Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Hi, Brian -- I currently have a generation-skipping trust. I created it upon the advice of my attorney, mainly to protect my sons' inheritance from divorce (their father and I are divorced). I googled "legacy family trust" and they sound very similar. One difference I noticed was that the legacy family trust could be divided when the grantor dies...this was always one of my concerns about the generation-skipping trust...what happens when you have multiple heirs (in my case, two) and one wants to spend more than the other? In my case, I have no close family, other than my two sons, so my ex-husband is the executor (yes, we are friends, and yes, it's complicated!) I have always been a control freak and the fact that I can't control all of this after I'm dead causes me great anxiety I guess the best solution might be to spend it all myself!
I need to make some changes to my trust anyways, so I am going to ask my attorney about the legacy family trust...after my oldest son gets married at the end of the month...with a pre-nup in place, of course!!
@little5bee: From one control freak to another, I thank you! My Wife and children have little knowledge of, and for my children little appreciation for what has gone into building a portfolio. I just want to make sure they are taken care of while removing the ability for them to be idiots with what I built. I thought about the latter solution as well, but I'm on a mission to end poverty in my family. I've often thought about the pre-nup issue you mentioned as well. How can I protect their inheritance from greedy spouses, since we know that most marriages end horribly!
@Bitzer: I've heard it referred to that way as well.
@Bitzer: my intent is to provide a 4% payout (yearly) to my children and their children (linked by DNA to me) who are over the age of 50 for as long as it will last. So, I'm thinking Dynasty would be the way to go since I'm not interested in skipping one Generation. I want it to survive multiple generations.
There is an excellent thread on dynasty trusts on another investment website. I won't mention them by name, but it is maintained by investors who think indexing is the way to go.
Could you send the link to me privately if you feel it isn't appropriate to mention here? I use active management, but I know I'll have to rely on index funds once I'm gone.
Comments
I need to make some changes to my trust anyways, so I am going to ask my attorney about the legacy family trust...after my oldest son gets married at the end of the month...with a pre-nup in place, of course!!
@Bitzer: I've heard it referred to that way as well.
moguls-rent-south-dakota-addresses-to-dodge-taxes-forever