Okay here is the situation a friend of mine is in. His father is 80 years old and owns two homes, one is in a tourist area and is valued at approx $300K, the other is in in a small country town and worth approx $70K. He also has around $300K in other assets (Life ins and other financail vehicles) My friend is the youngest of 4 kids all over the age of 40. He has 4 children and one of his sisters has 2 children. The other siblings are single with no kids. His children and his sisters childrten are in their 20's and starting to marry and start families of their own. The touristy property is not only the bulk of his dad's estate but also the most sentimental. His dad has all four siblings listed as sole heirs. Because of the growth of the extended family he is concerned about how to keep the property so that it stays in the family and they arent forced to sell it when his dad passes (inheritance taxes). he also wants to makes ure that things dont get diluted down even further if he were to pass away and his share was split among his four children. And he isnt sure what would happen if his single siblings were to pass.
My suggestion was for him to check into a trust of some kind but I am admittedly pretty ignorant of the inner workings of such a thing. I know that it is basically a seperate entity that would hold all the assets and I believe that by doing this they could avoid any inheritance tax. I was just wondering if any of you knew more about this or something else that might be more suitable for his situation, and could give me some insight that i could pass on to him. I found it to be a very interesting quandry and would like to educate myself some more on this matter.
He told me his father jsut wants to do what is best for the entire family.
My suggestion was for him to check into a trust of some kind but I am admittedly pretty ignorant of the inner workings of such a thing. I know that it is basically a seperate entity that would hold all the assets and I believe that by doing this they could avoid any inheritance tax. I was just wondering if any of you knew more about this or something else that might be more suitable for his situation, and could give me some insight that i could pass on to him. I found it to be a very interesting quandry and would like to educate myself some more on this matter.
He told me his father jsut wants to do what is best for the entire family.
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