Interesting Situation

I appreciate everyone's input. One thing that I should have mentioned because I may have mislead all of you and that is when I received the inheritance from my parents, there was a string attached. The money is in a non-revocable trust, however, one of the rules of the trust is that whatever money is left "must" go to my principle heirs. Money spent from the trust must be approved by my principle heirs, if the amount exceeds a certain number, which it may in this case. We would be selling the property that we own now, so depending on how much we would get for that sale; would depend on how much more we would need to spend from the trust. We don't really need to take the money from the trust, but we have never spent one cent of it thus far and we thought that this may be a good time to do so.

What will probably happen is that we will buy the property using the estimated amount that we should get from the sale of the original property and then use only a portion of the trust to stay under that magical number and use money from our own accounts to fund the remaining balance. That way, no one gets hurt and everyone stays happy.

I don't know why my parents set up the trust like they did. Each month, my wife and I, along with the other heirs, receive a statement of the value of the trust. Right now, the kids have very little interest in it, but my daughter just turned 45 and when she turns '50', she can start taking out little pieces of the trust, until age 65 and then she will be entitled to become a fully invested tenant of the trust. If my wife and I pass before the kids turn 65, then they are the rightful owners of the trust and have to abide by the same rules as we did with their heirs. To me, at least, it sounds really screwy.
 

Ugh, I hate those kinds of hamstrung trusts. It's like saying "we want to control you even from beyond the grave."
 

oldman said:
do you think that we should sit our two kids down and explain to them exactly what it is we are buying and where the money is coming from?
Click to expand...

Considering that you are doing nothing that will adversely effect them and you are not looking for their opinion to base your decision on, I would say there is no need to tell them. You life's effort enabled you to be in your present position so you should do whatever makes you happy... and based on personal experience I agree you should buy the boat.
 
It sounds like this trust could be a source of friction to everyone involved.

I think that I would gather everyone together and consult a professional about the tax implications of closing out the trust and distributing the funds.

Good luck!
 
Subject shows who are close to their children and those not so close!
Discuss all big decisions with ours and have never had any discord.
lucky our family have always agreed with our decisions, as mentioned,
it is our money to do with what we want, and whether invested in property
or others investments, it will eventually be theirs when we pass.
 
oldman said:
I appreciate everyone's input. One thing that I should have mentioned because I may have mislead all of you and that is when I received the inheritance from my parents, there was a string attached. The money is in a non-revocable trust, however, one of the rules of the trust is that whatever money is left "must" go to my principle heirs. Money spent from the trust must be approved by my principle heirs, if the amount exceeds a certain number, which it may in this case. We would be selling the property that we own now, so depending on how much we would get for that sale; would depend on how much more we would need to spend from the trust. We don't really need to take the money from the trust, but we have never spent one cent of it thus far and we thought that this may be a good time to do so.

What will probably happen is that we will buy the property using the estimated amount that we should get from the sale of the original property and then use only a portion of the trust to stay under that magical number and use money from our own accounts to fund the remaining balance. That way, no one gets hurt and everyone stays happy.

I don't know why my parents set up the trust like they did. Each month, my wife and I, along with the other heirs, receive a statement of the value of the trust. Right now, the kids have very little interest in it, but my daughter just turned 45 and when she turns '50', she can start taking out little pieces of the trust, until age 65 and then she will be entitled to become a fully invested tenant of the trust. If my wife and I pass before the kids turn 65, then they are the rightful owners of the trust and have to abide by the same rules as we did with their heirs. To me, at least, it sounds really screwy.
Click to expand...

Well, yes, that was a bit of a misleading question. It appears that your parents were also thinking of their grand children, so therefore your children are involved at least in the case there the trust is involved as to how it is spent.
 
tortiecat said:
Subject shows who are close to their children and those not so close!
Discuss all big decisions with ours and have never had any discord.
lucky our family have always agreed with our decisions, as mentioned,
it is our money to do with what we want, and whether invested in property
or others investments, it will eventually be theirs when we pass.
Click to expand...

Sorry, but I totally disagree. We are very close with our children and would do anything for them. But we don't discuss how we spend OUR money with them. Until it becomes THEIR money or we become mentally incapable of handling finances, it's none of their business.
 
If you're smart and your "offspring" are also smart, I would discuss it with them

BECAUSE, they may bring up some issues that you may not have thought about.

Then, take it from there.

Good luck.
 
tortiecat said:
Subject shows who are close to their children and those not so close!
Discuss all big decisions with ours and have never had any discord.
lucky our family have always agreed with our decisions, as mentioned,
it is our money to do with what we want, and whether invested in property
or others investments, it will eventually be theirs when we pass.
Click to expand...

I think it is fine to discuss the possibility of buying a home or vehicle. My concern is with discussing a potential inheritance with people. If a person is of the belief that they will receive a sizable inheritance it may cause them to be less concerned about saving for their own children's education, retirement, etc... I've seen cases over the years where all the kids end up with is a safe full of promises and they would have been better off not knowing about or relying on the possibility of an inheritance.
 
Since it seems you have given this serious thought, and are not jumping in blind, then go for it. Would you make this a permanent residence? Or do you want to keep the one up north and be snowbirds?
I am guessing your children are adults, and not dependent on you financially. That being said, yes tell the kids. But only that you are considering this life change and want to share this info with them.

They always say an inheritance is NOT an entitlement. Your finances are your own to do with as you see fit while you are still living. While what you plan to leave your children is not the business of us here on SF, I am sure your plans will be beneficial to all involved.

That being said...get the house, and boat, and let us here at SF know when we can come down for a visit.
 
.

A friend of mine moved to the Gulf coast and bought a house on the beach.
Not only does she have to pay regular home owners insurance... she must
pay two other separate flood and wind insurance policies, It is expensive.
The OP appears to be able to handle all that with no problem. But my friend
didn't take into consideration that added expense before she moved.

Maybe I watch IDTV too much... but if I were you I wouldn't share my financial
data with anyone... including your children [children might tell friends, etc...]
 
Honestly, I will never understand the mainland culture. Here in Hawaii it's just different. Families are very close,
and we don't worry about who gets what and who doesn't. We live together without thinking who is winning and
who is losing. It's just a different mindset.
 

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