Bloodline trust

[outtamojo]

Anyone here have experience with establishing a bloodline trust or anything like that to make sure your kids keep all the rental properties you bequeathed them in the event of their divorce?

[svelte]

Boy are you going to be popular at Thanksgiving dinner.

[outtamojo]

Me: so, son/ daughter in law, why are you so icy this evening, on the day to give thanks?

Son/ daughter in law: cause you did not name me in your will and basically cut me out by leaving everything in the name of your own kids.

Me: rolls eyes and looks over at son/daughter with a deep sigh thinking yes, it was worth it even knowing I had to be the heavy.

[svelte]

I have no idea your situation. Maybe your line of thinking is justified.

I have to tell you that in my family, looking back two or three generations, the people who married into the family were often more responsible than the family themselves.

I find ppl fall into two categories: spenders and savers. Quite often, successful marriages have one of both.

And for some odd reason, my blood-line family has its share of spenders.

Very often, estates would be better off managed by the spouses who married in.

Again, your mileage may vary. Peace, love, and Happy Thanksgiving.

[outtamojo]

My kids are still in high school so it is nothing personal against anybody, just me being tribal.

[svelte]

[quote=outtamojo]My kids are still in high school so it is nothing personal against anybody, just me being tribal.[/quote]

Well if you’re gonna do it, that would probably be the smart time. Before they are serious about marrying anyone. So when they do marry, the charter was already set and the spouse knew that going in.

[Coronita]

Why don’t you just tell your kids to make sure to marry someone that is more successful then you and your kids… Then, problem solved! if you’re going to set the bar high, you might as make the bar very high.

I’ve been already very clear, someone who can’t manage their money is not worth my kid’s time for any serious long term commitment. Simply because their viewpoint would clash with ours and it would drive my kid crazy.

[Hobie]

Not quite the same but relevant. Parent buys home for offspring and new spouse. New spouse wants divorce and entitled to 1/2 of marital assets. Not quite with the old man intended. No prenup, but he just kept the home in his name. She didn’t know that and was a gold digger and guy dodged a crazy bullet.

Or, gramps married a very young bombshell. ( true story, can’t remember his name guy was 90 … you know who I’m talking about) She wants divorce and lays claim to all of his assets cutting out old mans bio kids.

It is understandable to think this way. But, it sure would be a pain with all of the litigation for the trustee and recipients.

Kinda leaning toward a forced sale of all assets and divide the cash. easy.

[flyer]

We’ve taken precautions with our kids inheritances in various ways. Trusts and other documents can be creatively drafted that offer protection, along with some flexibility, per your requests, and things can be changed, if necessary, along the way.

Before our kids were married, we discussed this with them, as well as other issues we felt were important to consider wrt marriage, that extended far beyond the financial aspects.

Although they made their own choices, as many parents, we had visions of what we would consider to be appropriate mates for our kids, and, so far their visions and ours have pretty much been the same.

[gzz]

Property from one spouse’s parent does not become community property.

If both spouses use it and make improvements, or it is put in both of their names, it can become community property, but the share of it that was a gift or inheritance is considered a separate contribution to community property that can be taken back in a divorce.

So you inherit land from mom, build a house on it with spouse, and sell on divorce, it is split equally at first but the value of the land at the time it was inherited is then subtracted out and goes back to the contributor’s share.

The sticky situation is when the inherited property increases in value between the inheritance and divorce. The appreciation could be considered separate or community property depending on how it was treated.

I think it is pretty standard to only name children and not their spouses in wills.

In general the law isn’t friendly to gold diggers who want to take premarital assets in a divorce.

[outtamojo]

Yeah that’s the tricky part when you have pay off what’s owed as part of the settlement. If you dont have the cash you end up having to sell the property. Also if the trust receives money outside of the trust then the trust owes that money back as community property I’m guessing? Gonna have to get me an estate planner!

[Author]

Posts