Very odd situation

[Katiek]

Congrats on making your business a success, OddGuy and finding a way to grow your business and spend time with your family. Congrats on the new addition to your family as well.

 

[eta2020]

I totally understand, and have understood for nearly 20 years, the importance of not "sitting back and waiting for inheritance." When it happens, it will happen. But to try to close my eyes and act as though that number will be zero when it does happen seems overly conservative, like projecting that all the assets you have invested in our (by definition) volatile stock market will be zero.

Yea it is still kinda better to have your own money But more importantly I pray my daughter will be somewhere by 45 and not wait for me to die.

I have about half of your old folks money without waiting for anybody to give to me (And I am not far from your age)

 

[OddGuy]

Still maintaining here. Business is doing GREAT, everything is on track, DW has gotten her 2nd raise this year. I'm changing my business status from LLC to an S-corp to stop paying self-empoyment tax. CPA recommended that given the amount of revenue vs. deductible expenses.

Very pleased to be busy, profitable and relevant in my field at age 50. I recognize that is not always the case, and I feel blessed, and inspired to keep working to maintain this. DW is very busy and very valued at her firm at age 47, and also has a solid plan to go into business for herself should the firm fold.

Monthly reports continue to be sent to my sister and to me, as future executors of our parents' estate. Current value is roughly $12M, to be split three ways.

Some day. And maybe a day that will never come.

 

[Milton]

Very pleased to be busy, profitable and relevant in my field at age 50. I recognize that is not always the case, and I feel blessed, and inspired to keep working to maintain this.

I feel blessed to be FIRE'd (not busy, not profitable, not relevant in my former field); and am inspired to keep not working to maintain this.

 

[2017ish]

...

Monthly reports continue to be sent to my sister and to me, as future executors of our parents' estate. Current value is roughly $12M, to be split three ways.

Some day. And maybe a day that will never come.

Have they maintained contact with a lawyer specializing in estate planning? They are now over the federal estate tax exemption (shade under 11,000,000 for married couple). IF they are comfortable doing so, they can take actions to avoid taxation, including possibly to accelerate transfer of assets to their children and grandchildren while they are alive to see the reactions....

Good job on the business endeavors for both you and your spouse! And with a toddler in the home to boot.

 

[OddGuy]

Have they maintained contact with a lawyer specializing in estate planning? They are now over the federal estate tax exemption (shade under 11,000,000 for married couple). IF they are comfortable doing so, they can take actions to avoid taxation, including possibly to accelerate transfer of assets to their children and grandchildren while they are alive to see the reactions....

They have engaged a fiduciary. At their last check-up meeting in the fall, they were informed, "You're assets are balanced appropriately. The only issue you have right now is, you have too much money." At that time, they were encouraged to do increase charitable contributions and familial gifts.

What has really made a difference is the surge in the Dow in the past two months. My sister and I receive monthly statements from the fiduciary, and the 'year-to-date' growth in accounts has been considerable. That may, of course, reverse as the Dow settles (or maybe not).

 

[younginvestor2013]

Thanks for sharing your story - I have found it insightful. I can relate on many different levels although our backgrounds are a bit different.

I too am like you in that I am essentially "counting" on an inheritance at some point, but also try and put it in the far back of my mind and not let it interfere with my day to day life. Nonetheless, it still does impact my approach to things (i.e., I got laid off, wouldn't be a huge deal....maybe I take a nicer vacation than I otherwise would....maybe I take more risks at work....etc).

I am 27 with a healthy NW for my age myself. My parents often reference their estate (they are in their mid to late 60s)....I have 1 brother...they have a NW of about $4.8m ($1m of which is in real estate) and their annual spend is about $120k. They are very conservative and watch their spending very closely. Sometimes I find it difficult to see things through their lens, so to speak, though. Sometimes I feel they are so modest and frugal to the point where it is so immaterial to their overall wealth (i.e., penny pinching). When on the contrary, I view things differently. That's not to say I am frivolous; I still save a healthy amount of money each year, but I am more focused on enriching experiences, enjoying life, building positive relationships, etc. They are too but are very "old school" in some respects.

But I guess our contexts are different. When they were my age, they didn't have much if anything, which is exactly opposite of where I am.

 

[OddGuy]

Thanks for sharing your story - I have found it insightful. I can relate on many different levels although our backgrounds are a bit different.

Thanks for sharing, as well. The main reason I visit on occasion to update this is it's not the kind of scenario I can really bring up in conversation with friends, etc. Never been a trust fund kid - my parents encouraged hard work and self-reliance, always lived WELL below their means, and only shared the size of their estate when their kids were well into adulthood, when they could see our levels of fiscal responsibility.

There simply is no literature on this subject. Sure, there are tons of "act like you'll get zero dollars" lines of advice, but that just seems overly conservative/pessimistic, taken in the context of two decades of annual discussions, and now monthly emails of financial reports. And the fiduciary was engaged by them specifically to maintain their financial goals (asset preservation for transfer to the next generation.)

It is inherently an emotionally loaded subject - a confortable legacy promised which I am in absolutely no hurry to claim - so it is reassuring to have a site to.drop by now and then.

 

[2017ish]

They have engaged a fiduciary. At their last check-up meeting in the fall, they were informed, "You're assets are balanced appropriately. The only issue you have right now is, you have too much money." At that time, they were encouraged to do increase charitable contributions and familial gifts.

...

A financial fiduciary is a good thing to have, but not the same as an estate lawyer--although s/he was correct on the gifting/charities. But, as long as they are hanging around 11-12 it probably isn't that big a deal. Still, if their spend rate is low in comparison to those assets, it might be worth a meeting while they are still near the top of their game.

Hopefully, they have a number of good years left. My in-laws are several years older (85 & 88) and finally started to slow down a bit the past couple of years.

 

[Sunset]

I have a relative who has in the past talked up quite a great deal about the wealth she was going leave various people, and she liked to put on "airs" and would be pretty generous with her gifting to family and friends.
I really hope none of those folks are counting on it.
I know her true situation and help her out financially each year now that she has spent her last dime.

 

[Milton]

At their last check-up meeting in the fall, they were informed, "[-]You're[/-] Your assets are balanced appropriately. The only issue you have right now is, you have too much money."

Fixed!