Scenario:
Parents have two children, and would like to initiate distribution of estate without too much family discord. Total estate not huge but sizable (ie the house children grew up in and some investments). Plan by parents is to consider selling half of the value of the house to Child B, essentially having Child B buy out Child A's share). Then, give this amount to Child A.
Both kids are sensible but have very different takes in life and in different family situations. Both children are not financially strapped in any way. Child A has a family (non adult kids and spouse, only have been married for several years) but Child B is single (and will likely stay that way for good).
Issues of concern/ inquiry:
Child A is not interested in inheriting cash, as this will increase total asset at risk to creditors. Parents are also not very comfortable with idea that Child A's spouse may get access to the estate (currently Child A lives in community property state), which upon discussion with Child A, Child A is understanding and willing to comply.
What are some options for Parents? Passing estate off to grandkids? How and what type of entity can Grandparents set up for grandkids?
Thanks for any input.
Parents have two children, and would like to initiate distribution of estate without too much family discord. Total estate not huge but sizable (ie the house children grew up in and some investments). Plan by parents is to consider selling half of the value of the house to Child B, essentially having Child B buy out Child A's share). Then, give this amount to Child A.
Both kids are sensible but have very different takes in life and in different family situations. Both children are not financially strapped in any way. Child A has a family (non adult kids and spouse, only have been married for several years) but Child B is single (and will likely stay that way for good).
Issues of concern/ inquiry:
Child A is not interested in inheriting cash, as this will increase total asset at risk to creditors. Parents are also not very comfortable with idea that Child A's spouse may get access to the estate (currently Child A lives in community property state), which upon discussion with Child A, Child A is understanding and willing to comply.
What are some options for Parents? Passing estate off to grandkids? How and what type of entity can Grandparents set up for grandkids?
Thanks for any input.
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