My question involves estate proceedings in the state of: California
This is tangential to my recent thread about my parents leaving their properties. That discussion with them has opened up a new one. In their estate plan, they are planning on leaving one of their rental properties to my daughter in a trust.
On the surface, this seemed like a generous move. But when we looked further, the value was certainly generous but the real asset seemed to leave some things in limbo.
-What if there are other grandchildren? I see all sorts of potential conflict there, and we certainly hope there are other grandchildren.
-If it's in a trust til our daughter's 30, then that basically makes us property managers, correct? What if we don't want this added responsibility? We don't have the power to sell and put it the revenue in an IRA or something like that for our daughter without court action, correct? (This may not be a concern for some, but my wife has a chronic condition and taking on additional responsibility/stress is always something we have to take into account.)
-As managers, what if there are personal conflicts between us and our daughter between the ages of 20-30? I really, really, really hope this doesn't happen, but reading through some other forum posts, this seems like it's a potential worst-case scenario of property getting between parents and children.
So are we overthinking this or are there some logistical concerns with real property left to a minor in a trust over just money? If you were the grandparent and had legal knowledge, would you:
A) Leave everything to the adult children to divide up (let's just assume that you trust them and feel they're responsible -- because I feel we are and I like to think my parents think that way too!) with the express instructions that a certain percentage has to be passed onto grandchildren.
B) Leave property to adult children, but set aside some money in a trust for the grandchildren while adjusting it as new grandchildren are born.
C) Go with the original plan and leave the grandchildren a home in trust.
I will admit that we tend to overthink things but after reading some horror stories of how a property created conflict in trust between adult children and adult grandchildren, we are trying to learn as much as possible. My dad tends to get an idea that he thinks is great, then shows up at a lawyer telling them what to do rather than making an appointment with a lawyer and asking "What's the best thing to do?" so I'm trying to ask those questions for him. ;)
This is tangential to my recent thread about my parents leaving their properties. That discussion with them has opened up a new one. In their estate plan, they are planning on leaving one of their rental properties to my daughter in a trust.
On the surface, this seemed like a generous move. But when we looked further, the value was certainly generous but the real asset seemed to leave some things in limbo.
-What if there are other grandchildren? I see all sorts of potential conflict there, and we certainly hope there are other grandchildren.
-If it's in a trust til our daughter's 30, then that basically makes us property managers, correct? What if we don't want this added responsibility? We don't have the power to sell and put it the revenue in an IRA or something like that for our daughter without court action, correct? (This may not be a concern for some, but my wife has a chronic condition and taking on additional responsibility/stress is always something we have to take into account.)
-As managers, what if there are personal conflicts between us and our daughter between the ages of 20-30? I really, really, really hope this doesn't happen, but reading through some other forum posts, this seems like it's a potential worst-case scenario of property getting between parents and children.
So are we overthinking this or are there some logistical concerns with real property left to a minor in a trust over just money? If you were the grandparent and had legal knowledge, would you:
A) Leave everything to the adult children to divide up (let's just assume that you trust them and feel they're responsible -- because I feel we are and I like to think my parents think that way too!) with the express instructions that a certain percentage has to be passed onto grandchildren.
B) Leave property to adult children, but set aside some money in a trust for the grandchildren while adjusting it as new grandchildren are born.
C) Go with the original plan and leave the grandchildren a home in trust.
I will admit that we tend to overthink things but after reading some horror stories of how a property created conflict in trust between adult children and adult grandchildren, we are trying to learn as much as possible. My dad tends to get an idea that he thinks is great, then shows up at a lawyer telling them what to do rather than making an appointment with a lawyer and asking "What's the best thing to do?" so I'm trying to ask those questions for him. ;)
Estate Planning Strategies: Should Minor Grandchildren Be Left Property Over Money
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