fetching an inheritance problem forward

[stewart]

It's not always better to cross bridges before you get to them

If you know they have to be crossed it is prudent to have a plan in place though.

 

[two-cylinder]

If you know they have to be crossed it is prudent to have a plan in place though.

But you cannot plan to avoid an inheritance problem because wills can get changed.

I can see a problem with the OP's plan.
Say it goes ahead: everyone might be happy with outcome at the moment- but things can change in the future?
If for example parents get sick in twenty years and need care, sisters step in and provide it, the will at that point leaving all to the son could be changed to reward the daughters for their care?

 

[MrNoo]

Ours was a bit "old" school, daughters sorted by their mothers and sons looked after. We are a Ltd Co, went into voluntary liquidation 20 odd years ago, liberated various assets out of the Ltd Co then re-formed. This cost 100k alone, fortunately we have an offlying farm (that was liberated from main Ltd Co) that my younger step brother will have one day and i am left with the main farm here. We are about to go through probate so will find out if any nasty surprises raise their heads. I was left the remaining shares in the Ltd Co.
We took professional advice, whilst eye wateringly expensive, it seems to have been effective, just a shame my father wouldnt divulge bugger all about it.
Whatever you do, good Communication is paramount to all parties involved, if you can communicate then you're half way there. Not communicating just creates issues and problems, lack of trust and a whole host of mindbending that makes running a farm seem like childs play in comparison. Not at all pleasant.

 

[stewart]

But you cannot plan to avoid an inheritance problem because wills can get changed.

I can see a problem with the OP's plan.
Say it goes ahead: everyone might be happy with outcome at the moment- but things can change in the future?
If for example parents get sick in twenty years and need care, sisters step in and provide it, the will at that point leaving all to the son could be changed to reward the daughters for their care?

You can easily plan to avoid a potential problem, this just requires communication and some foresight, from all concerned. Distribute the assets prior to death leaving very little in a will to sort out.

 

[smallholder99]

whats the opinion on putting a farm into trust for 125 years so future generations cant loose half to an ex or get upto their neck in debt against the farm, buggering the farm up for their kids

 

[Exfarmer]

How would it work if parents gifted the whole of their estate to their children equally now but continued to rent the farm back off them? If parents survive 7 years then taxes avoided and care home cost liabilities diminish year on year. Put in place that inheriting children cannot force sale of the estate for ‘x’ number of years after second parent’s death to allow the farming sibling to have a chance of taking on a mortgage to pay out non-farming siblings after ‘x’ years - in the intervening period non-farming siblings receive annual rental income.
?

You cannot gift, but retain a benefit

 

[MrNoo]

whats the opinion on putting a farm into trust for 125 years so future generations cant loose half to an ex or get upto their neck in debt against the farm, buggering the farm up for their kids

Try getting it out of a trust

 

[ploughman1963]

You cannot gift, but retain a benefit

No official benefit - if employed as advisor or ‘manager’ just paid for services? If they had agronomy qualifications they could legitimately charge?

 

[Exfarmer]

No official benefit - if employed as advisor or ‘manager’ just paid for services? If they had agronomy qualifications they could legitimately charge?

What I am saying, is take great care! Many families have gone wrong here!

 

[Northern territory]

It’s bloody hard, I am trying to discuss things with parents but communication difficult. Do you think it is a generational thing. Me and wife say we would never want our two very young sons to be in a position of uncertainty. I guess things change as people get older.

 

[ploughman1963]

What I am saying, is take great care! Many families have gone wrong here!

Thanks- not being difficult, just trying to think how things could be achieved

 

[stewart]

whats the opinion on putting a farm into trust for 125 years so future generations cant loose half to an ex or get upto their neck in debt against the farm, buggering the farm up for their kids

That’s what we have done, protects the assets from a matrimonial dispute.

 

[stewart]

Try getting it out of a trust

Easy, just distribute the assets to the beneficiaries, although that does depend on who the trustees are and how well set up the Trust was at inception.

 

[smallholder99]

Try getting it out of a trust

if your happy to put it in, if it works well and your not impulsive to spend the asset,why would you want to get out

 

[MrNoo]

Easy, just distribute the assets to the beneficiaries, although that does depend on who the trustees are and how well set up the Trust was at inception.

Thats what I mean, all seems simple now but if you wish to change the set up further down the road it can be a nightmare, once it's in it's in. Trustees regardless who you nominate, can be notoriously awkward, ,and they wont be doing it for free will they. Also decisions that would need to be made in good time can get delayed massively when dealing with multiple trustees.

 

[MrNoo]

if your happy to put it in, if it works well and your not impulsive to spend the asset,why would you want to get out

125 years is a long time, certain parcels of land or areas/housing you may wish to be out of trust for your retirement for example. Are you working for the trust or are you working for yourself, i would hazard a guess you would work for both but youll need to live off something towards the end of your days. Would you prefer a trustee to dictate to you or would you like to make your own decision/choice?

 

[Frodo]

whats the opinion on putting a farm into trust for 125 years so future generations cant loose half to an ex or get upto their neck in debt against the farm, buggering the farm up for their kids

If you prefer lawyers to your kids and really can’t stand there choice of spouse great idea.

The asset is for the people, tying people Against their will to your choice of asset is just cruel.

 

[stewart]

Thats what I mean, all seems simple now but if you wish to change the set up further down the road it can be a nightmare, once it's in it's in. Trustees regardless who you nominate, can be notoriously awkward, ,and they wont be doing it for free will they. Also decisions that would need to be made in good time can get delayed massively when dealing with multiple trustees.

If you make yourself the Trustee it should not be too difficult to deal with yourself, or at least make yoursrlf the one able to hire and fire Trustees. I agree with you on delaying making decisions particularly around signing paperwork, it can be a pain.

 

[Frodo]

if your happy to put it in, if it works well and your not impulsive to spend the asset,why would you want to get out

Because in 99 years time some of your genes might decide farming where you live with their 4th cousin isn’t for them.