Inheritance/gift to child and spouse or just child?

[Anonymous]

DH's parents have always given the annual cash gift to both of us (this year $15k to DH and $15K to me), and often to the kids too for their college funds. While money shouldn't influence things, I do think that the inclusion of me for annual gifts has contributed to a nice relationship that has stretched over many years.

[Anonymous]

Professionals in the field will tell you child only.

[Anonymous]

Anonymous wrote:

Anonymous wrote:It would be weird/concerning to me if my spouse inherited money and it didn’t go into a joint venture or account of some sort. After being married for a decade plus, if the will was written in a way that it was just for the child, I’d be offended. I’d also be mad at my spouse if they took it and put it into a solo account. We’re supposed to be partners and building a life together. To take a windfall as solely their own says a lot about where the relationship stands.

It’s very usual for a child who inherits money or property not to commingle it with marital assets.

I have a fantastic marriage. When I received inheritances from my grandparents, I alone chose what to spend them on. I opened Vanguard funds with them and with another I bought stocks in a company my grandma loved. DH had no input in that decision. I think he would have chosen to pay off our mortgage, which financially I don't agree with.

[Anonymous]

Anonymous wrote:Professionals in the field will tell you child only.

that depends on a lot of factors- child only means 20% of the assets will be counted in a fafsa application. It doesn't matter if you won't get any aid, but if you will, it's a bad idea

[Anonymous]

My in-laws, with whom I have a wonderful relationship, have let us all know that their will only makes provisions for their children and grandchildren. They told us this to make sure everybody knows what to expect and for my husband and me to make our own arrangements for me should he die first.

Gifts come to us individually (15k each) but are used jointly for whatever purpose it is given (to add to a down payment, college fund, etc.).

[Anonymous]

Anonymous wrote:

Anonymous wrote:Professionals in the field will tell you child only.

that depends on a lot of factors- child only means 20% of the assets will be counted in a fafsa application. It doesn't matter if you won't get any aid, but if you will, it's a bad idea

Can you expand on this - this is OP - I am the child, but I am an adult woman in my 40's. Do you mean 20% of the $15k IRS yearly gift limit would count as an asset for my child's FAFSA application? Would less or more count if the $15k were gifted jointly to my spouse and I?

[Anonymous]

Is he trying to give you $30k? He's probably operating based on some advice that he can give you $15k and your spouse $15k in order to avoid gift tax consequences. Unless he's loaded, it doesn't matter, but people who don't know any better get all caught up in these kinds of things.

[Anonymous]

Anonymous wrote:Professionals in the field will tell you child only.

So people with entirely co-mingled finances would be expected to set up a solo account? I get why that's smart for asset protection but IRL it seems cold AF, like the person sees the writing on the wall.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It would be weird/concerning to me if my spouse inherited money and it didn’t go into a joint venture or account of some sort. After being married for a decade plus, if the will was written in a way that it was just for the child, I’d be offended. I’d also be mad at my spouse if they took it and put it into a solo account. We’re supposed to be partners and building a life together. To take a windfall as solely their own says a lot about where the relationship stands.

It’s very usual for a child who inherits money or property not to commingle it with marital assets.

I have a fantastic marriage. When I received inheritances from my grandparents, I alone chose what to spend them on. I opened Vanguard funds with them and with another I bought stocks in a company my grandma loved. DH had no input in that decision. I think he would have chosen to pay off our mortgage, which financially I don't agree with.

No snark, I swear. But do you do this for all income? Like if spouse gets a bonus and you want to pay mortgage and he wants to buy stock, do you get any say?

[Anonymous]

Money earned within the marriage should be held by and investments decided by both spouses. Money that comes from an inheritance that comes from someone's parents or grandparents is different. Money that comes through sacrifice and savings of one's ancestors should stay separate. Used by both spouses for shared goals? Absolutely, but I can't imagine my religious, immigrant grandparents wanting to leave any possibility that their son-in-law could use their money to fund a second marriage.

[Anonymous]

Anonymous wrote:My father expressed that he would like to gift $ to my kids for their education and also cash gifts up to IRS gift limit to my sibling and I (unclear whether this is one time or over a series of years) with the idea that the gift would be made joint to each sibling and their spouse. I was asked what I thought about that and my gut reaction was to make the gifts sole gifts to me and my sibling. My logic is if I am still married and something happens to me the gift/inheritance money goes to my spouse if spouse is still living and we are still married, or to my kids. I mean, I guess I can spend it on just me and it's gone, but that's just kind of the risk you take as the benefactor?

I see the other side too - that as the in-laws you don't want to be creating a division between spouses, but I just think it has the potential for weirdness and that the spouse should understand in that it's natural for parents to gift to their children and generous to include the spouse.

What do you think?

If your father gives a gift to you AND your spouse he can give you twice as much that will be exempt from tax.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Professionals in the field will tell you child only.

that depends on a lot of factors- child only means 20% of the assets will be counted in a fafsa application. It doesn't matter if you won't get any aid, but if you will, it's a bad idea

Can you expand on this - this is OP - I am the child, but I am an adult woman in my 40's. Do you mean 20% of the $15k IRS yearly gift limit would count as an asset for my child's FAFSA application? Would less or more count if the $15k were gifted jointly to my spouse and I?

pp- I was assuming a minor child

[Anonymous]

I think a lot of people here don’t understand the gift tax. If your father does not gift that 15,000 to your spouse, it’s not like he can just get that to you or your kids instead. If he is already gifting 15,000 to you and 15,000 to each of your kids, He cannot also give the extra 15,000 to you or your kids instead of your spouse. Now, he could use up his lifetime exemption to give you more than 15,000 each per year, but that’s a different ball game. That means he will die With fifteen thousand less in lifetime exemption. As long as your sibling also has a spouse and the equal number of kids as you do, I think it’s fine. Now if you had a spouse and three kids and your sibling was unmarried and had no kids, then that would not be fair to your sibling.

[Anonymous]

Anonymous wrote:Money earned within the marriage should be held by and investments decided by both spouses. Money that comes from an inheritance that comes from someone's parents or grandparents is different. Money that comes through sacrifice and savings of one's ancestors should stay separate. Used by both spouses for shared goals? Absolutely, but I can't imagine my religious, immigrant grandparents wanting to leave any possibility that their son-in-law could use their money to fund a second marriage.

so a SAHM married to a big law partner should expect their bonuses to be put in a joint account, but any money that comes SAHMs way staying in a personal account?

[Anonymous]

Anonymous wrote:I think a lot of people here don’t understand the gift tax. If your father does not gift that 15,000 to your spouse, it’s not like he can just get that to you or your kids instead. If he is already gifting 15,000 to you and 15,000 to each of your kids, He cannot also give the extra 15,000 to you or your kids instead of your spouse. Now, he could use up his lifetime exemption to give you more than 15,000 each per year, but that’s a different ball game. That means he will die With fifteen thousand less in lifetime exemption. As long as your sibling also has a spouse and the equal number of kids as you do, I think it’s fine. Now if you had a spouse and three kids and your sibling was unmarried and had no kids, then that would not be fair to your sibling.

probably because the estate tax exemption is so large now that it's not applicable to even URM families