It's an estate planning technique where a grandfather would leave part of his assets to his grandson instead of his son... estate tax saving motivation.
Stoney, at least what you are posting is honest, and I congratulate you in your good fortune to get the GST. And realistically, buying some sort of property in the tristate area means that you will at some point be able to sell it for what you paid for it, hopefully at a profit, and for the cost of interest and the taxes. Its good to have a place in the burbs for the kids - city life ain't all its cracked up to be. That's why I left, as I might for all intents and purposes be you (minus the herbage). Have you thought of doing something similar for your kids? I've debated doing something similar, either through a dynasty trust or if not quite so sophisticated, through a variable annuity for my pre-k kids also. The only thing holding me back is the concern that by putting the VA in their name, either they could access it for money (not my intention, but I think my kids will be smarter than that), or more likely, their college/grad school will look at it as fair game/required contribution and make them hand it over with the tax penalties to boot. My wife doesn't always get it either. She doesn't go too rampant on the fashion thing (thank god), but impending nanny costs are looking scary.
1. Unless the amount of money is large, the tax deferral benefit of a VA for kids isn't worth the hassle. 2. Kids' accounts would have to be under Uniform Gift to Minors in one way or another. While such accounts don't hurt kids for financial aid considerations for college, they don't help either. 3. UGMA accounts are turned over to the kids at the age of majority. If they want to blow it all on a car or drugs, parent can't stop them.
you are a funny dude. For starters you can take the other guys advice, forgot the handle, and live very frugal. You can get a second mortgage from anyone. They are all at their knees right now and need a good risk. What bridge are you talking about? Just buy and hold your reco YGE. Leave it alone peice into 100k shares and go to sleep. Sell it at 60 and buy a real house, for cash. Your kid would most likely go to private school in chile and you can hire a butler for 100/month, he can drive him while you blaze at home with your feet up watching level 2 on your 60 inch flat panel overlooking the pink snow on the andes. Buy your wife a store to occupy her time and make sure she is real busy.
These are great questions. As I understand this trust it is an outright slap in the face to the the younger generation of a family. It's a way of saying "look you are going to work and we are going to make sure you work work work and are just miserable and mostly destitute and then you will produce a better grandson for us and HE will receive a kingdom in gold! "So the slap I guess was meant for my father and my mother. This date assured (1) he would be dead and (2) I (not my mother) would get the money. This is made more confusing by the fact that my Dad died when I was two. And my Jewish mom (already a problem in Boston) remarried a like minded Jewish man. So if they could they may have reverse engineered this trust and in fact there was the faintest whiff of that at one time.. I changed my name. I WAS NOT ADOPTED- I'D LIKE TO MAKE THAT POINT VERY VERY CLEAR again AND AGAIN... but I got wind my cousins were looking into the legal ramifications of that which of course we had already checked out. The Boston stuff can be weird & I don't know if these exist much elsewhere. Most people give the moneys to the kids! A GS trust does guarantee that a relatively small amount of money ($37,000 I think it was invested in stocks in like 1930) will balloon and balloon quite a bit. What will I do to my son? I will baby him and tell him he is perfect and generally raise a great young man. I'll do everything wrong and support him with a monthly check -enough to get him a roof but not enough to get him much further... this is what my mother when she could did for me- there was always $1 thousand to $2 thousand that came my way rent time and that of course bred this " artistic " guy who didn't like to work days much... so DJ ing became a profession- Hey Mom I'm doing coke and playing records. Seriously. And getting paid! I helped out at Andy Warhol studios for a number of years, became a writer there and worked on a MTV TV show AW's 15 minutes. I was also going out every chance I could Palladium, Area. Madam Rosa'a, Save The Robot, Pyramid Bar, all these great places and great clubs what golden memories ...I wouldn't of had it any other way, but it has all sadly peaked. And the world is different and NYC in particular is not as fun anymore... would I want my kid to follow in my footsteps? I don't think so. There is a school up in Washington Ct- Gunnery I don't know much about it they may not even have a football team but the kids look cool as they walk across the green to their classes and who knows by the time this infernal trust discharges I may decide to stay up there and put my son in school up there somewhere and cash out my NYC apt.... that's a move I cannot even fathom at this point. It's the back N forth for now the fine dining is just so good in this city. By the way Washington Mutual apparently is willing to give me a mortgage without really checking into me! Just going off the credit score I guess... I saw there stock was down a lot today, can't imagine why. Fine company. Would love to get one other offer and play them off each other-- stay tuned. PS The Bridge is a small steel bridge that connects the main road to my lot and the owner has made a recent deal in return for some land leading up the hill he now must " maintain " this bridge it's in a quarry so the rush of water is not slow... I think it's so romantic of course crossing this little bridge but each and every one of you know this will be my undoing... God forbid it gets washed away when I'm home- I'm stranded! PPS I already bought the wife the store ten years ago that led to even greater spending and missing merchandise; closing this business this year with the type of records I keep will be one of the great feats of idiot mankind ~ stoney
Bridge Over Quarry Waters Stock Review! Nutmeg may I steal that great title in case i send dispatches from Ct?~ SI
stonedinvestor, you expect to be paying off your mortgage and you don't have a stable income? you expect it to be paid off your trading profits? that you swing trade? Maybe I'm missing somethihg, maybe your spendthrift wife is a high priced attorney, maybe your young child has an e-commerce businesss on the side are you just bullshitting us or what? Anybody who is a trader in this game and isn't a shortterm scalper, knows you don't rely on your trading profits, they are unstable as shit its feast or famine, you are expecting to pay your mortgage with a feast or famine income?