Reply to When do you tell kids about family money?

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[quote=Anonymous][quote=Anonymous]You tell them nothing about the grandparent trust until the grandparents are gone.  Because anything could happen with that money.  My mom’s memory care is $15k a month, they take great care of her and she’s probably going to live ten more years.  Let that sink in.

To set your kids up for success don’t make money a taboo topic, teach them the importance of saving as soon as they get their first job, show them a compound interest calculator and spend time with them plugging in different numbers.  Stop worrying about what may happen (as in they may have an inheritance down the road).  Grandparents money isn’t life changing and they could be in their 60’s by the time they inherit from you.  If you really want to start setting them up now gift them the IRS max each year with some of that maxing out a Roth IRA for them.  Money for them now is way more impactful than when they’re closing in on their own retirements. [/quote]

We gift our 20 something kids the max yearly now.  Best way to transfer wealth and at an age it will make major impact.  Our kids have great careers and work hard.  They live within their means (which means they live in an apartment they can afford on their own, and still save for a downpayment and still save decently for retirement).  However our gifts goes 99% for savings---retirement is maxed and that allows them to save even more on their own.  
As long as they continue to be responsible and fiscally responsible, we will continue to gift.  
If they choose to quit their job, sit at home and play video games all day and try to live off our gifts, then perhaps the gifts will stop.

But for now, by the time they are 30, they will have $600-700K+ in retirement and savings.  they will have enough for a downpayment on a nice home.  They will not have to worry about saving a ton for retirement when they have kids (they will still save but will be able to direct money to daycare and kid expenses as needed).  They also know we will fund grandkids education, so they dont' need to save for college.  We will superfund a 529 for each grandkid once they are born (I think it's $100K you can do).  Let that grow 18+ years and they will have enough for almost any school (and we will add more if needed).

So if I only had $5M, I wouldn't be doing all of this---just gift them for 2-4 years and be done.  But we are worth much more than that, and have more most likely coming in a few years.  
So we prefer to see the benefits while we are alive and also while it has the greatest benefit (which is in their 20/30s, not when they are 60+)
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