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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Alternatepriorities on February 22, 2016, 08:33:30 PM

Title: Is it worth setting up a trust?
Post by: Alternatepriorities on February 22, 2016, 08:33:30 PM
My dad is getting older and starting to feel his mortality. We got to talking about his will the other day and that made me wonder what other mustachians have done. He never amassed a lot of wealth but he has a small stash, no debt, and a home that's paid for. He raised 4 mustachian children who'd probably just roll any inheritance into our own stash's.

Our quandary is the house (assuming we don't sell it). It's not somewhere any of us want to live now, but maybe in the future. There are no property taxes there and with a little work it could be a rental. Are we crazy to keep it? If we do keep it what is a good way to share property? We've thought some about setting up a trust or creating a company to manage it but it's not something I've thought about much before now.

Title: Re: Is it worth setting up a trust?
Post by: NoStacheOhio on February 23, 2016, 05:50:53 AM
If you do set up a trust, it will help shelter assets from any long-term care costs down the line. If you need to enter a nursing home, it's best not to own anything or have any money.
Title: Re: Is it worth setting up a trust?
Post by: pbkmaine on February 23, 2016, 06:34:45 AM
https://en.m.wikipedia.org/wiki/Qualified_personal_residence_trust
Title: Re: Is it worth setting up a trust?
Post by: Old Man Mase on February 23, 2016, 09:22:41 AM
It sounds like the situation is simple enough isn't a trust isn't necessary.  Sounds cool to keep the family house, but it's probably a good move to clearly outline who will be in charge of maintenance, choosing tenants, etc. You guys could come up with an equitable way to split the rent money in that case.