SecondCor521
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Hi all.
A poster over on Bogleheads regularly recommends that inheritances are provided in trust rather than outright, asserting that doing so keeps those inheritances out of the beneficiary's estate. He also asserts that this helps with other things like bad spouses and Medicaid and bankruptcy.
I am interested in this idea for estate tax avoidance, but am overall dubious for various reasons which I can go into if it becomes relevant.
If it is a legitimate idea and not just the commentary of a single BH poster, it occurs to me that there must be others here on this board who are in a similar situation: an inheritance now from an 80-something or 90-something grandparent level added to what a FIRE-ish couple in their 50's or 60's now might accrue on their own, plus compounding for a couple more decades, could result in massive estate tax bills.
And surely (?) someone in those sorts of shoes has thought about that and thought that maybe that's a potential planning issue. Perhaps, like me, they have heirs that they might rather see the money go to.
So is anyone out there also in this situation? If so, what have you done about it? Do you provide in trust rather than outright? What kinds of trusts do you use if so? What have you learned along the way about the subject?
A poster over on Bogleheads regularly recommends that inheritances are provided in trust rather than outright, asserting that doing so keeps those inheritances out of the beneficiary's estate. He also asserts that this helps with other things like bad spouses and Medicaid and bankruptcy.
I am interested in this idea for estate tax avoidance, but am overall dubious for various reasons which I can go into if it becomes relevant.
If it is a legitimate idea and not just the commentary of a single BH poster, it occurs to me that there must be others here on this board who are in a similar situation: an inheritance now from an 80-something or 90-something grandparent level added to what a FIRE-ish couple in their 50's or 60's now might accrue on their own, plus compounding for a couple more decades, could result in massive estate tax bills.
And surely (?) someone in those sorts of shoes has thought about that and thought that maybe that's a potential planning issue. Perhaps, like me, they have heirs that they might rather see the money go to.
So is anyone out there also in this situation? If so, what have you done about it? Do you provide in trust rather than outright? What kinds of trusts do you use if so? What have you learned along the way about the subject?