All Forum Posts by: Carl Petterson

Alexander - I'm an attorney. I also have some other attny/acct referrals - message me. People tend to get wrapped-up in form over substance and over-complicate the issue of "protection." It doesn't matter how well the LLC agreement is drafted if you don't respect the corporate form, run personal expenses through it, under fund it, establish it in a weak jurisdiction, etc. Just having an 'LLC' or tweaking some words isn't magic . The magic is in operations. If you run your LLC like a business, keep it funded, take minutes, and tack on a personal umbrella policy, you've done what you can. Now focus on making money.

Also, it's good to rely on experts, but I recommend you learn as much as you can about both the legal and tax sides - there are a lot of 'experts' who just became 'experts' when you contacted them. Knowlege helps you weed those types out. 

Hi Kraig! Welcome to BP. That area's hot right now - what are you trying to purchase?

@Nate Burnett It would be interesting to see if the light rails actually improved property values. One assumes it would, but did the Blue line improve Hiawatha property values? Or the Green line approve the property values along University? Not sure on that one. 

Hi Pamela - I completely agree with @Rick H.. You are going to need some sophisticated tax and estate planning advice. Much more than a free forum. Sorry - but the last thing you (probably) want to do is blow up your inherited IRA. The additional information (about the IRA trust) adds quite a bit more complication to your initial question - is the IRA still pointing to the trust - was it split - does the trustee make RMDs to you - is the IRA in your name or the trust - is the 5-year rule triggered - etc ?

The oldest beneficiary's measuring life makes sense now for calculating the RMD. 

I'm guessing perhaps your father directed his IRA to a family or marital trust for your step-mother's life. Then upon her passing split to your father's children. Or perhaps a share was slivered off during her life for each of the beneficiaries.

1. What's "more advantageous" depends on your goals. You can't roll a non-spousal inherited IRA into a solo-401k. Perhaps/maybe you can, but probably not, roll a non-spousal inherited IRA into a directed IRA. You may be able to do a trustee-trustee transfer. Call up a self-directed IRA trust company and ask. There are other concerns too though besides "wouldn't it be cool to do this, avoid some taxes, and use this pot of money I inherited" such as valuation and liquidity. RMDs suffer no one - you have to make them. Again with Rick on this one - it may be better to keep separate buckets.

2. Typically yes, one can take all their RMDs from one IRA - if they are their own. But you have a non-spousal inherited IRA which is further complicated by a trust. I'd ask your accountant and lawyer. I'd especially ask if the trust triggered the 5-year rule.

3. Yes - you're spot on. Valuation, liquidity, and regulatory requirements are the complications. It's much more cumbersome using the SDIRA -- you'll be subject to all those prohibited transactions under pub 590.

Check out Natalie Choate's book - Life and Death Planning if you're intent on going it alone.

Hope that rambling helps a little bit. Again, go with Rick's suggestion, advice is worth what you pay for it. 

Carl

How are the wholesale leads going? Connect and let's chat sometime. 

Anyone find a way on the cash-out refinance to have no broker/origination charges? Just seems like a waste. 

I've used AAA labor before for projects like this. Just google them. 

Congrats! How did you get the property?

If you have intent to live there now, and actually live there for a bit, I think you're probably fine. After 6 months they aren't going to be checking the windows to make sure you still live there. Life happens and people move around. it's about intent to stay now, which it sounds like you have. 

You can also go downtown and pull records up which are not posted online, review deeds, etc.