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21

The special needs trust is a great idea for children like yours, and if you have the financial means then it most certainly should be done. Suggesting that you withdraw money from a 401K to fund a universal life product is nearly criminal. Run from this person. The tax implications are enormous. However, he will make a nice fat commission. I would ...


11

The bank loaned you money. They have lien on the property. They have filed paperwork with the local government regarding that lien. If you want to change that paperwork you need them to cooperate. They need to make sure that their interest in the property isn't jeopardized by your actions. Their investors demand that their money be protected. They charge $...


8

Your wish is to leave money to your brother to help him take care of your parents until they die with the condition that any balance of the money to be transferred to your wife or, if she is deceased, to your children. The fulfillment of this wish will depend on your brother honoring your request should you predecease your parents and then your parents ...


8

You asked three specific questions: Is this possible? Basically, no. This is literally not possible. The highest-limit prepaid debit cards in existence in the US right now have limits around $15,000. It is, quite literally, not possible to get a prepaid card for $950,000. For that amount of money, you're very deep into the territory of running afoul of ...


7

Trusts are useful for a number of situations, country-centric or not. If there are inheritance tax issues, a trust as owner of the insurance policy can help keep the insurance payout out of the deceased's estate. If a beneficiary isn't capable of handling a large sum of money, a trust adds a layer of fiduciary responsibility. With that might come the risk ...


7

From my own research, a special needs trust is on the expensive side if you don't have much money to put into it. One common option seems to be to fund it with your estate if you pass on or with any inheritance you may receive from other family. A newer option that you might look into and discuss with the planner is opening a 529 ABLE account. This is ...


7

The answer is that the assets are not "his" anymore if they are they are not taxable to the grantor. If the trust is revocable, meaning that the grantor can get the assets back, then all income the trust(s) receive is reportable and taxable to the beneficiary. The scenario you describe, where the trust pays taxes on its own income, only applies to ...


7

This is a typical advanced fee scam. If you don't believe it, you can always do a search and check around on how the standard scam template email looks like.


6

A mutual fund's return or yield has nothing to do with what you receive from the mutual fund. The annual percentage return is simply the percentage increase (or decrease!) of the value of one share of the mutual fund from January 1 till December 31. The cash value of any distributions (dividend income, short-term capital gains, long-term capital gains) ...


5

The National Alliance on Mental Illness (NAMI) provides a guide titled the "Special Needs Estate Planning Guidance System" that describes in some detail the process of setting up a special needs trust (SNT). Their information may be helpful, and the organization might be able to answer any specific questions you have. I'll try to provide a mostly-...


5

littleadv is correct in his response, no surprise there. But, given that information, there are consequences you should be aware of. Gifts to any non-spouse are a non-issue up to $14000/yr per person. Not enough to gift a house. You would need to tap your lifetime gift exclusion, which in 2016 is $5.45 million. More than enough to give your house away with ...


5

My question is, using previous data how do I calculate my returns? "Stupid" is the person who does not ask. Better to have visited first, but even asking after the fact will get you an education, at a very low cost. You would only see those returns had you invested at the beginning of the period advertised. "Past results are not a guarantee of future ...


5

You will owe capital gains if your share of the increase in value is over $250,000. Your step-children have a step-up basis for their half of the property (they should get an appraisal to figure out what it is) and will be much less likely to owe capital gains or at least a minimal amount, even without the $250,000 primary residence exclusion, if the ...


5

Everything depends on your local law. In general, joint assets are not a problem whereas sole ownership assets are. Depending on location, the size of the estate may determine the need for probate. Probate fees are usually larger than trust settlement fees. In my US state, the last time I settled a family member's estate, the maximum charge for probate ...


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 ...


5

First, I am assuming that this is not a defective trust. That is, it counts as a trust for both income tax purposes and estate tax purposes. I am also assuming that you are in the United States. The beneficiary will normally pay income tax on the profits that are distributed from the trust. If the trust fails to distribute all the profits, then the trust ...


5

Signs it's a scam: 1) They've never met you and yet trust you to handle nearly a million US dollars worth of their funds. I don't know about you, but if I had that money, I would not be trusting a random stranger. I could afford to use a trustworthy bank who would lose a lot more than a million dollars if they stole it and got caught. If it seems to be too ...


4

If your primary goal is no / minimized fees, there are 3 general options, as I see it: Create a long-term portfolio of specific assets yourself (risky, and also time consuming); Put your money in an unmanaged index fund (as risky as the index you put it to - ie: a venture index with small cap companies would be riskier in some ways than an index of large ...


4

I don't know of any financial account that offers that kind of protection. I'm going to echo @Brick and say that if you need that level of restrictions on the money, you should talk to a lawyer. Your only option may be to setup a trust. If you are willing to go with a lower level of restrictions on the account, a 529 plan could do the job. A 529 Plan is an ...


4

Can we name both children as co-executors? Yes, you can name both children as co-executors. Can they be the witnesses? Maybe, in most states Witnesses must be not be beneficiaries of your estate (In my view it's a good idea to have disinterested witnesses even if the state doesn't require it). It is also helpful if they are people likely to be ...


3

I would like to specifically address your second question. There are a number of great resources available online, but I found that when I was first starting out the website Investopedia was a very helpful resource. There you will find a wide range of information regarding investing, investment vehicles, and glossaries of key terms with robust definitions ...


3

An investment trust is quoted just like a share. You just compare what you paid (your book cost) with its current share price, not the NAV, as a trust's price can be at a premium greater than the actual share price or a discount.


3

No, you will not have to pay taxes on the corpus (principal) of the trust distribution. If the trust tax forms were filed correctly, you might have as much as a $9000 loss that will flow to you on the trust's termination. Previously, the trust was supposed to file a return each year, and either claim the dividends or realized cap gains each year, and pay ...


3

Should I sell stocks to buy it outright and thus avoid a mortgage as I move to a fixed income No. Stocks on the whole has outperformed fixed income in terms of returns and the last thing you want to do is kill the golden goose which lays the eggs. With interest rates at record low and set to stay that way for the next couple of years , you should ...


3

You should probably talk to an estate attorney (a lawyer duly licensed in your State) and a licensed tax adviser (EA/CPA licensed in your State) about this, as this may become tricky. It depends greatly on how the trust is defined and who are the beneficiaries.


3

The trust owns the property, the trustees control the property and the beneficiaries receive any income from rent or gains from sale of property.


3

The FDIC periodically checks to make sure the bank is accurately accounting for all the deposits in the bank through a compliance Reporting Review verifies whether the insured institution accurately calculates and reports data upon which the FDIC assesses deposit insurance..... issues a report discussing the institution’s compliance with assessment ...


3

I doubt you will get an answer equal to "You can't save when you have debt". Because most mortgages are for decades, very few people would be able to save for retirement if they had to wait to be mortgage free. The difficulty in saving occurs when the interest rate is very high (18% or more) and the interest is not deductible. Such as with credit cards. The ...


3

I've never used any of those sites for generating legal documents, however, for something as important as the documents you are asking about, I would just hire a lawyer. If you can't afford to have one write the document for you, at least one who will check and be behind it after the trustor dies (although I'm not sure that would really save you much money).


3

Can we name both children as co-executors? Yes but that means that they both have to act together to make any decisions, which may sound good but there's often a lot of small decisions that have to be made. They both have to sign any paperwork, sign checks, may need to appear in court, etc. What if they end up living in different parts of the country? It'...


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