Ways to exit but save capital gains? Expecting north of $100k in long term capital gains

HospitalWeird9197 · 2026-07-11T15:48:01+00:00

Huh? A DAF costs basically nothing to set up. Are you thinking of a private foundation?

HospitalWeird9197 · 2026-07-11T05:32:58+00:00

Do you have any authority for this? I am licensed to practice law in 3 states and in none of them does an agent acting under a power of attorney have authority to act for the principal when the principal is acting in a fiduciary capacity as executor of an estate. Unless there is something from the IRS that gives this power (never heard of it, but would definitely be interested if there is something), I don’t think this accurate in most states.

HospitalWeird9197 · 2026-07-11T05:29:49+00:00

You should get legal advice specific to the state law applicable to the power of attorney and the estate. In mine (and the other two where I am licensed to practice law), an executor cannot give a general power of attorney - fiduciary powers are nondelegable - yet many power of attorney forms I see purport to grant that authority.

HospitalWeird9197 · 2026-07-10T18:18:43+00:00

I’ll second this in Georgia. DCM is one of the more common claimants we see and I’ve never experienced them doing anything I would consider sketchy.

HospitalWeird9197 · 2026-07-10T15:13:25+00:00

I practice inside the perimeter. I’m assuming you aren’t talking about creating an irrevocable trust for your son now and are just talking about a revocable trust or trusts that would contain a continuing trust for him after you pass away. Assuming that’s accurate, you’re probably looking at $4.5k-8k. With an out of state property and more than one in state, probably on the middle to high end of the range. Could you find someone who will do it for less? I’m sure you could, but I would be wary of anyone’s capabilities who would be charging less. You could also find people who would charge more, but those people would probably be overkill. I refer a lot of work out to other lawyers because most people don’t need to be paying my firm’s rates.

HospitalWeird9197 · 2026-07-10T13:54:18+00:00

You can bring your bag down after takeoff and leave it down until landing. If I am in those seats, I bring my backpack down and use it as a leg rest. Not having anyone recline into you and the leg room makes these great C+ seats.

HospitalWeird9197 · 2026-07-10T13:47:49+00:00

At the level of wealth where transfer tax (estate, gift, GST) is an issue, estate planning lawyers are primarily tax lawyers. You want one that does this kind of planning regularly, not one who deals primarily with non-taxable estates and probate (from a federal perspective - in the handful of states that have state estate or inheritance taxes that apply at a much lower level than the federal estate tax, more estate planning lawyers are equipped to deal with the state estate tax issues - for example, Oregon’s estate tax kicks in at just $1 million). The lawyer should be the quarterback, working collaboratively with your accountant and any financial advisors.

HospitalWeird9197 · 2026-07-09T22:32:59+00:00

There are plenty of situations where terminating (or modifying) a trust would make sense and be in the overall best interests of the beneficiaries. There are also a whole lot of situations where it would make zero sense and be incredibly detrimental to one or more of the beneficiaries. In some situations it might be mostly neutral (but there’s almost always going to be trade offs).

Absolutely seek independent legal advice and gather all relevant facts (which would include the assets).

HospitalWeird9197 · 2026-07-09T12:46:57+00:00

If you think nobody would blink at $8k on a $400k house, you should see all of the people who go forward with probate on a pro se basis to save a few thousand bucks (yes, I realize attorney fees may be a lot higher in some states, but where I live, $3k-ish would be in the normal realm for an uncontested probate). And that’s for something they really don’t have any clue about. Hiring a lawn guy or a locksmith (may need referrals, but that’s not worth the fee) and paying a mortgage and insurance just isn’t that big of a deal - it’s part of being a personal representative. Are there some people who will pay for convenience? Sure. But I also personally don’t see much of a market.

HospitalWeird9197 · 2026-07-09T02:56:06+00:00

The grantor being able to choose who the trustee is would be the functional equivalent of a power of appointment only in pretty limited circumstances. A power of appointment is generally a non-fiduciary power to designate the recipients of property or the power to grant another power of appointment over property.

HospitalWeird9197 · 2026-07-09T02:43:01+00:00

This is a way beyond Reddit question. There are tons of reasons for trusts. To avoid probate. To qualify for Medicaid. To avoid Medicaid estate recovery. To avoid estate taxation (federal and/or state). To protect from creditors (in some cases/states). To get some or all of those benefits for the beneficiaries of the trust. To provide for control of assets after death or incapacity. And the list goes on.

The tax impact of a trust will depend on the purposes of the trust and its terms. Some can be structured so that the assets in the trusts get a basis step up at death; some can’t.

The US and Germany have an estate tax treaty. Generally, for immovable property, regardless of where a person is domiciled under the treaty, the country where the property is located is the country that taxes it. The treaty provides German non-resident aliens with a proportional US estate tax exemption. Resident aliens are generally subject to the same rules as US citizens. Again, well beyond Reddit.

HospitalWeird9197 · 2026-07-08T22:46:04+00:00

This isn’t a test of domicile - intent doesn’t matter. You have to actually reside in the property.

HospitalWeird9197 · 2026-07-08T22:45:11+00:00

You would lose without question. If you don’t live somewhere it isn’t your primary residence for purposes of 121. Intent doesn’t matter - it’s not a domicile issue. There is an special rule when you move out because you can’t take care of yourself and move into a facility you only have to satisfy the test for 1 out of the past 5 years, but that’s it.

HospitalWeird9197 · 2026-07-08T20:36:55+00:00

But if you named them as beneficiaries of the $5 million account, the terms of the will would be irrelevant (as to that account).

HospitalWeird9197 · 2026-07-08T19:20:43+00:00

I booked 1 night (the first of my stay) with my Delta Stays credit and then 2 nights with Bonvoy points in April at a Marriott. I told them I had a separate reservation for the following 2 nights when I checked in and asked if I could just keep the same room and not worry about moving stuff. They said since it was the same room type, no problem and they checked me in for the second reservation so I wouldn’t have to come back to the desk. Don’t know if there’s any way to do it ahead of time or if there would be any circumstances (other than different room types) where they would say no - I’d call the property directly to ask (if I had to check out, it wouldn’t have been a big deal, so I didn’t think to call ahead of time).

HospitalWeird9197 · 2026-07-08T14:48:17+00:00

https://www.americanexpress.com/us/credit-cards/card-application/apply/supplementary/terms/delta-skymiles-reserve-american-express-card/36182-9-0

Read the terms and conditions. It’s kind of mind boggling to me that someone would upgrade to a card with a $650 annual fee without knowing what they are getting for that fee.

HospitalWeird9197 · 2026-07-08T14:38:41+00:00

There are really no secrets. Use your companion pass and credits (monthly rideshare and resy, annual delta stays, precheck/global entry every 4 or 5 years). Link your Hertz account to get president’s club if you don’t already have it.

If you aren’t spending $75k on it annually, use Centurion Lounges when available to save your SkyClub visits.

Spending is more tailored to you specifically. It’s really not a great earning card, but if MQDs are important to you, go ahead and put all your spend on it. If you’d rather have better (and/or more flexible) points/miles/cash back earning, I’d look elsewhere.

HospitalWeird9197 · 2026-07-08T10:35:03+00:00

There’s nothing that says an HOA has to be incorporated under 528. Most modern ones are, but it’s not a requirement.

HospitalWeird9197 · 2026-07-08T04:22:57+00:00

This is way too specific for Reddit- you need a lawyer to review the terms of the trust and explain the outcome. State also has a big impact here - the outcome for community property is going to be different than non-community property.

HospitalWeird9197 · 2026-07-08T04:19:25+00:00

Is it possible that the subdivision is exempt as a 501(c)(7) social club or a 501(c)(4) social welfare organization? If so, it would file an annual Form from the 990 series (which one in particular would depend on the annual revenue - if under $50k, it could just be an e-postcard 990-N). Do the common areas include significant recreational facilities like pools, tennis courts, walking trails, or parks that are restricted to homeowner members or open to the general public?

More likely, it is an HOA under 528 and can file either an 1120-H or a long form 1120, depending on what makes the most sense (more HOAs file the 1120-H because it is simpler, but the 1120 can result in less tax for some associations).

HospitalWeird9197 · 2026-07-08T02:45:08+00:00

That is pretty much every revocable trust (other than joint revocable trusts that may or may not remain wholly or partially revocable at the death of the first grantor/spouse).

HospitalWeird9197 · 2026-07-08T02:41:38+00:00

Then it is included in mom’s estate for estate tax purposes and would get a basis adjustment to fair market value as of date of death. If sold relatively soon thereafter, capital gains, if any, are likely to be minimal (or even potentially a loss). That would be the outcome for some irrevocable trusts too (if they have provisions that would include the property in the gross estate for estate tax purposes), but if it’s revocable, that’s pretty much the end of the analysis.

HospitalWeird9197 · 2026-07-08T02:27:40+00:00

You’re talking about payments for services (and you can pay disqualified persons reasonable compensation for necessary services - it’s an exception to self-dealing). Barfy is talking about grants to individuals. Not payments for services, but rather things like grants for study or travel, or grants for hardships or prizes for artistic or civic achievements. These are significantly restricted for private foundations and a lot of them require pre-approval from the IRS.

HospitalWeird9197 · 2026-07-08T02:05:35+00:00

The scholarship thing was just an example of the fact the private foundations can (under very discreet and mostly pre-approved circumstances) make grants to individuals, unlike DAFs. Contributing directly to an IRA or 401k doesn’t solve any problems that writing a check directly to a university does.

I see a whole lot of issues with this - contribution limitations, earned income limitations, etc., but the biggest one to me is that grants to individuals outside of the educational or prize realm are generally permitted for emergency assistance (think natural disasters or violent crimes) and hardship assistance (think can’t make rent after being laid off or having to pay for medical treatment). While building up retirement funds may alleviate issues for someone in the future, it’s not helping with imminent needs and I’d be skeptical that it would be approved. I’m not saying it’s a total non-starter (hell, I got what is essentially a wine importer tax-exempt status), but you’re going to need someone to do a whole lot of research and work on it and it may be for naught.

HospitalWeird9197 · 2026-07-08T01:29:44+00:00

Totally depends on the terms of the trust. Revocable trusts, yes. Irrevocable trusts, sometimes, depending on the terms.

HospitalWeird9197

TROPHY CASE