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  • #16
    Umbrella coverage is a really nice policy to have, especially since they take care of nuisance claims. Can be advantageous, they likely use decent attorneys.

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    • #17
      define what you mean by emergency account- if it is truly an emergency account, it should not be in a muni bond fund. It should be in liquid vehicles that will not lose value (other than due to inflation)- HYS, CDs, checking accounts, cash, money market accounts etc. You're not aiming for yield with an EF. You're aiming for stability and ability to access it easily when needed.

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      • #18
        Originally posted by billy View Post
        define what you mean by emergency account- if it is truly an emergency account, it should not be in a muni bond fund. It should be in liquid vehicles that will not lose value (other than due to inflation)- HYS, CDs, checking accounts, cash, money market accounts etc. You're not aiming for yield with an EF. You're aiming for stability and ability to access it easily when needed.
        Minus the CD unless it's a fund and able draw out immediately.. yeah that's true EF. Many have a tiered EF as having that much in precovid can be a large opportunity cost.

        Very little of our taxable is outside a reversible living trust.

        ​​

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        • #19
          Can someone explain the difference between "tenants by the entirety" and "joint tenants with rights of survivorship"? Our taxable is currently setup as the latter, but a quick Google search tells me that I currently live in a state where TBE is not an option.

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          • #20
            Originally posted by DynamicHipScrew View Post
            Can someone explain the difference between "tenants by the entirety" and "joint tenants with rights of survivorship"? Our taxable is currently setup as the latter, but a quick Google search tells me that I currently live in a state where TBE is not an option.
            Google turns up several answers. No reason to regurgitate this article on The Balance.

            For other readers, if you are in a state with TBE, you also need to know that some states offer it only for real estate and others allow TBE titling for personal property, too.
            Our passion is protecting clients and others from predatory advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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            • #21
              Originally posted by jfoxcpacfp View Post

              There are many downsides to setting up trusts. An RLT will not provide any asset protection. An irrevocable trust requires you to give up control and involves a lot of expense and ongoing administration. I'm not saying that trusts are a bad thing, I'm very much in favor with them in the right situations, but don't let asset protection be the driving factor, just one of the considerations.

              When assigning ownership to one spouse or another, must also consider (hate to say it, but it's true) what the impact will be in the event of divorce, particularly in non-CP states. In the event of 2nd+ marriage with kids from prior(s), estate planning requires a very high level of concentration and thinking ahead to all of the "what if's?"
              +1 to these considerations

              Also, for clarity the expense of a trust doesn't necessarily mean administration expense - trust tax brackets max out extremely quickly creating some serious tax inefficient situations for some of the implied growth you are implying on the account. Consider your options including cost of extra insurance coverage v trust expenses to make the best educated decision with confidence.
              Founder, Coastal Wealth Planners- Fiduciary Tax-Sensitive Retirement Planning & Wealth Management www.coastal-wp.com email: [email protected]

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