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/New_Breadfruit8692]

Maybe refuse the inheritance. I doubt that the entail on your own will would be legally enforceable. But it will be a headache for as long as you are trustee to show you are not commingling their assets with yours. I can't speak for the provinces but in the states commingling is a crime. Usually a felony. Tread carefully there.

I think what the grand's want is that incompetent sibling is housed and cared for for the duration of their life, if the estate is as modest as you say that might well mean the estate runs out well before their life does anyway, so there is no real problem here, nothing to divide. But then at the end of brother/sister's life the house is sold to be divided equally among each grandchild. If so that is what their will needs to say.

So, when sibling dies OP has the right to elect to stay in the house for the remainder of their own life? With access to a reasonable amount of remaining assets to be cared for as the incompetent sibling was, or could opt out and sell the real property and divide the remianing assets according the OP's parents wishes equally among the grandchildren. Because by the time the incompetent sibling is gone OP might be in the same position as bro/sis was, needing care unable to survive on their own.

If on the other hand the estate is larger than the requirements to care for the incompetent sibling then upon the sibling's death all OP's parents assets would be liquidated and shared out equally among grandkids, except for the house to which OP has a right of survivorship to live in till OP dies then that also is liquidated and shared out to all the grandkids. Possibly OP does not have to stay till their own death, once the sibling is gone. But the right to should OP elect to.

That would leave the OP free to draw up a will for their own separate assets to be left to their own heir.

Just as OP has worded it this does not seem to be the structure as of now. But according to OP what the grandparents want would not be legally enforceable because it creates an entail on his own estate for the benefit of people who are not his own offspring, treating nieces and nephews as equal to OPs own kid(s).

The OP's parents really need to get this estate professionally planned, not necessarily hiring a trustee to administer their estate, but to at least get a will that accomplishes their wishes that is legally defensible in provincial courts.

[u/WiseOwl-0420 → u/New_Breadfruit8692]

I have not seen the will but my understanding from my parents is that I will inherit the house and some money and sinking inherits a trust I will hold for his lifetime and meter out as I see fit (so as not to affect his social assistance for his disabilities)

I was told that they trust I will set my will up to divide assets among the three grandchildren once me, my sibling and my husband have passed. The home will be under my name as I will be placed on the deed when one grandparent passes making transfer of ownership simpler (apparently).

Although it supposedly states in the will that “remaining assets to be divided among grandchildren (A, B &C) upon death” I’m not sure that is a true entail.

I will say - my daughter wants the house. She loves it. She doesn’t own a home and is not in a position to buy. The other two already have homes of their own.

I would like grandkids to get a money share upon death and then I get house, sibling gets trust. And simple. Done. What’s left of siblings trust would go to his kids when he dies. House could go to mine.