$$$ car for trust fund kid?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A used$20k car or brand new under warranty $30-40k Honda, say, that won't need a tuneup for 100,000 miles and can be kept 10 years easily?

Rich don't buy used cars full of unknowns.

Nonsense. I'm rich and I just bought a car that was built in 1956 and probably has 200,000 miles - if the odometer worked.

That’s not a daily driver, stupid.

That’s for a fun project.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What genius set up such a trust?

According to my financial advisor, MOST people. I was stunned. He said the majority of trusts turn over to an 18 year old.

Bullsh-t. Percentage at 18, more at 25, more at 40, more reserved to generation-skip.

Agree. There is no way a “majority” turnover at 18. Forbes says the most common structure is payouts at 25, 30 and 35.

You’re thinking rich people trusts. I totally believe that the majority of trusts in the US are held for minor children of deceased parents who didn’t have a will. In those cases, the $$ gets handed over when the kid reaches the age of majority, which is usually 18.

[Anonymous]

This doesn't sound like a true trust fund but an inhertance where the child is living with a parent or other relative and someone else is controlling the money. A $20K car is reasonable if there is a need for it and the parent approves.

[Anonymous]

That $20k used car. Insurance should be cheaper too.
Get a used Mazda CX-30. Actually, new may be as low as $26 with 0% interest loan at times. Great zippy little car, and one of the cheaper ones to fix if it needs fixing at all.
I got used had Mazda 3 2007 that went over 100k easily never needing a tune up.
The SUV is slightly higher, wider, and safer car.
My child has similar amount coming to them as their father passed away without will. I wish courts would let me put the money into UTMA, invest in Voo and done.
I want no trust, no lawyers, no bond as I see it as court spending child's money to 'protect it'.

[Anonymous]

I don’t think $20k for a 17 year old is too much for a car if the money is there. Less and you run the risk of something that isn’t reliable.

If you have a good relationship with the kid you may want to start talking to them about compound interest and seeing if you can get some buy in from them to look at the money as a future retirement vehicle. It’ll free them up some from financial pressures when they launch. And $450k compounded will get them a big fat retirement.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What genius set up such a trust?

According to my financial advisor, MOST people. I was stunned. He said the majority of trusts turn over to an 18 year old.

And then what, are gone by 19?

I was done by the time I finished college. Learned some good lessons though.

[Anonymous]

Is this 20k for a new Kia or a low mileage Toyota or a decade old Mercedes with six digits on the odometer? It’s still not enough info.

[Anonymous]

As an immigrant in America, I am very curious how much money in these trusts do people inherit? What is the average amount?

[Anonymous]

Anonymous wrote:Op here. The trust transfers to the teen at 18 per the orphans court in the state where they reside. I’m the court-appointed trustee. The car is $20,000.
I’d rather let the judge decide to approve/deny the request and maintain good relations with the teen (and their parent) instead of trying to convince them to delay or reduce the amount. They have about $450k in total.

20k car is reasonable it is like used Honda CRV.

[Anonymous]

Anonymous wrote:

Anonymous wrote:If the trust is set up in batshit fashion to give tons of money to an 18 year old, maybe let them get whatever they can 'afford' and start learning natural consequences.

This!

My kids don't get control of their trust until they are 37 - when spending habits are established and maybe they need tuition for their kids

This is how you do it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:What genius set up such a trust?

According to my financial advisor, MOST people. I was stunned. He said the majority of trusts turn over to an 18 year old.

Then you have a very inexperienced financial advisor.

Signed - attorney

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If the trust is set up in batshit fashion to give tons of money to an 18 year old, maybe let them get whatever they can 'afford' and start learning natural consequences.

This!

My kids don't get control of their trust until they are 37 - when spending habits are established and maybe they need tuition for their kids

So annoying. not in time for downpayment, day care, grad school… I mean if you don’t trust a 30 yo you screwed up

This is how you do it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:If the trust is set up in batshit fashion to give tons of money to an 18 year old, maybe let them get whatever they can 'afford' and start learning natural consequences.

This!

My kids don't get control of their trust until they are 37 - when spending habits are established and maybe they need tuition for their kids

We will give more control at 25 and 30, but then again one kid is almost 25 and is very financially savvy and really frugal. So we trust they would not burn thru millions if we were to die. But at age 10 I would have set a portion at 25, 30 and 35

[Anonymous]

Anonymous wrote:

Anonymous wrote:What genius set up such a trust?

According to my financial advisor, MOST people. I was stunned. He said the majority of trusts turn over to an 18 year old.

Who are they consulting with?!?!?

Most recommend 25/30/35 as times to give some access and not full until after 35.

[Anonymous]

As a trustee, this is your last chance to exercise some semblance of control. Better to give them money now for a Civic rather than have them buy a Range Rover in 12 months.