Do you have a trust fund?

[Anonymous]

Anonymous wrote:

Anonymous wrote:DH has one. We touch it rarely, and it's grown to about $2 million now. Neither of us makes a ton of money, so it's great to have it to fall back on when necessary.

Why should your husband work hard to find a high-paying job if he's to inherit $2m?

NP here. Ahhhh...the "lets count their pennies" parade......let me see, where do I start.

Basically, people with a ton (more than a lot, certainly more than $2m) of money have it tied up. Mmmmmmkay?

[Anonymous]

1. What is your ethnic background? (WASP, Jewish, Asian, Hispanic, etc) White, upper-middle class
2. Did you come from "old money"? How many generations back does your family have wealth? No "old money," my grandfather earned it all (or at least the bulk of it)
3. What is the size of your trust fund? If you're not willing to type a number, a range would be great. About $1.5M, which is enough to help our my family tremendously but not enough to live off of or eliminate the need to worry about money.
4. At what age did you receive it? 35, although I was allowed to use proceeds to pay for law school in my 20s
5. When did you find out that you had a trust fund? When you were a kid? When you were in college? Don't remember
6. What do you plan to do with it? I used some of it to pay for law school and for a large down payment for our house. The rest will be left for retirement and if there is anything left over, it will be passed on to my kids.

[Anonymous]

FIL's wife allegedly has one, but all she does is bitch about how FIL spends money.

[Anonymous]

I agree - the defensiveness about this post is kind of hilarious. Is the first rule of having a trust fund "don't talk about having a trust fund"?

[Anonymous]

OP, I'm not sure if there is a particular "lifestyle" associated with it, like you imagine there to be.

For us, DH had one before we got married (which he rarely used and never flaunted), then we were given one as a wedding gift. The money goes back only one generation and comes from a tech company that his father built from the ground up, then sold for a sizable amount.

We used it to contribute toward the down payment of our very modest home, and we used it to help with IVF costs. Other than that, we haven't touched it. That might change soon as we have some plans we are considering dipping into it for, but we are not sure yet.

It is several million dollars, and it's really nice to know it's there for retirement and any emergencies that may arise. We feel very lucky to have it to fall back on. We still work hard, and would never consider relying solely on the trust or the income it generates.

[Anonymous]

I personally have no trust fund, DH and I are both solidly middle class.

One of my cousin's best friends years ago was "the Pepsi Heiress". She was required to get a job and support herself until a certain age, and then she would have access to the funds. She was a teacher for a while. We have since lost touch with her, but hope she is now enjoying her fortune!

[Anonymous]

We are extremely lucky to have grandparents who have set up a fund for all of their grandchildren's education needs. It's a blessing for which I cannot thank them enough! Although we don't use it for our daily lives, it eases the concerns about how we will pay tuition!

[Anonymous]

I am curious about trust funds, too, OP. Who knew they were so common around here.

[Anonymous]

My DH has a trust fund, but he had no idea about it until he was out of college and at his first job. There's about 2 million in it - so while it's very nice, it's not like we can stop worrying about money all together.

[Anonymous]

I'm WASP, and not old money. My grandmother set up a trust fund for all of her grandchildren after my grandfather passed away. Each fund started with 50k and they've grown to about 100k - the recession really hit us all hard but money grows when the economy is good. I've known about the account since I was 16, got to make joint decisions regarding it once I turned 18, and took control of it when I turned 21. If my parents had passed away prior to me turning 18 I would not have taken control of the account until I was 25 (basically a safety net to ensure I didn't make foolish decisions when I was in my early 20's if my parents weren't able to be there).

So, there's the perspective from someone who had a trust fund that isn't crazy big - it's just a nice nest egg to build my future on.

[Anonymous]

Anonymous wrote:I'm just curious to learn more about the kind of people who have trust funds. I had never met any people like this until I moved to DC, got married, and started seeing these people at work and among DH's colleagues. So if you have a trust fund can you answer these questions:

1. What is your ethnic background? (WASP, Jewish, Asian, Hispanic, etc)
2. Did you come from "old money"? How many generations back does your family have wealth?
3. What is the size of your trust fund? If you're not willing to type a number, a range would be great.
4. At what age did you receive it?
5. When did you find out that you had a trust fund? When you were a kid? When you were in college?
6. What do you plan to do with it?

Thanks! Just curious. I'm from a solid middle-class family. I worked as a babysitter and a dog walker as a kid and teenager, mowed lawns for cash, saved up to help pay a portion for my new car, and went to a state university for the in-state tuition and scholarship money. So this is a world I know nothing about!

1. American / Jewish

2. Define "old money"... My family on one side was well off 100 yrs ago and lost it in the Depression. My grandfather and father built back up (primarily my father) in the 1950s - 1990s. The funds have been distributed and trusts dissolved, per their terms.

3. 7 figures each to my brother and me.

4. I received nothing until both my parents died., my father when I was 55 and my mother when I was 57.

5. Found out when I was about 48. I assumed nothing and did not include it in my planning until it was distributed.

6. It allowed me, along with my own savings and investments/ retirement plan, to retire from a dysfunctional work environment. Plan to live comfortably at a similar or slightly higher standard than we have (including a house renovation), and hope to leave significant $ to charity (high six figures-low seven figures).

[Anonymous]

My MIL has a trust fund she mostly lives off. When she dies we will get some. However, it will be divided three ways so I don't think we'll end up with much. She also may live a long time (I hope) and use it all.

[Anonymous]

NP here. I am also finding this thread very funny - the final taboo!

I grew up in an area where a lot of people have trust funds. Of course no one talks about their own, only estimating others!

I just love how everyone who has one stresses that its existence does not preclude working or having to manage money. But having things grad school paid for and a down payment are big, big things for most of us. Of course the rich get richer. I'm sure there are a lot out there who might be embarrassed at the exposure of a trust fund, since the perception might be that it negates the "self made" image.

[Anonymous]

How can you guys not know when you are an adult? I have to pay taxes on mine.

[Anonymous]

I have one set up by my grandparents, which I inherited by virtue of my mother's death. I have no right the principal, just income, which comes to about 70k a year. It is a help, to be sure. I work full time, but was able to go back to school and change careers because of this money.