Where's your money going after you're dead?

[Michael]

I think it is generally more tax efficient to donate regular IRAs to charity, and taxable accounts to family. Your tax adviser can tell you what is best in your particular situation.

 

[Martha]

I think it is generally more tax efficient to donate regular IRAs to charity, and taxable accounts to family. Your tax adviser can tell you what is best in your particular situation.

Yup. The charity doesn't have to pay income tax on the distributions. If you are going to do this with a regular IRA or 401(k), I understand it should be done by a beneficiary designation, rather than as part of your will.

 

[Michael]

I understand it should be done by a beneficiary designation, rather than as part of your will.

Thanks Martha.

 

[Texas Proud]

I am amazed at how many people feel negative about leaving money to their kids. Where else can your bequest do anywhere near as much good for your line?

Well, take a note from Warren Buffet who has said a number of times he is only leaving $1 million to each of his children... he said something like.. someone can live off of $1 million and anything else is 'extra'... so the rest of the billions of $$$$ are going to charity...

 

[ShokWaveRider]

Where's your money going after you're dead?

I honsetly don't care. Rash statement perhaps but true. If I am dead why do I care?

If I go first my wife gets it, (That I care about). If my wife goes first I get it (I also care about that) If we both go, that I care less about, however, I have a will and trust that distributes it evenly between out immediate family, assuming they can find it all. Otherwise to the blind dog charities. Just cause my wife likes dogs.

SWR

 

[ProfHaroldHill]

Well, take a note from Warren Buffet who has said a number of times he is only leaving $1 million to each of his children... he said something like.. someone can live off of $1 million and anything else is 'extra'...  so the rest of the billions of  $$$$ are going to charity...

I wonder if Mr. Warren has ever met his kids . . . might have been too busy w-o-r-k-i-n-g.

Texas Pete -- if you can leave each of yours $1 million, you're in good shape!

HH

 

[Jay_Gatsby]

I don't believe that the major charities share the same sense of frugality as I do when it comes to money.  There have been several stories in the newspapers over the past few years documenting rampant waste and corruption at charities, with many of the executives buying all sorts of luxury goods for themselves with charitable donations.  The idea of donating a significant sum to a third-world orphanage is appealing, but the corruption in the goverments and economies of such countries, combined with the lack of sophistication on the part of orphanage personnel tasked with procurement, gives me significant pause.  How much of a "wheeler-dealer" is your average nun when it comes to dealing with third-world thieves entrepreneurs?

If I were to leave a significant amount of money to charity (which I don't right now) I would be inclined to create my own charitable trust and have a friend who enjoys traveling to third-world countries to be the trustee.  My friend, in turn, can use his/her judgment as to how to help the poor in those countries.

For now, I'm inclined to leave my money to relatives who I respect and who share the same FIRE/frugality attitude I have.

 

[MasterBlaster]

If you are concerned about abuse in charities you can use a charity rating service like CharityWatch to guide you. They rate charities in terms of what percent of donated money actually gets to the people in need.

heres a link to some top rated charities:

http://www.charitywatch.org/toprated.html

 

[KB]

I will leave everything to my kids.

I'm in the process of re-writing my will and setting up a trust. I may follow my parent's lead and set up certain ages where a percent of my estate can be released. I'll discuss it when I get to that point. Don't want the kids to spend it all at once.

 

[SteveR]

I will leave everything to my kids.

I'm in the process of re-writing my will and setting up a trust.  I may follow my parent's lead and set up certain ages where a percent of my estate can be released.  I'll discuss it when I get to that point.  Don't want the kids to spend it all at once.

It all depends on the kid. Some kids never grow up and no matter what age you put in your will they will still blow the wad in a heatbeat. Others are financially mature at even an early age. Some may grow into it but some may not. While age may be a indicator a maturity and is not the only one.

The only way to have more control over your stash is to direct it through trusts or other legal documents that are administered by a disinterested party. That way there is a valve on the money and it won't get blown all at once.....it will take them a while.

 

[Jay_Gatsby]

It all depends on the kid.  Some kids never grow up and no matter what age you put in your will they will still blow the wad in a heatbeat.  Others are financially mature at even an early age.  Some may grow into it but some may not.  While age may be a indicator a maturity and is not the only one. 

The only way to have more control over your stash is to direct it through trusts or other legal documents that are administered by a disinterested party.  That way there is a valve on the money and it won't get blown all at once.....it will take them a while. 

Agreed. This is a good way for the money to stay in the family and become "old money". It takes generations for a family to rise to "old money" status, but it often takes only one generation for it to fall...

 

[Ginger]

A trust will be set up and money left over will first go to spouse, then to children and grandchildren. If we had no children, then money would be left to my sister/brother, which is still a possibility.