Reply to What is the best way to give $50k-$100k to an adult child?

Forum Index » Money and Finances

Reply to "What is the best way to give $50k-$100k to an adult child?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous]I will be receiving an inheritance soon, and I would like to share some of it with my (adult) kids.  I have 4 kids; currently ages 19, 21, 23, and 25.

This is the probably the only way I will be able to share a significant amount of money with them.  We've paid for/are currently paying for their college (undergrad) in full, and our own retirement/end of life expenses are covered.   But we do not have the financial ability to give them hundreds of thousands for the down payment on a house, or pay for major expenses for grandchildren, etc.

I would like to give each somewhere between $50-100k.   What is the best way to do this?[/quote]

It's not a lot of money to worry about trusts.. Remember that the financial needs/maturity of each would be different. For example, the 19 yo may chose to splurge it on a fancy car and parties while a 25 yo may think about saving for the future (ofc your kids may be different).

I'd set up 4 separate investment accounts, one earmarked for each, but in your joint names (you and spouse). Any taxable event (e.g. dividends) will of course need to come out of your taxes. Sit with them and let them know about these accounts and allow them to witdraw from these accounts as needed. If 25 yo wants to withdraw the entire amount to buy a house, and you agree, by all means let him. If the 19 yo wants to withdraw $25K for a fancy trip to Europe, put your foot down and say nope but allow $5K, etc.  If one of them doesn't touch the money for 20 years, so be it. They will have millions and will inherit it from you at a stepped up basis.
[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics