I'll leave my kids whatever is left over when I die, but inheritance is not something we talk about and I know it's not something my girls anticipate. I've raised them to be independent going so far as to not even pay for their school. I pick up their living expenses and groceries while up in college (daughter is up at BYU), but they're on the hook for books and tuition. This caused my oldest to study hard during high school and work hard during the summers to save for her education. She finished in the top 11 percent of her high school and scored a 1490 on her SAT getting a very nice scholarship from BYU and got accepted to A&M but chose BYU. She will graduate with no debt with an accounting degree.

My two younger daughters are on track to do the same. They know if they're to make it in this life it will be up to them, their efforts and smarts. I want them to have skin in the game when it comes to their education. My oldest has so far acted very prudently up at school making sure her money will last her. If I have anything left over it will be theirs, but they anticipate nothing. I'll leave them a love of God, my best example and any residual. The rest is up to them.

We use a pretty good attorney at a large national firm for our estate planning. It is still very early but if we can expand our wealth over the years, putting in place family governance, instilling the sense of responsiblity and engaging each generation in interests or investments can reduce some of the risks (doesnt cover them all).

I think properly setting up trusts to reduce any windfall and active giving during your life seems a good path if one is lucky enough to be in a position to help.

I don't have any kids, nor do I plan to.

I'm about to revise my Will to take out one of my nieces and my nephew because they are a couple of deadbeats who don't do anything other than sit around and smoke weed all day. I'm not leaving them money to help them continue that habit.

My husband is my primary beneficiary, with my sister as contingent. A&M gets a percentage, but I'm thinking about capping the maximum amount that goes to A&M as my net worth increases

This is an always changing decision atleast in my household.

Parents were dirt poor, we grew up poor but overall well taken care of. Everything I have, I essentially made for myself.

Old me after marriage, before kids thought I would put my kids through the same b/c it worked out well for me. Teach good work ethics, become a good person, outwork others and you will be a success.

Fast forward 15 yrs and 3 teenage kids and now 50 yrs old. I don't plan to retire for atleast 15 years unless health becomes an issue. I only work 4-6 days a month now so they all have become a fun hobby. Wife/I have a low 8 figure estate and 3 successful business (medical, financial, Real estate). We likely will have mid 8 figure assets by the time I hit 65. My kids and their grandkids will be set via trusts. Prob do 25% charity, 15% nieces/nephews, and 20% to each child/their children but these ratios will all depend on their work ethics.

None of my kids will leave school with any debt and likely will buy their first home in a nice neighborhood. They will get most of their inheritance before they hit 35 as it makes no sense to give it to them when they are 60 and don't need it anymore.

If they are hard working good people who can manage money they will get the 20%. If they are slugs, they will get less. I have a good sense that all 3 kids will turn out to be smart/good adults but the biggest variable is who they marry which many times can be a crapshoot. Marriage is my biggest worry for generational wealth.

I hope my kids will want to take over my businesses which will set them up for success as all are profitable.

Bottom line is, they will be spoiled but I refuse to give to Spoiled Brats. I take pride in knowing I have/will give them a better life than I had. I would feel like a failure if they had a harder life than I did.

No children. I haven't decided whom I'll leave my money to.

BonfireNerd04 said:

---

No children. I haven't decided whom I'll leave my money to.

---

I have an uncle like this. he retired as a global asset manager for a multi-billion dollar manufacturer. did not live in anything other than a cheap apartment and drive work trucks...started working there at 14...paid college by working there...and retired at 67. he once told me that his retirement accounts grew over 1mm quite often...laughed and said, i'm leaving everything thats left to you guys, but there wont be any left. so my sisters and i should inherit 0 dollars or a few million!

he upgraded the apartment to my grandmothers house he inherited and leases a car for 750 per month. not sure when he is going to spend the rest.

Assuming my kids are not into drugs or other activities that i do not approve of ... i will leave all to them. zero exceptions.

I will leave whatever I have left to my kids, but I'm not necessarily planning on leaving some specific number. Maybe that'll change as I hear retirement, but at this point I just want to be sure I'm not some financial burden to them. Anything beyond that is gravy.

Quote:

---

If they are hard working good people who can manage money they will get the 20%. If they are slugs, they will get less. I have a good sense that all 3 kids will turn out to be smart/good adults but the biggest variable is who they marry which many times can be a crapshoot. Marriage is my biggest worry for generational wealth.

---

Bingo...

We're going through that right now. It sucks.

ToddyHill said:

---

Quote:

---

If they are hard working good people who can manage money they will get the 20%. If they are slugs, they will get less. I have a good sense that all 3 kids will turn out to be smart/good adults but the biggest variable is who they marry which many times can be a crapshoot. Marriage is my biggest worry for generational wealth.

---

Bingo...

We're going through that right now. It sucks.

---

Hang in there...

I believe my in-laws would agree that I wasn't their first choice to marry their oldest daughter. I had a bunch of debt, bad spending habits, no real direction in life, and their daughter's full and undivided attention.

Seventeen years later, I'm a principal/shareholder in an A/E firm, a member of the double comma club, have given my wife the opportunity to start her own business, have aided in giving my in-laws three beautiful grandchildren, and have quite a success story. It just took me a little bit to find my way.

I'm not saying every future son-in-law or daughter-in-law is a unpolished diamond, but consider giving them a chance. They might surprise you.

Ag92NGranbury said:

---

mwm said:

---

Proverbs 22:1

---

Proverbs 13:22

---

Proverbs 31:7

Medaggie said:

---

This is an always changing decision atleast in my household.

Parents were dirt poor, we grew up poor but overall well taken care of. Everything I have, I essentially made for myself.

Old me after marriage, before kids thought I would put my kids through the same b/c it worked out well for me. Teach good work ethics, become a good person, outwork others and you will be a success.

Fast forward 15 yrs and 3 teenage kids and now 50 yrs old. I don't plan to retire for atleast 15 years unless health becomes an issue. I only work 4-6 days a month now so they all have become a fun hobby. Wife/I have a low 8 figure estate and 3 successful business (medical, financial, Real estate). We likely will have mid 8 figure assets by the time I hit 65. My kids and their grandkids will be set via trusts. Prob do 25% charity, 15% nieces/nephews, and 20% to each child/their children but these ratios will all depend on their work ethics.

None of my kids will leave school with any debt and likely will buy their first home in a nice neighborhood. They will get most of their inheritance before they hit 35 as it makes no sense to give it to them when they are 60 and don't need it anymore.

If they are hard working good people who can manage money they will get the 20%. If they are slugs, they will get less. I have a good sense that all 3 kids will turn out to be smart/good adults but the biggest variable is who they marry which many times can be a crapshoot. Marriage is my biggest worry for generational wealth.

I hope my kids will want to take over my businesses which will set them up for success as all are profitable.

Bottom line is, they will be spoiled but I refuse to give to Spoiled Brats. I take pride in knowing I have/will give them a better life than I had. I would feel like a failure if they had a harder life than I did.

---

Sounds like we have a lot of similarities.. similar age/business interest/uhnw

I would love to connect

GenericAggie said:

---

I don't think this math works….

---

what part doesn't work.

very realistic for an investment account to double in 8 years.

Currently on the reverse side of this issue. My Dad is 85.

Before my Dad got remarried, he had at least $1.3M in Investments/Cash (maybe more, not including his home). He had put $500K in a trust for us kids when he ultimately passes away. If left untouched that money would be worth about $2M now using the rule of 72.

He also has a military pension and does not live an extravagant lifestyle but did remarry a few years after my mom passed away.

He recently told us kids that there is no money left and we should recommend to his current wife that she sell the house they own once he dies and live on the proceeds somewhere close to her daughter/grandkids. Supposedly, since he retired before they got married once he dies the pension ends.

Now, I don't need my dad's money but a couple hundred grand would have been nice as an emergency fund.

I just don't understand what he spent the money on?

Any retirees on here burn through their retirement?

And if this is the case, what chance does a person without a sweet military pension and cheap military healthcare have to live off their retirement savings. Has me rethinking the amount needed to retire.

Cyp0111 said:

---

He got remarried...

---

True, my wife's dad is old too and the kids have power of attorney which will keep him from making the same moves once his wife passed.

Good for you.

Curious though, how do you plan on giving them so much when they're 35?

It seems as though most are speaking from 1st generation wealth (a couple have mentioned they may receive something)

Is there anyone that has received a large inheritance (or will receive) that believes that it will negatively affect their life? As in may not work as hard or may rely on the inheritance?

I have a business and as my children are getting older I am hiring them and paying them and using their pay to fund Roth IRAs. If I continue to do this it will be worth a very significant amount of money at retirement for them even if they don't put a dime into it after 18.

Reading some of these comments makes me wonder if I would be making a mistake doing this? I wanted to do this but not tell them about the account until they are much older, married, career built, etc.

I am going to work through this with my tax guy. I am thinking a combination of

1. Leave 100K cash in a bag periodically
2. Buy gold and leave it laying around the house
3. Hire them to run the company and pay them
4. yearly 15K gift limits
5. Give them a credit card under my name and let them spend as they wish.
6. Whatever else the estate guy recommends

I have no idea to he honest but I am sure that can be figured out.

If you do set up a Roth for them they need to know. If they try and fund one themselves they can have negative tax implications if y'all both fund.

Mmetag10 said:

---

If you do set up a Roth for them they need to know. If they try and fund one themselves they can have negative tax implications if y'all both fund.

---

I would stop funding before they were old enough to open their own, so I don't think it would impact it.

Fair enough only other thing i can think of is college implications if they try and apply for financial aid. But if you're funding a Roth for them now I'm going to assume they won't be eligible anyway.

Mmetag10 said:

---

Fair enough only other thing i can think of is college implications if they try and apply for financial aid. But if you're funding a Roth for them now I'm going to assume they won't be eligible anyway.

---

Yes and I have also been funding 529s for their college since they have been born. So not worried about financial aid for college.

If you're not completely fos you need to be working with a wealth planning team asap. 18k is the annual limit,
not 15, and you can gift up to $13.6M out of your future estate before you're dead

Charismatic Megafauna said:

---

If you're not completely fos you need to be working with a wealth planning team asap. 18k is the annual limit,
not 15, and you can gift up to $13.6M out of your future estate before you're dead

---

This. If you have the actual wealth, you need to engage a team to at least help you set up a plan. There are so many methods that aren't just a quick google search away.

And on the gift tax, that is 18k per spouse per person. So a couple could give 36K per year to an individual. So you could theoretically gift 72k per year to a child and spouse.

I am going to start estate planning in the next 2-3 years. I get leaving 100K around the house for the kids to find is not legit but how is the IRS going to know. I go to vegas often and so I have reasons to "lose" cash.

I know the gift amount is higher than 15K, I just was lazy b/c to pick 15K b/c it keeps going up yearly.

On the gift tax, what is to stop me from giving my brothers/sisters and their kids 18K each. In my family that is 20 people so in theory in a year, I could give close to 400k and my wife give 400K. They would just turn around and regift it to my kids that amount. I may be thinking it in too simple terms and may not be legit.

This is obviously off track and don't want this thread about me. But yes, I will be getting an estate attorney soon and do everything legally. Never worth going gray to save a few bucks. I am pretty knowledgeable about finances/taxes but def will get a pro to help plan.

Quote:

---

On the gift tax, what is to stop me from giving my brothers/sisters and their kids 18K each.

---

There's nothing stopping you...and fwiw, my wife/I did that a few years ago when her mother passed away. She set up a revocable trust, but kept my wife as beneficiary on 95% of her assets.. Based on the law, my wife could have kept 95% of the assets, rather than splitting them 50/50 with her brother. We took the 95%, but then she and I both wrote checks over a two year period to both her brother and his wife. All legit. At the time I remember the amount you could give was $15,000 from one person to another.

there's a lot of ways to skin the proverbial cat on estate planning...

probably depends on risk appetite as well... some seem to be on the fringe, where you're not sure if it will pass if you get audited.

i prefer conservative, 'sleep good at night' planning... nothing too crazy, but allows for asset protection and tax reduction over time

it will be interesting how many of these estate plans get scrutinized or taxed differently as the fed budget continues to climb out of whack

I don't worry about sending my brother's family of 5 15K each and they turn around gifting it back to my kids. Even if he/his wife screws me, it is a small price to pay to know someone's true color.

But at the end of the day, all of my siblings are well off and 100K doesn't mean too much to us.

My parents had a few properties that they left to my oldest brother and told to split between all the siblings. Total was about 1.5M when they died.

Fast forward 10 years since their passing, and he finally sold it splitting everything evenly between the siblings.

No one even brought the properties up and knew it would be shared evenly.

If you have money and no morals, you will eventually lose all of the money.

Even if my parents handed me 100M and told me to split it up, I still would do it even if I knew some would waste it all. Always do what is right and keeping money not yours is a burden I would never want.

Of course, everything is for my children. At the moment, I am still investing a lot of money in my business. In the next couple of weeks, I will be contacting paytrust customer service and discussing with them a trust fund for my children. I want to give them more than I had and hopefully help them to have an easier life