The amount of people living subsidized by their parents is astounding

[Anonymous]

The thing that majorly irks me is when a daycare, or a private school, or a private college, gives financial aid because income doesn't take into account grandparent gifting.

Archived nymag article here. I am sure people will be outraged and delighted.

https://archive.is/https://nymag.com/intelligencer/article/parents-money-family-wealth-stories.html

[Anonymous]

The way Trump is ruining the economy, kids are going to need every bit of help they can get to have a decent standard of living. You will see lots of families living together to pool in the resources, all kinds of help matters be it gifting, living together to save expenses, paying for college and what not .

[Anonymous]

Anonymous wrote:The way Trump is ruining the economy, kids are going to need every bit of help they can get to have a decent standard of living. You will see lots of families living together to pool in the resources, all kinds of help matters be it gifting, living together to save expenses, paying for college and what not .

+1. That is the way families survive through difficult times.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

Yes most are well aware of that. Some of us live in states where the estate tax starts at $2m or so. Also some of us are/will be worth more than the 14M *2 so we need to plan. And a simple part of it is to gift the max yearly. $38K to each kid and same to their spouses. They get the money now when it matters more and we help avoid estate taxes at death

.06% of the population have an estate worth $28MM+.

If it matters more for them to have the money now, then give them $1MM now (which in theory reduces the estate that will pass on death).

Do you think it matters much if they have to pay some tax on the excess above $28MM when you die?

Okay, but many, many people have estates more than the state exemptions. Maryland is currently 5M per person and proposals are on the table to reduce it to 2M.

Ok...again, they are paying taxes above $5MM or $2MM and if your kids need the money now vs. when they are 60+, isn't it better to give them say $1.9MM today (which again, lowers the value of the ultimate estate)? Also, if estate and inheritance taxes matter so much and you are this wealthy...wouldn't you obtain residence in a state that doesn't have these taxes? That seems like an absolute no-brainer.

I don't know why you are having such a hard time with this. My spouse and I can give my child and his spouse 76k/year and preserve 100% of our future estate tax exemption for growth in our estates. We don't have to give larger amounts because our circumstances may change and we may need our own millions for our nursing homes, but in the meantime, annual exclusion giving allows the next generation to fully max their own 401k and retirement savings. This is a flexible generational wealth strategy that doesn't lock things up in a trust or commit you to a certain strategy. If we have higher expenses or a crappy market, we can just skip a year of exclusion giving.

[Anonymous]

Anonymous wrote:The thing that majorly irks me is when a daycare, or a private school, or a private college, gives financial aid because income doesn't take into account grandparent gifting.

Archived nymag article here. I am sure people will be outraged and delighted.

https://archive.is/https://nymag.com/intelligencer/article/parents-money-family-wealth-stories.html

It doesn't bother me. Private school is a privilege and we were glad to pay our children's way without anyone else's money. We also didn't get an inheritance when our parents passed away. Why get riled up about how other people live when you have achieved success on your own. Something to be proud of.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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.

Yes most are well aware of that. Some of us live in states where the estate tax starts at $2m or so. Also some of us are/will be worth more than the 14M *2 so we need to plan. And a simple part of it is to gift the max yearly. $38K to each kid and same to their spouses. They get the money now when it matters more and we help avoid estate taxes at death

.06% of the population have an estate worth $28MM+.

If it matters more for them to have the money now, then give them $1MM now (which in theory reduces the estate that will pass on death).

Do you think it matters much if they have to pay some tax on the excess above $28MM when you die?

Okay, but many, many people have estates more than the state exemptions. Maryland is currently 5M per person and proposals are on the table to reduce it to 2M.

Ok...again, they are paying taxes above $5MM or $2MM and if your kids need the money now vs. when they are 60+, isn't it better to give them say $1.9MM today (which again, lowers the value of the ultimate estate)? Also, if estate and inheritance taxes matter so much and you are this wealthy...wouldn't you obtain residence in a state that doesn't have these taxes? That seems like an absolute no-brainer.

I don't know why you are having such a hard time with this. My spouse and I can give my child and his spouse 76k/year and preserve 100% of our future estate tax exemption for growth in our estates. We don't have to give larger amounts because our circumstances may change and we may need our own millions for our nursing homes, but in the meantime, annual exclusion giving allows the next generation to fully max their own 401k and retirement savings. This is a flexible generational wealth strategy that doesn't lock things up in a trust or commit you to a certain strategy. If we have higher expenses or a crappy market, we can just skip a year of exclusion giving.

I'm not having a hard time with this whatsoever...but it sounds like you aren't as wealthy as you want anyone to believe. I guess I just find it comical that people talk about giving money to their kids when they "need it"...but don't give any real money to their kids when they need it.

You certainly don't sound like someone at risk of blowing through the $28MM lifetime exclusion if you think you will run out of money just to pay for a nursing home.

[Anonymous]

Anonymous wrote:The way Trump is ruining the economy, kids are going to need every bit of help they can get to have a decent standard of living. You will see lots of families living together to pool in the resources, all kinds of help matters be it gifting, living together to save expenses, paying for college and what not .

+1. We have decided to keep our home in case our adult children need to move back, like they did during the pandemic.

[Anonymous]

Anonymous wrote:Would it help to hear about all the lazy/dumb ways I have squandered family money, or would it make it worse?

This would totally be me if I had family money, so let's hear it. I'm sure I'd have been the top investor in some terrible scheme.

[Anonymous]

Anonymous wrote:The thing that majorly irks me is when a daycare, or a private school, or a private college, gives financial aid because income doesn't take into account grandparent gifting.

Archived nymag article here. I am sure people will be outraged and delighted.

https://archive.is/https://nymag.com/intelligencer/article/parents-money-family-wealth-stories.html

The stories are interesting because the vast majority are the cliches everyone talks about. Basically, adults that will never be able to stand on their own two feet...ever.

[Anonymous]

I don't know of any 30+ yr old living off parents. NONE

[Anonymous]

Anonymous wrote:

Anonymous wrote:The thing that majorly irks me is when a daycare, or a private school, or a private college, gives financial aid because income doesn't take into account grandparent gifting.

Archived nymag article here. I am sure people will be outraged and delighted.

https://archive.is/https://nymag.com/intelligencer/article/parents-money-family-wealth-stories.html

The stories are interesting because the vast majority are the cliches everyone talks about. Basically, adults that will never be able to stand on their own two feet...ever.

But, I mean, so what? Every since humanity evolved we've been working together in family groups to take care of each other. Why not continue that human trait?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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.

Yes most are well aware of that. Some of us live in states where the estate tax starts at $2m or so. Also some of us are/will be worth more than the 14M *2 so we need to plan. And a simple part of it is to gift the max yearly. $38K to each kid and same to their spouses. They get the money now when it matters more and we help avoid estate taxes at death

.06% of the population have an estate worth $28MM+.

If it matters more for them to have the money now, then give them $1MM now (which in theory reduces the estate that will pass on death).

Do you think it matters much if they have to pay some tax on the excess above $28MM when you die?

Okay, but many, many people have estates more than the state exemptions. Maryland is currently 5M per person and proposals are on the table to reduce it to 2M.

Ok...again, they are paying taxes above $5MM or $2MM and if your kids need the money now vs. when they are 60+, isn't it better to give them say $1.9MM today (which again, lowers the value of the ultimate estate)? Also, if estate and inheritance taxes matter so much and you are this wealthy...wouldn't you obtain residence in a state that doesn't have these taxes? That seems like an absolute no-brainer.

I don't know why you are having such a hard time with this. My spouse and I can give my child and his spouse 76k/year and preserve 100% of our future estate tax exemption for growth in our estates. We don't have to give larger amounts because our circumstances may change and we may need our own millions for our nursing homes, but in the meantime, annual exclusion giving allows the next generation to fully max their own 401k and retirement savings. This is a flexible generational wealth strategy that doesn't lock things up in a trust or commit you to a certain strategy. If we have higher expenses or a crappy market, we can just skip a year of exclusion giving.

I'm not having a hard time with this whatsoever...but it sounds like you aren't as wealthy as you want anyone to believe. I guess I just find it comical that people talk about giving money to their kids when they "need it"...but don't give any real money to their kids when they need it.

You certainly don't sound like someone at risk of blowing through the $28MM lifetime exclusion if you think you will run out of money just to pay for a nursing home.

DP--perhaps our kids are fully functioning adults with careers and live within their means. So the gifting is for extras and saving for a downpayment in The future. Despite being uhnw, we were not that until kids were in HS/college so they grew up with some privileges but still know the value of money and are not spoiled brats. They know they have to work for things in life.
So we don't want them to have $1M at age 23.

[Anonymous]

I get 100k a year in cash from a trust distribution. I’m grateful. Not sure what else to say. You can turn yours down but I’m okay with taking this and being generous- I gift 30% of it annually.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The thing that majorly irks me is when a daycare, or a private school, or a private college, gives financial aid because income doesn't take into account grandparent gifting.

Archived nymag article here. I am sure people will be outraged and delighted.

https://archive.is/https://nymag.com/intelligencer/article/parents-money-family-wealth-stories.html

The stories are interesting because the vast majority are the cliches everyone talks about. Basically, adults that will never be able to stand on their own two feet...ever.

But, I mean, so what? Every since humanity evolved we've been working together in family groups to take care of each other. Why not continue that human trait?

Huh? Working together in family groups implies older help younger, and younger help older. It's a reciprocal relationship.

These stories, for the most part, are one-way only. What's worse, most of these stories involve children that will sap all the money from their parents, and have done nothing to leave anything to their own children.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The way Trump is ruining the economy, kids are going to need every bit of help they can get to have a decent standard of living. You will see lots of families living together to pool in the resources, all kinds of help matters be it gifting, living together to save expenses, paying for college and what not .

+1. That is the way families survive through difficult times.

+2 Was just thinking today our DC, who's graduating in May, should find a job here so kid can move back in with us. (Of course no job yet, despite well-paid internships last 2 summers.) While I was earlier totally against it, I embraced it this morning in the shower. He's level headed, so may be good to have around.