Reply to How to Keep Inheritance Separate

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[quote=Anonymous][quote=Anonymous]Thank you for all of the great ideas.

Yes, I plan to pay taxes from the inheritance.

It sounds like I should be able to move the inheritance to my brokerage so long as the inheritance is in a separate account with only my name and my kids listed as beneficiaries.

I hadn't thought about a trust.  I will look into that.  I do not want the kids to get access when they are 18.  That is too young, IMO. It sounds like I would need an executor.  I have an idea...

The kids are in elementary school.  If my partner and I don't save enough to cover college, I would definitely tap the inheritance for that.  For now I'd like to keep it more flexible.  Who knows what life will bring?

Hopefully I'll live a very long life but I'm planning just in case. [/quote]
You should have an estate plan regardless for your kids' futures, especially  yes, you need an executor, but you can plan the estate in such a way that the kids can't access the money at 18.

You can stipulate that the executors provide enough funds to cover education, medical, and living costs.  When we first put our estate plan when the kids were in ES, we put in there that the kids must graduate from a 4 yr college before they can tap into the funds (outside of those costs mentioned), with some funds distributed at 25, and full access at 30.  This was before we knew how the kids were going to be as young adults.  We wanted to make sure that they would not rely on the estate and not work.

They are now 17 and 20, and very responsible.  Older one is about to graduate college this spring.   We updated the estate plan, and changed it so that they can access the funds at 25.  The oldest is a co-executor with my sibling until the youngest turns 25, then both kids can access the funds 50/50.[/quote]

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