My wife and I are have 97 working days left. We are in the process of re-doing our wills. We are setting up a trust for our 15 year old son in the event that we both die together (we will be traveling extensively).
I'd love to hear some opinions on what instructions to give the trustee with regards to the actual logistics of consolidating accounts. We currently have 2 ROTHs, 2 457b accounts, and taxable accounts at Optionshouse, Vanguard and E-Trade. Consolidate down to as few accounts as possible and pay the considerable capital gains taxes? I want to make it as easy as possible on the trustee. Hes a very finance savvy person who has an MBA from Georgetown and works as a CFO, but I dont want him burdened for a very long time with this. I also dont want to be stupid and pay excess taxes.
Our son is only 15 now so hes obviously not ready to handle a large inheritance. I would prefer that he be paid a monthly "salary" for life (or at least until 30 or so). That might be way too much work for the trustee though. Hes a friend but is he really going to want be doing that 10+ years after we are gone?
How have people handled this? Give him a flat amount of money at 21, 25 and 30? No matter if he gets a flat amount of money or is paid monthly, what instructions did you give the trustee regarding how to invest the money in the meantime?
I'd love to hear some opinions on what instructions to give the trustee with regards to the actual logistics of consolidating accounts. We currently have 2 ROTHs, 2 457b accounts, and taxable accounts at Optionshouse, Vanguard and E-Trade. Consolidate down to as few accounts as possible and pay the considerable capital gains taxes? I want to make it as easy as possible on the trustee. Hes a very finance savvy person who has an MBA from Georgetown and works as a CFO, but I dont want him burdened for a very long time with this. I also dont want to be stupid and pay excess taxes.
Our son is only 15 now so hes obviously not ready to handle a large inheritance. I would prefer that he be paid a monthly "salary" for life (or at least until 30 or so). That might be way too much work for the trustee though. Hes a friend but is he really going to want be doing that 10+ years after we are gone?
How have people handled this? Give him a flat amount of money at 21, 25 and 30? No matter if he gets a flat amount of money or is paid monthly, what instructions did you give the trustee regarding how to invest the money in the meantime?