Wealth after your death

[LibertyGuy]

Hi, most of us here pursue accumulating wealth, investing, buying, selling assets, growing up business‌ to enjoy life, expand family, get more power & renown etc. But I was always‍ curious, what is the plan after life is over?

• Will you leave everything to your⁠ children equally just like that or through some fund for them to access wealth with⁤ small portions so as not to spoil them?
  
• Will you spend more money for hedonism⁣ the older you get the more you spend just for nothing is left to nobody⁢ when you are gone?
  
• Leave everything to charity and science funds?
  
• Inherit equally to all︀ women who will do IUI with your material as Durov claims to do?
  
• You’ll keep︁ accumulating wealth until the end hoping to use it when medicine can cure you giving︂ immortality?
  
• Spend everything to play with life’s of others to enjoy the hell right before︃ you get into one yourself (sick but not that rare nowadays)
  
• Other versions?
  

The second︄ important question - what resources will you use to implement your plan? How to check︅ lawyers/funds so they’ll not scam your children and will inherit wealth when you’re gone? What︆ services will you use to transfer your bitcoins and google account?

 

[DeepDrilling]

use it all before I die! wrong forum posted btw.

 

[Martin Everson]

Hand most to my kids slowly during my lifetime so they can become use to‌ wealth and make mistakes while I am still alive to correct and guide them. Worst‍ thing to do is dump it on them after your death via a will or⁠ trust etc. They have to be taught wealth management so they can teach the next⁤ generation and the cycle continues like it has from my grandfather.

In my case I⁣ have several structures that have been passed down from my father to me and now⁢ to my kids such as family companies and now a real estate business etc. The︀ idle situation is that everything is handed over before you die and you leave the︁ earth the same way you came into it - with nothing. The only exception is︂ stuff held in trusts.

Maybe hang out with the angels. I am︄ pretty sure my google calendar will be empty in heaven.

 

[GPT]

My letter of wishes is very clear. My trustees are also on board wrt the‌ letter of wishes. For as long as I am sound of mind I review and‍ revise my letter of wishes. I furthermore have a contingency build in with a professional⁠ protector party.

Basically what is left over will be divided according to conditions amongst my⁤ relatives and or connections.

 

[ElBotellon]

at what age do you consider making a trust? and from which amount? trustees' fees‌ are quite important particularly when you span them over decades.

 

[Martin Everson]

I would say its not an age thing. It is a change in life situation that‌ will determine when best to setup a trust. i.e you could be planning on get‍ married, terminal illness, relocating abroad, winning lottery etc etc.

Depending on who the trustee is it may make sense to only⁤ start when wealth is several million. You however could start if you have low value⁣ assets that may appreciate substantially over long term but this would be as part of⁢ a wealth and tax planning process. In all cases you would need to look at︀ long term operational cost of a trust and how to make the costs sustainable.

 

[GPT]

In my case change in activities. They tend to shorten the lifespan of the⁤ average individual participating. Combine that with age and relationship status.

Agreed, a trust︃ in itself is only worth it from 3M and up (likely it could work with︄ a little less but that largely depends on the complexity of the trust).

I work︅ with an underlying company which I run myself. Basically the trust kicks in when no︆ one can run the company anymore. If that coincides with me having passed on then︇ the underlying company will sell of assets which then end up in the trust after︈ which the trust becomes "active".

It is already active but rather in a passive manner︉ at the moment.

I reply to you as it is an addition to your answer︊ to @ElBotellon .

 

[LibertyGuy]

In other words - you work until you die and︃ when you die whole business will be sold automatically fueling the trust which will benefit︄ your offsprings? If I got It correctly that's very smart. Mind to share details how︅ you implemented It? Which trust you use, in which jurisdiction and how automation itself is︆ build?

 

[void]

this can be easily and very cheaply set up in the Czech republic by⁣ anyone independently on the citizenship
family endowment fund is established
chosen assets are put by⁢ the founder on balance sheet of the fund (appraised if necessary - for example in︀ case of a company, share or real estate)
founder can create very complex rules what︁ and when should happen
to avoid expensive, complicated and sometimes inconvenient appraisal of the company︂ the fund can form a new holding company and given company can get sold to︃ the holding company (sometimes carries unwanted tax implications, sometimes doesn't)
this setup comes with huge︄ tax benefits for (wider) family members if designated as beneficiaries of the fund and it's︅ also an elegant solution for inheritance as it decouples the ownership from the original owner︆ yet offers full control over the assets

 

[Martin Everson]

Sounds like a⁤ Dormant Freezer Trust that Nedbank in Jersey can offer. When I last inquired they were⁣ like under £300 to setup and like £100 a year to run until active (but⁢ don't quote me as this was in 2018). Only advantage of bequeathing your assets upon︀ death into a trust is saving of trust costs if you live long.

 

[GPT]

In a nutshell that sums up the setup.

I already had an active opco⁣ with a holding on top. I merged the two as I dont really have any⁢ fiscal advantages for keeping the holding active ever since I transferred the shares of the︀ opco to the trust. This by the way depends on where you live the activities︁ you are professionally involved in and a handful of other personal things.

Right now I︂ dont hold any real estate but if I would the titles would be held by︃ the trust. My investments are managed from within the trust. If for whatever reason I︄ do decide to stop working or when I am in need of extras then the︅ trustees have the power to pay me as well as I am a beneficiary during︆ my life.

The moment I die there is little to nothing in my name. These︇ items are not material in any way shape or form and would mostly hold some︈ emotional value.

Jurisdictions involved; this very much depends on your personal situation. It doesnt help︉ you to disclose mine.

 

[koohl]

It sounds very⁤ simple and straightforward, but how did you actually set it up in practice so that⁣ a sale of all assets would be executed in the event of your death? I’d⁢ also like to know if you think it really matters where the company is registered,︀ or if it makes more sense to go with an offshore company rather than, for︁ example, an EU company, a Hong Kong company, or something similar.

And how do you︂ handle the money that may be sitting in a bank account, since those funds can’t︃ just be moved?

 

[GPT]

It is similar but not the same as⁣ my trust holds some assets besides the shares to the opco.

Mind you, the annual⁢ costs of the trust are not why I have this setup.

 

[GPT]

Given that the trust︀ is the shareholder of the opco they defect become responsible when I pass away. On︁ top of that the trust instrument is very clear (if X then Y) as well︂ as the letter of wishes. Last but not least there is oversight from a protector.︃

 

[Armani]

Don't want to give easy money to spoiled kids (they have to earn it, the‌ same way I'm doing) , i will spend it and donate 100% of the remaining‍

 

[void]

I never fully understood this approach when it comes to inheritance...
if your kids are spoiled‍ and you don't like it why did you allow that in the first place?

imagine how much more they could earn and do with the right support and guidance⁤
this totally denies our genetic nature