34

The idea you present is not uncommon, many have tried it before. It would be a great step to find landlords in your area and talk to them about lessons learned. It might cost you a lunch or cup of coffee but it could be the best investment you make. rent it out for a small profit (hopefully make around 3 - 5k a year in profit) Given the median price of ...


23

If you give a gift with stings attached, then it isn't a gift. Thus it would be viewed as trying to get around the tax law. The law regarding this is the Step Transaction Doctrine. But a spouse can also give a gift, and you can give a gift to your child's spouse. Thus a couple can give another couple 4x the limit each year. If the child is in school then ...


22

A lot of people do this. For example, in my area nice townhouses go for about $400K, so if you have $80,000 you can buy one and rent it. Here are the typical numbers: Monthly Payment 30-year loan at 4%: $2,027.73 (Includes Monthly Tax Paid: $416.67) Insurance: $80 per month Maintenance: $50 per month Rental Income: $2,500 per month So you would make $...


15

This is not the answer you were hoping for. I recommend that you stay out of it and let your parents do what they want with their money. They are obviously very good savers and very thrifty with their money. At this point, they likely have more money than they need for the rest of their lives, even if it doesn't grow. It sounds like your parents are ...


13

My take is that he can avoid a big tax hit by leaving it as and giving the untouched fund to the heirs. 100% correct. By withdrawing now he'll be subjected to the income tax on the gains. Since his gains are almost the whole value of the account, he'll actually find himself in the highest bracket, not the lowest as Joe suggests. Not only that, but his SS ...


12

This is a reasonable idea and many people have done it. But there are some risks that you need to mitigate. Overleverage. If mandatory payments are more than you can handle, you could lose your property. Think you get laid off during a recession when all your houses are empty. Managing property is a lot of work. A friend does this, but to keep 7 properties ...


10

He will receive it just like any other non-spouse beneficiary you could have named. The money can stay in your 401K account if he wants to keep it there. For simplicity, your nephew will want to roll the money over to another qualified account, such as an IRA. The account must be titled in your name, for the benefit of him as beneficiary (aka, "beneficiary ...


10

The only possible downside I would see, assuming they are paying for it, is that the potential exists for it to be counted against you if you need a policy for the benefit of your family. In some cases, some insurers will only cover a certain multiple of your income at their best rates. If you need a new policy, they may count the existing coverage against ...


9

Your estate would still be responsible for paying off the debt. That is your responsibility as a co-signer. Occasionally, people take out life insurance as part of the loan, which (depending on the terms) may kick in upon your death and pay off the loan. If your son has stopped paying the loans, you may want to consider garnisheeing any wages he earns to ...


8

This is not intended as legal advice, and only covers general knowledge I have on the subject of wills as a result of handling my own finances. Each state of the USA has its own laws on wills and trusts. You can find these online. For example, in Kentucky I found state laws here: http://www.lrc.ky.gov/krs/titles.htm and Title XXXIV is about wills and ...


7

You should value the unit at: The fair market value of the whole property in 1983 (or whenever 25 years ago was) minus what the eldest sibling paid for the whole property minus the expected value in 1983 of free rent to the parents for the rest of their lives, Then convert from 1983 dollars to 2018 dollars.


6

In most countries this should't be an issue you can make such or similar provision. Its best to talk to a lawyer to get the wording right.


5

Yes. Dying works great for what you'd like to accomplish. The key point is that you need to specify a beneficiary (or multiple beneficiaries) on the account . When you meet your maker, the beneficiary would have no tax to pay for withdrawals from a Roth IRA. For a regular pre tax IRA, withdrawals are taxed. Either account would have RMDs, required minimum ...


5

Unfortunately, this is an attorney question and not an internet question. A living trust is not only a document, using it also requires that you retitle all the assets in the trust from your father to the trust itself via the trustee. In some states, there are property tax implications. Some states do not treat a home as "owner-occupied" when it is owned ...


4

You're talking about gifting your home to your son. That will actually mean that you need to pay taxes, unless the value of your home is below the exemption for the gift tax. You will, probably, use the lifetime exemption, but it will come out of the exemption for your estate. Once your son is the owner, he'll be liable for the property taxes. If your wife ...


4

You need to keep in mind that there's an exemption amount of more than $5M (five million) dollars for estate tax. Unless you used all of it for gifts during your life time, it will more than cover all of your $70K estate, so there's no need in any additional planning. As to Roth vs Traditional IRA - if you want to leave something to your siblings, leave ...


4

This is a common and good game-plan to learn valuable life skills and build a supplemental income. Eventually, it could become a primary income, and your strategic risk is overall relatively low. If you are diligent and patient, you are likely to succeed, but at a rate that is so slow that the primary beneficiaries of your efforts may be your children and ...


4

As a first step I would talk to a German real estate agent (Immobilienmakler), who will be able to give you an idea of the costs, fees, insurance needed to purchase a property, and who would be able to address your other common concerns. If you are clear in your initial phone call about what your resources, desires and intentions are; you will probably be ...


4

First question: Do I need to register this house in my tax return here in US? There is no "registration" of foreign property (whether real estate or stocks or anything else) on a US tax return, but, as a permanent immigrant, your world-wide income is subject to US tax, and so I hope that you have been declaring the income generated by these ...


3

Securities and ETFs are also subjected to Estate Tax. Some ways: Draft a "Transfer on Death" instruction to the broker, that triggers a transfer to an account in the beneficiary's name, in most cases avoiding probate. If the broker does not support it, find another broker. Give your brokerage and bank password/token to your beneficiary. Have him transfer ...


3

The scandal regarding key man insurance a few years ago was that some companies were insuring large numbers of employees without their knowledge. Thus they received income when low level employee died. In fact it was possible for the company to get a bigger check than the family. The fact they asked is a good sign. It shouldn't count against some insurable ...


3

Simple answer: Life insurance proceeds are income tax free in most cases, but not always estate tax free. If the life insurance policy are included in your estate and your estate is over the exemption limit for the year that you expire, then taxes will be taken out of your estate. If your estate is not over the exemption limit, no need don't worry. You ...


3

Instead of adding such a layer of complexity, it seems a good time to update the will. The gifts should be made and any reference to them removed from the will. Why risk having add-on documents that may not properly be kept along with the will? In the US, gifts up to $15K don’t even need paperwork for tax purposes. Over that amount, a Form 709 must be ...


3

The hassle free way to deal with this is to either: Designate pieces of jewelry for each cousin as you see fit, attempting to make each 'gift bag' similarly valued Sell it all and give them the cash Plan B is a "Let's Make a Deal!" I am assuming that the distribution to each party is at least the value of your most valuable piece of jewelry. For a fair ...


3

In general you use terms that the attorney preparing your will knows how to craft. Some of your accounts allow you to specify beneficiaries. These designations generally overrule the instructions in the will. This also applies to insurance policies, retirement plans and the like. They generally allow you to specify percentages if there are multiple people ...


2

You can set up a will to offer whatever fraction of your assets you wish. To handle this for a longer duration, I'd suggest specifying alternate beneficiaries. Be clear, if your Son-in-law passes before you do, who gets that portion? If your daughters plan to marry or are married, how will their inheritance pass? A bit of extra thought can make the time ...


2

Term life insurance makes sense if you will have a need for money if someone dies. If you (and your brothers) do not have enough money currently for a proper burial for your father, then you might consider term insurance to cover this. If you already have the money to cover this (or can save for it in a short amount of time), then you are better off ...


2

If you can not support yourself should your father die, an insurance policy may make sense as a safety net. As an investment, it is a bad bet unless he knows something about his health that would somehow not cause his premiums to be increased tremendously yet not cause them to claim he was attempting to defraud them and refuse payment. In other words, it is ...


2

I think what those articles are saying is: "If you want to leave some money to charity and some to relatives, don't bequeath a Roth to charity while bequeathing taxable accounts to relatives." In other words, it's not "bad" to leave a Roth IRA to charity, it's just not as good as giving it to humans, if there are humans you want to give money to. In your ...


2

My advice is NO... unless the company makes you the Owner of the policy and pays the premium and they agree to only be the beneficiary of the policy. The reason is this... if they are the owner, you lose all your rights as the "Insured". The company I was employed with for 27 years ask to take out a key man life insurance policy on me (1 million dollars), ...


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