Search found 5725 matches

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: 32
Views: 1885

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: 2595

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: 32
Views: 1885

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: 2595

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: 232

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: 1071

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: 1071

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: 481

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: 618

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: 820

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: 845

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: 5230

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: 2916

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: 2655

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: 2655

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: 1877

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: 2555

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: 1877

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: 51
Views: 6977

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: 1278

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: 1697

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: 2952

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: 1883

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: 1883

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: 2952

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: 1883

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: 3212

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: 2042

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: 2042

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: 2042

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: 2332

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: 916

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: 2332

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: 1528

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: 1388

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...
by bsteiner
Mon Apr 26, 2021 9:42 am
Forum: Personal Consumer Issues
Topic: Snowbirds establishing FL residency from Northeast- Residency audits
Replies: 81
Views: 7917

Re: Snowbirds establishing FL residency from Northeast- Residency audits

She lived in Florida and had a stroke. I don't recall the specifics of her case (it was many years ago), but if she was brought there as opposed to making her own decision to go there, her domicile may have remained in Florida. We get cases from time to time where someone in one state ends up in a ...
by bsteiner
Mon Apr 26, 2021 8:12 am
Forum: Personal Consumer Issues
Topic: Snowbirds establishing FL residency from Northeast- Residency audits
Replies: 81
Views: 7917

Re: Snowbirds establishing FL residency from Northeast- Residency audits

Massachusetts has a 5 year look back if you pass. So thinking you can leave more than $1M in your estate and no tax being due, forget it. Unless, of course, you move to Florida, break all Mass ties and don't die for 5 years. (my mom has snowbirded between Mass and Florida for a decade but is now pe...
by bsteiner
Sat Apr 24, 2021 11:26 am
Forum: Personal Finance (Not Investing)
Topic: Advice appreciated: older relative with huge credit card debt
Replies: 34
Views: 3472

Re: Advice appreciated: older relative with huge credit card debt

Make sure the 401(k) benefits are payable to beneficiaries other than the person's estate.
by bsteiner
Sat Apr 24, 2021 11:21 am
Forum: Personal Finance (Not Investing)
Topic: Residency timing of state tax on inherited IRA
Replies: 5
Views: 526

Re: Residency timing of state tax on inherited IRA

See the statute, 4 U.S.C. § 114, https://www.law.cornell.edu/uscode/text/4/114, and the House Judiciary Committee report, https://www.congress.gov/congressional-report/104th-congress/house-report/389. In particular, see this excerpt from the committee report: "H.R. 394 would prohibit a state fr...
by bsteiner
Sat Apr 24, 2021 11:09 am
Forum: Personal Finance (Not Investing)
Topic: PenFed Car Buying Service experience
Replies: 4
Views: 533

Re: PenFed Car Buying Service experience

I bought my most recent car through PenFed's TrueCar service. If you use their service, you'll get a low interest rate, presently 1.04% for 3 years or 1.24% for 5 years. That lets you choose the cash if the manufacturer gives you a choice of cash or low or no interest financing). I assume that the l...
by bsteiner
Fri Apr 23, 2021 6:10 pm
Forum: Personal Investments
Topic: Legacy Strategy: Reducing One's Estate
Replies: 36
Views: 3657

Re: Legacy Strategy: Reducing One's Estate

What about the old Life Insurance Trust method, where the trust owns life insurance on you, your spouse, both individually or second to die? Where you gift to the Trust each year? Wasn't this how many leveraged estate assets before death back in the days of the $600,000 (or even lower) estate tax e...
by bsteiner
Fri Apr 23, 2021 12:56 pm
Forum: Personal Finance (Not Investing)
Topic: Estate question - only able to move 50% of assets?
Replies: 5
Views: 546

Re: Estate question - only able to move 50% of assets?

The estate tax is based on the values as of the date of death (or, at the estate's option if it will reduce both the estate and the estate tax, as of the alternate valuation date, which is 6 months after death or when the asset is sold or distributed, if sooner). The value of B's interest in A's es...
by bsteiner
Fri Apr 23, 2021 12:30 pm
Forum: Personal Finance (Not Investing)
Topic: Estate question - only able to move 50% of assets?
Replies: 5
Views: 546

Re: Estate question - only able to move 50% of assets?

The estate tax is based on the values as of the date of death (or, at the estate's option if it will reduce both the estate and the estate tax, as of the alternate valuation date, which is 6 months after death or when the asset is sold or distributed, if sooner). The value of B's interest in A's est...
by bsteiner
Fri Apr 23, 2021 10:00 am
Forum: Personal Finance (Not Investing)
Topic: Sub-Trust Share Inherited IRA Help (Schwab)
Replies: 1
Views: 147

Re: Sub-Trust Share Inherited IRA Help (Schwab)

I would call one $600 lawyer rather than two $300 lawyers. The beneficiaries will have to set up inherited IRAs. If they're trusts, they'll have to provide Schwab with their employer (taxpayer) identification numbers. The lawyer handling the estate can get or assign them, or the trustees can get the...
by bsteiner
Fri Apr 23, 2021 9:36 am
Forum: Personal Finance (Not Investing)
Topic: joint trust protection from lawsuit?
Replies: 8
Views: 692

Re: joint trust protection from lawsuit?

Would think you would be better served by first focusing on insurance against these lawsuits you fear. Insurance like auto, umbrella, malpractice, etc. Most forms of asset protection don't hold-up in court. Jay Adkisson is an excellent point of contact (https://jayadkisson.com). You are correct tha...
by bsteiner
Fri Apr 23, 2021 8:03 am
Forum: Personal Finance (Not Investing)
Topic: joint trust protection from lawsuit?
Replies: 8
Views: 692

Re: joint trust protection from lawsuit?

About half the states have tenancy by the entirety for real property. A few also have it for personal property. New York has it for cooperative apartments (and real estate). A few states allow tenancy by the entirety revocable trusts. You would need a trustee in that state. There are trust companies...
by bsteiner
Thu Apr 22, 2021 10:38 pm
Forum: Personal Finance (Not Investing)
Topic: Trusts
Replies: 16
Views: 1378

Re: Trusts

It seems like people are split close to 50/50 on the need for a trust. If I ask a lawyer who specializes in trusts I assume he will recommend one. I spoke with "advisors" at Fidelity and TIAA (casual conversations over Zoom-I am not paying either of them a fee) and they were both of the m...
by bsteiner
Thu Apr 22, 2021 10:06 pm
Forum: Personal Finance (Not Investing)
Topic: Trusts
Replies: 16
Views: 1378

Re: Trusts

I don’t think a trust is necessarily required in your situation. The value of a trust for me is avoiding probate if my wife and I on die with minor children, .... A couple of points on what you said: "The value of a trust for me is avoiding probate if my wife and I on die with minor children&q...
by bsteiner
Thu Apr 22, 2021 4:33 pm
Forum: Personal Finance (Not Investing)
Topic: Trusts
Replies: 16
Views: 1378

Re: Trusts

... Another purpose of trust is to reduce estate tax. Each state has its own limits. For example, in MA it is $1 million. If you include life insurance pay out, most people can hit this $1 million easily. With proper estate planning, you can save $$$ when both you and spouse die. One such "met...
by bsteiner
Thu Apr 22, 2021 12:13 pm
Forum: Personal Finance (Not Investing)
Topic: Should a trust always allow for a change of successor trustee?
Replies: 17
Views: 1063

Re: Should a trust always allow for a change of successor trustee?

The same provision would usually apply to initial trustees as to successor trustees. If the beneficiary is sufficiently responsible, the beneficiary of each trust could have the power to remove and replace his/her co-trustee (provided the replacement trustee isn't a close relative or subordinate emp...