Reply to Establishing lifetime trust accounts for young adult children

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Our kids are about 10 years younger and our investment maybe $5M more than yours. I do not believe in leaving significant money to our kids, but I think that is a personal choice.

I think the way your achieve your objective is not giving them cash but an asset to manage. Something that requires some management in their end to give them an income stream. Real estate would seem the obvious choice.  Im partial to retail properties but I’m thinking a multi family property (like 100 units in kids far out Virginia) or a strip mall or storage units.

I’d probably start with you owning 90% of the company and then being responsible for managing it (obviously managing the management company). You can guide them. Presuming they do well you can gift them shares with self cancelling notes.

I think this meets your objectives and sets them up for success and a desire to keep the golden goose producing eggs and not trying to slaughter it. [/quote]

Why? What an odd way to approach this. You’re basically assigning them a property management job, and then if they do well at it they become massively overpaid for it? [/quote]

Because this is what it means to be rich. You manage the managers. And since you capital is doing the heavy lifting you are compensated very well. Do it well and your family stays rich for another generation. Do it poorly and the corpus is consumed. [/quote]

But why on earth a multi-family property or a strip mall or storage units? That would not be high on my list of investments and it is a crappy job to have. [/quote]

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