Search found 5740 matches

by bsteiner
Wed May 12, 2021 8:06 pm
Forum: Personal Finance (Not Investing)
Topic: who notifies Vanguard beneficiaries?
Replies: 11
Views: 1711

Re: who notifies Vanguard beneficiaries?

That’s the problem with life insurance and retirement benefits. There’s no executor to collect them.

But you need to name beneficiaries for life insurance and retirement benefits for asset protection and in the case of IRAs in many cases to get a longer distributions period l.
by bsteiner
Wed May 12, 2021 6:42 pm
Forum: Personal Finance (Not Investing)
Topic: Seller wants to back out contract
Replies: 44
Views: 4541

Re: Seller wants to back out contract

If you agree not to close, are you contractually obligated to pay your realtor? Whose realtor? In most real estate deals, realtor is paid by the Seller, not the Buyer. If the agent is a buyer broker or buyer's agent, with a contract with the Buyer, it would depend what that contract says. How often...
by bsteiner
Wed May 12, 2021 12:08 pm
Forum: Personal Investments
Topic: Setting up a trust - should I make it my beneficiary?
Replies: 13
Views: 1052

Re: Setting up a trust - should I make it my beneficiary?

Is there a reason you don't want your wife to be the beneficiary of your IRA?
by bsteiner
Tue May 11, 2021 10:21 pm
Forum: Personal Finance (Not Investing)
Topic: Inheritance questions
Replies: 2
Views: 516

Re: Inheritance questions

The revocable trust may become a foreign (non-U.S.) trust upon your death since you'll no longer have a majority of U.S. trustees. Is there a reason for the revocable trust? They make sense in some cases and in some states, but they're overyped and oversold and for most people in most states aren't ...
by bsteiner
Tue May 11, 2021 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Trust - Pro's and Con's For Estate Planning
Replies: 50
Views: 3648

Re: Irrevocable Trust - Pro's and Con's For Estate Planning

... A marital trust typically refers to a trust created upon the death of the first to die spouse. It is usually a credit shelter or bypass (A/B) trust, .... A marital trust qualifies for the marital deduction and is included in the spouse's estate. A credit shelter (bypass) (family) (nonmarital) t...
by bsteiner
Mon May 10, 2021 4:58 pm
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Trust - Pro's and Con's For Estate Planning
Replies: 50
Views: 3648

Re: Irrevocable Trust - Pro's and Con's For Estate Planning

For a marital trust, the spouse must be entitled to all of the income. Are they required to withdraw it? Or can they let it accumulate in the trust? The spouse doesn't have to take it. However, the trustees have to keep track of how much accumulated income there is, so they can distribute it if and...
by bsteiner
Mon May 10, 2021 2:09 pm
Forum: Personal Finance (Not Investing)
Topic: Closing company, Final Form 1120S
Replies: 9
Views: 692

Re: Closing company, Final Form 1120S

For many years I have done the Form 1120S myself using TurboTax Business. no problems. I am closing my business this year, and opened TurboTax just to see how it handles the final return. It gave me this warning: "Since this is your corporation's final return, you should know that corporate li...
by bsteiner
Sun May 09, 2021 9:01 pm
Forum: Personal Finance (Not Investing)
Topic: New York Estate taxation cliff
Replies: 3
Views: 503

Re: New York Estate taxation cliff

These are common situations in New York. If your concern is the New York estate tax, you could limit the credit shelter trust to the lesser of the Federal (presently $11.7 million) or the New York (presently $5,930,000) estate tax exclusions amount. The estate attorney should also be versed in speci...
by bsteiner
Sun May 09, 2021 3:17 pm
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Trust - Pro's and Con's For Estate Planning
Replies: 50
Views: 3648

Re: Irrevocable Trust - Pro's and Con's For Estate Planning

... Bruce, your reply educated me! What if the grantor is deceased, but the trustee and beneficiary agree? For instance, say that grandpa’s trust for the grandkid doesn’t allow withdrawals until age 50. The trustee is the parent (grantor’s child, beneficiary’s parent) and he/she and the beneficiary...
by bsteiner
Sun May 09, 2021 3:14 pm
Forum: Personal Finance (Not Investing)
Topic: Options for wealth inheritance (difficulties expected)
Replies: 26
Views: 3582

Re: Options for wealth inheritance (difficulties expected)

We (mid-50s) are reviewing our plans for a situation when our wealth will need to be passed on to our children – either in unexpected (emergency) circumstances or when our passing will come naturally (and anything in-between). We have two adult children (both single at the moment) – one is very goo...
by bsteiner
Sun May 09, 2021 3:00 pm
Forum: Personal Investments
Topic: Trust investments
Replies: 16
Views: 1073

Re: Trust investments

In deciding on investments the trustees would consider the beneficiaries' current and expected future needs.

Unless someone has special needs, the trustees may want to consider whether it's worth administering trusts this small.
by bsteiner
Sun May 09, 2021 9:37 am
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Trust - Pro's and Con's For Estate Planning
Replies: 50
Views: 3648

Re: Irrevocable Trust - Pro's and Con's For Estate Planning

One additional question : Can you later amend an irrevocable trust? My gut tells me no because, as grantor, you no longer control the property in the trust. However, I am wondering what happens if, several years down the road, there is some major family or life change that might affect how you woul...
by bsteiner
Sat May 08, 2021 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: Quit Claim Deed
Replies: 7
Views: 968

Re: Quit Claim Deed

There are different types of deeds. Warranty deed - you're transferring the property and warranting that you own it. This ls still used in some states. Special warranty deed or bargain and sale deed with covenants against grantor (the name varies from state to state) -- you're transferring your inte...
by bsteiner
Sat May 08, 2021 11:36 am
Forum: Personal Investments
Topic: Should I maximize the 12% tax bracket?
Replies: 17
Views: 1576

Re: Should I maximize the 12% tax bracket?

So get down into that 12% bracket- don’t maximize what you’re paying 12% on, maximize what you’re paying 0% on! Thank you for your response. It probably makes sense to just increase my 401(k) contribution then. 12% just seems like a low amount to pay to not have to worry about an unpredictable tax ...
by bsteiner
Sat May 08, 2021 10:30 am
Forum: Personal Finance (Not Investing)
Topic: Leaving IL - Tax Considerations
Replies: 28
Views: 2498

Re: Leaving IL - Tax Considerations

... I moved from IL to NJ recently .... Another thing I miss from Chicago/metro/DuPage area is access to health care. Getting high quality health care from one large medical group was easier in DuPage than here in NJ. Except for a few areas in NC, I think health care access will be more of challeng...
by bsteiner
Fri May 07, 2021 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Trust - Pro's and Con's For Estate Planning
Replies: 50
Views: 3648

Re: Irrevocable Trust - Pro's and Con's For Estate Planning

... As to income taxes, if the trust(s) are grantor trusts, your paying the income taxes will shift additional wealth out of your estates, free of transfer taxes. If the trusts are separate taxpayers, you can set them up so they'll only pay Federal tax, thus avoiding state income tax on the trusts'...
by bsteiner
Fri May 07, 2021 3:39 pm
Forum: Personal Finance (Not Investing)
Topic: When does my state residency change?
Replies: 32
Views: 2723

Re: When does my state residency change?

... The seminal case for intent is Matter of Newcomb (I don't have the exact citation off the top of my head, but it was from some time in the early 1900s). Also, there's a lot of good information in the NY Nonresident Audit Guidelines. Estate of Newcomb, 192 N.Y. 238 (1908): https://cite.case.law/...
by bsteiner
Fri May 07, 2021 2:40 pm
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Trust - Pro's and Con's For Estate Planning
Replies: 50
Views: 3648

Re: Irrevocable Trust - Pro's and Con's For Estate Planning

No one knows what the law will be in the future. However, if you can afford to do so, if you and your spouse can afford to give away $23.4 million, you'll take advantage of the current estate and gift tax exclusion amounts, and you'll get the future income and growth on it during your lifetime out o...
by bsteiner
Fri May 07, 2021 10:29 am
Forum: Personal Finance (Not Investing)
Topic: When does my state residency change?
Replies: 32
Views: 2723

Re: When does my state residency change?

... 1. Baby who is born in New York State whose parent's move to another state. Obviously the baby cannot form intent to leave the state, so is the baby considered a New York State resident until they reach the age of majority when they can legal form intent? 2. In my case, I have a special needs c...
by bsteiner
Thu May 06, 2021 1:38 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to merge C Corp and S Corp? [Medical Group]
Replies: 4
Views: 237

Re: Best way to merge C Corp and S Corp? [Medical Group]

The lawyers will prepare an agreement of merger and corporate minutes and a certificate of merger. After the papers are signed, the lawyers will file what needs to be filed with the Secretary of State.

You should consider whether you want the surviving corporation to be a C or S corporation.
by bsteiner
Thu May 06, 2021 11:23 am
Forum: Personal Finance (Not Investing)
Topic: How to Use Power of Attorney for Checking Account
Replies: 17
Views: 1089

Re: How to Use Power of Attorney for Checking Account

Thanks for all the useful information so far - very disappointing that there are so many potential hoops to go through to use a POA. Very amusing that they are drafted then the individual institutions prefer to use theirs or want the original drafter to present in person when the reason it is being...
by bsteiner
Thu May 06, 2021 5:43 am
Forum: Personal Finance (Not Investing)
Topic: How to Use Power of Attorney for Checking Account
Replies: 17
Views: 1089

Re: How to Use Power of Attorney for Checking Account

Did anyone need to give the bank a doctor's opinion that the original person was incapacitated? What's to stop someone with POA from taking over the account much earlier even if original person thought they would only do so if incapacitated? That would depend on what the power of attorney says. Mos...
by bsteiner
Wed May 05, 2021 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Ladybird Deed on multiple properties
Replies: 2
Views: 487

Re: Ladybird Deed on multiple properties

Probating a Will in Florida is generally not particularly difficult, expensive or burdensome. Her primary residence would be her homestead, and wouldn't be a probate asset. Some of the possible disadvantages of naming beneficiaries for her real estate are: 1. It's harder to name contingent beneficia...
by bsteiner
Wed May 05, 2021 12:54 pm
Forum: Non-US Investing
Topic: French resident and inheritances on US retirement accounts
Replies: 5
Views: 774

Re: French resident and inheritances on US retirement accounts

What does the U.S.-France estate tax treaty say?
by bsteiner
Wed May 05, 2021 11:13 am
Forum: Personal Finance (Not Investing)
Topic: HELOC providers
Replies: 14
Views: 831

Re: HELOC providers

Can anyone recommend a HELOC provider other than Third Federal? I currently have a line with them in the amount of $100K at 2.24% which I would like to raise to $200K. They insist that my only option is to take out a new line at $200K and close out the existing one. This means I have to pay a mortg...
by bsteiner
Wed May 05, 2021 9:03 am
Forum: Investing - Theory, News & General
Topic: IRA with estate as beneficiary
Replies: 12
Views: 850

Re: IRA with estate as beneficiary

As others have pointed out, the executor could distribute the inherited IRA in kind so that each residuary beneficiary of the estate would have an inherited IRA. However, that would be a substantial amount of effort. The executor should take the required distributions (or take more than the amount r...
by bsteiner
Tue May 04, 2021 2:31 pm
Forum: Personal Investments
Topic: Dad Dying, Son POA to become Executor, Bond Fund to Cash Now?
Replies: 38
Views: 5252

Re: Dad Dying, Son POA to become Executor, Bond Fund to Cash Now?

My husband's father, just turned 98 years old, has had a major stroke after two months of increasing dementia accompanied by weight loss, etc. My husband has had POA for two years, and will also be executor of the estate. ... Having been told of my FIL's poor medical outlook, we are thinking of any...
by bsteiner
Mon May 03, 2021 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: My Dear Friend Forgot to Apply for Social Security
Replies: 18
Views: 2933

Re: My Dear Friend Forgot to Apply for Social Security

It happens. I know someone who retired at 73 and didn't realize that she could receive Social Security before then even while working and that deferring beyond 70 didn't provide any additional benefits.
by bsteiner
Mon May 03, 2021 8:49 am
Forum: Personal Finance (Not Investing)
Topic: How are Trusts monitored and enforced?
Replies: 34
Views: 2711

Re: How are Trusts monitored and enforced?

... how do you advise your clients with a trust as IRA beneficiary to fill out the IRA beneficiary designation form? Trustees of the XYZ Trust under [my Last Will and Testament] [trust agreement dated [date A]. or My issue per stirpes except if a trust is created for any of them under my Last Will ...
by bsteiner
Sun May 02, 2021 7:52 pm
Forum: Personal Finance (Not Investing)
Topic: How are Trusts monitored and enforced?
Replies: 34
Views: 2711

Re: How are Trusts monitored and enforced?

Lee_WSP and Investing Lawyer are correct. A trustee is a capacity like an executor, guardian, receiver, or custodian, rather than an entity like a corporation, partnership or LLC. We represent executors and trustees in their fiduciary capacity, not estates or trusts. An estate or trust can't sue or ...
by bsteiner
Sun May 02, 2021 12:14 pm
Forum: Personal Finance (Not Investing)
Topic: Beneficiary as Trustee
Replies: 34
Views: 1905

Re: Beneficiary as Trustee

For the reasons the original poster mentions, as well as other reasons, we generally prohibit the beneficiary from making distributions in his/her own favor. If the beneficiary wants a distribution, the other trustee(s) will make that decision. Others allow a trustee/beneficiary to make distributio...
by bsteiner
Sun May 02, 2021 11:48 am
Forum: Personal Finance (Not Investing)
Topic: Updating Wills and Trust
Replies: 22
Views: 2563

Re: Updating Wills and Trust

My guess is that at least half of attorneys will charge less or the same to start from scratch than to update your existing documents. Interesting. Why do you think so? I didn’t post this but I will answer. When I was practicing, for what appears to be a straightforward cookie-cutter plan like your...
by bsteiner
Sun May 02, 2021 9:25 am
Forum: Personal Finance (Not Investing)
Topic: Beneficiary as Trustee
Replies: 34
Views: 1905

Re: Beneficiary as Trustee

Absent a reason not to do so in a given case, most of our clients allow each beneficiary to become a trustee of his/her trust upon reaching a specified age such as 30 or 35 (or when the trust is set up, if later). At that point, unless there's a reason not to do so in a given case, the beneficiary w...
by bsteiner
Sun May 02, 2021 8:24 am
Forum: Personal Finance (Not Investing)
Topic: House appraisal in insane market
Replies: 61
Views: 8580

Re: House appraisal in insane market

A few things to keep in mind: 1. Appraising is an art as much as it's a science. 2. Fair market value is what a hypothetical willing buyer (not any specific buyer) is willing to pay and a hypothetical willing seller (not any specific seller) is willing to accept. Any given sale could be by a seller ...
by bsteiner
Sat May 01, 2021 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard Trust Services
Replies: 13
Views: 1289

Re: Vanguard Trust Services

Vanguard is much less expensive than a conventional bank or trust company. They start at 0.55% a year. Their minimum size is $1 million (up from $500,000). I've had several clients name Vanguard as a trustee under their Wills where they don't have suitable individuals available. However, none of the...
by bsteiner
Fri Apr 30, 2021 5:52 pm
Forum: Personal Finance (Not Investing)
Topic: Help on Irrevocable Trust Tax Planning question
Replies: 22
Views: 1707

Re: Help on Irrevocable Trust Tax Planning question

Did the parents sell the property to the trust in exchange for a private annuity? Is the trust entirely its own taxpayer, or is a grantor trust as to the half attributable to the mother's contributions? If it's entirely a separate taxpayer, would it make sense to make it a grantor trust as to the ha...
by bsteiner
Fri Apr 30, 2021 3:07 pm
Forum: Personal Finance (Not Investing)
Topic: Any tips on Foreigner buying a house in the US?
Replies: 48
Views: 2969

Re: Any tips on Foreigner buying a house in the US?

Consider the U.S. estate tax. The exclusion amount for nonresident aliens is $60,000 unless he’s from a country with which the U.S. has an estate tax treaty that provides otherwise. The planning for this can be complicated and it may depend on what country he lives in. What if he immigrates to US a...
by bsteiner
Fri Apr 30, 2021 3:05 pm
Forum: Personal Finance (Not Investing)
Topic: Taxable estate and irrevocable trust fees
Replies: 21
Views: 1916

Re: Taxable estate and irrevocable trust fees

One thing I have learned in this forum is that I have been getting insufficient guidance from the estate planning professionals I hired to draft my trust. It is worth investing considerable effort to find the best advice possible, especially when your net worth makes charitable planning a key compo...
by bsteiner
Fri Apr 30, 2021 8:16 am
Forum: Personal Finance (Not Investing)
Topic: Taxable estate and irrevocable trust fees
Replies: 21
Views: 1916

Re: Taxable estate and irrevocable trust fees

If you want a corporate trustee you’ll have to pay them. At $23 million it will be substantially less than 1%. I spoke to Bessemer and Northern, their fees for trusts of this size are ~120bp and ~80bp, respectively. ... I'm surprised it's that much at that level. Others may be lower. But while you'...
by bsteiner
Thu Apr 29, 2021 10:54 pm
Forum: Personal Finance (Not Investing)
Topic: Any tips on Foreigner buying a house in the US?
Replies: 48
Views: 2969

Re: Any tips on Foreigner buying a house in the US?

Consider the U.S. estate tax. The exclusion amount for nonresident aliens is $60,000 unless he’s from a country with which the U.S. has an estate tax treaty that provides otherwise.

The planning for this can be complicated and it may depend on what country he lives in.
by bsteiner
Thu Apr 29, 2021 10:46 pm
Forum: Personal Finance (Not Investing)
Topic: Taxable estate and irrevocable trust fees
Replies: 21
Views: 1916

Re: Taxable estate and irrevocable trust fees

If you want a corporate trustee you’ll have to pay them. At $23 million it will be substantially less than 1%. If you give the $23 million could your spouse serve as the trustee during his/her lifetime? Perhaps after that there will be available family members. You haven’t provided any facts that wo...
by bsteiner
Thu Apr 29, 2021 10:34 pm
Forum: Personal Finance (Not Investing)
Topic: Please Help - No Beneficiary Listed on Deceased IRA
Replies: 31
Views: 3221

Re: Please Help - No Beneficiary Listed on Deceased IRA

You have to check the IRA agreement. Some default to the estate. Some default to the spouse or if none then to the estate. Some default to the spouse or if none then to the issue or if none then to the estate.
by bsteiner
Thu Apr 29, 2021 7:46 pm
Forum: Personal Finance (Not Investing)
Topic: Probate attorney costs
Replies: 20
Views: 2058

Re: Probate attorney costs

update - attorney got back to me, it's about 11 hours of work (and will get what I think is about $12,000 for that!!!). I'm looking for a less expensive attorney now and may have found one. I'm also still considering doing it myself, but being as it's out of state, it may be worth it to pay someone...
by bsteiner
Thu Apr 29, 2021 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: Probate attorney costs
Replies: 20
Views: 2058

Re: Probate attorney costs

update - attorney got back to me, it's about 11 hours of work (and will get what I think is about $12,000 for that!!!). I'm looking for a less expensive attorney now and may have found one. I'm also still considering doing it myself, but being as it's out of state, it may be worth it to pay someone...
by bsteiner
Wed Apr 28, 2021 10:10 pm
Forum: Personal Finance (Not Investing)
Topic: Probate attorney costs
Replies: 20
Views: 2058

Re: Probate attorney costs

We and most lawyers prefer to handle estates on a time basis. Each estate is different. Some executors are able to do most of the legwork, whereas others require more handholding. We've had large estates that required very little work, and small estates that required a great deal of work. Where clie...
by bsteiner
Wed Apr 28, 2021 9:52 pm
Forum: Personal Investments
Topic: Cash Balance Plan
Replies: 30
Views: 2337

Re: Cash Balance Plan

We have a cash balance plan at our practice and I will assume that your accountant and actuary will go over the particulars. In essence, it is a hybrid between a pension plan and a 401K plan (as explained to us). ... Why did the actuary recommend a cash balance plan rather than a defined benefit pl...
by bsteiner
Wed Apr 28, 2021 9:48 pm
Forum: Personal Finance (Not Investing)
Topic: Trustee's Powers to invest in oil!? minerals?
Replies: 10
Views: 922

Re: Trustee's Powers to invest in oil!? minerals?

... I see that there are sections giving the Trustee power to invest in all sorts of ways: purchase bonds at premium, invest in unproductive property, lease for oil development....:-\ I imagine these are standard. Is there a reason I need those? ... I had specified to the lawyer that I wanted the a...
by bsteiner
Wed Apr 28, 2021 5:39 pm
Forum: Personal Investments
Topic: Cash Balance Plan
Replies: 30
Views: 2337

Re: Cash Balance Plan

I would suggest speaking with a good actuary who focuses on smaller company plans. He/she can help you design the plan that best meets your objectives.
by bsteiner
Wed Apr 28, 2021 9:13 am
Forum: Personal Finance (Not Investing)
Topic: How to handle executing a will? [Georgia]
Replies: 24
Views: 1536

Re: How to handle executing a will?

You probate the Will, not the assets. Probating a Will in Georgia isn't difficult. Since the decedent left $8 million to the original poster outright, the original poster will now have a taxable estate (if the assets grow, or if he has other assets, or if he lives until 2026 when the estate tax excl...
by bsteiner
Mon Apr 26, 2021 10:10 pm
Forum: Personal Finance (Not Investing)
Topic: Can a Trust Help Me Reduce Investment Taxes?
Replies: 11
Views: 1391

Re: Can a Trust Help Me Reduce Investment Taxes?

That depends on what state you’re in. If your state has a state income tax, you may be able to create a trust for your own benefit in an asset protection jurisdiction such as Alaska, Delaware, Nevada or South Dakota that’s a separate taxpayer for income tax purposes and only pays Federal but not sta...