Search found 5641 matches

by bsteiner
Tue Apr 13, 2021 10:44 am
Forum: Personal Finance (Not Investing)
Topic: Any happy lawyers out there?
Replies: 84
Views: 6643

Re: Any happy lawyers out there?

I agree with the folks saying there are options other than law school for you to study law the way it sounds like you want to. There are Masters of Jurisprudence programs (anyone have any experience in this degree?) And the like. ... A well-respected expert in the IRA area with whom I've been on a ...
by bsteiner
Tue Apr 13, 2021 10:26 am
Forum: Personal Investments
Topic: Do brokers close accounts of angry customers?
Replies: 32
Views: 2620

Re: Do brokers close accounts of angry customers?

We once had to subpoena an company's records with respect to one of their customers to get information in connection with a pending lawsuit. In addition to the data we needed, there were several notes by customer service representatives saying that the customer had been nasty. In case the representa...
by bsteiner
Mon Apr 12, 2021 8:47 pm
Forum: Personal Finance (Not Investing)
Topic: Defined Benefit Pension Plan
Replies: 32
Views: 1757

Re: Defined Benefit Pension Plan

There are ways to use the overfunding. Survivorship pension for spouse. Employ children and give them minimum pension allowed regardless of their salary. Sell the business with the plan to a buyer whose plan is underfunded.
by bsteiner
Mon Apr 12, 2021 5:46 pm
Forum: Personal Finance (Not Investing)
Topic: Defined Benefit Pension Plan
Replies: 32
Views: 1757

Re: Defined Benefit Pension Plan

An actuarial firm can design the plan to best accomplish your objectives.
by bsteiner
Sun Apr 11, 2021 8:05 pm
Forum: Personal Finance (Not Investing)
Topic: [Spouse recently passed away. Please help me handle his financial matters]
Replies: 95
Views: 5499

Re: [Spouse recently passed away. Please help me handle his financial matters]

... While you can no doubt handle settling your husband's estate, it will still take some work. Try to find a lawyer you trust who will allow you to do what you can of the work and they will do the rest for an hourly fee as needed or use them as reference for questions. Certified Elder lawyers may ...
by bsteiner
Sun Apr 11, 2021 5:25 pm
Forum: Personal Finance (Not Investing)
Topic: Ed Slott's new book NEW RETIREMENT SAVINGS TIME BOMB
Replies: 154
Views: 11038

Re: Ed Slott's new book NEW RETIREMENT SAVINGS TIME BOMB

... If you don't name beneficiaries, the inherited IRA go to the estate, which is not a person, and must be withdrawn in 5 years instead of 10. It depends on the default provisions of the IRA agreement. Some default to the spouse, or if none then to the issue (descendants), or if none then to the e...
by bsteiner
Sun Apr 11, 2021 5:23 pm
Forum: Personal Finance (Not Investing)
Topic: Gross Income Definition
Replies: 22
Views: 1739

Re: Gross Income Definition

Contra, Internal Revenue Code Section 61(a)(3): https://www.law.cornell.edu/uscode/text/26/61.
by bsteiner
Sun Apr 11, 2021 12:42 pm
Forum: Personal Finance (Not Investing)
Topic: Ed Slott's new book NEW RETIREMENT SAVINGS TIME BOMB
Replies: 154
Views: 11038

Re: Ed Slott's new book NEW RETIREMENT SAVINGS TIME BOMB

Each person may make his/her own assumptions as to future tax rates. There’s no way to predict future tax rates over a long period of time. During my career the top rate has been as high as 70% and as low as 28%. I generally use the law as it’s currently scheduled to be in effect. To the extent you ...
by bsteiner
Sun Apr 11, 2021 9:20 am
Forum: Personal Finance (Not Investing)
Topic: Ed Slott's new book NEW RETIREMENT SAVINGS TIME BOMB
Replies: 154
Views: 11038

Re: Ed Slott's new book NEW RETIREMENT SAVINGS TIME BOMB

For the most part, only a small minority of retirees will be in a higher tax bracket than when they were working (unless they move to a state with higher taxes). And I don't feel sorry for those who are because it will nearly always (apart from the potentially lost child tax credit) mean that they ...
by bsteiner
Sat Apr 10, 2021 10:04 pm
Forum: Personal Finance (Not Investing)
Topic: Ed Slott's new book NEW RETIREMENT SAVINGS TIME BOMB
Replies: 154
Views: 11038

Re: Ed Slott's new book NEW RETIREMENT SAVINGS TIME BOMB

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.
by bsteiner
Sat Apr 10, 2021 8:39 pm
Forum: Personal Finance (Not Investing)
Topic: [Spouse recently passed away. Please help me handle his financial matters]
Replies: 95
Views: 5499

Re: Spouse died in January: What taxes do I need to be aware of?

The Virginia probate tax is 0.1% plus up to 1/3 of 0.1% local tax.
by bsteiner
Sat Apr 10, 2021 11:56 am
Forum: Personal Finance (Not Investing)
Topic: Disclaiming inheritance as remainder beneficiary
Replies: 15
Views: 1322

Re: Disclaiming inheritance as remainder beneficiary

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...
by bsteiner
Sat Apr 10, 2021 11:41 am
Forum: Personal Finance (Not Investing)
Topic: Irrevocable subtrusts
Replies: 22
Views: 1137

Re: Irrevocable subtrusts

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...
by bsteiner
Sat Apr 10, 2021 11:12 am
Forum: Personal Finance (Not Investing)
Topic: Disclaiming inheritance as remainder beneficiary
Replies: 15
Views: 1322

Re: Disclaiming inheritance as remainder beneficiary

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...
by bsteiner
Sat Apr 10, 2021 11:06 am
Forum: Personal Finance (Not Investing)
Topic: Irrevocable subtrusts
Replies: 22
Views: 1137

Re: Irrevocable subtrusts

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...
by bsteiner
Sat Apr 10, 2021 9:58 am
Forum: Personal Finance (Not Investing)
Topic: Irrevocable subtrusts
Replies: 22
Views: 1137

Re: Irrevocable subtrusts

... 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...
by bsteiner
Sat Apr 10, 2021 9:12 am
Forum: Personal Finance (Not Investing)
Topic: Disclaiming inheritance as remainder beneficiary
Replies: 15
Views: 1322

Re: Disclaiming inheritance as remainder beneficiary

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...
by bsteiner
Fri Apr 09, 2021 6:03 pm
Forum: Personal Finance (Not Investing)
Topic: Irrevocable subtrusts
Replies: 22
Views: 1137

Re: Irrevocable subtrusts

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...
by bsteiner
Fri Apr 09, 2021 8:19 am
Forum: Personal Finance (Not Investing)
Topic: Disclaiming a portion of an inheritance
Replies: 16
Views: 1200

Re: Disclaiming a portion of an inheritance

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.
by bsteiner
Thu Apr 08, 2021 2:19 pm
Forum: Forum Issues and Administration
Topic: Question about discussion of a proposed law or regulation
Replies: 14
Views: 790

Re: Question about discussion of a proposed law or regulation

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...
by bsteiner
Thu Apr 08, 2021 9:10 am
Forum: Personal Finance (Not Investing)
Topic: IRS disallowed my claim
Replies: 10
Views: 2427

Re: IRS disallowed my claim

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...
by bsteiner
Thu Apr 08, 2021 9:02 am
Forum: Personal Finance (Not Investing)
Topic: Revocable Living Trust Question - Disclaiming?
Replies: 8
Views: 702

Re: Revocable Living Trust Question - Disclaiming?

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.
by bsteiner
Wed Apr 07, 2021 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: Minimum Net Worth for a Trust
Replies: 10
Views: 2160

Re: Minimum Net Worth for a Trust

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.
by bsteiner
Wed Apr 07, 2021 6:23 pm
Forum: Personal Finance (Not Investing)
Topic: how to avoid probate
Replies: 9
Views: 979

Re: how to avoid probate

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...
by bsteiner
Wed Apr 07, 2021 5:13 pm
Forum: Personal Finance (Not Investing)
Topic: Gift Tax form-709, second time filer.
Replies: 2
Views: 236

Re: Gift Tax form-709, second time filer.

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.
by bsteiner
Wed Apr 07, 2021 2:55 pm
Forum: Personal Finance (Not Investing)
Topic: Is this a good strategy for a spendthrift trust?
Replies: 5
Views: 448

Re: Is this a good strategy for a spendthrift trust?

... 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...
by bsteiner
Wed Apr 07, 2021 9:41 am
Forum: Personal Finance (Not Investing)
Topic: Revocable Living Trust issue
Replies: 9
Views: 952

Re: Revocable Living Trust issue

... 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...
by bsteiner
Wed Apr 07, 2021 9:38 am
Forum: Personal Finance (Not Investing)
Topic: Tax bill split between spouses
Replies: 81
Views: 4266

Re: Tax bill split between spouses

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...
by bsteiner
Tue Apr 06, 2021 9:22 pm
Forum: Personal Finance (Not Investing)
Topic: Premium Financed Indexed Universal Life - Have my doubts
Replies: 8
Views: 583

Re: Premium Financed Indexed Universal Life - Have my doubts

How is this better than borrowing to invest in stocks, real estate, bitcoins or anything else?
by bsteiner
Tue Apr 06, 2021 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: IRA Beneficiary & Estate Question
Replies: 18
Views: 1154

Re: IRA Beneficiary & Estate Question

... 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...
by bsteiner
Tue Apr 06, 2021 1:00 pm
Forum: Personal Finance (Not Investing)
Topic: State taxes for pilot
Replies: 5
Views: 578

Re: State taxes for pilot

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.
by bsteiner
Tue Apr 06, 2021 12:57 pm
Forum: Personal Finance (Not Investing)
Topic: IRA Beneficiary & Estate Question
Replies: 18
Views: 1154

Re: IRA Beneficiary & Estate Question

... 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...
by bsteiner
Tue Apr 06, 2021 9:07 am
Forum: Personal Finance (Not Investing)
Topic: Spouse on Deed but not Mortgage?
Replies: 13
Views: 1399

Re: Spouse on Deed but not Mortgage?

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...
by bsteiner
Mon Apr 05, 2021 6:37 pm
Forum: Investing - Theory, News & General
Topic: Can smaller order sizes receive advantageous pricing?
Replies: 4
Views: 610

Re: Can smaller order sizes receive advantageous pricing?

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...
by bsteiner
Mon Apr 05, 2021 6:32 pm
Forum: Personal Finance (Not Investing)
Topic: Adding GF to work benefits
Replies: 24
Views: 2032

Re: Adding GF to work benefits

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.
by bsteiner
Mon Apr 05, 2021 2:35 pm
Forum: Investing - Theory, News & General
Topic: Can smaller order sizes receive advantageous pricing?
Replies: 4
Views: 610

Re: Can smaller order sizes receive advantageous pricing?

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...
by bsteiner
Mon Apr 05, 2021 10:08 am
Forum: Personal Finance (Not Investing)
Topic: Claiming Life Insurance Question
Replies: 9
Views: 1049

Re: Claiming Life Insurance Question

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...
by bsteiner
Mon Apr 05, 2021 10:05 am
Forum: Personal Finance (Not Investing)
Topic: Secure Act and trusts
Replies: 159
Views: 8560

Re: Secure Act and trusts

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 ...
by bsteiner
Mon Apr 05, 2021 6:14 am
Forum: Personal Finance (Not Investing)
Topic: Claiming Life Insurance Question
Replies: 9
Views: 1049

Re: Claiming Life Insurance Question

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.
by bsteiner
Sun Apr 04, 2021 9:19 pm
Forum: Personal Finance (Not Investing)
Topic: Claiming Life Insurance Question
Replies: 9
Views: 1049

Re: Claiming Life Insurance Question

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...
by bsteiner
Sun Apr 04, 2021 8:14 pm
Forum: Personal Finance (Not Investing)
Topic: Claiming Life Insurance Question
Replies: 9
Views: 1049

Re: Claiming Life Insurance Question

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.
by bsteiner
Sun Apr 04, 2021 2:58 pm
Forum: Personal Investments
Topic: Wells-Fargo Settlement Check from Former IRA Account
Replies: 15
Views: 1188

Re: Wells-Fargo Settlement Check from Former IRA Account

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.
by bsteiner
Sun Apr 04, 2021 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: Refile 2020 1040 for $15.00 1099R income mistake?
Replies: 10
Views: 1449

Re: Refile 2020 1040 for $15.00 1099R income mistake?

... 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...
by bsteiner
Sat Apr 03, 2021 10:21 pm
Forum: Personal Finance (Not Investing)
Topic: Is SCorp worth it in this case?
Replies: 14
Views: 939

Re: Is SCorp worth it in this case?

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...
by bsteiner
Sat Apr 03, 2021 10:19 pm
Forum: Personal Investments
Topic: I need a brokerage (or financial instrument) that won't let me sell
Replies: 25
Views: 2354

Re: I need a brokerage (or financial instrument) that won't let me sell

... 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...
by bsteiner
Sat Apr 03, 2021 9:41 pm
Forum: Personal Finance (Not Investing)
Topic: Secure Act and trusts
Replies: 159
Views: 8560

Re: Secure Act and trusts

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...
by bsteiner
Sat Apr 03, 2021 6:30 pm
Forum: Personal Finance (Not Investing)
Topic: Is SCorp worth it in this case?
Replies: 14
Views: 939

Re: Is SCorp worth it in this case?

If the entity revokes its S election it will be treated as a C corporation.
by bsteiner
Fri Apr 02, 2021 10:57 am
Forum: Personal Finance (Not Investing)
Topic: Estate planning Advice - Inheriting Large Estate
Replies: 14
Views: 1795

Re: Estate planning Advice - Inheriting Large Estate

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.
by bsteiner
Fri Apr 02, 2021 8:18 am
Forum: Personal Finance (Not Investing)
Topic: Secure Act and trusts
Replies: 159
Views: 8560

Re: Secure Act and trusts

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...
by bsteiner
Thu Apr 01, 2021 4:54 pm
Forum: Personal Finance (Not Investing)
Topic: Need help selecting a moderate cost trusts and estates attorney
Replies: 17
Views: 904

Re: Need help selecting a moderate cost trusts and estates attorney

... 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 ...