Bogleheads.org

bsteiner

I know Ed well. We've been on seminar panels together, and I've written for his newsletter. He's very knowledgeable. However, he's not a lawyer, and he markets his seminars to insurance agents, stockbrokers and the like: https://www.irahelp.com/instant-success ... ation/1252.

bsteiner

The Virginia probate tax is 0.1% plus up to 1/3 of 0.1% local tax.

bsteiner

Thank you Attorney Steiner. Just to put this to rest, even if a remainder beneficiary (ie, cousin Freida) of the original trust (formed by Jeffrey's dad Peter for Jeffrey's benefit) was a distant relative and all assets were for the benefit of the special needs son (ie, Jeffrey) until his death and...

bsteiner

So I try to avoid limiting distributions to an ascertainable standard or mandating distributions for an ascertainable standard. It seems to me that the main draw for the clients is that they want the beneficiary to maintain "control" and not have to go "hat in hand" to a trustee...

bsteiner

Attorney Steiner, Appreciate your input. Would the disclaimer still have to have been made by a REMAINDER beneficiary? The original trust (dad's trust) became irrevocable at the time of death and was for the benefit of his special need's child while that child was alive. After the death of the chil...

bsteiner

I recall a noted estate attorney once remarking to me that one can have the best estate plan ever devised, but if the trustee(s) is/are not competent it ain't worth a damn. He suggested one spend a great deal of time considering the Trustee. I always enjoy b.steiner's posts and have learned a great...

bsteiner

... This is what her uncle's trust says: https://i.ibb.co/jzmZp4J/92-F61100-D485-4-AC4-9-DC4-C53-C11-B12-BA7.jpg ... who is the “independent trustee”? It’s not listed anywhere in the trust document. Also who deems what is appropriately considered “maintenance” if my mother is the only trustee of he...

bsteiner

In order for the disclaimer to be a qualified disclaimer (so as not to be a gift for gift tax purposes), the disclaimer had to be made within 9 months from the original transfer (or within 9 months from when the disclaimant reached age 21, if later). It would have been better if the balance at the s...

bsteiner

She'll need a co-trustee if she ever wants any distributions other than for health, maintenance, support and education. For several reasons, I prefer to have a co-trustee from the inception, provide that she can't make any distributions to herself, and give her control by giving her the right to rem...

bsteiner

A beneficiary may disclaim some or all of his/her share of the decedent's estate (within 9 months of death, and before accepting benefits from the disclaimed property). More information is needed to determine whether a beneficiary of the trust may disclaim some or all of his/her interest in the trust.

bsteiner

You could take advantage of the current exclusion amount by giving away $11.7 million now. A married couple could give away $23.4 million now. Under the law as it's now in effect, the exclusion amount is scheduled to drop by 50% in 2026. However, there's no clawback if you give away the exclusion am...

bsteiner

If a case isn't resolved at the audit level, the taxpayer may go to Appeals. IRS Appeals Officers resolve most of the cases that go there. They have broad settlement authority, including the ability to settle based on the hazards of litigation. If you can show the Appeals Officer that the IRS made a...

bsteiner

You may disclaim.

Unless the instrument provides otherwise (for example, to A if he survives me, otherwise to B, except if A survives me but disclaims then to C), the disclaimed property will go as if you predeceased the grantor.

bsteiner

In most cases when you expect to have a taxable estate. Otherwise you would probably hold on to your assets to get a basis step-up at death.

bsteiner

That should be fine if the estate is small, the children will cooperate in paying any debts, taxes and expenses, there's no one else you want to provide for. You may want to provide that if a child predeceases you, his/her share will go to his/her children rather than to your surviving child. Howeve...

bsteiner

Line 3 should be 13,291 rather than 3,291.

On page 3, show where the prior return was filed. which would have been Kansas City, Missouri 64999.

You'll also have do do pages 4 and 5.

bsteiner

... Wouldn't it be better to say I needn't resign, but only need to appoint a co-Trustee for making distributions? ... Yes. There are other things in the language you posted that one might do differently as well. You might want to consider having a co-trustee from the inception. You could provide t...

bsteiner

... My wife and I have a joint revocable trust ... Our son will have to submit a final tax return for the year the second of us dies. If the trust earns more than $600 during the following tax year our son will also have to submit a Form 1041 tax return for the trust. ... $100 of gross income or an...

bsteiner

See Treas. Reg. § 20.2053-6(f): https://www.law.cornell.edu/cfr/text/26/20.2053-6. You figure what each spouse's tax would have been if they filed separate returns, and then you prorate the tax on the joint return in the same proportion. This came up more often before 1982, when the estate tax marit...

bsteiner

How is this better than borrowing to invest in stocks, real estate, bitcoins or anything else?

bsteiner

... So if he died January 2021 at 91 years old, how do I figure out whether it has to be fully distributed by the end of the fifth calendar year or whether we have the remaining life expectancy? Also, from what I'm reading, the estate would be taxed at 39.6%. Surely transferring the inherited estat...

bsteiner

The issue isn't Florida. Florida doesn't have a state income tax. The issue is whether Illinois will still consider you to be domiciled in Illinois.

bsteiner

... What about those who are not listed as a designated beneficiary? Some people end up inheriting a retirement account through an estate. In these situations, the distribution method used will generally follow the old rules from before the SECURE Act. In general one of the following methods must b...

bsteiner

You can’t encumber the property without your wife’s consent. She might not be on the note but you can’t borrow against it on your own. Appears an error on bank’s part. You could in the sense that each owner may mortgage his/her interest. However, a lender would want a mortgage from all of the owner...

bsteiner

Say the bid ask spread on an option for an underlying security was: 5.2(bid) 5.8(ask) Now, let's say you submitted an order to buy 1 of these options and let's say your order was filled at 5.5. Now, if instead of submitting an order to buy 1 of these options, you submitted an order to buy 1000 of t...

bsteiner

Since the tax rate is less than 100%, and since employer group health insurance is usually good coverage, it's likely to be a good deal.

bsteiner

Say the bid ask spread on an option for an underlying security was: 5.2(bid) 5.8(ask) Now, let's say you submitted an order to buy 1 of these options and let's say your order was filled at 5.5. Now, if instead of submitting an order to buy 1 of these options, you submitted an order to buy 1000 of t...

bsteiner

You probate the Will, not the assets. Per the OP there is no will. Cheers Then they can’t probate the Will. Anything payable to the estate will pass by intestacy, most likely to the children. I assume that will involve lawyers and judges and paperwork and time. Wouldn't want $100k tied up unnecessa...

bsteiner

This is one of the tradeoffs of the charitable remainder trust, and is why it works best for beneficiaries who are likely to need distributions, are unlikely to have taxable estates, and are unlikely to need the asset protection of a discretionary trust. Bruce, I wanted to come back to a variation ...

bsteiner

Silk McCue wrote: ↑Mon Apr 05, 2021 6:04 am
bsteiner wrote: ↑Sun Apr 04, 2021 9:19 pm
You probate the Will, not the assets.
Per the OP there is no will.

Cheers

Then they can’t probate the Will. Anything payable to the estate will pass by intestacy, most likely to the children.

bsteiner

From an estate perspective the biggest focus should be on the potential $10M inheritance down the road. ... She could ask the person who's planning to leave her the $10 million to leave it to her in trust rather than outright, to keep it out of her estate for estate tax purposes. ... In the case of...

bsteiner

You may want to check whether, under the state law of his home state, divorce revokes beneficiary designations in favor of the ex-spouse. If so, then she would no longer be the beneficiary, and the proceeds would be payable to the contingent beneficiaries, or if none then to his estate.

bsteiner

It's called a restorative payment. See my article on this in the June 2011 issue of Trusts & Estates: https://www.kkwc.com/wp-content/uploads ... yments.pdf.

bsteiner

... According to the IRS, a taxpayer needs to file an amended return for, among other things, a change in income or tax liability as soon a possible to limit interest and penalties. ... Treas. Reg. § 1.451-1(a) says "should" rather than "needs": https://www.law.cornell.edu/cfr/t...

bsteiner

If the entity revokes its S election it will be treated as a C corporation. Hmm that's interesting. I read online that if you also file Form 8832, then you can reclassify back to an LLC. Is that not the case? Our CPA seemed to think that there was a path to go back from S Corp to LLC. That would be...

bsteiner

... The legal instrument that would have this result is a trust with someone else as trustee. Someone would have to chime in on how possible it is to voluntarily turn over one's affairs to someone else and not be able to sue to undo the arrangement in order to start trading again. ... It's perfectl...

bsteiner

Just to add one more wrinkle- What about a combination of CRT and accumulation trust? This permits a stretch for some of the money. If the beneficiary has a long life, and might need some of the money, this might provide for that while the rest can be protected and stay out of the estate. I have th...

bsteiner

If the entity revokes its S election it will be treated as a C corporation.

bsteiner

Trusts and estates lawyers are estate planners.

He could leave his estate to his children in trust rather than outright. That would keep the children's inheritances out of their estates for estate tax purposes.

This should be a routine matter for any law firm with a good trusts and estates group.

bsteiner

Why would you want Vanguard to be the trustee for the CRT? I'm not even sure that's a service they offer. I checked with VNTC and yes, they will manage CRTs. That is quite significant, getting the more complicated accounting and tax return prep done for the same fee, considering the extended lifeti...

bsteiner

... In the last quarter of 2020, he said he was too busy with other clients who needed things done before the end of the year. ... Just as a doctor will take care of an emergency matter ahead of a non-emergency matter, lawyers will deal with time sensitive matters ahead of matters that aren't time ...

bsteiner

... In my view, at the end of this thread, it would seem that with a younger beneficiary who is not a spendthrift, the financial benefits are best with a CRUT and second best with a discretionary trust that pays out the entire tIRA proceeds to the trust's beneficiary by the end of the 10th year. Th...

bsteiner

The issue isn't the taxes, but rather what happens if he doesn't complete the transaction. What if he gets his half in the form of an interest in the house and you get your half in the form of the other assets and the remaining interest in the house, and he buys your interest in the house from you? ...

bsteiner

Or he could do Roth conversions each year up to the top of the 12% bracket.

bsteiner

Does Notice 2021-21 help: https://www.irs.gov/pub/irs-drop/n-21-21.pdf?

bsteiner

... BSTEINER or GILL may also see this post and have unique insights. I saw it. The original poster is in California. Revocable trusts are common in California since it's harder to deal with the probate courts there than in most if not all of the other states. We've had trustees take out mortgage l...

bsteiner

Thanks for the kind words. Your calculations illustrate the concept. The results will vary depending on the assumptions, such as tax rates on different types of income, how the trust assets are invested, and the investment returns both within the trust and on the money previously distributed to the...

bsteiner

... Who could have predicted the SECURE Act even 5 years ago, when IRA conduit trusts stipulating distribution of RMDs were the gold standard? Now they are time bombs, poised to dump the entire balance of an inherited IRA into the trust after 10 years, with 37% going to the IRS. Conduit trusts were...

bsteiner

Assuming dad is competent to sign legal documents, you could create a revocable trust and place all his assets in the trust. Then the trustee (you or sibling or both) can manage the assets. Taxes would be paid under his SSN until he passes. Then you would need an EIN for the trust account. With a r...

bsteiner

If your 87 YO widowed father in law has about $2.1 millions in assets and has just moved to assisted living, he should be able to pay for any level of care he needs. I assume he also has some income other than from investment earnings, such as social security or a pension. This will also increases ...

Search found 5632 matches