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Richard
Richard, Attorney
Category: Estate Law
Satisfied Customers: 55716
Experience:  29 years of experience practicing law, including tax and estate planning.
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I have 2 children. I have sold my house to one of my

Customer Question

I have 2 children. I have sold my house to one of my children at fair market value. They have used 1/2 of the value as their down payment and I will receive the other half at closing (there is no current mortgage on the house). My question: What is the best method for me to use to set aside the 2nd half of the house value for my other child, who is not a minor but is not in a position to take the money right now?
JA: You just pay a $5 deposit now and the rest only when you get a reply from the Estate Lawyer. All of this is 100% satisfaction guaranteed, so you can get a refund if you're not happy for any reason.
Customer: how do i pay the $5?
JA: When we are ready I'll take you to the appropriate web page.
Customer: ok
JA: Because real estate law varies from place to place, can you tell me what state this is in?
Customer: The house is in NJ, I live in NJ. The daughter for whom I need to set aside money lives in New York.
JA: What documents or supporting evidence do you have?
Customer: at the moment, nothing we have not closed yet
JA: Anything else you want the lawyer to know before I connect you?
Customer: I have investigated Totten account and Irrevocable Trust. I don't like Irrevocable Living Trust because of the need to set up criteria upon which the trust can be accessed by my daughter. I'm not clear on how NJ would treat the POD account. I'm married and other assets are already in various funds. ok
Submitted: 2 months ago.
Category: Estate Law
Expert:  Richard replied 2 months ago.

Hi! My name is Richard & I will be helping you today! It will take me a few minutes to type a response to your question. Thanks for your patience!

Expert:  Richard replied 2 months ago.

Good evening. You would want to set up a trust for the benefit of your second child and when the house is sold, the money you receive shoulurd go into the trust. It can either be a revocable trust which you continue to control through your life, or an irrevocable trust which you cannot revoke later. It should be for the benefit of your second child to be distributed as set forth in the trust agreement, which terms can be established by you. The trust should contain a "spendthrift provision" to protect the trust assets from any creditors of your second son while the assets are held by the trust.

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