A while ago we had a little discussion about estate planning. This article highlights the importance of having a trust - if you don’t want to publicly disclose your assets and tell the world who gets what.
(RIP, Paul. We miss you.)
^^If you have a simple estate (home, stocks/bonds, 401k, IRA), and a simple family structure, then PoD and ToD can cover most if not all of it and keep it away from prying eyes. (Not that any one in the public would care about my stuff!)
That’s my plan. I have an only child. It’s very simple. If I can leave the trust in the state with no inheritance tax, I will keep the trust when I move to a state that taxes it. Otherwise, it seems simpler to do TODs.
Obviously, TOD etc. are great for assets that allow such transfer.
Question. If have a trust, does that affect the stepped up basis heirs otherwise get upon inheriting? I know that if I get anything from my parents that will make a big difference if we didn’t get it stepped up because they’ve held stocks for so long…
Boy, it sure get confusing when you only do your RMD (Required Minimum Distributions) once/year and kind of just let the investments ride between times. Figuring out the right way to get the funds liquidated and then get a check sent to you is not as easy and transparent as I had thought. I’m sure glad I decided to do the RMDs this month rather than net month and then stress when things aren’t working as expected. This is especially important when the funds are in investments that need to have some sold in order to be able to make the RMD. 
It’s very humbling and makes me feel like a dunce. Maybe I will try doing it earlier in the year next year!
@HImom --very true! I use the RMD to pay my mother’s federal taxes, but I am having trouble pulling together the info I need in order to calculate her tax liability. (Medical and charitable…plus her pension is not subject to state tax, so it really helps to have the tax software.) I will be much better off overpaying the federal tax than telling her she owes $500 in March. Psychological difference.
I don’t quite understand why RMD is difficult. Don’t you just divide the balance at the end of last year and with a number given on IRS website?
Right…my RMD is pretty clear (I have one on an inherited IRA).
I just got a love note from TIAA Cref about this account. Apparently starting in 2019, CT is requiring they withhold taxes…which is FINE with me.
It’s not complicated, but it is if the system is down for periodic maintenance when you’re trying to do it.
Last nite, learned Schwab and Fidelity both do maintenance at midnight Sat nite, which is why I was having issues.
It also is less straightforward if you have to liquidate some assets to take your RMD. I was going to sell but was warned to consider market might be very high or low when it opens so have opted to wait until after it opens rather then selling while market is closed.
It is good that I have over a month before 12/31. Next year, might start earlier.
@HImom - use limit orders if you can.
Ok. Good idea. Can consider this as well.
@Iglooo – The brokerage firm performs the RMD calculation. I just need to tell them how much to remit to the IRS for federal taxes as my mother does not pay taxes throughout the year. The only complication is the new tax code and trying to encourage her to add up her medical expenses now so that I can itemize for her.
@CT1417 will she have more than $12000 in medical bills?
@thumper1 — Perhaps (lots of in-home care only partially reimbursed by LTC and oh so many medical procedures and equipment for the home), but perhaps I am mistaken…I thought that I could sum up her property taxes capped at $10K + medical costs in excess of 7.5% of her AGI + charitable contributions, and if those three exceed the $12K standard exemption, she will be better off itemizing.
PLMK if I am wrong!
Quiet day on this thread. Is everybody busy working on benefits enrollment ?
@CT1417 yes…it’s all of those things to exceed the standard deduction.
The way your post was written, I thought your mom was living with you.
I thought medical expenses were over a certain %age of income…
But I’m no tax expert on medical expenses!! And with all the tax code changes…yikes.
@BelknapPoint are all unreimbursed medical expenses considered deductible for tax purposes?
DW brought in a financial planner she met at a networking event, to look over our finances and see how prepared we are for retirement.
His grand plan is to move all our money to his company, where he will invest it in a bunch of mutual funds with a 5.5% load and fees over 1% a year. Who buys funds with loads these days? Crazy.
He tried to convince me that actively managed funds are better than index funds, and had some cherry-picked data to prove his point.
His one legit point is that I have too many mutual funds, which have just kind of piled up over the years, and his company’s program said the overall beta is too high (assuming his calculations are correct).
Not buying what he is selling.
He did convince DW we could actually retire without starving though. 
I’ll consolidate your mutual funds for 5% and 0.5%! 
Me: “Hey DH, when you retire our COBRA will only be $1000 per month!!! We can keep it for 18 months!!”
DH: “You can keep it for 36 months if I die”
Me: “No, that’s not the plan. We have to spend down your IRA, starting when you’re 70. Take your BP pill and get with the program.”