Reply to Generational wealth. What's behind the obsession?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Here is the thing about generational wealth. It’s deeply connected to trusts which are designed to be passed from generation to generation. In order to do that, they generally limit income to two percent or less.

Let’s say you inherit a trust worth $15 million.  You aren’t living on income of $15 million. You living on $300,000. That’s a great annual income. But you will have trouble keeping with the Jones in Chevy Chase or McLean if you don’t have an actual job.i

That’s why you see these multi-generational beneficiaries with do-gooder jobs. They  emphasize education while flying economy and driving beat up Volvos to the family compound in Maine. Their kids go to private schools and then to decent colleges without carrying any debt.
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I have a multigenerational trust and it doesn't work like that at all. [/quote]

How does it work? I'm the beneficiary of several -like more than five including both sides of my family and that's how they all work. They are generational skipping trusts. Certainly, I get access to the principle of some of those trusts, but only after the prior generation dies. But then I turn around an put it in another generation skipping trust. So you have multliple trusts covering overlapping generations. The big idea is that it is not your money.  You just get to use some of it before passing it along to the next genreration, while doing your best to protect from IRS. Keeping each individial trust relatively small also helps preserve against the inheritance tax. It all gets dissapated over time when people have too many kids and too many marriages.

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