The amount of people living subsidized by their parents is astounding

[Anonymous]

Anonymous wrote:

Anonymous wrote:Almost everywhere I go I meet people from wealthy families with lifestyles that wouldn’t be possible on their incomes alone. These are people who I run into completely randomly not from existing social or institutional connections which increases the perception that they’re everywhere. It’s super frustrating not coming from a family like this when you’re surrounded by so much generational wealth and privilege.

this is so bizarre to me. I have kids in private school that cost over 40k/yr so our social circle is full of wealthy people. Never once have i had a conversation about income and where it comes from. How do you get the intimate details of people finances? In my circles this is just not something that is discussed:

In DC it’s more obvious bc so many people have jobs with public or “guessable” salaries. Or you know someone who bought their condo while still in law school and not working…in a different HCOL area now and it would be significantly less clear. Some of my friends are very open about grandparent financial help when it’s for the kids, and some have even been open about it when explaining a career break.

FWIW we get checks from my parents and they are in a totally separate account invested for our kids. At one point family help has been used for real estate and investing for retirement. It’s huge help, and I’m very grateful and thoughtful in how it’s used for the benefit of the next generation.

I’m expecting a large inheritance, but not counting on anything as you never know what might happen with subsequent marriages/wills changing, so I am appreciative of having some extra money now that is invested for my kids in the future. My DH and I are professionals that work hard and have ambition- but we’ve been able to make decisions that are best for our family not 100% focused on income maximization.

[Anonymous]

For everyone that claims to be wealthy, why is everyone so clueless on how inheritance/gift taxes work?

You aren't limited to $18k per year...you are limited to almost $14MM (for single person, $28MM for a married couple estate) in lifetime inheritance under current federal tax rules.

Whatever you are gifted each year is counted towards that $14MM/$28MM, but the giver only pays a tax on any gifts that exceed the lifetime exclusion.

You have to report any amounts given above $18k to the IRS, but you don't pay any tax on the excess until you hit the lifetime exclusion.

[Anonymous]

Anonymous wrote:For everyone that claims to be wealthy, why is everyone so clueless on how inheritance/gift taxes work?

You aren't limited to $18k per year...you are limited to almost $14MM (for single person, $28MM for a married couple estate) in lifetime inheritance under current federal tax rules.

Whatever you are gifted each year is counted towards that $14MM/$28MM, but the giver only pays a tax on any gifts that exceed the lifetime exclusion.

You have to report any amounts given above $18k to the IRS, but you don't pay any tax on the excess until you hit the lifetime exclusion.

Thank you! That's been getting to me also, but I figured someone else had noted it earlier. It's single form, not like it significantly adds to your tax return preparation time/hassle- every software program or CPA can handle it.

[Anonymous]

Anonymous wrote:For everyone that claims to be wealthy, why is everyone so clueless on how inheritance/gift taxes work?

You aren't limited to $18k per year...you are limited to almost $14MM (for single person, $28MM for a married couple estate) in lifetime inheritance under current federal tax rules.

Whatever you are gifted each year is counted towards that $14MM/$28MM, but the giver only pays a tax on any gifts that exceed the lifetime exclusion.

You have to report any amounts given above $18k to the IRS, but you don't pay any tax on the excess until you hit the lifetime exclusion.

Except they often pay bills directly which is not really tracked. They pay their grandkids college tuition directly to school and money is just magically gone.

[Anonymous]

We are all better off than most of the world. I don't know about everybody else but I'm pretty thankful for what I do have.

[Anonymous]

Anonymous wrote:

Anonymous wrote:For everyone that claims to be wealthy, why is everyone so clueless on how inheritance/gift taxes work?

You aren't limited to $18k per year...you are limited to almost $14MM (for single person, $28MM for a married couple estate) in lifetime inheritance under current federal tax rules.

Whatever you are gifted each year is counted towards that $14MM/$28MM, but the giver only pays a tax on any gifts that exceed the lifetime exclusion.

You have to report any amounts given above $18k to the IRS, but you don't pay any tax on the excess until you hit the lifetime exclusion.

Thank you! That's been getting to me also, but I figured someone else had noted it earlier. It's single form, not like it significantly adds to your tax return preparation time/hassle- every software program or CPA can handle it.

I have a related question, actually. I'll confirm with my tax preparer, but if you are the *recipient* of a gift over 18k, do you need to report this as income on your taxes or no? I received a one-time gift of 40k from my parents last year to help pay off a loan. They actually split it into separate checks -- one to me, one to my DH, and one to my DC, so no check actually exceeded 18k. But DH and I will file jointly and our DC is a dependent. DH and I have been arguing over how we are supposed to handle it and our tax preparer has not gotten to our docs yet and we don't want it getting down to the wire so I've been trying to get a definitive answer.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:For everyone that claims to be wealthy, why is everyone so clueless on how inheritance/gift taxes work?

You aren't limited to $18k per year...you are limited to almost $14MM (for single person, $28MM for a married couple estate) in lifetime inheritance under current federal tax rules.

Whatever you are gifted each year is counted towards that $14MM/$28MM, but the giver only pays a tax on any gifts that exceed the lifetime exclusion.

You have to report any amounts given above $18k to the IRS, but you don't pay any tax on the excess until you hit the lifetime exclusion.

Thank you! That's been getting to me also, but I figured someone else had noted it earlier. It's single form, not like it significantly adds to your tax return preparation time/hassle- every software program or CPA can handle it.

I have a related question, actually. I'll confirm with my tax preparer, but if you are the *recipient* of a gift over 18k, do you need to report this as income on your taxes or no? I received a one-time gift of 40k from my parents last year to help pay off a loan. They actually split it into separate checks -- one to me, one to my DH, and one to my DC, so no check actually exceeded 18k. But DH and I will file jointly and our DC is a dependent. DH and I have been arguing over how we are supposed to handle it and our tax preparer has not gotten to our docs yet and we don't want it getting down to the wire so I've been trying to get a definitive answer.

Whoever gave you the gift is supposed to file a tax form indicating they provided it to you. You don't have to do anything.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:For everyone that claims to be wealthy, why is everyone so clueless on how inheritance/gift taxes work?

You aren't limited to $18k per year...you are limited to almost $14MM (for single person, $28MM for a married couple estate) in lifetime inheritance under current federal tax rules.

Whatever you are gifted each year is counted towards that $14MM/$28MM, but the giver only pays a tax on any gifts that exceed the lifetime exclusion.

You have to report any amounts given above $18k to the IRS, but you don't pay any tax on the excess until you hit the lifetime exclusion.

Thank you! That's been getting to me also, but I figured someone else had noted it earlier. It's single form, not like it significantly adds to your tax return preparation time/hassle- every software program or CPA can handle it.

I have a related question, actually. I'll confirm with my tax preparer, but if you are the *recipient* of a gift over 18k, do you need to report this as income on your taxes or no? I received a one-time gift of 40k from my parents last year to help pay off a loan. They actually split it into separate checks -- one to me, one to my DH, and one to my DC, so no check actually exceeded 18k. But DH and I will file jointly and our DC is a dependent. DH and I have been arguing over how we are supposed to handle it and our tax preparer has not gotten to our docs yet and we don't want it getting down to the wire so I've been trying to get a definitive answer.

Also, it is not income.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I don't understand the posters that are nasty and mean. I am a self made multi millionaire but I have no jealousy towards people receiving large inheritances or periodic help from their parents, it's the way of life, they were born lucky and that's where the story ends. My kids will be like them as I plan to make their lives very comfortable, envy is the most useless emotion, you get absolutely nothing out of it but bitterness. We all play with the hand we have been dealt.

You don’t understand that gaslighting the poors that their envy is the true character flaw isn’t going to work forever. See: the French Revolution

Like I said, it's the way of the world. Even poors in this country are incredibly lucky to be born in America, REAL poverty is in 3rd world countries, everything in life is relative, I have seen the kind of poverty you can't even imagine. You can't stop someone for being born in a privileged household, that's ridiculous, it's just their luck. And, yes envy is a character flaw because it doesn't achieve anything except bitterness.

So, what happened after French Revolution? Do well off people in France don't help their kids?

[Anonymous]

Anonymous wrote:We are all better off than most of the world. I don't know about everybody else but I'm pretty thankful for what I do have.

The best response.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Billionaires are trying to create a dictatorship in our nation as we speak, and the main problem you have is with normal, middle class people helping family members?

Seriously?

Get your priorities straight. It's every man for themselves now.

A down payment on a $1.5-2M house is not normal middle class. $50k/year private school is not normal middle class.

+1

Normal middle class is contributing some funds to undergrad, or to grad school, or maybe to some wedding expenses. Not a six-figure down payment. WTH.

[Anonymous]

Anonymous wrote:For everyone that claims to be wealthy, why is everyone so clueless on how inheritance/gift taxes work?

You aren't limited to $18k per year...you are limited to almost $14MM (for single person, $28MM for a married couple estate) in lifetime inheritance under current federal tax rules.

Whatever you are gifted each year is counted towards that $14MM/$28MM, but the giver only pays a tax on any gifts that exceed the lifetime exclusion.

You have to report any amounts given above $18k to the IRS, but you don't pay any tax on the excess until you hit the lifetime exclusion.

Were you thinking that the kids/grandkids receiving 38K per year weren't going to inherit more than 14M each?

[Anonymous]

Anonymous wrote:

Anonymous wrote:For everyone that claims to be wealthy, why is everyone so clueless on how inheritance/gift taxes work?

You aren't limited to $18k per year...you are limited to almost $14MM (for single person, $28MM for a married couple estate) in lifetime inheritance under current federal tax rules.

Whatever you are gifted each year is counted towards that $14MM/$28MM, but the giver only pays a tax on any gifts that exceed the lifetime exclusion.

You have to report any amounts given above $18k to the IRS, but you don't pay any tax on the excess until you hit the lifetime exclusion.

Except they often pay bills directly which is not really tracked. They pay their grandkids college tuition directly to school and money is just magically gone.

anyone can pay anyone's medical or education costs for any reason and it is not an IRS event

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:For everyone that claims to be wealthy, why is everyone so clueless on how inheritance/gift taxes work?

You aren't limited to $18k per year...you are limited to almost $14MM (for single person, $28MM for a married couple estate) in lifetime inheritance under current federal tax rules.

Whatever you are gifted each year is counted towards that $14MM/$28MM, but the giver only pays a tax on any gifts that exceed the lifetime exclusion.

You have to report any amounts given above $18k to the IRS, but you don't pay any tax on the excess until you hit the lifetime exclusion.

Except they often pay bills directly which is not really tracked. They pay their grandkids college tuition directly to school and money is just magically gone.

anyone can pay anyone's medical or education costs for any reason and it is not an IRS event

Not if it's an employee!

https://www.nbcnews.com/business/taxes/tax-evasion-fraud-explainer-alan-weisselberg-trump-organization-rcna43804

[Anonymous]

Hi OP,

Most people are blind to the true extent of their privilege. Wealth and family help - I’m including family that helps with connections, childcare, you name it - is a common one. I write this as someone who doesn’t receive family money or family emotional support or family help with kids, etc. People with loving, helpful, involved, and/or financially generous families have NO IDEA what it is like for those of us without them.
I also write this as someone who is undoubtedly oblivious to the true extent of my own privilege, including ones I’ve been subjected to envy for and/or expected to apologize for (good looks, fertility, talent).