Reply to How to Keep Inheritance Separate

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]How old are your kids?  I know no one on here likes Trump, but if your kids are under 18, you can set up Trump accounts for each of them on July 4 and contribute $5k per year.  They are the equivalent of a Roth IRA (tax-free growth) without a work requirement.  Do that until they are 18.  It's a small amount of money, but more than zero.  Those are considered "completed gifts" and are therefore shielded from divorce and third-party estate claims.

For the rest, I'd open a separate brokerage account at a different provider than your marital accounts (so if you use Fidelity, switch to Vanguard). Invest it in tax-efficient funds (I personally like VTI and BRK.B), but pay any taxes you owe from the separate funds and keep a record.   Don't spend any of the money unless there is a true emergency. [/quote]

No way. These could go the way of Trump University, Trump Steaks and so on.

[/quote]

None of those items is endorsed by the IRS, as in IRS Notice 2025-68.  Tax-advantaged accounts, regardless of who initiates them, are beneficial.  These accounts let you effectively set up a Roth IRA for your young children and contribute up to $5k per kid per year.  As much as I dislike Trump, I'm doing this for my kids.  It's more tax advantaged than the UTMAs I previously used to save for their young adult expenses outside of college, like a home downpayment, seed money to start a business, or ideally, even leave the accounts alone and let them grow until retirement, and the balance will be huge if they get 60 years of compound interest.  The only downside that I can see to these accounts is that your children get control at 18, and many 18-year-olds are not served by access to  large amounts of cash that they didn't earn.  [/quote]

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