Passing on assets and wealth ?

[UserRequested]

Quote:

Originally Posted by bondi688 There are stories about abuse by trustees charging very high fees for their own benefits, some stole from the trust. And how the trust will do also depend on their ability to manage and invest the funds.

I have on and off thought about a trust. We have one child who will inherit our assets when we pass over to the happy hunting ground in the sky.
Our concern is that if we both die while he is relatively young and not quite mature enough to handle the finances. I am hoping at least one of us lives till our son is at least 40
My main concern with a trust is precisely as you describe.

[kimcdougc]

Quote:

Originally Posted by frayne Forgive me if this topic has already been covered but I did a search and did not find anything along the lines that I was looking for. Specifically what is the best way to pass on assets and wealth. Most here have put a lot of blood, sweat and tears into getting FIRE'd. But how much planning have you put into place to pass on assets to heirs once you take the dirt nap ? Is a will sufficient, does one need a trust and if so, what kind of trust, etc. ? As much as I hate to admit, I am pretty ignorant when it comes to this topic. Would appreciate any advice from the wise sages of the forum as to thier respective approach to passing on wealth and assets. For a starting point, say one has $1 million is stocks, funds, cash and $300K worth of hard assets, is married with one adult child who is married and has two children. The main concern is making sure the grandkids get a good eduction.

frayne,

I downloaded Suze Orman's package from her website one night when she gave a free code. Put our estate in trust between husband and wife then equal shares to the kids. Her estate package included a will, POA's and health care directives. You don't have to spend lots of dollars to do this.

[JOHNNIE36]

Quote:

Originally Posted by jags I have on and off thought about a trust. We have one child who will inherit our assets when we pass over to the happy hunting ground in the sky. Our concern is that if we both die while he is relatively young and not quite mature enough to handle the finances. I am hoping at least one of us lives till our son is at least 40 My main concern with a trust is precisely as you describe.

Our son is the trustee of our trust and if something sould happen to him, then our daughter becomes the trustee. However, while my wife and I are still alve, we are the trustees of that trust. We can modify the trust in any fashion while still on this earth. When we are gone, should something happen to both our son and daughter, and the grandkids are still not "of age", everything is to be sold and the proceeds put into a stock fund that we have designated. The grandkids get their shares as they reach 21 years of age.

[imoldernu]

For inherited IRA's. The Stretch Strategy.

http://individual.troweprice.com/sta...StretchIRA.pdf

[misanman]

We are funding 529s for the grandchildren's education. The distribution of our estate would be governed by our wills.

[SJ1_]

Quote:

Originally Posted by Chuckanut I am passing on my wealth while alive through gifts and taking kids on trips with me.

+1

We did our first last family vacation last July w/ the son and grandchildren, best vacation ever. We have another one planned this July.

They are making a lot more than we ever did so there is no concern about leaving anything.

[youbet]

Lots of excellent comments.

+1 on funding 529b's for the grandkids.

+1 on taking the kids and grandkids traveling with you.

+1 on passing IRA's on to the kids (if you don't live long enough to spend it!).

+1 on using professional help to set things up to ensure that your wishes are met.

I also agree with the comments on the difficulty of keeping things "fair" as perceived by the following generations while still passing things along in proportions that seem "right" and pragmatic to you. For example, we have one special needs grandson who will get a trust to partially support him for life. The other grandkids will not get as much. They'll have to live with it.

[UserRequested]

Quote:

Originally Posted by JOHNNIE36 Our son is the trustee of our trust and if something sould happen to him, then our daughter becomes the trustee. .

IMO it would be fairer and safer to make them joint trustees. 2 heads are better than one . Also it would potential misunderstandings down the track.

[steelyman]

Quote:

Originally Posted by jags IMO it would be fairer and safer to make them joint trustees. 2 heads are better than one . Also it would potential misunderstandings down the track.

In general, I agree but a lot depends on family dynamics and trust. The two heads thing is logical, but slows things down. If the successor trustees have faith in each other, one can make the decisions as long as they kerp the other informed. Also, remember that the original trust owner (the grantor? Can't remember) can grant control while still alive (I suppose that depends on how the trust was written).