Anonymous
12/11/2025 15:28
Subject: Re:unequal inheritance
So you and you brother get 1.5M + 500k = 2M each and the children get 500K each? That's reasonable.
But how about you start by discussing your concerns of a potential rift with your brother. Your mother's set up was decent and he may ask you to leave as is.
In my family, your mother's set up will be left as is because it makes perfect sense.
My brother and I did discuss, he would prefer not to get income now, but may want it later, I don't really want to run a trust for him, etc. I talked to our financial advisor who suggested we simply calculate the present day value of the income on the trust and give a lump sum that is in lieu of that lifetime income. Kind of like the PVI of an annuity. So this is a pretty fair way of calculating the lump sum equivalent of what the trust intended. If he goes for it, I am comfortable with it, in part because this is a calculation that is used in similar kind of situations and takes the emotion out of it or responsibility for us trying to figure out what's "fair."
Anonymous
12/07/2025 16:25
Subject: unequal inheritance
You should also consult with a CPA with a tax expertise.
Anonymous
12/06/2025 09:23
Subject: unequal inheritance
Anonymous wrote:Op here. The attorney who wrote this has retired. Looking for a new one.
My mom had originally left the house (or its value if sold) to the grandkids with me as trustee back in 2015. I suggested to her that I felt badly about cutting out my brother (not realizing how much $ was in the other trust, he was also rebuilding after divorce) so she revised to this, which gives brother income protection if needed, but I doubt she was aware of the tax implications.
Trustee has wide latitude to distribute income based on HEMS and taking other assets into account. So yes we could invest for growth not income now and distribute after he’s retired.
I will consult with a new ca attorney. I don’t think a modification is hard that allows the trust to get step up basis on my brothers death. Maybe we will stick with that. I just don’t love the idea of managing an income distribution for my older brother for the next 30 years. He plans to leave his estate to my kids anyway (but plans change, people get remarried or dementia etc etc).
If we decide to disclaim and gift, I was thinking that each of us (me brother kids) gets 25% of the house and brother and I split the cash/mm accounts. That seems “fair” to me but perhaps not what my mom wanted….will discuss with attorney. I really don’t want any rift between the two of us.
So you and you brother get 1.5M + 500k = 2M each and the children get 500K each? That's reasonable.
But how about you start by discussing your concerns of a potential rift with your brother. Your mother's set up was decent and he may ask you to leave as is.
In my family, your mother's set up will be left as is because it makes perfect sense.
Anonymous
12/06/2025 09:13
Subject: unequal inheritance
Op here. The attorney who wrote this has retired. Looking for a new one.
My mom had originally left the house (or its value if sold) to the grandkids with me as trustee back in 2015. I suggested to her that I felt badly about cutting out my brother (not realizing how much $ was in the other trust, he was also rebuilding after divorce) so she revised to this, which gives brother income protection if needed, but I doubt she was aware of the tax implications.
Trustee has wide latitude to distribute income based on HEMS and taking other assets into account. So yes we could invest for growth not income now and distribute after he’s retired.
I will consult with a new ca attorney. I don’t think a modification is hard that allows the trust to get step up basis on my brothers death. Maybe we will stick with that. I just don’t love the idea of managing an income distribution for my older brother for the next 30 years. He plans to leave his estate to my kids anyway (but plans change, people get remarried or dementia etc etc).
If we decide to disclaim and gift, I was thinking that each of us (me brother kids) gets 25% of the house and brother and I split the cash/mm accounts. That seems “fair” to me but perhaps not what my mom wanted….will discuss with attorney. I really don’t want any rift between the two of us.
My mom had originally left the house (or its value if sold) to the grandkids with me as trustee back in 2015. I suggested to her that I felt badly about cutting out my brother (not realizing how much $ was in the other trust, he was also rebuilding after divorce) so she revised to this, which gives brother income protection if needed, but I doubt she was aware of the tax implications.
Trustee has wide latitude to distribute income based on HEMS and taking other assets into account. So yes we could invest for growth not income now and distribute after he’s retired.
I will consult with a new ca attorney. I don’t think a modification is hard that allows the trust to get step up basis on my brothers death. Maybe we will stick with that. I just don’t love the idea of managing an income distribution for my older brother for the next 30 years. He plans to leave his estate to my kids anyway (but plans change, people get remarried or dementia etc etc).
If we decide to disclaim and gift, I was thinking that each of us (me brother kids) gets 25% of the house and brother and I split the cash/mm accounts. That seems “fair” to me but perhaps not what my mom wanted….will discuss with attorney. I really don’t want any rift between the two of us.