I've been researching trusts and I'm trying to figure out if it fits what I want to do. I've got 2 kids that are preschool age and plan to keep working for another 25 or so years.
I make a good amount, have been saving for a long time in various investment vehicles (Roth IRA, Taxable mutual funds, 401k). I mix and match depending on the tax benefits now vs. future goals.
One thing I want to do is establish a vehicle to transfer wealth to my kids while I'm still alive. For example, instead of kicking the bucket and transferring the unused balance of my retirement investments when they're in their 50s/60s, I'd rather give them access to a lot of that wealth earlier in life to get their own lives established, and have the precedent of a financial vehicle for they themselves to invest into, and so forth. For the record, I'm talking about 1 mil in assets in today's dollars.
I'd also be interested in maybe transferring ownership of my house into the trust which by then would be fully paid off and worth well over 1 million itself, and be able to generate enough income to supplement their income. I don't plan on living in it after they graduate, but I want to retain it as a paid off asset.
And then finally, when my wife and I are both gone, transfer the balance of my retirement accounts into the trust, which would be worth about 2-2.5 million. I'm only planning on withdrawing the RMD which is way more than I'll need.
So I guess what I'm asking is, would a trust fit what I'm trying to do here?
Submitted January 23, 2020 at 08:15PM by joec5578 https://ift.tt/2sXuLyg
