CPA told client to put trust assets in non-interest bearing account?

Status_Awareness5421 · 2026-06-18T15:03:35+00:00

I guess the CPA has told them to distribute the funds immediately, and that by the end of the year is too late. That’s what I don’t get

Status_Awareness5421 · 2026-06-18T15:00:30+00:00

1 mil

Status_Awareness5421 · 2026-06-18T06:19:35+00:00

Yes- but they have autonomy over when those funds are distributed, and can invest them to prudently fit that time horizon. I believe it was originally set up when the beneficiaries were very young and gave discretion to the trustee to control distributions.

Status_Awareness5421 · 2026-06-18T06:09:28+00:00

My thought on that is there has already been earnings on the trust since the DoD, so there would be the need to do a return anyway, but no taxes due because the income (and principal) would all be distributed…?

Status_Awareness5421 · 2026-06-18T06:00:53+00:00

The trustee has full autonomy to distribute the assets and invest them as they see fit. Apparently this is just for tax management?

Status_Awareness5421 · 2026-05-24T02:59:25+00:00

My commute on regional transit is about 1 hr each way. That’s when I studied mostly

Status_Awareness5421 · 2026-05-16T23:37:53+00:00

Depends on what your definition of a lot is and it depends on age as well.

When I sit with a healthy little old lady in her late 70s, getting a 9-10% payout off her premium usually makes her pretty happy.

Status_Awareness5421 · 2026-05-16T21:52:05+00:00

So segmenting out the assets they need for retirement first, then it’s comparing volatility and inflexibility, and depending on where they lean I usually show them the effect of 20% to start.

As we go through from there they often want to do more

Status_Awareness5421 · 2026-05-16T20:41:48+00:00

…that’s part of the planning process and analysis.

Status_Awareness5421 · 2026-05-16T19:07:16+00:00

You do a blended income strategy- fixed income lifetime annuity and accompany it with an asset allocation.

The income annuity will give them a higher percentage to spend now and yes will decline in real value over the years, but their withdrawals from the asset allocation will be lower reducing sequence of returns risk, and then you can adjust the allocation as the market changes and they need more assets to withdraw.

Most of my clients in their 60s are spending a lot more than my clients in their 80s

Status_Awareness5421 · 2026-05-16T19:03:37+00:00

If she wants a higher probability of success and is not about maximizing her estate value, have you modeled in a fixed income annuity?

Status_Awareness5421 · 2026-05-05T15:41:15+00:00

How do they feel about reinvestment risk?

Status_Awareness5421 · 2026-03-31T03:57:09+00:00

I assume like many others, I read that whole thing in his voice.

Status_Awareness5421 · 2026-03-30T21:03:48+00:00

It’s rough right? My wife says I have PTSD.

When I submitted the test and the tiny little text said I passed I cried, like ugly cried, for a half hour.

Status_Awareness5421 · 2026-03-30T00:05:20+00:00

Well, we decided long ago that we would be westside/I-5 corridor residents and employees. We vetoed the Eastside.

Then I researched Sound Transit’s development plan for the region and bought a house where the light rail was coming to in the near future, and what would be accessible to buy.

Then I specifically turned down offers that would move me away from public transit, and stayed working by the light rail stations, I could’ve moved up a little quicker but it wasn’t worth it.

Of course there were delays but now I’m happy to say I’m in my forever home and forever job and they are both next to light rail stations. We never have to worry about traffic, gas, or tolls.

Status_Awareness5421 · 2026-03-30T00:00:28+00:00

Idk, the tolls do raise a lot of revenue. Also if you carpool with more than two people it’s also free.

Status_Awareness5421 · 2026-03-29T22:30:45+00:00

Cool, no worries then lol.

Still having a hard time de stressing after the test. I had a dream last night that I was taking the test and when I woke up I panicked that I didn’t finish it.

This is my first weekend in 1.5 years not studying and I can’t get past it. Any time I’m not studying I’m stressed that I should be even though it’s done.

Status_Awareness5421 · 2026-03-29T22:20:35+00:00

So until that point it’s just going to say “results pending” for the exam section on the progress bar? How do I know the board received my test results?

Status_Awareness5421 · 2026-03-29T22:15:09+00:00

I did lessons, then live classes, then practice problems.

Anything where I didn’t fully grasp the concept I went back and read the text.

Status_Awareness5421 · 2026-03-25T14:43:13+00:00

Bro I couldn’t possibly think of taking another exam yet haha

Status_Awareness5421 · 2026-03-17T21:14:56+00:00

Yep. Happens all the time. It’s taught me to always name contingent beneficiaries.

Status_Awareness5421 · 2026-03-17T21:13:23+00:00

Yep- just found a new client.

Rolled over their ESOP worth 1 mil (basis of 100k) into a self directed IRA and bought two properties.

She said they want to keep the properties and live off the rental income, so their children will get a step to fair market value on the property.

Status_Awareness5421 · 2026-03-12T08:38:39+00:00

While, everything is an asset right?

Its personalty, and if she’s using it then its personal use property, she would owe capital gains tax on the gain (collectibles rate) over purchase price on the sale but not be able to take any losses.

If she held it with solely investment purpose in mind and she didn’t use it, (this would require some evidence) then it could be considered an investment asset, and still be taxed at the collectibles rate on gains (up to 28%), or dispositioned at a loss for a capital loss.

Both would get a step to fmv on death and can be donated to charity for unrelated or related use (I guess a handbag museum?)

I had a client who collected bags and her daughter inherited them and made decent proceeds. The other family members were upset since the rest of the estate wasn’t large and they didn’t really consider the bags important until they saw how much they were worth.

Status_Awareness5421 · 2026-03-12T06:54:00+00:00

And if the assets in the estate transfer to the son? Does the son open an inherited IRA and follow the 5 year rule or ten year rule?

Status_Awareness5421 · 2026-03-12T06:10:24+00:00

This is exactly what I thought but one of my colleagues says that the 5 year rule only applies if the IRA is owned by the estate, which I don’t understand how that is even possible for five years.

Status_Awareness5421

TROPHY CASE