Reply to Ultra high net worth and how much to leave to kids

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[quote=Anonymous]Remember that your kids will likely be in their 50s or 60s when they inherit so their life trajectories will be set by that point. I encourage you to teach your kids throughout their teen years how to save and invest. I would encourage them to work for money and monitor them saving 20% of their gross income. Help them set up a Roth IRA once they have W-2 wages and fund their Roth IRA with a match of their earnings. Obviously make sure they have enough for college, too.

Once they graduate, consider giving annual gifts under the Federal maximum (currently $17k/year) if they have jobs or are otherwise being responsible. Keep things equal between your children once they hit adulthood unless there are special needs involved.

At this point with minor children, your trust should be structured to have a trustee you and your spouse agree to. While it is very unlikely to happen, would you really want your kids to not have the money if they are not adults when you pass away? If so, you could structure the trust to pay for all their expenses through college, pay for a reasonable car, then distribute, say $100k at age 25, $350k at age 30, and $550k at age 35. If it were me, I'd probably delay any of these partial decisions until my kids were older and I had a sense for where things were heading. You can change your documents at any time.[/quote]

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