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Refusing a large inheritance for my sibling?

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I come from a relatively rich family, and because of very high inheritance taxes in my country, my father wants to already give my brother and me the equivalent of around $1,000,000 each, ahead of his death. The rest would come when he dies, but with high taxes taken from it.

The problem is that my brother is a good guy but he keeps failing at things in his life, overuses weed, has been several times ripped off by 'friends', has had a few minor clashes with law enforcement etc. I am younger but I have a normal life as society thinks one should, with a decent job, in a stable relationship and so on. I do help my brother as much as I can, but never with money because I don't think it will help him.

So, my father asked me if receiving $1,000,000 would ruin my brother, leaving him no chance to make his own path and no motivation to continue with adult education, which he painfully started (he is in his late twenties). My father is not too close to us and is not completely aware of all aspects of my brother's life, so he cannot make a fully informed decision. I plan to tell him that it is best if he doesn't give either of us money in the coming years, at least until my brother gets his life together, which he looks like he might slowly be starting to do lately (?).

Am I right to refuse that money for us because I don't want it to ruin my brother? I can't ask friends or acquaintances because I don't want that to change our relationships - and because in my Scandinavian social democratic country being 'rich' is also somewhat stigmatized.
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As someone with addiction issues I think you are correct in saying to wait a few years. He will blow it because he doesn't have enough at stake yet.
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Yeah I think that's a good Idea OP.

Wait for 3-5 years, see where you (and your brother) are in life and then re-evaluate the situation?

Your brother probably cant handle the money and it would be very unfair if you got the money and he didn't.
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>>16934291
This.

Wait and see, OP, you are a good guy and it is good that you care about your brother in this way.
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A friend of mine was really depressed for the longest time. he drank, used drugs, and just didn't care about life. One day his mother was cleaning out some old things from their house that had belonged to his father. When she showed them to him, he knew exactly what it was. For anonymity i can't say what it was exactly, but it was something his father had been working on before he was killed in action.
He finished it, and sold it for millions of dollars.

My first thought was "he's going to overdose" but he didn't. He bought a house, and soon had a girlfriend. Everyone knew she was a golddigger, but didn't say anything because he was happier than he had ever been, and he wasn't using drugs.
One day we talked and he told me about her.
Turns out she was no ordinary golddigger. She signed a prenup, and had already made him 20% investing his money.
I was skeptical, but put that aside because he was happy, and had changed so much.
Years later they are still together, happy and doing well.

I don't know your brother, but i'm pretty sure my friend would be dead if he hadn't come into some money when he did. Just something to think about.
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Would it be possible for your father to set up a trust fund, with your brother as beneficiary, and give the money to that? This is one of the things trust funds are commonly used for: cases where it's believed the beneficiary (i.e. your brother) could not manage the money well on his own. You'd need to draw up rules stating when and how money could be withdrawn, and find a trustee to handle the actual management of the fund, but it would provide a solution to your problem.
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>>16934231
I think you are right, for what it's worth, but keep in mind that it might ruin your relationship to your brother irreparably if he believes you are "cheating" him out of his money, at least for the time being.

That being said, I have a similar situation with my father, I don't know about the laws in Scandinavia, but couldn't he open up a private foundation, raise capital as chairman/BoC for the newly created foundation, have you and your brother join the Board of Directors when you come of age and handle the money through the foundation to avoid getting overly fucked by taxes?
That's how it works in Austria, it doesn't evade all and any taxes but it at least stops already taxed money from being taxed again through inheritance tax.
Additionally you could set up rules for money management and spending through the foundation, so he couldn't just blow it all on cars and coke.
I don't know, talk to your father about it, and a tax adviser obviously.
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I'd say you're in the right OP, He might be mad if he found out you did it, but it would be best for him at the end of the day
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Why not just set up a trust account for him?
Till he kicks his bad habits or till he´s older?
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You're doing the right thing OP.
Tell your dad to give the money to charity.
Every rich kid i've even know has been a douchebag.
If you want others to respect you, or more importantly to respect yourself, you need to make it on your own.
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>>16934231
should use the money to discipline and help your brother. dont understand how rich people dont have independent, strong, smart children. your family had the means to make your brother into something, they could of done all sorts with their money. how did they fuck up?
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Set up a trust fund. Each of you will get payouts of xxx per year, and the full amount when you turn 50 or whatever.
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>>16934577
I disagree. If his father worked hard his whole life to support his family and children, why shouldn't those children get to inherit it, manage it and hopefully contribute to family wealth?
I'm not saying they should just lavishly spend their fathers money without a second thought, sure have them work for it, and teach them to be responsible. But not give it all away.
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>>16934626
because his brother clearly isnt capable of managing the family wealth and contributing towards it. his father has somehow fucked up with his brother.
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>>16934518
Then set up a trust fund for each of you. Then you're being treated equally: your brother will have no reason to suspect your involvement if you have one too. Set up the rules to mirror what you'd have done anyway, and you will barely even notice the difference.
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>>16934629
Hence the trust fund idea.
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>>16934634
alrtight, fair enough. didnt know you where referring to that.
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>>16934512
>That's how it works in Austria, it doesn't evade all and any taxes but it at least stops already taxed money from being taxed again through inheritance tax.
That's tax evasion. I find it fascinating how warped the perspectives of rich people tend to be. Did you research taxes on wealth in other countries? Do you know how lenient Austria is in that regard? Yes, I know, everyone with a brain does it, so it would be retarded to be the only one not doing it. But don't ever delude yourself into thinking that any of this is proper and just. This is also a reason why this country is turning shit really fast.
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>>16934649
So you're saying I should be paying more taxes than I absolutely have to, and not doing so is 'warped'? I'm within my legal rights.
That being said, how well does the state manage our taxes again? Because I can't recall them being put to good use a lot.
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>>16934649
>That's tax evasion.
No, actually, it isn't. Tax evasion is when you don't pay that you owe. Methods like this lower what you owe, but you remain fully paid up.
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>>16934231
Your father can create a trust fund (or whatever it is called in your country) for each of you. You are given legal ownership of the money (which solves his tax problem) but not control over it. Depending on how it is set up, it can be that you get only a percentage each year, or you get the interest but not the principal, or that you get access to half of it in X years and the rest in X more years, or whatever.

The point is that your father gets his tax break and you and your brother get the money eventually, but not all at once in a way that you or he could blow it.
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>>16934231
You're so wrong it's disgusting.

You're selfishly thinking of yourself and masking it as selflessness. You have no right to interfere with your brothers life, you're judging him based on your own.

If you go through with this be prepared to lose your brother and I can't say I'd blame him for it.
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I think the best solution would be to have your father set up a trust fund instead of giving the money directly, he could set up very specific rules about what the money could be used for like education, property, etc. I think that would be a good middle ground between handing him an amount of money that frankly would make pretty much anyone irresponsible and cutting him off until he's "matured" which realistically is unlikely to happen.
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>>16934691
In a legal sense, of course. This is due to the fact that current laws don't cover loopholes like in >>16934512

And no, >>16934658, I'm saying that you should keep doing what you do. Everyone else does it and it would be outright stupid not to do it. And of course you're covered, all of those foundations exist because it is "covered".

None of this changes the fact that people set up these foundations to avoid paying taxes that would have to be payed if people did not use this method.

>That being said, how well does the state manage our taxes again? Because I can't recall them being put to good use a lot.
Yes, it is a sign of a weak state, and you're right to phrase it like this. But this is not how it should be and this is not how you should work yourself around taxation. This is why I'm saying that no one should feel "right" about it. Nothing of it right.
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As most people are saying, you're doing the right thing OP.

What your father could also do is set up some sort of trust or make it so he can only spend it on some specific things (I don't know if this is possible but I feel like I've read this before, where some fundies could only spend their money on housing/school/etc.), that way it's pretty much a failsafe that he has the money but can't fuck up too much.
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The brother is the first born, and therefor inherits the throne. OP doesn't have the guts to stab his brother in the back to take it from him. So instead he conspires and bears false witness against his brother.
OP should be taken outside the city, and stoned to death.
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>>16934781
>None of this changes the fact that people set up these foundations to avoid paying taxes that would have to be payed if people did not use this method.
753 BC called. They want their philosophy on state ownership of wealth and property back.
Thread posts: 27
Thread images: 1


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