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Gift to kids or leave in Roth for inheritance?
Old 09-19-2021, 04:32 PM   #1
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Gift to kids or leave in Roth for inheritance?

Have 3 kids under 30. I suspect at some point we will conclude that we have more than we need. I'm weighing gifting to kids while we are still alive (i.e. take advantage of the $15k per person per year exemption) vs. just letting the Roth grow.

I feel like keeping it in the Roth could create some real wealth, but if our kids are unlucky and we live a long time they won't see the money til they are in their 50s or 60s.

I'm not sure how to weigh the 2 options - maybe it just comes down to need (e.g. they need money for a down payment on a house).
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Old 09-19-2021, 04:34 PM   #2
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You can do both!
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Old 09-19-2021, 05:08 PM   #3
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We are doing both. We expect the Federal estate tax exemptions will be reduced back to the pre 2017 levels, so we want to keep trimming our assets with gifts to the kids and charitable donations each year. We’re also funding our grandkids 529 college plans. We expect to still leave a chunk of change when we pass. But we enjoy giving some to the kids now to ease their financial burdens and learn investing.
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Old 09-19-2021, 05:40 PM   #4
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Gifting them while you are alive allows you to enjoy the act of giving. It also may help them on their journey when they need it most. By the time they are ready to inherit the money, they may already be successful and not need it.
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Old 09-19-2021, 06:27 PM   #5
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If I make it to 90 my girls can go wild at 60 and 65.
I'm starting to gift serious $$$ now when it makes a difference and they can enjoy. At 33 and 38 I doubt I'll ruin them.
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Old 09-19-2021, 07:02 PM   #6
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I like the idea of gifting "some" now and "more" later. "Some" is less than "more". Everyone, and everyone's kids are different.
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Old 09-19-2021, 07:54 PM   #7
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Originally Posted by Dash man View Post
We are doing both. We expect the Federal estate tax exemptions will be reduced back to the pre 2017 levels, so we want to keep trimming our assets with gifts to the kids and charitable donations each year. We’re also funding our grandkids 529 college plans. We expect to still leave a chunk of change when we pass. But we enjoy giving some to the kids now to ease their financial burdens and learn investing.
+1

They will get plenty when I go. But I also like to pare down my (i.e., "their") eventual state estate tax bill now by gifting the kids nice chunks now. Plus I get the enjoyment now of seeing them benefit from some sizeable (to them) chunks of moolah.
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