Protecting Kids Inheritance

[BEENTHEREDONETHAT]

I'm concerned that when the wife and I kick off the greedy big brother will attempt to glom onto the inheritance we leave the kids. With the present economical problems the rules that generate $ for the government are going to get much tougher. As I understand it now the only things you don't have to claim are property and physical gold. Since I'm talking long term like 20+ years I don't feel gold is the answer.

So we are considering buying property with a good growth potential and setting up a trust so they end up with it at the end but can use it now although can't sell it now. Between the wife and I we have 7 kids and have an opportunity to buy 64 acres with lake frontage in Northern Idaho. Prices here are very depressed and some good buys are available.

Are there any obvious flaws in this that I'm missing.

Since we are living Thailand we don't know where to invest it here to be meaningful to them since they all live in the USA.. Did that make it Thai related ?

[sscsamui]

I would think Hawaii would be a better longterm investment. Properties have dropped their but will go up again for sure and at a higher rate than Idaho... In My opinion

[BEENTHEREDONETHAT]

I would think Hawaii would be a better longterm investment. Properties have dropped their but will go up again for sure and at a higher rate than Idaho... In My opinion

I'm sure you are right about Hawaii. The advantage to Idaho is they all live in the Northwest and and could easily drive to Idaho property vs flying to Hawaii.

thanks for your thoughts on it.

[Naam]

correct if i am wrong, respectively if legislation has changed. two decades ago, when we were interested to buy some building land in Hawaii there was no freehold land available. all was 99 years lease.

[BEENTHEREDONETHAT]

correct if i am wrong, respectively if legislation has changed. two decades ago, when we were interested to buy some building land in Hawaii there was no freehold land available. all was 99 years lease.

Yes and many of the leases are getting relatively short in time left. The banks will only loan for 10 years less than the balance of time for the loan. So a 25 year lease can only qualify for a 15 year loan. And the shorter it gets the less the vale of the land. So for a long term investment you are pretty well screwed. Pretty place to live though.

[TravelerEastWest]

correct if i am wrong, respectively if legislation has changed. two decades ago, when we were interested to buy some building land in Hawaii there was no freehold land available. all was 99 years lease.

I used to live in Hawaii and I have never heard of a law such as you mention.

You can buy a Fee simple or lease hold interest in Hawaii with leaseholds being less expensive naturally. leaseholds in Hawaii are for different lengths of time not only 99 years.

[Naam]

correct if i am wrong, respectively if legislation has changed. two decades ago, when we were interested to buy some building land in Hawaii there was no freehold land available. all was 99 years lease.

I used to live in Hawaii and I have never heard of a law such as you mention.

You can buy a Fee simple or lease hold interest in Hawaii with leaseholds being less expensive naturally. leaseholds in Hawaii are for different lengths of time not only 99 years.

i can only report what we were told. perhaps we were "bs-ed" by the realtors who could only offer leasehold lots. and when you google "Hawaii leasehold" you get a bunch of conflicting information.

of course leases are for different lengths because of different starting times.

[Misty]

There should be some freehold available for sale in Hawaii. For example, when given the option, we converted two HI leasehold properties purchased about 20 years ago to freehold, and later sold them. I know of others who have done similarly.

correct if i am wrong, respectively if legislation has changed. two decades ago, when we were interested to buy some building land in Hawaii there was no freehold land available. all was 99 years lease.

I used to live in Hawaii and I have never heard of a law such as you mention.

You can buy a Fee simple or lease hold interest in Hawaii with leaseholds being less expensive naturally. leaseholds in Hawaii are for different lengths of time not only 99 years.

i can only report what we were told. perhaps we were "bs-ed" by the realtors who could only offer leasehold lots. and when you google "Hawaii leasehold" you get a bunch of conflicting information.

of course leases are for different lengths because of different starting times.

Edited August 21, 2011 by Misty

[honoluludave]

About 10 years ago alot of places that were leasehold land was changed to fee simple. But Hawaii is still overpriced for what you get.