Bipolar: Trust for Real Estate Investing

I'm in the process of devising a comprehensive asset management strategy to navigate the complexities of financial stability, particularly with the backdrop of bipolar disorder, which has historically led to financial instability during manic episodes. My plan incorporates a trust, a business entity for asset holding and management, strategic property investments, alongside essential legal documentation for holistic estate planning. I'm reaching out for your feedback, insights, or any advice on how to refine or better structure this plan.

Main Details:

Trust Structure:

  • Type: Opted for a Revocable Living Trust to ensure flexibility.
  • Purpose: Aims to protect assets from depletion during manic episodes, cater to my needs, and guarantee long-term financial stability.
  • Trustees: Composed of trusted friends and family well-versed in my situation, their roles primarily include asset management, approving disbursements, and making informed investment decisions.
  • Beneficiaries: I'm designated as the primary beneficiary, with specific provisions made for my sister, who faces her challenges, to be supported after my time.

Business Structure and Operations:

  • Entity: A separate business entity, established with a 14-year history, is in place to diversify assets and cultivate a distinct credit profile, independent of my personal finances. It's geared towards engaging in property management among other income-producing activities.
  • Credit and Financial Stability: The business will focus on building its own credit through responsible management and transactions. This includes leveraging business credit for property investments and operational needs, aiming to keep my personal credit untouched and protected.

Property Holding and Investment:

  • The business will actively engage in property management, using its credit to invest in and manage properties. This approach serves dual purposes: enhancing the business's creditworthiness and generating stable income through property investments.

Legal Framework:

  • Essential legal documents, including a will and medical directive, are prepared to ensure my wishes are respected, especially concerning the care and support of my sister. The structure includes mechanisms for financial decision-making if I'm unable to do so, ensuring a seamless transition of assets and responsibilities when necessary.

I'm particularly interested in insights on managing the business's credit profile and property investment strategies within this structured plan. Additionally, advice on potential pitfalls or areas for improvement in the trust and business operation would be highly valued.

Looking forward to your thoughts and advice!

Edit: Please note that I have already consulted with an attorney. We’ve discussed the foundational aspects of my situation and plan to explore the finer details in our next meeting, scheduled for a week from now. My aim here is to gather additional insights and ensure I haven’t overlooked critical elements, particularly regarding tax benefits and strategies for purchasing property on credit, which were brought to my attention after conversations with friends.