How Is Obamacare Working Out for You?

[GenuineRisk]

Originally Posted by Danzig

a lot of wealthier people buy 'second to die' life insurance policies. that way, when both parts of the married couple pass, the benefits are paid, tax free of course, to the person inheriting in order to pay estate taxes.

That is very interesting; I didn't know that. I know someone who works in trusts and estates at a law firm, and he said most of what the law firm does is help ultra wealthy folks figure out how to avoid their estates paying out any taxes at all when they die. Lotta money and valuables held "in trust," which means that an individual doesn't technically own it, a trust, which never dies, owns it.

Of course, the Commonwealth of Pennsylvania has estate tax on everything a person owns, and if you aren't a direct descendant of the person, the tax will be 15 percent (it's 4.5 percent on direct descendants). So probably the best legal advice there is not to die as a resident of Pennsylvania.

[Danzig]

Originally Posted by GenuineRisk

That is very interesting; I didn't know that. I know someone who works in trusts and estates at a law firm, and he said most of what the law firm does is help ultra wealthy folks figure out how to avoid their estates paying out any taxes at all when they die. Lotta money and valuables held "in trust," which means that an individual doesn't technically own it, a trust, which never dies, owns it.

Of course, the Commonwealth of Pennsylvania has estate tax on everything a person owns, and if you aren't a direct descendant of the person, the tax will be 15 percent (it's 4.5 percent on direct descendants). So probably the best legal advice there is not to die as a resident of Pennsylvania.

Ask him about it, its a very clever way to handle those taxes. Then on trusts, you have revocable and irrevocable...the latter is probably what wealthier folks do..I know when we talked to the guy handling our trust, I asked if revocable would protect against what I said above about nursing homes, it doesn't. There are rules tho to protect one spouse if other has to get care..Not sure about irrevocable...fits for some but I didn't ask about it. But some folks are uncomfortable with the irrevocable part! Also,, wealthy folks can afford a nursing home or home health..or they have long term care insurance. I recommend everyone look into that!
You can make the trust the beneficiary of life insurance....but you can also place someone else as the policy owner to protect it in case of a nursing home issue, just has to be at least five years before. Right now its a five year look back for assets, but they're talking about changing it to seven...


Oh, and if anyone is buying CDs to have money to leave their kids...take at least a third of that money and buy a life policy.
A 5000 CD gets you five k, and then interest right now is beyond awful
. take that five k to your life agent, let him/her show you what it will do.

[GenuineRisk]

Originally Posted by Danzig

Oh, and if anyone is buying CDs to have money to leave their kids...take at least a third of that money and buy a life policy.
A 5000 CD gets you five k, and then interest right now is beyond awful
. take that five k to your life agent, let him/her show you what it will do.

A life policy with a beneficiary is also a way to circumnavigate estate tax if your state imposes it. Unless, of course, you list "Estate of" as your beneficiary!

No kidding about CDs having crappy interest rates. Inflation is still talked about like the big bugaboo, but the US policy on keeping it low has led to savings accounts and CDs being worthless as places to grow your income. I remember opening an IRA when I was 25, and then at some point a few years later looking at the calculations of how much I'd have at retirement if I kept it in a basic savings IRA.

I went out the next day and bought "Mutual Funds for Dummies."

[GenuineRisk]

And in the D'oh! Department:

http://crooksandliars.com/2015/02/sh...fy-aca-raising

[Danzig]

Had a lady in my office the other day...Hubby's a truck driver, they had no health insurance. She had to have open heart surgery, they are struggling to pay over 200k in bills from that. She'd had testing done, the doc called her and said go to the er immediately. Had they not done that testing, we wouldn't have ever had that conversation, because she would be dead.
Also, luckily, they now have insurance because she can no longer be denied due to preexisting issues.

[GenuineRisk]

Originally Posted by Danzig

Had a lady in my office the other day...Hubby's a truck driver, they had no health insurance. She had to have open heart surgery, they are struggling to pay over 200k in bills from that. She'd had testing done, the doc called her and said go to the er immediately. Had they not done that testing, we wouldn't have ever had that conversation, because she would be dead.
Also, luckily, they now have insurance because she can no longer be denied due to preexisting issues.

Jesus- $200k! I saw that Arizona sheriff had something like $22,000 raised so far for his and his wife's health bills. I wonder how much of them that will cover.

[Danzig]

Originally Posted by GenuineRisk

Jesus- $200k! I saw that Arizona sheriff had something like $22,000 raised so far for his and his wife's health bills. I wonder how much of them that will cover.

I hate to think the bills the parents of the little boy that ended up with a heart transplant. And hed lived in children's for months before the transplant. I'll never forget how excited everyone was when he got his heart...and for the first time in forever, actually had color in his face. God, that poor baby. His name was Jude....and that's the name of the patron saint of lost causes.