I received this inquiry:
I have been purchasing 1 oz gold coins over the past several years as central bank insurance, and am beginning to accumulate a substantial amount. After I die, I’m afraid my heirs will immediately exchange this gold for paper currency units, having no idea or care of the gold’s importance. The solution is education, but how could I force this on my heirs before they get their hands on the gold?
He is afraid for good reason. He knows this because they are not yet buying gold coins.
He should tell them that they will inherit coins, but only on an ounce-for-ounce basis. Any coins that each heir might have inherited will be forfeited to a charity. The executor will be instructed to verify that each heir has coins or an equivalent quantity of gold bullion. In short, they earn the inheritance.
Alternatively, the executor sells all of the coins, buys an income-producing house in a high-rent region, hires a local property manager (10%), and then turns the property over to the heirs jointly. The heirs live off the income. If they sell the property and do not reinvest in another property within the tax code’s time limit on a tax-deferred exchange basis (IRC 1031), the money goes to the charity.
In short, if you don’t trust the good judgment of your heirs, do not leave them any money without chains attached.
The child who takes the surviving spouse into his/her home gets a double portion. Divide the inheritance into the same number of portions as there are children. Then allocate two shares to the caring child.
Tell them the rules as soon as your lawyer has the new will written.