I have a father in law who is a farmer and he has accumulated an estate approaching 10 million of which 80% is farmland the remainder cash, cattle, equipment etc. He formed an "S" corp decades ago and issued a small amount of stock to his wife, slightly larger amount to my wife, and a slightly larger amount to my wife's brother. None of us live on the farm or intend to farm. His wife is in an assisted living facility with my wife as guardian.
He has created a trust for the corporation which has almost all the assets. His will leave half of the trust to my brother inlaw and half to my wife. They have freedom to hold, sell, rent or do anything else they want after his death.
My wife and I have no experience at all with trusts and would apprieciate some guidance on how they work. Will we all have to sell our S corp shares, then each sibling recieve 50% of the trust, or will my brother inlaw have control after the trust takes effect due to his having 1 more share of the corporation prior to my FIL's death? What arrangements will be required by law to care for my mother inlaw should she outlive him? As I understand it the trust is established to avoid probate so will that mean his wife will be entirely dependent on her children for her care the rest of her life? I am sorry if this isn't specific enough for an intelligent reponse, I am really on new ground here. Perhaps a general primer on estate trusts from this board will help point me in the right direction.
He has created a trust for the corporation which has almost all the assets. His will leave half of the trust to my brother inlaw and half to my wife. They have freedom to hold, sell, rent or do anything else they want after his death.
My wife and I have no experience at all with trusts and would apprieciate some guidance on how they work. Will we all have to sell our S corp shares, then each sibling recieve 50% of the trust, or will my brother inlaw have control after the trust takes effect due to his having 1 more share of the corporation prior to my FIL's death? What arrangements will be required by law to care for my mother inlaw should she outlive him? As I understand it the trust is established to avoid probate so will that mean his wife will be entirely dependent on her children for her care the rest of her life? I am sorry if this isn't specific enough for an intelligent reponse, I am really on new ground here. Perhaps a general primer on estate trusts from this board will help point me in the right direction.