Using one of our era's heroes as a metaphor, it was more important for Evel Knievel to not die in the Grand Canyon than it was to arrive on the opposite rim. Never bet the ranch on red or black. Yes, avoid disasters to live another day.
History is a guide, not a rule. For instance you reference waterfront property, but rising seas, increased storms, reduced availability and increased cost of hazard insurance (and perhaps no availability) could change that dynamic. Who knows what stresses could impact bitcoin? Everything else of value has had an intrinsic, pragmatic use, or at least esthetic appreciation, vs. contrived creation. Bitcoin seems so much like Franklin Mint, china commemoratives, etc., that are bought on the assumption that scarcity secures value, whereas it is only demand that creates value - and no one wants that crap regardless of how beautiful or rare.
You probably won't live long enough for box rental fees to exceed the safe cost. Unless your home is sprinklered, you are also giving up fire protection since paper can be destroyed by heat not just burning. You are also less safe than if in a bank.
There are serious consequences, tax and otherwise, to adding anyone to the deed. If it is sold while you live, it reduces the amount of capital gain that will avoid tax. It puts it at risk if there is ever a judgment against the co-owner. It is the worst thing to do if there are multiple heirs since they might not agree on a plan. No doubt there are other issues, so be sure to research and discuss with an attorney in your state before doing it.
I'm with you. Timing not only takes time, but also requires assumptions and has a lousy record. But I do disagree with "have faith that tomorrow will be brighter." Instead, I believe it is the days after tomorrow that are more important.
If you believe in "pay it forward," then why not go forward beyond your family? Besides what I do for my children annually (mostly by funding their Roth IRAs), and having paid for their higher education, I will be leaving them about 25% of my current estate, which is enough to provide more generational education funds, travel, perhaps retiring a few yrs earlier, and general margin of comfort. The rest will go to well researched charities that I support now. They need it more.
My rule of thumb is assume your attorney may have him/herself/firm of primary concern, not you. That includes time billed for "drafting" documents when they are actually boilerplate, then the subsequent charges for explaining in future years what the gobbledegook they wrote means. For sure trust tax rates will remain higher than individuals, so is a bright caution flag to remember. Then there is so much more. Another anti-attorney concern is that to earn fees, many actively promote transfer of assets to then rely on medicaid and other govt programs. The vast majority of Americans who can afford it incur debts and responsibilities with the intention of honoring them. Why would we want to leave this life with questionable tactics to avoid repaying obligations? If you knew you were going to die tomorrow, would you go to neighbors and stores to steal stuff to give your children and others? Hopefully no, so remember than when you get the pitch. Spend your money on your obligations, not on attorney fees.
No, neither irrevocable or revocable trusts are necessary when there are non-adult children - but it may be advisable. Depending on amount of assets, family/relative situation simple guardianships or 529 deposits might suffice.
You definitely improved your estate matters by naming those nonprofits. However, I would contend even better would be making them primary beneficiaries or heirs for some of your funds. Hopefully it should be on the table for all of us to consider.
Comments:
Using one of our era's heroes as a metaphor, it was more important for Evel Knievel to not die in the Grand Canyon than it was to arrive on the opposite rim. Never bet the ranch on red or black. Yes, avoid disasters to live another day.
Post: Luck Would Have It
Link to comment from May 25, 2024
History is a guide, not a rule. For instance you reference waterfront property, but rising seas, increased storms, reduced availability and increased cost of hazard insurance (and perhaps no availability) could change that dynamic. Who knows what stresses could impact bitcoin? Everything else of value has had an intrinsic, pragmatic use, or at least esthetic appreciation, vs. contrived creation. Bitcoin seems so much like Franklin Mint, china commemoratives, etc., that are bought on the assumption that scarcity secures value, whereas it is only demand that creates value - and no one wants that crap regardless of how beautiful or rare.
Post: Where’s the Value?
Link to comment from May 25, 2024
They say being a good investor takes patience. Perhaps being a good oenophile takes ever more.
Post: Where’s the Value?
Link to comment from May 25, 2024
You probably won't live long enough for box rental fees to exceed the safe cost. Unless your home is sprinklered, you are also giving up fire protection since paper can be destroyed by heat not just burning. You are also less safe than if in a bank.
Post: Unsettling Experience
Link to comment from May 12, 2024
There are serious consequences, tax and otherwise, to adding anyone to the deed. If it is sold while you live, it reduces the amount of capital gain that will avoid tax. It puts it at risk if there is ever a judgment against the co-owner. It is the worst thing to do if there are multiple heirs since they might not agree on a plan. No doubt there are other issues, so be sure to research and discuss with an attorney in your state before doing it.
Post: Unsettling Experience
Link to comment from May 12, 2024
I'm with you. Timing not only takes time, but also requires assumptions and has a lousy record. But I do disagree with "have faith that tomorrow will be brighter." Instead, I believe it is the days after tomorrow that are more important.
Post: Testing My Faith
Link to comment from April 13, 2024
If you believe in "pay it forward," then why not go forward beyond your family? Besides what I do for my children annually (mostly by funding their Roth IRAs), and having paid for their higher education, I will be leaving them about 25% of my current estate, which is enough to provide more generational education funds, travel, perhaps retiring a few yrs earlier, and general margin of comfort. The rest will go to well researched charities that I support now. They need it more.
Post: Good for Them?
Link to comment from March 31, 2024
My rule of thumb is assume your attorney may have him/herself/firm of primary concern, not you. That includes time billed for "drafting" documents when they are actually boilerplate, then the subsequent charges for explaining in future years what the gobbledegook they wrote means. For sure trust tax rates will remain higher than individuals, so is a bright caution flag to remember. Then there is so much more. Another anti-attorney concern is that to earn fees, many actively promote transfer of assets to then rely on medicaid and other govt programs. The vast majority of Americans who can afford it incur debts and responsibilities with the intention of honoring them. Why would we want to leave this life with questionable tactics to avoid repaying obligations? If you knew you were going to die tomorrow, would you go to neighbors and stores to steal stuff to give your children and others? Hopefully no, so remember than when you get the pitch. Spend your money on your obligations, not on attorney fees.
Post: Broken Trust
Link to comment from January 30, 2024
No, neither irrevocable or revocable trusts are necessary when there are non-adult children - but it may be advisable. Depending on amount of assets, family/relative situation simple guardianships or 529 deposits might suffice.
Post: Broken Trust
Link to comment from January 30, 2024
You definitely improved your estate matters by naming those nonprofits. However, I would contend even better would be making them primary beneficiaries or heirs for some of your funds. Hopefully it should be on the table for all of us to consider.
Post: Our Estate Plan B
Link to comment from January 25, 2024