31% think $250K is enough to retire on

[Nords]

Should we receive any inheritance I plan to pass at least half of it to the kids immediately.
Better they have use of it when it matters to them getting started and established, than us just putting it on the money pile since it won't likely change or enhance our lifestyle which is pretty set by now.

I have a multi-generational perspective on this plan from having been a part of it as a recipient, and possibly watching it bypass me via another generation, and considering it as a grantor. I think a significant issue is how one minimizes the risk that "the kids" will just piss it away-- even if it's for whatever they consider to be the most well-intentioned and most thoughtful of the best of reasons. And if they get "enough money to be able to do nothing" then it'll definitely stunt their personal growth.

I'm beginning to think that no amount of inheritance will benefit anyone who's not already properly educated and experienced at handling that sum of money. Taking the inheritance before they get their hands on it at least gives me the opportunity to gift it over a period of years instead of dumping it on their heads all at once.

 

[Ready-4-ER-at-14]

Good points Nords, especially about considering the person who will be recipient and how they will likely use the money.

Two of my kids seem very financially astute, one is getting there, and the last prefers to make the mistakes himself.

All of them have been exposed to teachings of Richest Man in Babylon, and the cash flow ideas of Kiyosaki.

Anyhow 1/4th of 1/2 is not such a huge sum anyway. At least if I am still living I can request that they use 1/2 of what I give them for long term plans.

 

[pb4uski]

I have a friend who was really counting on an inheritance from his parents as a part of his retirement planning. Unfortunately, things didn't work out the way he figured and he will delay his retirement, but he is putting on a happy face saying that he enjoys his new job (which I think is true to some extent).

While I think it is likely that I will ultimately receive an inheritance, I have zero in my planning - if it happens it is gravy and the bulk of it will likely pass to the next generation in some form.

 

[Ready-4-ER-at-14]

Nords, when your family bypasses a generation in wealth, is this done with say the intent of a will or is it as simple as declining an inheritance such that it flows to the next of kin? Or both? ; ) " I want enough for a big mac but give my kids the rest!" lol.

 

[Nords]

Nords, when your family bypasses a generation in wealth, is this done with say the intent of a will or is it as simple as declining an inheritance such that it flows to the next of kin? Or both? ; ) " I want enough for a big mac but give my kids the rest!" lol.

When my grandfather prepared his will (after his spouse died), my father (his only child) asked Gramps to make sure that his inheritance could pass through my father to my brother & me. Dad said it was in case he predeceased "us kids". My grandfather had his lawyer put the appropriate language into his will and it included a disclaimer provision. When Gramps died then Dad was able to disclaim and have the inheritance bypass him to be split between my brother and me.

I frankly don't understand my father's will. (He just entered a skilled nursing facility with a preliminary diagnosis of Alzheimer's and will spend the rest of his life in a full-care facility.) His will is short but it's mostly boilerplate and doesn't clearly explain what happens with disclaimers. My father's estate (whatever may be left of it, if any) will be divided between my brother and me. I'm not sure, but I suspect that if I disclaimed my portion then the will would redirect it to my brother. However it's also possible that if I disclaimed my portion then it could go to my only child. If we ever get to the point of probating an actual estate then I need to get my own lawyer's opinion on that question.

I don't think an inheritance would change my lifestyle, unless I could find a nice plug-in hybrid pick-up truck to haul a stand-up paddlesurfing board. However a big inheritance to my brother (say at least $100K) would let him ER as soon as he deposited the check, sold his business, and bought a used RV. I think he'd be able to handle his plan without catching affluenza.

Based on what I've seen so far, an inheritance of any amount to my 18-year-old daughter would pretty much be pissed away and cripple her financial development. (I was the same at that age.) She's doing a lot better in the last three months so she probably learned an important lifestyle lesson last semester, but she has a way to go. (She could also just be too busy with 22 credit hours & academic probation to actually have a chance to spend anything...) I think she'll make great strides in money maturity over the next few years, and we're going to ramp up the gifting to help her learn to handle larger sums of money. But I don't think she'll truly appreciate the value of deferred gratification (and tax-deferred compound interest) until she gets a deployment or two under her belt... say by age 25 or so.

My cynical suspicion is that the cost of my father's long-term care will render inheritance questions moot.

Spouse and I have noted that during bull markets our net worth tends to rise faster than we can get around to spending it. (Even despite the wisdom & advice proffered by the "Can you spend $300K/year?" thread.) If this keeps up for another 40 or 50 years then it's possible that we'll have a sizable estate, and by then we expect our daughter would also be financially independent. One option would be to dump our estate into some sort of charitable foundation and then hire a grandkid to run it for 20 years (on a small salary) and then shut it down.

But we haven't put much thought into that. One generation at a time is hard enough.