The amount of people living subsidized by their parents is astounding

[Anonymous]

Anonymous wrote:

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.

That's the tough part. My BIL and his wife have intentionally both taken steps back in their careers - one works part-time purely for health insurance, the other is a SAHP. They got a sizable inheritance and while I don't know the full details, I've heard its enough that if they live modestly, they don't need to worry about working full time. And I believe college is already fully funded for both of their young kids. I wonder how they'll explain it to their kids - and why this is not a realistic outcome for them to expect.

[Anonymous]

Anonymous wrote:

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.

In my family, I help my mom and she helps me. I keep her company and make her dinner and she has given us a bit of a financial cushion this year with looming job loss. If it's only one way in your circles, well, that's weird. Why would parents help kids they're not in touch with? They wouldn't.

[Anonymous]

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

No. I don't either. Except in cases of disability.

[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?

+1. We'd rather have our young in daycares, young adults struggling to make ends meet, and elderly alone.

[Anonymous]

Anonymous wrote:

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

No. I don't either. Except in cases of disability.

What happens is, there's one person in a nice neighborhood that looks like they're too poor to be there from their own income, then 5 people on DCUM posts about that one person and acts like it's a big problem because they see it every day, and then 90 people on the Internet want to comment about it.

Then you rinse and repeat with knowing one out of 50 coworkers, one out of 200 students in college/grad school in a similar situation, etc.

[Anonymous]

Anonymous wrote:

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

No. I don't either. Except in cases of disability.

You will. Trump is crashing the economy. College students will graduate and be unable to find good paying jobs while graduate programs have been decimated.

[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.

Right, annual exclusion giving is a great strategy for couples who have 10M or so.
The 28M is not necessarily where the federal exemption will stay. It's currently due to sunset back down to 6-7M. Plus, there are state exemptions to consider.

[Anonymous]

Anonymous wrote:

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.

Nope. In my culture, assets and resources flow down to the next generation. Hands on logistical eldercare can certainly be provided if needed but kids should not be paying for the elderly's retirement. They should be building on the wealth and opportunities we provide them to take care of their own kids and build/maintain wealth.

[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. It sounds like pp is wealthy enough to gift their child and spouse $76k a year while having millions saved for their own retirement. It doesn't sound like their child needs an infusion of $1.9 million now to have a good life. You sound terribly envious.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

Nope. In my culture, assets and resources flow down to the next generation. Hands on logistical eldercare can certainly be provided if needed but kids should not be paying for the elderly's retirement. They should be building on the wealth and opportunities we provide them to take care of their own kids and build/maintain wealth.

What culture is that?

[Anonymous]

Anonymous wrote:

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.

Right, annual exclusion giving is a great strategy for couples who have 10M or so.
The 28M is not necessarily where the federal exemption will stay. It's currently due to sunset back down to 6-7M. Plus, there are state exemptions to consider.

Not with Trump and the Republicans in charge. We'll likely see another year of no estate tax whatsoever.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

That's the tough part. My BIL and his wife have intentionally both taken steps back in their careers - one works part-time purely for health insurance, the other is a SAHP. They got a sizable inheritance and while I don't know the full details, I've heard its enough that if they live modestly, they don't need to worry about working full time. And I believe college is already fully funded for both of their young kids. I wonder how they'll explain it to their kids - and why this is not a realistic outcome for them to expect.

Explain what? Why they are not getting an inheritance? They are lucky to have so much time with their parents and college fully-funded. This expectation of a sizable inheritance is ridiculous.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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.

Nope. In my culture, assets and resources flow down to the next generation. Hands on logistical eldercare can certainly be provided if needed but kids should not be paying for the elderly's retirement. They should be building on the wealth and opportunities we provide them to take care of their own kids and build/maintain wealth.

What culture is that?

Im curious about this too. I’m going to guess American culture? Lots of Americans seem to dump their old people in nursing homes that Medicaid pays for.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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.

That's the tough part. My BIL and his wife have intentionally both taken steps back in their careers - one works part-time purely for health insurance, the other is a SAHP. They got a sizable inheritance and while I don't know the full details, I've heard its enough that if they live modestly, they don't need to worry about working full time. And I believe college is already fully funded for both of their young kids. I wonder how they'll explain it to their kids - and why this is not a realistic outcome for them to expect.

Explain what? Why they are not getting an inheritance? They are lucky to have so much time with their parents and college fully-funded. This expectation of a sizable inheritance is ridiculous.

That they will need to have full time jobs, earn real income, realize that how mom and dad lives is not how we can live.

[Anonymous]

Anonymous wrote:

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.

Stories from where? Seems like you would hear from people who complain but not those who are satisfied with the arrangement, as usual. Why this obsession with an inheritance when the kids are doing fine?