Reply to Does your social circle have a lot of family money/trust funds?

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[quote=Anonymous][quote=Anonymous][url][quote=Anonymous]I’ll bite. I grew up well off and most of my friends receive money from parents in one way or another. My husband and I both have well off parents. We received a down payment for our pretty average, not new construction home as a gift. HHI is around 450k and we get a 30k annual gift. Other than that - which is huge- we dont have a trust or know anything about inheritance. We watch our money very carefully, max out retirement, and live in an average house. We send our kids to private school and want a third child, so we’re carrying the lions share of our lifestyle expenses, which we need to work to do. I think our parents intended for it to be this way- if we need help for something legitimate, they’re there, but otherwise, the gifts are a head start and not intended to have us living beyond our means. [/quote]

Oh and I’ll add that our private school has many grandparents helping with tuition. [/quote]

Honestly, in my circle where everyone has trust funds or otherwise comes from a lot of wealth, I'd say that grandparents paying for education often has a larger impact on people's day-to-day than the trust funds. I have a trust fund that produces a modest (i.e. fed) annual salary, but that income is taxable. Many of my friends do not have trust funds but their parents pay all tuition expenses (so 50-60k per year, per child, after tax). With three kids, you would need a trust of 10-12M to be throwing off that kind of post-tax income.

So even with my trust and our healthy incomes, we have had to grabble with whether private school for our kids is worth the investment and fits our priorities since it's all coming out of our "pie." My friends whose parents are paying never had a second thought about private school because it is entirely divorced from their own income/investments. And school decisions end up having a big impact on where and with whom you and your kids spend most of your time for over a decade.[/quote]

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