Reply to How common is it for young adults to receive life changing amounts of money from family?

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[quote=Anonymous]I'm wondering about this decision as well.  I will inherit $1.5-2M.  Some of it will be used to supplement my retirement, but hopefully the investment performance will be such that it's growth counterbalances whatever I need to use.  My father right now is able to pay for his assisted living place with his SSI, dividend income and retirement draws that are less than the money the retirement investments are making.

If something happens to me, my 2 teen DDs would inherit the money in equal portions when they are 30, per the trust.  Until I pass away and they inherit, I (or then my cousin) would act as trustee if they need resources from the trust prior to that.  So, the question is, what should come out of the trust prior to their turning 30?  Education in excess of their college funds would be one.  The downpayment on their first house to get them started in real estate appreciation would be another.  Beyond that, it just depends.

I certainly don't want the trust to be their bank and them not cultivate the work ethic and pride in achieving life goals with their own actions and hard work.  I haven't even decided if I want to tell them about this trust anytime soon.  Probably not until their mid 20's, if I hear they are starting to make job decisions, starting family decisions, etc based on having to wait a long time before they can afford it.  For example the PP above who mentioned putting off having children because of affordability and then running into infertility challenges.

When that time comes I certainly will be talking with them about the importance of letting most of it grow for their own retirement choices, not blowing it all near-term.  Meanwhile I can gift them education money, first house downpayments, medical bill help if something catastrophic happens, wedding costs if not too extravagant, etc. and not mention exactly where the money is coming from.  Just that I have some extra to be able to help out.[/quote]

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