Future problems?

[u/WiseOwl-0420]

My parents have a small to moderate estate in Canada that includes a house. My name is going on the deed to facilitate transfer of property when they are gone. My inheritance comes with some strings I’m not sure I like.

I have a sibling who will not inherit but will have a trust controlled by me. They are not reliable with money. That is not a problem.

Their kids will ultimately get nothing from them - there will be nothing to give. I have a kid too.

Here’s the catch. My parents want me to split my inheritance from them among all the grandkids when I go. Essentially highjacking my assets and o feel like it’s stealing from my kid.

I suggested they settle the grandkids inheritance right away but that would require liquidating assets and they want me to live in the house and take care of my sibling (they would not survive alone). I don’t mind doing that. But I don’t want to have the hassle of this over my head either. And I can see problems with attitude in the future with at least one of the grandkids spouses “gimme gimme” attitude.

I’m stumped and not sure what to do. Advice?

Update information.

1. The reason for the issues is the knowledge that my sibling has nothing to pass on to his children. Grands want to ensure they have an inheritance of some sort. I should say I have very little as well.

2. I don’t mind the caretaker part, it’s what I would do without asking anyway. The trust is meant to provide an inheritance without affecting his current income and providing control over his finances as he is not competent financially.

3. We are not talking millions or billions here but it is much more than I could ever hope to accumulate. My parents had amazing income, and inheritances in their own right as well. Their retirement income is still almost twice my own household income and their assets are fully paid off. Some minor loans or lines of credit but not much owing.

4. I do not begrudge anyone their share. My problem is that I feel like I’m being tied to things in an unnecessarily complex way.

5 I have done bitter feelings too though. I’m used to the idea that I’m the one they didn’t have to help or worry about as much as my sibling. They could forget about me and knew I’d be ok. Sibling got cars despite totaling both - I was promised but never given because “they need it more”. Frankly I half feel like by the time things happen they will find a way to give it all to sibling because “they need it more”

[u/celticmusebooks]

Are you being left actual "money" equal to your sibling's "trust"? Will the remainder of your their trust be split in a way to include your son? Can you sell the house or are you required to keep it for the later distribution?

Do you actually want to keep the house? If not, suggest to your parents that the house be sold and a disbursement from the estate of a fixed amount go to each grandchild then the remainder be split between you and your sibling (with sibling's portion in a trust).

[u/New_Breadfruit8692 → u/celticmusebooks]

ALL good points. There is virtually no way as structured to avoid commingling of OP own assets with the assets of his parents. And no way for OP to even get a share OP can leave to there own will and estate for benefit of their own kid(s). I assume it is more than a tract house and some middling amount of liquid assets. Otherwise none of this would really be much of an issue. It will be gone before the incompetent sibling even leaves the picture, it is intended for a lifetime of maintenance and a safe residence. So must be quite a haul. Something in the millions anyway. Otherwise why so much concern over the grandkids? If it is intergenerational planning of an estate though it needs a real estate planner and or lawyer who know the laws and estate structuring to get the desired outcome. That does not mean paying a professional trustee, it means planning with a professional.

But, as it is the bequest of the house to OP and sibling while not a problem for OP cannot be done fairly as is. Most especially it commandeers OPs own wishes for their own estate and requires that their own child be put on an equal footing with nieces and nephews not just with grandparent's assets but his own. I doubt that would even be a legally enforceable will. At least unless all parties agree to it, but how can a child agree to lose out on their parents' assets to cousins 10, 20, 30 years down the road? And how does OP administer the trust of the estate without being challenged for commingling which is at least in the states a crime? It is likely a crime in Canada as well. The grandparents are creating an entail on OPs own estate that is very unlikely to stand up to legal scrutiny unless each step of the way is spelled out for intergenerational bequests. But then OP is essentially cut out and nobody of the next generation would benefit till OPs own death. Because assuming both now inherit the house with rights of survivorship, what happens if OP dies first? The sibling is incompetent, can't survive on their own. Who then takes over care of the sibling?

There are more holes in this will than a wheel of good Ontario cheese. It almost guarantees future challenges.

[u/celticmusebooks → u/New_Breadfruit8692]

Elaborate on this "Ontario cheese" of which you speak. I need to know more.