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Re: Anyone expecting an inheritance?
Old 02-13-2007, 11:16 PM   #21
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Re: Anyone expecting an inheritance?

I take care of my mother's finances so I know what is in the accounts. My brother and I will likely inherit very little. I don't need it and don't count on it. I keep telling her to spend what she wants but she is a Depression child and can't seem to enjoy what little life she has left. Each penny has to be pinched until it is flat. I can't change how she feels. I can only tell her it is OK to spend some on herself. Take a cab; buy some new clothes; go out to eat. But she is set in her ways and feels she will be broke next week. I am making sure she will be fine for as long as she lives but even that does not console her.

The worst thing to me would be to live to 100 and look back on my life and say ...."I wish I had done......"
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Re: Anyone expecting an inheritance?
Old 02-14-2007, 10:12 AM   #22
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Re: Anyone expecting an inheritance?

I'm an only child. I'm exectrix of my Mom's will and she consults me on financial matters in general.

We've discussed the topic fairly often, with me saying, "Enjoy your life. I don't want your money." She turns around and says, "I am enjoying my life, and I want to leave you something."

She has an insanely good LTC policy that she bought ten years ago or more -- I don't recall all the details, but we've been told on more than one occasion that LTC policies don't come that good anymore. So her health care expenses should be covered.

So yes, I am expecting an inheritance, despite my repeated assurances that DH and I are well on our way to having our own finances set for life. Of course, I hope that the day it comes is a LONG time in the future, and because I don't know exactly when it will happen, I'm not factoring it into our calculations for FI/RE, other than to say that we'll be FI when it comes, if not before.
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Re: Anyone expecting an inheritance?
Old 02-14-2007, 10:20 AM   #23
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Re: Anyone expecting an inheritance?

Quote:
Originally Posted by Laurence
I would be happy to just have whatever they leave upon death go through a trust to my kids especially Tori and skip me altogether. As noble as that sounds, it's really just pragmatic since I would be factoring that cost in anyway.
Yep-- think about where you'll be 30-40 years from now and imagine inheriting in your 60s-70s. Hopefully there won't be any point to a bequest!

My father disclaimed his father's bequest, what was left of it after 14 years of full-term care. I suspect we'll be doing the same someday, again assuming there's anything left to assume over.

Dumb question for the lawyers-- does a disclaimer specifically have to be written into a will, or can the beneficiary disclaim their bequests and yet still control to whom the disclaimed assets go? The significance of this question is that we'd have to have a discussion with our parents about putting disclaimer provisions in their own estate plans...
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Re: Anyone expecting an inheritance?
Old 02-14-2007, 10:29 AM   #24
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Re: Anyone expecting an inheritance?

Hi Laurence,

My sister and I are the heirs of both my parents and one aunt (no kids). I am the executor of both estates.

We always tell them all to spend their money, that we hope they live to be 100 and healthy and use it all. But they won't. They all enjoy their lives, but are true LBYMers.

The unknown, as everyone says, is long term health care. My family mostly has a history of being healthy until the mid 80s and then going quickly, but one grandmother spent 13 years in a nursing home with Alzheimer's and didn't have anything left.

It is likely that we will get something. But it is also likely that I will retire before that happens. I hope that is the case, because they'll be 85 when I plan to retire in 15 years. So I want my numbers to work on their own, either way.

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Re: Anyone expecting an inheritance?
Old 02-14-2007, 10:39 AM   #25
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Re: Anyone expecting an inheritance?

Quote:
Originally Posted by Nords
Yep-- think about where you'll be 30-40 years from now and imagine inheriting in your 60s-70s. Hopefully there won't be any point to a bequest!

My father disclaimed his father's bequest, what was left of it after 14 years of full-term care. I suspect we'll be doing the same someday, again assuming there's anything left to assume over.

Dumb question for the lawyers-- does a disclaimer specifically have to be written into a will, or can the beneficiary disclaim their bequests and yet still control to whom the disclaimed assets go? The significance of this question is that we'd have to have a discussion with our parents about putting disclaimer provisions in their own estate plans...
IANAL, but my understanding is that if you disclaim a bequest, it essentially nullifies that clause in the will as though you had predeceased the author of the will. The property would then go to the next thing/person down the list. You can't "control" where the assets go except if you know what the will says you can figure out what happens whether or not you disclaim. In this case it does not need to be in the will.

I did a little bit of legal research using that acme of legal authority wikipedia, because I wondered what happened if the residuary taker disclaims and discovered that the government gets it in that case. They have a pretty decent article on disclaimers at http://en.wikipedia.org/wiki/Disclaimer_of_interest

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Re: Anyone expecting an inheritance?
Old 02-14-2007, 12:18 PM   #26
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Re: Anyone expecting an inheritance?

Quote:
Originally Posted by Lazarus
I expect nothing. Thats the best plan. At best if I inherit anything it will not change much. My parents are not rich. I hope they live a long time and spend it all.
amen to that!
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Re: Anyone expecting an inheritance?
Old 02-14-2007, 12:51 PM   #27
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Re: Anyone expecting an inheritance?

If we drop dead before the cats, there will a trust to take care of them with the remainder going to the humane society. We have structured it so that they won't blow it on catnip toys.
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Re: Anyone expecting an inheritance?
Old 02-14-2007, 01:08 PM   #28
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Re: Anyone expecting an inheritance?

I plan to start experimenting with hard drugs when I turn 85


Quote:
Originally Posted by bssc
My mother's grandparents lived to be 94 and 101 so I suspect that there is a good chance that my meditating, organic eating, vitamin popping mother will probably live that long if not longer giving the advances in medicine, even if she does take up sky diving when she hits 80.
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Re: Anyone expecting an inheritance?
Old 02-14-2007, 01:45 PM   #29
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Re: Anyone expecting an inheritance?

Quote:
Originally Posted by Hamlet
I plan to start experimenting with hard drugs when I turn 85
*Snort*-- you mean like Jack Daniel's, Advil, Oxycontin, and Aricept?
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Re: Anyone expecting an inheritance?
Old 02-14-2007, 01:57 PM   #30
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Re: Anyone expecting an inheritance?

My plans for my money include making sure I can take care of my parents and maybe even my in-laws when they cant work anymore. Neither are going to leave any inheritance Im sure. Instead when they die Im just hopeing the family house can stay in the family...

My folks are absolutely horrible with money, living way way beyond their means- taking out second mortgages to buy what they want- several cell phones, land lines and all the channels on their sattelite you can get. Im hopefull that they dont lose the house when they get older. (I get along with them great- except when we discuss spending habits- a mistake I will not make again- me and my young arrogance)

As for my in-laws- I actually get along with them better than my own folks. They live well below their means but they just never had high paying jobs and always supported their kids and always gave away a lot of their money/resources/time. It will be a pleasure to someday take care of them- if they need it.

So no- no inheritance here and in fact planning on my parents running out of money before they die and I have to take care of them.
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Re: Anyone expecting an inheritance?
Old 02-14-2007, 04:06 PM   #31
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Re: Anyone expecting an inheritance?

My wife and I are blessed (for many reasons) but also that both our parents have been terrific savers and investors. This explains why I personally am against the estate tax

That being said, we both have relatives who lived well into their 90's. Also, I would never plan on the money because you never know when you're going to get it. In addition, I wouldn't trade my parents or in-laws for any amount.

I hope that by the time I get it I'm too old and wealthy on my own to care.
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Re: Anyone expecting an inheritance?
Old 02-14-2007, 05:07 PM   #32
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Re: Anyone expecting an inheritance?

My Dad lived to 95 and I have his genes. MIL is 91 and still going strong. I manage her portfolio. Older brother has greater net worth than I and a life expectancy of 20 years less than me owing to his taking after Mom whose whole family was gone by age 65. He has already been in the hospital for 3.5 months. He is only alive because I intervened then. I am his sole heir.

So these scenarios play in our future possibilities although we count on no net contribution in our planning but if everything breaks the right way we might become great benefactors.

It is tough to contemplate without doing anything concrete but that is the best way for us at present. So this discussion is very relevant.
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Re: Anyone expecting an inheritance?
Old 02-15-2007, 07:57 AM   #33
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Re: Anyone expecting an inheritance?

I'm kind of in a weird situation. My father passed away last year and there's about $850K in the various retirement accounts plus whatever the house will be worth (perhaps 200K). I'm managing all of her affairs since both her mental and physical health is pretty bad (but not immediately life threatening). They never bought long term care insurance so I have to dip into the account at about a 50K rate per year. My brother and I will split whatever is left over when she dies.

The quality of her life is so bad that I'd just as soon she die in her sleep one of these days. Given how close the two of them were it would have been fitting if that would have happened the night of the funeral. Of course, realistically, the sooner she passes on the more money that's left, but you really don't want to come right out and say that.

Larry
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Re: Anyone expecting an inheritance?
Old 02-15-2007, 08:48 AM   #34
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Re: Anyone expecting an inheritance?

kcowan - sorry to hear about your brother

madsquopper - sorry to hear about your father and your mother's current situation. My grandmother had Alzheimer's and was in a home for 13 years. She didn't recognize anyone for the last 11 years of her life. She had about 10 strokes and a few mini-heart attacks before finally passing at the age of 94.

It seems to me she would have been better off dying peacefully at 82 or 83, but it wasn't meant to be. My other grandmother died in her sleep at 86 after "not feeling well" for a few weeks. She led a long, healthy life and lived in her own home for 11 years after my grandfather died. I hope to take after her in my old age.

Karen
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Re: Anyone expecting an inheritance?
Old 02-15-2007, 11:25 AM   #35
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Re: Anyone expecting an inheritance?

DW is an only child. MIL is 80 and in a alalzheimer's home. Wife has MIL's assets structured to pay out $50K per year which is just about the cost of the care at this point. Depandant on how long she is in the home we will eventually start to bite into the principal but at least she can survive for about 15 - 20 years at present expenses. DW will get anything left.

My dad just lost his second wife so my brother and I will share whatever is left when he passes.

None of our FIRE Calculations has any of the projected estates calculated into FIRE.

I told my dad that as long as I didn't have to pay to bury him to spend it all. If he dies with $10 in the bank his SWR was perfectly timed. He FIRED 30 years ago July 30 1977.
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Re: Anyone expecting an inheritance?
Old 02-15-2007, 11:29 AM   #36
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Re: Anyone expecting an inheritance?


I did not factor an anticipated inheritance into my FIRE calculations. But the fact I am a beneficiary in the trust my parents' set up made me comfortable with the 4.2% withdrawal FIRECalc said worked historically. It's more like an insurance policy. It seems a safer bet than anything else in my life that could change.
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Re: Anyone expecting an inheritance?
Old 02-15-2007, 12:42 PM   #37
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Re: Anyone expecting an inheritance?

I've been pretty lucky so far, with two grandparents passing away, mercifully, relatively quickly. My Granddad on my Mom's side of the family was diagnosed with lung cancer right around his 73rd birthday in November 1989. He went in for surgery around Christmas, to see if they could remove the lung, but once they got up in there they saw it had spread to the lymph nodes and other places, so all they could really do was slap him back together and wait for the inevitable. He died in late April, 1990. He went through hell for about 4 months, but I'm just thankful that it didn't drag out for years or decades, even. It was rough enough on Grandmom, and all of us, when he passed away, but I think it would've been much harder to bear if it dragged out. And as far as I know, Grandmom didn't take too much of a financial hit.

On my Dad's side, my grandmother got sick and started to wither away in late 1993, ironically, around her birthday as well. She had just turned 76. I forget what she had, but it was some hereditary disease that had also claimed her mother (they didn't realize it was hereditary until years later though). She passed away in early June, 1994. So I figure she had to suffer about 6-7 months. I remember she was losing her mind as she got worse, too. It was really sad. One of my younger cousins had gotten an earring, and it bothered Grandmom to no end. She kept dwelling on it, repeating about how awful she thought it was, and she just kept repeating to me, asking me not to get one. It's really sad, the things they dwell on when they're fading away.

Anyway, my surviving grandmom is now almost 83, and Granddad turned 92 in October. This may sound like an awful thing to say, but at least the older they get, I guess the chance that when they do die it will be quicker and less painful and drawn out will only increase. And I'm not even thinking about the financial drain it could put on their finances. I just don't want to see them suffer.
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Re: Anyone expecting an inheritance?
Old 02-15-2007, 03:42 PM   #38
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Re: Anyone expecting an inheritance?

Well, we could have some inheritance. The 100 acres so far from the wife's side is worth 100 K and no plans to sell but raise some more pine trees. On my side there could be 300 to 400 K but since my grandmother is nearly 100 YO we may not inherit till another 20 years. If earlier, it may be the opportunity for a second home at higher, cooler altitudes for the summer. At any rate, I ain't worried.
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Re: Anyone expecting an inheritance?
Old 02-15-2007, 09:08 PM   #39
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Re: Anyone expecting an inheritance?

Yes.

Inheritance is such a bitter sweet thing. Oddly I think knowing that I will inheritant a large chunk of change is what is motivating me with a fever to reach FI. The only way I can accept the money without guilt is proving to myself that I don't need it. And, I feel they handed me so much in life by paying for my education and being such good parents. I have a need to reach FI without a gift from my folks.

I really, really wish they had spent more of their money while they were young and healthy.
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Re: Anyone expecting an inheritance?
Old 02-15-2007, 09:36 PM   #40
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Re: Anyone expecting an inheritance?

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