What is the best way to give $50k-$100k to an adult child?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I will be receiving an inheritance soon, and I would like to share some of it with my (adult) kids. I have 4 kids; currently ages 19, 21, 23, and 25.

This is the probably the only way I will be able to share a significant amount of money with them. We've paid for/are currently paying for their college (undergrad) in full, and our own retirement/end of life expenses are covered. But we do not have the financial ability to give them hundreds of thousands for the down payment on a house, or pay for major expenses for grandchildren, etc.

I would like to give each somewhere between $50-100k. What is the best way to do this?

You're going to give 4 adult kids between $50k and $100k, and you think this means you *don't* have hte ability to give them down payment money or cover major expenses for their grandchildren?

DCUM is so bizarre - no matter how well a person is doing they always post with this hangdog, "I'm just one of the little poor guys, it's so sad how I have to live, all I've done is paid for four undergrad educations and completely funded my retirement, but I don't know what to do with the giant inheritance I'm about to get."

+1 Like the comment from the OP of a thread who was contemplating quitting her job but made sure to say her family's lifestyle is not "extravagant" with over half a million HHI and family support. It's interesting why they do this.

Wow that's f**g embarrassing. $500k HHI and the bank of mom and dad still helping wow

[Anonymous]

If you give it to them now, they could get married and then divorced, and the ex-spouse could get half of it.

[Anonymous]

Anonymous wrote:You are allowed to sign over a portion of your inheritance directly to a child. Ask your attorney about paperwork for generation skipping. That way you would not run into any tax consequences.

This is called a disclaimer and it's very easy to screw up if done incorrectly. Dont take and receipt of funds until you get legal advice.

[Anonymous]

Anonymous wrote:If you are married, then you and your spouse can each give $19k a year. Wire it in December and January. That gets you close to $80k each in the next 6 months.

+1

I personally would gift each 15k a year for the next 4-6 years if you trust they won't blow it. But same idea, under the gifting threshold which is 19k per parent per year.

[Anonymous]

Those are young ages. If you want the money to stay meaningful, place it into a trust and put the proceeds into an index fund. Make sure the trustee knows you want the money to grow for them and not be spent frivolously. Have it convey ant age 40 or 50.

[Anonymous]

Anonymous wrote:You should not give this money to your children now.

+1. Keep it, help them out closer to when they need it. Take a great family vacation with adult kids