Need advice from future retirees or retired.

[bottomups]

Get yourself a good financial planner. Don’t rely on advice from a bunch of peckerheads on an Internet forum.

Just bury the gold in the back forty acres?

 

[Up In Smoke]

The only downside to a trust for your kids is if the money remains in the trust (does not pass through upon your death), the tax rate in 2022 for trusts is 37% on income in excess of $13,450. That is much higher than most individual tax rates.
In 2022 the federal government taxes trust income at four levels:

• 10%: $0 – $2,750
• 24%: $2,751 – $9,850
• 35%: $9,851 – $13,450
• 37%: $13,451 and higher

Our thinking is to protect our finances from the state in case of full care senior living. If all we have to our names is a few bucks, our SSI and my pension so be it. My wife and I have been blessed to build a nice little business portfolio and would like the kids to keep it going once we're gone.

 

[Up In Smoke]

We own multiple properties and the trust protects against capital gains.

 

[BrownFlush]

Spend it.
Spend it alllllll.

 

[Red Headed Stranger]

We own multiple properties and the trust protects against capital gains.

Actually, long-term capital gains are more tax advantageous than ordinary income.

Ordinary income tends to include items such as wages, tips and interest income. Capital gains arise when you sell a capital asset such as a stock, home, apartment or condo for more than its purchase price, or taxable basis. If this asset is sold within 1 year of purchase, the gain is short term and is taxed at the higher ordinary income rate. If it is sold after 1 year of purchase, it is taxed at the discounted long-term capital gains tax rate instead.

Long story short: Ordinary income taxes are applied to wages and income, interest earnings, and short-term capital gains. By way of contrast, capital gains taxes are a favorable tax treatment that lowers taxes on profits made through investment activities that are designed to encourage investors to buy and hold capital assets.

Capital gains tax rates are 0% if you earn below $83,350 per year, 15% between $83,351 and $517,200, and 20% if you earn over $517,200 for married spouses filing jointly. If you were taxed at ordinary income tax rates, you would be paying a much higher tax rate in most cases. Remember, long-term capital gains ARE YOUR FRIEND!

 

[bottomups]

Our thinking is to protect our finances from the state in case of full care senior living. If all we have to our names is a few bucks, our SSI and my pension so be it. My wife and I have been blessed to build a nice little business portfolio and would like the kids to keep it going once we're gone.

Asked my wife for a divorce a few weeks ago to save some taxes on Social Security and to shelter some assets incase of full care senior living.
Didn't go over well but I'll keep trying. Told her we could just divorce and continue to live together.