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Old 09-13-2019, 10:50 AM   #21
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To coach him & the grandkids how to protect for their futures.
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Maybe it's time for an update
Old 09-13-2019, 11:01 AM   #22
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Maybe it's time for an update

Our wills direct that our five kids will inherit everything. If you divide our stash by 5 it's not all that much.

The wills also name DW's sister as guardian, which could lead to an awkward situation as all my offspring are adults; three of them are over 30 years old.

I'm imagining all of them showing up at DSIL's house to move in... that's sitcom gold!
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Old 09-13-2019, 11:03 AM   #23
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So, one of my tenets is to be worth more alive than dead. No sense in giving extra motivation where it isn’t helpful.

We’re doing our best to spend it now and leave little to the children, and I think we’ll accomplish this objective. I give them some now, usually year end gifts, but only in the form of contributions to Roth accounts. Should there be some money left over, the kids will get it, equal shares.
This is absolutely the best approach. Far better to have kids/grandkids/etc earn their money than inherit it or have it handed to them. The book The Millionaire Next Door devotes an entire chapter to this principle (i.e., the harm of providing "economic outpatient care"). Obviously, inheriting modest amounts won't be too detrimental to middle-aged, independent children, but getting large amounts at a younger age can completely derail the ambition and financial responsibility of some, as is well documented in the book.
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Old 09-13-2019, 11:11 AM   #24
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Originally Posted by kcowan View Post
I gave each of my sons $50k each in 2009. I plan on giving them another $100k each in the next year or two. (Used to help them with second home costs.)

Each GC get $10k a year to help with four years of college. After that, it is 50% to charity and 25% each to them at the end.
What is the maximum amount a person can give each year without having to do a gift tax return?
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Old 09-13-2019, 11:49 AM   #25
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What is the maximum amount a person can give each year without having to do a gift tax return?
Below is from the IRS website so it's intentionally wordy lol. Basically 15K a person or 30K to a married couple if you put one gift in each persons name.

Quote:
How many annual exclusions are available?
The annual exclusion applies to gifts to each donee. In other words, if you give each of your children $11,000 in 2002-2005, $12,000 in 2006-2008, $13,000 in 2009-2012 and $14,000 on or after January 1, 2013, the annual exclusion applies to each gift. The annual exclusion for 2014, 2015, 2016 and 2017 is $14,000. For 2018 and 2019, the annual exclusion is $15,000.
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Old 09-13-2019, 12:19 PM   #26
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I have 2 sons, and DW has 2 sons. All her separate assets will be divided between her sons.
My separate assets are divided 2 ways; half split between my 2 sons, and the other half to DW, with her sons as contingent beneficiaries.
In keeping with my late mother's advice, about giving while you are still alive, all 4 sons get a part of my annual RMD, of between $5K and $10K every year.
My ex is in a house worth $2M as a tear down, and when she dies my 2 sons will share the proceeds. Hopefully at that point I will still be here, in which case I will shift some of the distribution of my assets to DW and her sons.
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What are your plans for your children's inheritance?
Old 09-13-2019, 12:40 PM   #27
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What are your plans for your children's inheritance?

An equal share to each. No favorites. No special needs.

I do gift them money now and then. They don’t ask for it. And there is no need for me to die before I can help them out.
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Old 09-13-2019, 12:48 PM   #28
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Originally Posted by kcowan View Post
I gave each of my sons $50k each in 2009. I plan on giving them another $100k each in the next year or two. (Used to help them with second home costs.)

Each GC get $10k a year to help with four years of college. After that, it is 50% to charity and 25% each to them at the end.
You are leaving me your condo in PV, right?
Right?
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Old 09-13-2019, 12:49 PM   #29
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Ditto what others have said about Gates and Buffet. They are leaving their kids what anyone would consider a fortune but they are dedicating the bulk of their massive estates to charity.
Exactly. Both Gates and Buffett have publicly said they are leaving most of their estate to charity, but not all.

Warren Buffett has a net worth of $83 billion dollars. If he left just 1% of his net worth to each of his children, that would be $830,000,000 each! So even if Warren Buffett gave away almost all of his wealth and left a small fraction to his children they will be very rich indeed.
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Old 09-13-2019, 01:31 PM   #30
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Exactly. Both Gates and Buffett have publicly said they are leaving most of their estate to charity, but not all.

Warren Buffett has a net worth of $83 billion dollars. If he left just 1% of his net worth to each of his children, that would be $830,000,000 each! So even if Warren Buffett gave away almost all of his wealth and left a small fraction to his children they will be very rich indeed.
Yep just another example of the disconnect between the uber-wealthy and regular people. It's "do as I say, not as I do" or the " the money's not really that important"
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Old 09-13-2019, 01:36 PM   #31
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I give my daughter some yearly and she will inherit whatever is left when I die .
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Old 09-13-2019, 01:44 PM   #32
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In case of your sudden death, what do you guys plan to leave for your children?



So, what are your plans? Put them on Easy Street, or die with nothing? Or something in the middle?
Our kid will get whatever is left when we expire, no strings attached.

Our plan is to manage her expectation to be that we die poor. Success would be to die on the day we spend the last dollar, and with no debt. So not a very realistic definition for success, but something to strive for, and if we die early, then she gets some extra dough to blow.

EDIT: Oh, and I guess she'll get the house (free and clear).
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Old 09-13-2019, 01:50 PM   #33
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I expect that death is sudden no matter when it happens. I give DD a lump sum annually and she will get the remaining (IRAs) when I suddenly die.

No grandchildren for me to leave anything to.
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Old 09-13-2019, 02:26 PM   #34
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An equal share to each. No favorites. No special needs.

I do gift them money now and then. They don’t ask for it. And there is no need for me to die before I can help them out.
Ditto...but I made it clear to the kids that the parents come first, since not being a burden to them (as was one of my parents) is the best inheritance I can leave.
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Old 09-13-2019, 04:42 PM   #35
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Oh, one other thing in my will. The grand-kids only inherit their parent's part of my estate in case somebody dies out of order.
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Old 09-13-2019, 11:44 PM   #36
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Thank you both!

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Old 09-14-2019, 01:07 AM   #37
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When our kids were younger we had the money go to a trust with one of our parents in charge of the trust, and the money doled out to the kids at certain adult ages. Now that the kids are older and so far we can see that both are pretty good at handling money. We updated our wills and trust documents to leave the money directly to them with the oldest as executor. I would like to leave them enough each to help them retire early, too.
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Old 09-14-2019, 02:47 AM   #38
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Still have a complex will to set in place, since the DGF and I have 5 children between us, but none with each other.
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Old 09-14-2019, 07:46 AM   #39
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No kids but we have 7 nieces and nephews on DW's side in addition to my brother.

We have a hefty sum.

When both DW and I depart, a large portion goes to provide ongoing support to my disabled brother, and the rest is split 7 ways.

Once my brother departs, 50% goes to the rehab hospital that helped him so much and the residue is split 7 ways again.

Some of the N&Ns are highly responsible, some will suffer from "lottery winner's syndrome" but that'll be their problem.
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Old 09-14-2019, 07:57 AM   #40
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Haven't yet setup the legal structure but I've told my kids & nephews the college savings I have for them is for college but first they must demonstrate good grades. Dont need to pay for a semester at beer U.

Also told them if they don't goto college I'll use said funds to either buy them trade tools or payment on a house. Conditions being either established career in trade or a house & mortgage.

Again, goal is they must demonstrate dedication. Could give check for downpayment but that is too easy. No one gave me or my parents huge sums.
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