Aus_E_Expat
Recycles dryer sheets
- Joined
- Apr 3, 2014
- Messages
- 180
I will explain my dilemma below and hope that some readers can offer some useful comments.
I am well and truly financially independent and did have a short stint at retirement but currently I am working again on a new project for “one more year”.
I have 2 daughters (25 and 19) and am trying to work out whether or not I should;
1. give them some funds to invest (could be in an apartment or shares/managed funds); or
2. continue to hold the funds myself and invest them in my own name (notionally segregated from my other funds) and then give them to the daughter at an appropriate time (Marriage? Birth of child? Specific age?).
The amount I am thinking to gift them is $200,000 each but I could also loan them another $250,000 each (for example if they buy an apartment).
The dilemma is;
(a) daughter 25 lives at home, has started 3 university degrees but has never finished any of them (she currently has 1 semester left to complete one degree but she has deferred again), she has undertaken various low level part time jobs but currently has no job and lives on cash handouts from me;
(b) daughter 19 lives at home, is currently half way through university (and is doing extra subjects to finish her degree earlier), works a couple of part time jobs;
do I treat them equally or adopt different approaches to each one?
I think daughter 19 probably could invest and manage the money (but she is only 19) but I am concerned daughter 25 will squander the money (if the money is going to be squandered on partying etc, I would rather squander it myself !!!).
Some additional information – both daughters will receive an inheritance of $40,000 from their grandfather in the next few weeks (the estate is being wound up now). Should I use that as a “test” to see what they do with that money?
BTW, the daughters live in Australia so university fees are not an issue and any gifting will be tax free.
All comments / advice welcome.
I am well and truly financially independent and did have a short stint at retirement but currently I am working again on a new project for “one more year”.
I have 2 daughters (25 and 19) and am trying to work out whether or not I should;
1. give them some funds to invest (could be in an apartment or shares/managed funds); or
2. continue to hold the funds myself and invest them in my own name (notionally segregated from my other funds) and then give them to the daughter at an appropriate time (Marriage? Birth of child? Specific age?).
The amount I am thinking to gift them is $200,000 each but I could also loan them another $250,000 each (for example if they buy an apartment).
The dilemma is;
(a) daughter 25 lives at home, has started 3 university degrees but has never finished any of them (she currently has 1 semester left to complete one degree but she has deferred again), she has undertaken various low level part time jobs but currently has no job and lives on cash handouts from me;
(b) daughter 19 lives at home, is currently half way through university (and is doing extra subjects to finish her degree earlier), works a couple of part time jobs;
do I treat them equally or adopt different approaches to each one?
I think daughter 19 probably could invest and manage the money (but she is only 19) but I am concerned daughter 25 will squander the money (if the money is going to be squandered on partying etc, I would rather squander it myself !!!).
Some additional information – both daughters will receive an inheritance of $40,000 from their grandfather in the next few weeks (the estate is being wound up now). Should I use that as a “test” to see what they do with that money?
BTW, the daughters live in Australia so university fees are not an issue and any gifting will be tax free.
All comments / advice welcome.