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Re: Anyone expecting an inheritance?
Old 02-15-2007, 10:39 PM   #41
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Re: Anyone expecting an inheritance?

My father made a career as a coal miner. He retired with a nice pension that is more than he needs to be very comfortable and an incredibly good healthcare plan for life. He has a nice house in a small town where real estate is nearly worthless and a small investment stash of bonds and CDs. He is a very healthy, active 83 year old who I hope lives a long time. He will leave what he does have to my two brothers and I.
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Re: Anyone expecting an inheritance?
Old 02-15-2007, 11:08 PM   #42
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Re: Anyone expecting an inheritance?

OK, so don't include inheritance money in your retirement planning, but do take time to consider the impact of such a windfall in your future. Inheriting a pile of money sounds like it could be fun, but it is a strange thing to have happen. It causes a lot of weird feelings--guilt, denial, depression--that you may not expect. It may seem like another burden you have to shoulder when your parents die.

So give yourself permission to think about it and make some provisional plans in advance. And, of course, make sure you tell your parents how much you love them and appreciate them NOW.
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Re: Anyone expecting an inheritance?
Old 02-16-2007, 11:07 AM   #43
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Re: Anyone expecting an inheritance?

I really like Shiny's point about Tori's special needs trust, and since we have Olivia on the way we could also talk about her college fund. I like the idea of concentrating any windfall on my kids vs. me. It's not like I don't benefit from their good fortune to have their education taken care of, and Mom highly prizes education. Certainly better than buying a red sports car with their hard earned money.
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Re: Anyone expecting an inheritance?
Old 02-16-2007, 11:21 AM   #44
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Re: Anyone expecting an inheritance?

Quote:
Originally Posted by Helen

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.
This is well put and I agree. I will likely inherit some money from my parents (as long as my father and I continue to never discuss religion or politics), but I certainly save and live as if all I'd get are a few boxes of photos. However there is no doubt that an extra couple 100ks would make a difference in our plans. My dad had a heart attack around 40. He's now closing in on 80 without too many health problems. He retired about 20 years ago and they've traveled and lived well.

Also what a previous poster said: the longer they live in good health now, hopefully the chances of a years-long drawn-out illness will decrease. We've watched it happen with other family members, and it's awful.
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Re: Anyone expecting an inheritance?
Old 02-16-2007, 11:48 AM   #45
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Re: Anyone expecting an inheritance?

It would be productive to have a conversation about gifting. It is about tax effective transition planning. We tried to have the conversation with our Dad but he would not entertain it. He said it was his duty to pay taxes. :

We offered to commit to support him financially if he gave away too much. He was fiercely independent his whole life. MIL is more flexible. So we are in good shape except for the house.
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Re: Anyone expecting an inheritance?
Old 02-16-2007, 03:19 PM   #46
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Re: Anyone expecting an inheritance?

Always told my folks to spend every penny ... I would guess they're sitting on 1.5m - including the house. And that would be split 5 way.

DW has a healthy wad coming ... MIL is the only one left and is sitting on 2m - half of which is a free n' clear house. It'll be split up 3 ways.

All have LBYM in thier blood ... so only long term care could wipe this out.

Come to think of it if my kids get accepted to an ivy league school in 10 years ... hmmmmm.

Ok back to reality.
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Re: Anyone expecting an inheritance?
Old 02-16-2007, 03:52 PM   #47
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Re: Anyone expecting an inheritance?

Chiming in late - but I think my situation is a little different than the previous 44 replies: My dad set up an ILIT (Irrevokable Life Insurance Trust) of which I will be 50% beneficiary. Up to the max. allowed gift is put into the trust to purchase additional insurance instead of being given to the heirs each year.

I factor the current value of the insurance policies into my FIREcalc formula, not assuming any further contributions, but I use a date 20 years in the future - which allows for dad to live to 100 (his mother was 101 so that's not too unreasonable).

By using the current value only, I assume that no additional insurance is bought, and I continue to urge dad to spend his money on something else instead, but he says there is nothing they want.

I will also inherit 50% of his remaining assets but don't consider any of that in my planning for reasons others have already stated.
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Re: Anyone expecting an inheritance?
Old 02-16-2007, 07:11 PM   #48
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Re: Anyone expecting an inheritance?

Welcome back, Sheryl, and nice avatar!

Where's the rest of the photos?
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Re: Anyone expecting an inheritance?
Old 02-17-2007, 09:27 AM   #49
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Re: Anyone expecting an inheritance?

Thanks Nords. It was a great trip! One of this weekend's projects is trying to figure out how to load photos on Yahoo photos or Photobucket or something. I will post a link when I get something to work.
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Re: Anyone expecting an inheritance?
Old 02-17-2007, 11:23 AM   #50
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Re: Anyone expecting an inheritance?

We run alternate scenarios for 0, 50% and 100% of current assets but for our planning, we are counting on 0%. Assets can be eaten up quickly in extended care facilities. We have investigated appropriate facilities for both of them, in case they are needed.
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Re: Anyone expecting an inheritance?
Old 02-17-2007, 03:47 PM   #51
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Re: Anyone expecting an inheritance?

I have read in various places that boomers are in line to inherit over a trillion dollars over the next 20 years. I hope you get your share.

When my dad died a few years ago I received $8400 (1/5 th share) from his estate. I was happy to receive it and used it to make repairs on my house. I often think of him when I admire my still-spiffy-looking house. To be honest, I was surprised that he left anything at all to us, as he was retired on only SS and a little savings.

My MIL is in her 80's and has invested well and often in GE stock so I guess DW will be in line for 1/4 share in her estate when the times come. We are not planning on receiving anything (actually DW and I have never discussed it so she may have other ideas) from her so whatever we get will be considered a windfall as far as I am concerned.
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Re: Anyone expecting an inheritance?
Old 02-17-2007, 11:04 PM   #52
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Re: Anyone expecting an inheritance?

dad came from a family of fortune & fame but i'll not see a cent of that. his father had a house on the water in south florida way back when. only met that grandfather twice that i remember. don't even know if my own father is dead or alive. though i learned recently that when my parents divorced my long-estranged grandfather called to ask my mother if there was anything we needed. so i guess that's nice.

my wonderful stepfather, who i refer to as the ol'man, came from a very successful construction family but anything he inherited went to his first wife, as he left her with nothing but the clothes on his back.

mom never inherited from her father because my evil step-grandmother--may she rot in hell--changed grandpa's will while he was influenced by alzheimer's. she had feigned love for our family for many years though it was mostly only mom & i who were fooled. the last thing she said to me was "you only loved me because i used to sneak dollar bills into your hand when you were a child." i left and never turned back.

then about a two years after grandpa died and a year after chasing me out of her life, she remarried. a great aunt of mine for some unknown reason stayed in touch with her. after a visit, my aunt reported back to us that the evil one was all beaten up, black and blue. supposedly she fell. but i wonder if she finally didn't find the family she deserved. anyway, a few years back out of curiosity i checked county records. seems the wife beater's kids have all my grandfather's money.

my mother wanted me to know that i would be inheriting and she discussed it early on when we started dealing with her own alzheimer's. this money was included in my retirement plan, not that she ever thought i'd retire early, but in that i didn't have to worry about retirement and so i was free to stick around, to help her through her ordeal and to continue for at least a few more years to being momma's little boy.

i'm pretty sure had she known about er she'd have put that money in trust to keep me working. but then i'd never known about er myself. i didn't even consider it until i got so damned depressed with how badly things got at work and in my personal life. but by then i was guardian of mom and her estate as well as executor of the will. so at that time i felt pretty comfortable putting those numbers into firecalc.

laurence, it is completely natural for you to be considering future inheritance. it isn't goulish or greedy at all. for me--and i've experienced it from numerous vantage (& disadvantage) points--it is another connection to family. we all want our parents to last for ever but, fact is, they don't. they die instead, leaving us behind. we want them to leave us something tangible, something we can hold onto--a watch to wear, a ring, an old coat to hug, a sweater to sniff--we want to know that we were remembered. better we are left with money.

sounds to me like you can plan on inheritance and, depending on how close & open you are with your parents, i don't see why this can not be openly discussed. sounds to me like you will have plenty for you, for your little red sports car and to secure your children's good future.
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Re: Anyone expecting an inheritance?
Old 02-19-2007, 10:47 AM   #53
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Re: Anyone expecting an inheritance?

Quote:
Originally Posted by Laurence
So I'm not making plans with it, but my Mom and Step-Dad have been great accumulators. Since there are only two of us kids on that side (both parents divorced and remarried), my brother and I may be looking at inheriting a large sum when they pass on. I know that's macabre, and certainly I want them to live long lives, but my mom had me in her 30's so there is a realistic posibility of seeing a cash infusion in my portfolio. At this point I've been urging my step-dad to retire, since they have more than enough, but he enjoys his work (college proffessor, department chair), it took him a while to get there so he wants to enjoy life at the top, so to speak. Plus he gets 4 months off a year so he feels he gets in all that he wants to do. This means their NW is going up every year, not down! Just using life expectancies, this could happen as early as my 50's.

I'm not super comfortable talking with them about it, it feels mercenary. They were better than average as parents so I don't want to seem eager for their death - that's just tacky! :P But I have to admit, it's crossed my mind I could inherit from them a sum greater than my entire NW to date when they pass. Part of me feels I should be able to factor in some value in this, in the sense that if I'm making a decision to retire at some point or work a few years longer to shore up the portfolio, I could let this tip the balance towards leaving early. I'm not trying to hurry them to their grave, really, but if I know my inheritance will cover the nursing home bills, it would be nice to get the campground membership a couple years earlier...thoughts?
Laurence, I will be inheriting but like you, I am not eager to do so since I would really hate to lose my mother; a sweet, dear lady though 97 years old by now.

I am NOT counting on my inheritance for ER. Who knows what could happen (though I have no reason to think this would not go smoothly, and I probably have more reason to be sure of my inheritance than most people). I am accumulating a sufficient nestegg to live a simple but happy, and not completely barebones, lifestyle on my own with plenty of safety nets built into my plan.

If/when I inherit, I will transition into "Plan B". My nestegg will instantly increase by a minimum of about 400%. At that point, I do not plan to get into the principal though maybe I will spend a little of the earnings for a little less simple lifestyle. The rest I would re-invest. In several decades, when I am truly elderly, I am sure I can/would spend some of my inheritance on a very fine continuous care facility instead of a barely adequate one that I could otherwise afford.

In a little over two and a half years, I will qualify for lifetime medical and I plan to work at least that long even if I do inherit. I doubt I will work more than a year longer than that, even if I don't inherit. So, my timeframe for ER is already determined by factors more relevant than any inheritance.

Right now, I endeavor to learn as much about handling large sums of money as I can. This coincides nicely with retirement preparations since even a normal nestegg is pretty doggone large compared with what I have had previously in life!

My companion Frank is in a similar situation, though his inheritance is less certain than mine and potentially tremendously large. He is not including it in his planning either, nor is he looking forward to his parent's death. As far as the money goes, he says, "If you don't expect something, you aren't disappointed when you don't get it".
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Re: Anyone expecting an inheritance?
Old 02-19-2007, 11:01 AM   #54
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Re: Anyone expecting an inheritance?

Uh, no...
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Re: Anyone expecting an inheritance?
Old 02-19-2007, 11:15 AM   #55
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Re: Anyone expecting an inheritance?

By inheritance do you consider the barcolounger that moves you from a seating to a standing position that I'll probably inherit from my Mom .I haven't really factored that into my net worth . Should I ??
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Re: Anyone expecting an inheritance?
Old 02-19-2007, 03:03 PM   #56
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Re: Anyone expecting an inheritance?

Hello all...first timer. I discovered this forum yesterday and got jazzed up.

I came from a set of parents who always maintained a negative net worth (we were really poor!).
My wifes parents, on the other hand, were both very successful and generous. Although my wife stands to inherit a handsome sum some day (assuming the market doesn't crash and my dear mother-in-law doesn't need extended medical care), I am struggling to maintain a plan which does not include this windfall. It is difficult to not think about it but what a bowl of gravy it would be if we are independently successful at reaching ER on our own.
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Re: Anyone expecting an inheritance?
Old 02-19-2007, 05:07 PM   #57
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Re: Anyone expecting an inheritance?

Mmm, gravy.

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Re: Anyone expecting an inheritance?
Old 02-19-2007, 05:13 PM   #58
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Re: Anyone expecting an inheritance?

A coworker told a story of inheritance. His grandmother was in a care facility of some sort and changed her will to leave half to the hairdresser who visited there. It was $1 million or so.

He had apparently been doing this with other old women and had received small amounts; this one was the jackpot.
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Re: Anyone expecting an inheritance?
Old 02-19-2007, 05:41 PM   #59
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Re: Anyone expecting an inheritance?

hair-dressing school...hmmmmm
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Re: Anyone expecting an inheritance?
Old 02-19-2007, 07:49 PM   #60
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Re: Anyone expecting an inheritance?

So my parents and grandmother and aunt came down today to visit Tori (oh yeah, and us too) and I just couldn't bring it up. Maybe I'll just send an email detailing our special needs trust idea. We took them to a fancy italian place and then they wouldn't let us pay - if I knew that I wouldn't have gone some place so expensive. It is nice that we've gotten through all our battles and issues, everyone's health is pretty good, and we are all happy with each other. Tori helped. 100 miles of seperation helps, too.
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