Thread: Time Marches On
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Old 06-12-2018, 11:55 AM
Pete VanderLaan's Avatar
Pete VanderLaan Pete VanderLaan is offline
The Old Gaffer
 
Join Date: Apr 2002
Location: Chocorua New Hampshire
Posts: 20,404
Pete VanderLaan is on a distinguished road
Again, there is one and one only primary residence. I suppose that you could find out if that's avoidable by having each property owned by just one of you and you can immediately see the inherent risk in that.

We did set up a living trust for both our parents sets and thought it was great but it didn't work out meaningfully at all. The purpose was to keep the State(s) from attaching any of those properties in the event of a catastrophic illness forcing the holdings into liquidation. When MB's mom moved from New Hampshire to Colorado and was taken in by her sister, the function there was that she could be on Medicaid and still keep the 200 acre tree Farm. Colordo said "No, She has to live in her primary residence" even though she was no longer capable of caring for herself, so the purpose of that trust was shattered right away. We would have come to legal action with Colorado when Mary' money ran out, but that never came to pass. She died with about 5K left in her bank account. Then the property passed on to the two surviving sister's and they split it in half. We live on 110 acres of it. The other is unoccupied.
My dad tried the same thing but he botched the trust up while constantly telling his kids that it was all taken care of, so, that property went into probate. It came out of probate about a year later and my brother did an incredible job of managing the liquidation of the property. That, being a primary residence did not have any taxation on the sale at all. Dad owned no other properties.

There's a lot to be said for living near your studio. I wouldn't want to live in it and your insurance company would have fits over it. I remember your glassworks and i don't think that's viable. Our studio in New Mexico was on a contiguous piece of property but there were two tracts of land which made the insurers happy. Even so, the house went right away but not the shop and the shop had all the potential of becoming a white elephant. It was a major mess as a sale in the end.

I would have a major conversation with Brenda about your retirement goals-really. While selling the studio may become fuel for retiring, contempation of sailing away has unexpected side effects. Older people really are more comfortable in their familiar surroundings. They live a lot longer surrounded by familiarity. The notion of assisted living etc galls me. While we aren't anywhere near as competent at simple chores as we once were, we still like the routine of them. I don't know how long we'll run the studio but currently, it's still fun and keeps us connected. Craftweb keeps us connected too. Our goal on retirement is met. The consideration now is passing it down to the two kids free and clear and it should give each of them a booster in what they want to do. If they sell it, they can sell it. We'll meet with them soon enough to see what they want to do with it.

Our studio now is not even insured. It's the addition barn added to the 1811 barn. It has separate utilities completely from the house. It has two bay doors and would convert back to a two car garage in about a week. While we were once an ocean going vessel, these days, we sail the inland waterways if that makes sense.

But I'll tell you one thing. Aging comes at you really incredibly fast. Buying the Visa and Mastercard stock was the best move we've ever made. The two John Deere's are great too.
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