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Title: There’s at least one in every family (black sheep)
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URL Source: http://personalliberty.com/theres-at-least-one-in-every-family/
Published: Dec 25, 2015
Author: Bob Carlson
Post Date: 2015-12-25 19:19:42 by BTP Holdings
Keywords: None
Views: 1109
Comments: 47
There’s at least one in every family Posted on December 25, 2015 by Bob Carlson Estate planners hear the stories all the time. They know they will hear them almost every time they meet with a new client. In the meetings, the estate planners can see the signs in the hesitation and increased discomfort of the clients. The fact is almost every family has at least one. There’s a child who hasn’t turned out the way the parents hoped. It’s even true in the families of most estate planners. It’s not something you should try to hide. In fact, you should be candid with the estate planner, because there are steps that can be taken to make things better. There are many types of problem children. What they have in common is that their parents would like to provide some financial assistance, either now through gifts or later through their estates, but aren’t confident the problem child will make good use of the money or property. They don’t want the money to be wasted or corrupt the child. You should tell the estate planner your concerns, so the planner can suggest strategies such as these. Make gifts indirectly You probably know the annual gift tax exclusion allows you to make gifts of up to $14,000 to any person in 2015. The exclusion amount stays the same for 2016. You can make gifts up to $14,000 to any number of people you want during the year, and spouses can give jointly up to $28,000 per person. Gifts up to this amount aren’t included in taxable gifts for the year, so they don’t use your lifetime estate and gift tax exemption. Gifts greater than the annual exclusion reduce your lifetime estate and gift tax exemption. Your estate planner might encourage you to make annual gifts to the children to reduce the value of your estate, or you might want to make gifts so the children can benefit from some of your estate now instead of waiting for you to pass. Fortunately, you don’t have to give money or property directly to a person. Instead, you can pay bills for the problem child, purchase things for him or her, or take similar actions. That way, you’re not taking the risk the cash or property will be used the wrong way. Some people make gifts of family vacations. They might pay all the expenses to bring the family to a nice location and stay there for a few days or a week. Others pay a major share of the costs. For example, you might pay for the cost of staying at a nice resort but let the family members pay the cost of transportation and perhaps the food and recreation at the location. The annual gift tax exclusion becomes an unlimited amount when you directly pay for qualified education or medical expenses. Make payments directly to a school or to a medical professional, and you can give an unlimited amount without worrying about gift taxes or how the child might spend cash. Custodial accounts When the child still is a minor, you can put money or property into a custodial account, known as either a Uniform Gift to Minors Act (UGMA) or Uniform Trust to Minors Act (UTMA) account. The gift qualifies for the annual gift tax exclusion, but an adult has control of the account. I’m not a big fan of these accounts, because the adult is in control only until the child reaches the age of majority, which is 18 in most states. After that, the child has legal control of the money. Create family limited partnerships The FLP has grown in popularity over the years. Originally, it was established to remove the value of assets from an estate at a lower gift tax cost. You create a limited partnership and transfer assets to it in exchange for interests in the partnership. Then, you give some or all of the limited partnership ownership interests to your children. You and your spouse are the general partners. Because the limited partnerships have limited marketability and each child is a minority owner, the shares are valued at less than a pro rata share of the assets in the FLP. That reduces gift taxes. The tax reduction strategy still works, though the IRS is planning to stop it. The FLP has other uses, and dealing with the problem child is one of them. You can put assets in the FLP and give each of the children limited partner shares. Because you and your spouse are the general partners, you control what is done with partnership assets. You manage them and also decide on distributions from the partnership. The problem child has an ownership share but can’t do much with it. In addition to avoiding misuse of the assets, the FLP might be a way to help the child learn to be more financially responsible by becoming somewhat involved in decisions. For the FLP to work in the long term, you need to establish who would become the general partner after you and your spouse. You probably don’t want to use the FLP to protect the property during your lifetime only to leave it at risk after your passing. Marital agreements Sometimes, the concern is not so much the problem child as the problem child’s spouse or marriage. Would you like a big part of your estate to end up in the hands of someone you never knew? That could happen if you give property to one of your children and the property is divided in a divorce. A marital agreement, either a premarital or postmarital agreement, provides protection against that and is very flexible. You should want your child and his or her spouse to enter into one that says any gifts or bequests received by one of the spouses remains the spouse’s separate property and is not part of the marital estate. Some people say they won’t make gifts or bequests to a married child who doesn’t have such an agreement in place. Protective trusts Perhaps the most common and comprehensive way to help a youngster while saving the wealth from potential destructive actions is to put it in a trust with protective provisions. There are a number of different provisions that can be put in trusts. Spendthrift clause: This standard clause says creditors of the beneficiary can’t force payouts from the trust or be paid directly from the trust. Even if the beneficiary is bankrupt, the creditors still cannot invade the trust. Once distributions are paid from the trust to the beneficiary, the creditors can try to claim them. Not all states allow the spendthrift clause, and many limit it to $500,000 or so of the trust’s value. Discretionary clause: This clause gives the trustee discretion over payments of income or principal to the beneficiary. The trustee determines both the amount and timing of all payments. This provision can work when the trustee knows your wishes well and especially when you provide written guidelines for the trustee. The discretionary clause can leave the trustee and beneficiary as adversaries, and you can’t anticipate all possible situations ahead of time and give the trustee guidance on each possibility. So it is a clause to be used carefully. A corporate trustee who is not familiar with your family also might not be able or willing to use the discretion effectively. It’s likely you would need an individual who knows the family to serve as trustee. Milestone or stepping stone trust: Trusts with this provision initially pay the beneficiaries only income. The annual income payment might have a limit or might be restricted to payments for certain expenses, such as education and medical care. The beneficiary receives more income or principal distributions when certain milestones are met, such as reaching a certain age, graduating from college, being employed for a certain number of years, or virtually any milestones you want to set. The entire trust might be distributed upon reaching one milestone or in stages as different milestones are reached. The milestone trust allows the beneficiary to learn how to handle money and to mature in general before receiving the bulk of the wealth. It also encourages the beneficiary to be useful and productive. Emergency clause: This is a variation of the discretionary clause. The trust is set up to initially pay income and principal to the beneficiary under some schedule or terms. But under the emergency clause the trustee is allowed to withhold payments when he considers it to be in the best interests of the beneficiary. Some people spell out the circumstances under which payments should be withheld. Others realize that they cannot anticipate every circumstance, so they give the trustee a broad, general power. Payments to the beneficiary resume when the situation that caused suspension of the payments is resolved and the trustee concludes a distribution again is in the beneficiary’s best interests. There are no guarantees that the problem child won’t waste money. But if you want an opportunity to help while protecting your wealth, consider these strategies. This entry was posted in Financial Foresight. Bookmark the permalink. Poster Comment: If you have a problem child, then you need to plan for his future.
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#1. To: BTP Holdings (#0)
The problem child needs to pull their head out and get with the program.
“The most dangerous man to any government is the man who is able to think things out... without regard to the prevailing superstitions and taboos. Almost inevitably he comes to the conclusion that the government he lives under is dishonest, insane, intolerable.” ~ H. L. Mencken
I just sent this to my brother, The Fugitive. He'll hate me for it. He won't get it.
That reminds me of a line from an Edgar Allan Poe story about a madman who -- like all madmen -- believed himself to be sane.
He'll hate me for it. He won't get it. Funny thing is he does'nt know how smart i can be :)
cordialchris! What's the deal! Say lots more here!
Sounds like Donald Trump to me ... claiming and winning bankruptcy every decade for 4 decades!
are you Fred's brother? welcome! ;)
Funny thing is ... Fred Mertz just opened a huge can of worms! Because he is my brother and I can talk a huge storm with lots of facts to back my stuff up. If you have questions ... please ask ... i am a genius child.
Yep and a whole lot smarter :)
Funny thing is he worked the American system and to this day he proudly says he did it and should be rewarded for the vote ... props ... but no props!
What a Christmas surprise -- a thread to remember. I think I have an idea who the real, uh, such person in your family is. Hey Fred, repeat the process for the rest of 'em, will you? Care to hell us how old y'all are? I'm always wondering with forum people, esp if they're surly, abusive, hateful or moronic. When they just hurl insults it makes 'em look about 10 years old. Apparently he's an adult and then some from what you say.
Not sure what that means ... but I am 44 and my brother is 60 ... i will not blow his cover ... we certainly are not surly, abusive or moronic ... maybe a little hateful about how society has evolved ... just sayin!
Problem child? Perhaps the child isn't the problem. Perhaps it is a problem parent who takes on a child they adopt in secret never accepting that child and then when that child turns of legal age, the parent disowns them completely. No court adoption papers involved at all. The parent never wanted the child in the first place but used them as a domestic slave for tax write off purposes only.
Not quite here in the adoption scenario versus the divorce scenario in my case ... but my dad never cared about us after the divorce and took his tax credits while we were raised in poverty while he was very wealthy ... just sayin ...
Therefore, his tax benefits were in excess of his allimony contributions
Welcome to this forum, cordialchris.
meanwhile ... never a christmas or birthday gift ever when we were growing up in the virgin islands ... four children ... not including fred mertz ... i am sure he got his ... but fred did frequently take on the role
Everyone shuns me for being an alcoholic ... but its a disease ... just like all others that is very hard to control ... fred is one too ... i dont need to be hated by my family for having a disease ... Christian Brothers and Old Milwaukee for my Christmas alone at home ... is that a crime?
So Fred's your .5-brother? So sorry to hear about your childhood!
who said?
who said he is my .5?
Merry Christmas everyone! My Bell Ringing season has come to an end. I do believe I raised $10,000 for the Salvation Army in four weeks time. Our family always celebrated Christmas on Christmas Eve about this time of the evening having dinner and opening gifts when we were younger. We spent all of Christmas Day playing with all of our new toys. Anyway, over the past several years I get to spend this time alone. Woe is me but I get along anyway. Looking forward to a happier new year. God Bless all my family and friends ... Yours Truly ... Christopher Sollner
Happy Holidays to you, cordialchris.
Guess I misread your #17 "four children ... not including fred mertz". Sorry to hear about your drinking problem and loneliness. If Christmas alone were a crime, half the country would go to jail. Personally I enjoy solitude much of the time. Was pleasantly shocked when my brother agreed with me on fone earlier tonite about the utter banality of most Christmas-dinner conversation -- something I just can't take anymore. I quaff Old Milwaukee every day -- a health drink in moderation, and the cheapest beer at Ingles. Curiously enough, more expensive per ounce by the 24-pack than the 12. Please stick with us, Christopher. We can be a great, supportive bunch when people aren't having a sudden rock-throwing spell. Thanks for confiming a hunch I had during the last one :-) A blessed Nativity season to you -- and to all, y'all!
damn ... there is no like button :)
I was the #3 bell ringer in louisille and and i am proud of that !
You're still there -- boffo! I have to ask, but you don't have to answer -- are you a right-winger to any extent like the rest of us here?
Handbells? Belfry bells? Coolo!
kinda was leaning on rand paul ... my local rep ... but not doing very well ... i am leaning ted cruz
I just can't help myself:
Weird!! "The good Lord loves strays"?
I love throwing rocks ! "Honest, April 15th is the real April Fool's Day". "The almighty Dollar ain't worth a buck". Doug Scheidt
"Honest, April 15th is the real April Fool's Day". "The almighty Dollar ain't worth a buck". Doug Scheidt
"The good Lord loves strays"? How think ye? if a man have an hundred sheep, and one of them be gone astray, doth he not leave the ninety and nine, and goeth into the mountains, and seeketh that which is gone astray? And if so be that he find it, verily I say unto you, he rejoiceth more of that sheep, than of the ninety and nine which went not astray. Even so it is not the will of your Father which is in heaven, that one of these little ones should perish. -- Mt. 18:12-14 God Gave Wine -- Gentry Yes, but "A Winebibbing Christian" probably wouldn't have as much success in Nashville. :)
So, the two singers feel guilty and are very theological, bomp bomp baw.
“The most dangerous man to any government is the man who is able to think things out... without regard to the prevailing superstitions and taboos. Almost inevitably he comes to the conclusion that the government he lives under is dishonest, insane, intolerable.” ~ H. L. Mencken
At least she made it to the plate, on four bounces. ROTFLOL!
"When bad men combine, the good must associate; else they will fall, one by one." Edmund Burke
When I was working a concert at the Vic Theater in Chicago, people would sometimes put the paper bag with the beer in the litter basket. I was walking the line, and I spotted a paper sack in there. I opened it and there was almost a 12-pack in it. I picked it up and started to walk away. Some guy in the line said, "Hey!" I said, "Hey, what? It's my beer." If I had caught him with it in the line, it would have been my beer anyway. LOL "When bad men combine, the good must associate; else they will fall, one by one." Edmund Burke
When I was managing the Cafe at the Luxor in Las Vegas a guy and his gal reamed me over food service and quality. I apologized prophetically and fixed the problems, yet he continued to ream me. After they left, I noticed a silver money clip in the booth. Like a sly fox I swiped it as if I was wiping at the booth. I took it to the restroom and hot damn! $650! Do you think I took it to lost and found??? Hell no!!! I took it straight to the bank!!! Be careful of those you ream :)
That is better than me finding $12 on the dance floor at Country Music Inn in Illinois. The band leader saw me pick it up and he held his hand out, as in "Gimme." I stuck $5 in the tip jar. That got me a few requests. LOL "When bad men combine, the good must associate; else they will fall, one by one." Edmund Burke
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#2. To: Lod (#1)
#3. To: Fred Mertz (#2)
He won't get it.
#4. To: Fred Mertz (#2)
I just sent this to my brother, The Fugitive.
#5. To: cordialchris (#4)
#6. To: Lod (#1)
#7. To: cordialchris (#4)
#8. To: NeoconsNailed (#5)
#9. To: christine (#7)
#10. To: All (#6)
#11. To: cordialchris (#10)
(Edited)
#12. To: NeoconsNailed (#11)
#13. To: Lod (#1)
The problem child needs to pull their head out and get with the program.
#14. To: purplerose (#13)
Problem child? Perhaps the child isn't the problem. Perhaps it is a problem parent who takes on a child they adopt in secret never accepting that child and then when that child turns of legal age, the parent disowns them completely. No court adoption papers involved at all. The parent never wanted the child in the first place but used them as a domestic slave for tax write off purposes only.
#15. To: All (#14)
#16. To: cordialchris (#14)
#17. To: All (#15)
#18. To: All (#17)
#19. To: cordialchris (#17)
#20. To: NeoconsNailed (#19)
#21. To: All (#20)
#22. To: All (#21)
#23. To: cordialchris (#22)
#24. To: All (#19)
(Edited)
#25. To: NeoconsNailed (#24)
#26. To: All (#25)
#27. To: cordialchris (#25)
#28. To: cordialchris (#26)
#29. To: NeoconsNailed (#27)
I am an independant right winger
#30. To: All (#29)
#31. To: NeoconsNailed (#24)
I quaff Old Milwaukee every day
#32. To: StraitGate (#31)
#33. To: NeoconsNailed (#24)
We can be a great, supportive bunch when people aren't having a sudden rock-throwing spell.
#34. To: All (#33)
#35. To: NeoconsNailed (#32)
#36. To: StraitGate (#35)
#37. To: NeoconsNailed (#36)
ultimate black sheep
#38. To: Lod (#37)
#39. To: NeoconsNailed (#24)
more expensive per ounce by the 24-pack than the 12.
#40. To: BTP Holdings (#39)
#41. To: cordialchris (#40)
I took it to the restroom and hot damn! $650!
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