Kids - Giving while you're living

[Alan]

Originally Posted by brewer12345

Al, is there some equivalent of a mortgage burning party in your immediate future?

When our daughter graduated I gave her a piece of string to hold onto while holding the other end myself. She was wondering what was going on when I whisked out a pair of scissors and with a cry of "TA DAHHHHH" I ceremoniously cut the string

[Alan]

Replying to the original post, I would love to be in a position of being able to gift money to our children (and hope to get there, all being well). I think I would do it by donating to IRA's or the like, and treating them to vacations etc.

[Khan]

After college graduation (1972) I was at my parents' house for 3 weeks.

They paid for dental work (minor) and 'go to work' clothes; all of which was stated to be a loan. My graduation present was a bus ticket from AL to NJ to my job. A few weeks later they wired me $500 to buy a car.

About 2 years later, I stopped at their house on a transfer to a new job site. I recall sitting at the kitchen table, signing $100 travelers checks until it was decided that the amount was sufficient.

[Goonie]

Originally Posted by hankster

For the past several years, my parents have been giving me and my two brothers between $5k and $10k per year. They want to see us enjoy the money while they are still around as opposed to leaving a larger estate when they pass on.

Originally Posted by 73ss454

What's the saying, better to give with warm hands and not cold ones.

My folks did that for several years for my siblings. They gave them 'a little here, and a little there' to help them along in their lives....with their homes...their kids....schooling...etc. That way my folks got to actually see my siblings enjoying the money, as opposed to waiting for them to receive the money through my folk's estate.

I always had a better job with better benefits than my siblings ever did, so I never really needed or wanted any money from my folks. I was all for them giving my share (if any) to my sibling to help improve their quality of life. Now, over the past few years, my Mom has been insistent on paying for some of my vacations each year, as well as occasionally a few of my new toys (tools, garden stuff, etc). I don't need it, and I try to talk her out of it, but she insists on giving.......but I think it makes her happy to be able to see me enjoying it.

She hasn't really caught on yet....but I pay for some of her vacations and most of her day-trips.....so it's pretty much an even wash.

[Art G]

Originally Posted by hankster

For the past several years, my parents have been giving me and my two brothers between $5k and $10k per year. They want to see us enjoy the money while they are still around as opposed to leaving a larger estate when they pass on. We would like to do this for our two kids as well. My brothers and I are old enough to do smart things with it like build our nest eggs for ER (oldest brother is already ER'd). Has anyone else here done this for their kids? If so, do you give in a certain way that helps to assure the money has a better chance of enriching their futures rather than being spent at the local boat dealer (examples: place the money in a Roth IRA in their name, in an ESA for grandchildren, or even in a separate account to help with a down payment on a home?) We want to encourage wise use of the funds without necessarily giving with some kind of strings attached.

I'd suggest setting up Roth IRA's for them. Also any 529 plans you can as well. If it were my money, I'd also offer them up money to plan a family vacation that included you. Giving them money is great, but spending time with them on vacation will be remembered.