Most suitable vehicle for intergenerational investing

Thank you @dunno . Your opinions are always very helpful and more so with this topic as it looks like you have walked down this path already.

I have wondered whether my view of this whole situation / process is skewed right now, due to the fact that my kids are still very young and at this moment I cant imagine them ever being old enough that I wont feel total responsibility of every aspect of their lives. Don't want that last sentence to be misinterpreted. I don't wish to control and manage their lives when they have grown, I just want to be there along the way to support and give them as much of a push forward as I can.

Appreciate you sharing how you have managed your wealth transfer process. Part of this process for me isn't as much about controlling the wealth until I go. Its about structuring it in a manner that they can control it along side me while I am here and then seamlessly take full control once I am gone. Once they are old enough to step in and by that I mean having commenced education and conditioning from now pre 10 years old till I would guess somewhere around mid 20s maybe earlier depending on maturity, in which they could start taking some responsibility and making decisions as part of a team like arrangement.

Part of the process right now is about safeguarding the wealth for their benefit incase something happens to us the parents before they reach adult hood and can take control. At the same time work on structuring it in a manner which looks at long term tax implications and management of wealth while I am still around and once wife and I are gone.

I am working with a new accountant and an estate planning lawyer to get this done right before it gets any harder to make changes. I agree that its impossible to have a set and forget plan as things change. The aim is to get it as close as possible to what we envisage the future to look like and want / expect all while allowing for flexibility to make changes as the need arises.

This is what makes the most sense to me right now. 10-20 years from now, my thoughts on this might be different and changes might be needed. By then I would hope my children are old and wise enough to be involved in the process and can have input in any changes.

 

That's what I reckon. But I also accept that this might not be what they want. My job is to educate them and show them why I believe such an arrangement is best for them. If I fail to convince them and they wish to go in a different direction, then so be it.

 

This will change I think as they get older. It did for me. I have even dropped my life insurance mostly now.

 

You are probably right. Right now its hard to imagine your kids as grown adults when they are still so young. The idea of them being responsible for their own lives is foreign when your still pretty much spoon feeding them.

 

I think you are all over this as evidenced in this thread. The hard thing is Imanaging the future. I was guilty in the past of planning as though my kids were going to be mentally or physically disabled all their life just because they were dependent at the time. They are now an important and exciting part of the journey. The planning Horizion wasnt as long as I thought. Don't lock yourself in on current perceptions I guess is the moral of the story. Make the best current decisions but keep future flexibility in mind.

 

Me also.

 

@Big A

This...

 

A charity fund!

 

Hi Terry,


Just wanted to see if this structure would also help with protecting our assets from any family court issues? (Eg future spouse, etc)


I’m looking at implementing something like this and since I’m single, I don’t want to risk losing my house to anyone I may get involved with in the future. I’ve seen many cases like this with family and family friends.


Maybe one of my parents could own the shares to the company and I could be the beneficiary of a TDT?


Ultimately what I would be looking for is:

• Asset protection - not so much from banks but from any potential family court issues - single and no dependents at the moment
• Keep assets together once I’m gone and avoid forced sales (and paying CGT)
• Maybe I could even transfer my shares portfolio to the trust

I’m looking into adding my IP#1 soon (within the next 2 months) and would like to get a proper structure setup before I get IP#2 late next year


Would you be available for a consultation sometime early next year? I know you are very busy currently. No rush

thanks in advance

Regards,

Will

 

It is problematic to protect assets from the family court through the use of any structure. A TDT means the owner of the assets must die for that trust to be established from their estate assets. However the terms of the TDT may still confer a beneficial interest in the trust assets and that can be of interest to the family court. Later in life you may plan your estate so that your kids benefit eg from a TDT. However if you bypass your spouse they have more grounds to attack that will.

Seek legal advice.

 

i take it you mean a company will hold a property with the parents owning the shares in the company and then them willing those shares to a TDT

This will improve asset protection if you get into a family law dispute but it is still easily attackable. It would also tie your parents up in finance and social security issues as well.

Generally I think parents are under utilized in estate planning strategies