
Topic: Corporate trustee - does state matter? Estate atty prefers local state vs. NH/NV
Replies: 11
Views: 881

Re: Corporate trustee - does state matter? Estate atty prefers local state vs. NH/NV

I have not used Vanguard as a corporate trustee, but from talking with them, the services appear quite limited. The situs for a Vanguard trust will be PA, which has an income tax. I don't know how PA taxes trust income, or whether having the situs in PA would subject that income to PA tax. Vanguard...
by bsteiner
Sat Jun 05, 2021 9:06 pm
Forum: Personal Finance (Not Investing)
Topic: Basis of inherited stock
Replies: 6
Views: 479

Re: Basis of inherited stock

... if the date of death is a weekend you find the average of the high/low for both Friday and Monday and then average those, but I haven't found a definitive source in a quick search. The definitive source is Treas. Reg. § 20.2031-2(b)(3) Example 3: https://www.law.cornell.edu/cfr/text/26/20.2031-2.
by bsteiner
Sat Jun 05, 2021 9:02 pm
Forum: Personal Finance (Not Investing)
Topic: Basis of inherited stock
Replies: 6
Views: 479

Re: Basis of inherited stock

Is the basis the closing price on the date of death of the owner? Of If there is a period of time between the death of the owner and the transfer of the stock to a new family member, would the basis be the the closing price on the date of transfer? It depends. Generally it's the average of the high...