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[quote=Anonymous][quote=Anonymous]Question on financial planning for your children.

We have 529s etc fully funded - so college and any grad school will be fully funded with no student loans. Have 3 kids (oldest age 16) and we have about $25m liquid/savings in various investment accounts. We are both still working and make generally high W-2 incomes.

Talking to planners next week but wondering if it makes sense for kids to start to get some trust distributions when they turn 21 ($3-5k/month) - to help them become independent/manage their own money/so they can choose careers they are passionate about/full recognition of no lump sum coming late in life. They would also know they can’t come to us for money otherwise.

Has anyone done this? I’ve heard horror stories of parents who have college graduates who continue to come to them for help during their 20s for leases, house down payments, car purchases, you name it. I definitely don’t want to do any of that and want them to stand on their own 2 feet but recognize that we do have resources and it might be better to share with them now than at some future point after we pass away. Especially given inflation is likely to remain and be persistent for decades, while the cost of everything just continues to go up (and wages don’t seem to be).

Has anyone structured something similar (or been the recipient of something similar)? How has it worked out?[/quote]

Why wouldn't you want them to come to you if you are still alive?  We put $$ in trusts for our kids, should we die, but until then we will manage how we gift them $$.  One is becoming independent (out of college and employed).  We pay for them to join us on vacations, paid to setup their apartment (3k miles from us), gifted them their first car, and most importantly we gift them their Roth IRA contribution and 401K contributions each year.  By the time they are 30 they will have enough "saved for retirement" to have over $2M at age 60.  Otherwise they want to manage themselves, but know if an emergency hits we would obviously help---why wouldn't we if we an afford it?  But they also know we aren't gonna help if they quit their job, sell the 10 yo car with only 60K miles and buy a new one, do other not financially smart choices.  As long as they are contributing to society and employed and being a normal college grad for their age, we will help if the need arises.  However, we wont fund expensive vacations (unless they are with the family), if they want $400 tickets to a concert that's on them, etc.

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