Financial planning when you know you'll be inheriting a trust

[Anonymous]

Anonymous wrote:

Anonymous wrote:I don't have much detail on the trusts other than they are generation skipping (from my grandparents to my sister and me) with my dad as executor (and yes even if my mom is still living it's contingent on my dad). They have their own money which will be passed to their grandkids if there's any left

Just FYI, my grandmother left my sister and I similar trusts. Once my dad died, my aunt was the trustee. She didn't have to give us the money. I wasn't even allowed to see the trust without her permission even though I was a beneficiary. She is also trustee of a similar trust to which we are beneficiaries to when she dies. Trustees are allowed to use the money as they see fit before they die. My dad had every intention of passing it to us, but my aunt, who was widowed early, and had not much savings, had been very up front that she's using "my" trust for her living expenses. I would keep saving for retirement, and $1 million really won't be much in 30 years or so

That's really sad, pp.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I don't have much detail on the trusts other than they are generation skipping (from my grandparents to my sister and me) with my dad as executor (and yes even if my mom is still living it's contingent on my dad). They have their own money which will be passed to their grandkids if there's any left

Just FYI, my grandmother left my sister and I similar trusts. Once my dad died, my aunt was the trustee. She didn't have to give us the money. I wasn't even allowed to see the trust without her permission even though I was a beneficiary. She is also trustee of a similar trust to which we are beneficiaries to when she dies. Trustees are allowed to use the money as they see fit before they die. My dad had every intention of passing it to us, but my aunt, who was widowed early, and had not much savings, had been very up front that she's using "my" trust for her living expenses. I would keep saving for retirement, and $1 million really won't be much in 30 years or so

That's really sad, pp.

I am Pp. I don't think it's sad. It's not smart that she and her husband spent everything they made and that she is living above her means, but I feel that parents should leave their money to their kids, not their grandkids. The only reason my grandmother didn't leave it directly to my parents/aunt/uncle was because she didn't want the dead uncle to get it in case my aunt died first (and probably the same with my dad/mom). I understand why she feels it's hers to use while she's alive.

[Anonymous]

Anonymous wrote:If op considers the $1m "front loaded" forced retirement savings, assuming it is wisely invested the it sure as hll should be plenty of retirement savings until op is in a position to contribute on her own. Op is only 30 and doesn't need to come up with college savings either!

And to the above poster who will inherit $6m in trust monies, I also can't imagine why you need to contribute a penny extra to your retirement. Esp since you also have college paid for by grandparents.

Mine is hovering between 10 and 12 million. I don't worry about retirement savings, but of course my husband has to should we divorce. We don't save anything for their colleges as they will be paid for.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I don't have much detail on the trusts other than they are generation skipping (from my grandparents to my sister and me) with my dad as executor (and yes even if my mom is still living it's contingent on my dad). They have their own money which will be passed to their grandkids if there's any left

Just FYI, my grandmother left my sister and I similar trusts. Once my dad died, my aunt was the trustee. She didn't have to give us the money. I wasn't even allowed to see the trust without her permission even though I was a beneficiary. She is also trustee of a similar trust to which we are beneficiaries to when she dies. Trustees are allowed to use the money as they see fit before they die. My dad had every intention of passing it to us, but my aunt, who was widowed early, and had not much savings, had been very up front that she's using "my" trust for her living expenses. I would keep saving for retirement, and $1 million really won't be much in 30 years or so

That's really sad, pp.

Um, if the trust is yours and your aunt is just the trustee and using your trust, then isn't that fraud? You should sue her. She has no right to do that, if the trust is in fact yours.

If, on the other hand, the trust is hers with you as secondary beneficiary when she dies, then you don't really have a right to complain.

[Anonymous]

This is why my trust (and my kids trusts) have three trustees. No one could do that. Really, really poor estate planning if that had happened.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I don't have much detail on the trusts other than they are generation skipping (from my grandparents to my sister and me) with my dad as executor (and yes even if my mom is still living it's contingent on my dad). They have their own money which will be passed to their grandkids if there's any left

This is a good idea. Sometimes I wish I were white.

Why do you assume OP is white? What does race have to do with this?

Now we assume you are too.

[Anonymous]

If nothing else knowing the specific investments in the trust will help you to balance your portfolio going forward when you might have more to invest. You really need to get a handle on what is in the trust and its nature now.

[Anonymous]

OP, you need to plan your finances as it is today. You don't know how much and when you will get it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:If op considers the $1m "front loaded" forced retirement savings, assuming it is wisely invested the it sure as hll should be plenty of retirement savings until op is in a position to contribute on her own. Op is only 30 and doesn't need to come up with college savings either!

And to the above poster who will inherit $6m in trust monies, I also can't imagine why you need to contribute a penny extra to your retirement. Esp since you also have college paid for by grandparents.

Mine is hovering between 10 and 12 million. I don't worry about retirement savings, but of course my husband has to should we divorce. We don't save anything for their colleges as they will be paid for.

Where is your trust money sitting in? Stocks, Real Estate, Bonds? There is no guarantee the value will not drop when you are given the trust. Still, I bet you will spend down your trust in no time.

Money is tricky. If you are respectful of yourself and people around you, you will have money. I hope for your DH's sake, that he keeps his money separate.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If op considers the $1m "front loaded" forced retirement savings, assuming it is wisely invested the it sure as hll should be plenty of retirement savings until op is in a position to contribute on her own. Op is only 30 and doesn't need to come up with college savings either!

And to the above poster who will inherit $6m in trust monies, I also can't imagine why you need to contribute a penny extra to your retirement. Esp since you also have college paid for by grandparents.

Mine is hovering between 10 and 12 million. I don't worry about retirement savings, but of course my husband has to should we divorce. We don't save anything for their colleges as they will be paid for.

Where is your trust money sitting in? Stocks, Real Estate, Bonds? There is no guarantee the value will not drop when you are given the trust. Still, I bet you will spend down your trust in no time.

Money is tricky. If you are respectful of yourself and people around you, you will have money. I hope for your DH's sake, that he keeps his money separate.

Nope, he's the sole provider. It's an irrevocable trust- it's already mine. As to how it's invested, well, it would take a lot of time to explain and you seem nasty anyway. I'm 41 and have yet to touch it, but of course, you're right. My 10-12 million could disappear. So could whatever savings you have.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If op considers the $1m "front loaded" forced retirement savings, assuming it is wisely invested the it sure as hll should be plenty of retirement savings until op is in a position to contribute on her own. Op is only 30 and doesn't need to come up with college savings either!

And to the above poster who will inherit $6m in trust monies, I also can't imagine why you need to contribute a penny extra to your retirement. Esp since you also have college paid for by grandparents.

Mine is hovering between 10 and 12 million. I don't worry about retirement savings, but of course my husband has to should we divorce. We don't save anything for their colleges as they will be paid for.

Where is your trust money sitting in? Stocks, Real Estate, Bonds? There is no guarantee the value will not drop when you are given the trust. Still, I bet you will spend down your trust in no time.

Money is tricky. If you are respectful of yourself and people around you, you will have money. I hope for your DH's sake, that he keeps his money separate.

Yeah. Respect creates immense wealth Since you clearly have none for people with means, I bet you haven't gone far, huh?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If op considers the $1m "front loaded" forced retirement savings, assuming it is wisely invested the it sure as hll should be plenty of retirement savings until op is in a position to contribute on her own. Op is only 30 and doesn't need to come up with college savings either!

And to the above poster who will inherit $6m in trust monies, I also can't imagine why you need to contribute a penny extra to your retirement. Esp since you also have college paid for by grandparents.

Mine is hovering between 10 and 12 million. I don't worry about retirement savings, but of course my husband has to should we divorce. We don't save anything for their colleges as they will be paid for.

Where is your trust money sitting in? Stocks, Real Estate, Bonds? There is no guarantee the value will not drop when you are given the trust. Still, I bet you will spend down your trust in no time.

Money is tricky. If you are respectful of yourself and people around you, you will have money. I hope for your DH's sake, that he keeps his money separate.

Nope, he's the sole provider. It's an irrevocable trust- it's already mine. As to how it's invested, well, it would take a lot of time to explain and you seem nasty anyway. I'm 41 and have yet to touch it, but of course, you're right. My 10-12 million could disappear. So could whatever savings you have.

People on this board are always snotty and insecure about inherited wealth. Op, it is pretty obvious who those posters are, just ignore them. It would be foolish to plan your finances ignoring the trust, you would be best served by knowing info about the trust so you can plan around it,

[Anonymous]

I know I will inherit money when my parents die. That being said- I have no idea when that will be. If it's earlier- I will likely inherit a lot more money. If it is later, it will probably still be significant and potentially life changing. But I have no idea when that will be and a whole lot will change between now and then. So we are planning as if that is not a factor in our retirement plans. When the day comes that we get whatever amount that is- I hope we don't need it and that we can use it to benefit our children and/or grandchildren. So the only planning we are doing- as far as inheritance is concerned- is planning to not need it.

[Anonymous]

Anonymous wrote:I know I will inherit money when my parents die. That being said- I have no idea when that will be. If it's earlier- I will likely inherit a lot more money. If it is later, it will probably still be significant and potentially life changing. But I have no idea when that will be and a whole lot will change between now and then. So we are planning as if that is not a factor in our retirement plans. When the day comes that we get whatever amount that is- I hope we don't need it and that we can use it to benefit our children and/or grandchildren. So the only planning we are doing- as far as inheritance is concerned- is planning to not need it.

You are still very fortunate but that is a different scenario than op's and some of the pp's. I, too, will inherit but if my parents live into a ripe old age, then I'll be well into retirement when I inherit so I don't factor that into my retirement planning - the other big point being that the amount will vary greatly depending on how old my parents are when they die. A trust on the other hand keeps growing, so long as the principal isn't tapped and it is wisely invested- plus you have access to the money at a certain age. So I think a trust can be "counted on" in retirement planning, at least as far as any investments can be.