Leaving home to my son

[TrustUser]

if i did not think the kid was capable of good financial decisions, then i would not make him the trustee. and while a person can be a good manager, there are some things that are beyond his control. so as a safety net, i want him to have at least some funds that are protected. since i know all of the funds owned by him are not protected.
it is important to remember that this is a very special function that can only be provided by this irrevocable trust. all of his personal funds will never see this sort of protection.
i will give you my personal example. i am a very safe investor. i was investing in trust deeds with a low ltv. not at all greedy. satisfied with a decent income, and being able to sleep at night. then we had the huge problem with the loan industry 10 years ago, or so. many people lost their shirt.
had this been the only problem, i would have still come out making a big profit.
what most people do not know (unless you were actually lending money), is that along with the huge loss in equity, there had also been tremendous fraud in the appraisal industry. so much so, that not even one of the properties that i had loaned on had an honest appraisal. so not only did my equity come down, the equity was never has high as the loan stated it was.
so there was a dual fraud - on the loan process, itself. and the appraisal of the property. now in california, there have been many regulation changes in the way that properties are appraised. which is a good thing for the future. but of course did nothing to fix the fraudulent appraisals in the past.
i still survived, and am doing better than ever before (because i am so damn financially savvy). but i wont say it didnt take its toll on me !!
as someone once said, "shit happens".

 

[Taxing Matters]

there are some things that are beyond his control. so as a safety net, i want him to have at least some funds that are protected.

However, by protecting his downside risk, you are also potentially limiting his upside, too. He might lose out on very advantageous deals because he couldn't tap the funds in the trust that would allow him to do them. I could give examples, including one of personal experience, but I don't think that's necessary as you likely understand that point. It is of course your choice to be conservative and limit the kid's downside risk if you like, recognizing the trade offs involved. But again, not everyone is going to have the same priorities that you do which is why the estate plans you favor may not be good for others.

 

[Ohiogal]

What is the name of your state? GA. i want to leave my home and property to my son when i die. what will be the easiest way? there will still be a balance on the mortgage, i'm sure.

Are you married?

 

[TrustUser]

However, by protecting his downside risk, you are also potentially limiting his upside, too. He might lose out on very advantageous deals because he couldn't tap the funds in the trust that would allow him to do them. I could give examples, including one of personal experience, but I don't think that's necessary as you likely understand that point. It is of course your choice to be conservative and limit the kid's downside risk if you like, recognizing the trade offs involved. But again, not everyone is going to have the same priorities that you do which is why the estate plans you favor may not be good for others.

yea, and another parent could certainly be more liberal with the types of investments that a trustee could make. i am fairly conservative