Anyone expecting an inheritance?

[Alex]

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!

 

[bssc]

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.

 

[Hamlet]

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

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.

 

[Nords]

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

*Snort*-- you mean like Jack Daniel's, Advil, Oxycontin, and Aricept?

 

[Deetso]

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.

 

[saluki9]

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.

 

[kcowan]

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.

 

[madsquopper]

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

 

[kaudrey]

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

 

[USK Coastie]

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.

 

[kat]

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.

 

[Andre1969]

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.

 

[theloneranger]

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.

 

[Helen]

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.

 

[Gumby]

..

 

[sgeeeee]

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.

 

[LRS]

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.

 

[laurence]

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.

 

[tricky88]

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.

 

[kcowan]

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.

 

[tryan]

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.

 

[Sheryl]

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.

 

[Nords]

Welcome back, Sheryl, and nice avatar!

Where's the rest of the photos?

 

[Sheryl]

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.

 

[kcowan]

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.