Ken, I feel your pain! My parents set up a trust in the UK in 1986.It is a different set of trust laws, but I could have written a similar post to yours. The details were different but the good intentions and painful outcomes were very similar. Intention: To avoid estate tax. Which, just like your experience, had become irrelevant at our inheritance level on both sides of the Atlantic. Unintended consequence: my siblings and I ended up owing Capital Gains on the family home, dating back to 1986. Quite the appreciation and tax bill! Yes, I know capital gains is forgiven on inheritance. But not when the trust had made us each part owners. Did my parents expect that by the time the trust came to pass, the three ‘kids’ would be in 3 different countries? With the extra overhead of extra countries tax and inheritance laws.? No, they did not.
I am self-employed and in the final stretch before retirement. I am very aware that some of my family, friends and former business contacts have already crossed that threshold. I am also a person who revisits and writes out intentional goals every few months. One of those goals has become to accept social invitations as they come my way. I get it that most people, including those who are already retired will only reach out a handful of times. 10 years ago I would never have had such a goal. Co workers came and went with jobs and clients. We were all replacing each other as we moved on. Bonds were built through projects, goals and work travel. New friends were served up through our kids school activities. Not any more.
Comments:
Ken, I feel your pain! My parents set up a trust in the UK in 1986.It is a different set of trust laws, but I could have written a similar post to yours. The details were different but the good intentions and painful outcomes were very similar. Intention: To avoid estate tax. Which, just like your experience, had become irrelevant at our inheritance level on both sides of the Atlantic. Unintended consequence: my siblings and I ended up owing Capital Gains on the family home, dating back to 1986. Quite the appreciation and tax bill! Yes, I know capital gains is forgiven on inheritance. But not when the trust had made us each part owners. Did my parents expect that by the time the trust came to pass, the three ‘kids’ would be in 3 different countries? With the extra overhead of extra countries tax and inheritance laws.? No, they did not.
Post: Broken Trust
Link to comment from January 15, 2024
I am self-employed and in the final stretch before retirement. I am very aware that some of my family, friends and former business contacts have already crossed that threshold. I am also a person who revisits and writes out intentional goals every few months. One of those goals has become to accept social invitations as they come my way. I get it that most people, including those who are already retired will only reach out a handful of times. 10 years ago I would never have had such a goal. Co workers came and went with jobs and clients. We were all replacing each other as we moved on. Bonds were built through projects, goals and work travel. New friends were served up through our kids school activities. Not any more.
Post: What We Lose
Link to comment from September 2, 2023