Grandchildren and Inheritances

[HarveyS]

2) Plan on using a professional trustee. Ptofessionals are used to the complaints and abuse that controlling the money attracts. Using a family member as trustee is an almost guaranteed recipe for unhappiness and/or family breakups.

+1.

 

[dcms]

My take on trusts

I just closed out a trust I trusteed for about 30 years.
My recommendation..
There is no easy way to get track of who gets what as soon as one person takes out money early. I would leave the trust alone and give funds to each child through a 529 plan. (A trust with government controls rather than Grandma, Aunt or Uncle controls).
It’s inexpensive to manage, lets people take responsibility for their own decisions, and reduces the number of trust tax returns and trust taxes.
When taxes were high and 529 plans (and IRAs) didn’t exist trusts made lots of sense. But today you can simplify the picture. 30 years of tax accountant fees and taxes adds up to a
Out of money.

 

[brett]

I do not understand the 'fair' business. Surely a person can leave their money or assets to anyone they wish. It is the golden rule. He who has the gold makes the rule.

I may not like the distribution of a relative's assets according to the will, I may not agree with it, but that is immaterial. The person making the will has every right to decide. It is hardly worth getting upset at a dead relative or a living relative who may have received what someone believes to be an unfair share of the spoils.

Over the years my sister may have received more than I did. Do I care? No, absolutely not. I am resentful? No, absolutely not. My parents made the decision, it is theirs and I respect it. Besides, why squabble or feel resentful over a bit of money? Life is too short to carry resentments in your pocket like a faded photo.

I think this comes down to that sense of entitlement that seems to have permeated our society in so many ways.

 

[gwraigty]

There is no need to use a crystal ball, or to guess. Just read all of the posts. That seems to be a general problem here. Post #10 specifically.

+1

And another below:

I just closed out a trust I trusteed for about 30 years.
My recommendation..
There is no easy way to get track of who gets what as soon as one person takes out money early. I would leave the trust alone and give funds to each child through a 529 plan. (A trust with government controls rather than Grandma, Aunt or Uncle controls).
It’s inexpensive to manage, lets people take responsibility for their own decisions, and reduces the number of trust tax returns and trust taxes.
When taxes were high and 529 plans (and IRAs) didn’t exist trusts made lots of sense. But today you can simplify the picture. 30 years of tax accountant fees and taxes adds up to a
Out of money.

How would a 529 plan help? All the grandchildren are 20 to 28 and the children are certainly older than that. Maybe the younger grandchild(ren) is/are still in college, but...

 

[imoldernu]

I have no suggestions, but FWIW, We brought our kids (now age 50 to 60) together about 10 years ago to openly discuss the subject, as we were preparing our wills. It was simple... no discussion... they all get along great, so an even split was decided upon in one minute.

of course, somewhat less than millions...

 

[Teacher Terry]

I would give to the kids and let them each decide if they want to give some to their own kids. Easiest way to handle it and less chance for animosity.