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

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][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]

This is what we plan to do (once GK arrive, and if our kids want them to attend private schools). We will help fund anything educational for our kids and grandkids---best use of $$$ IMO. [/quote]

That’s very generous of you. I think helping with private school or college fund is extremely beneficial for everyone involved. Better use of money than a trust at 25. I’ve seen this go wrong many times (drug use).[/quote]

Our kids will be getting $8-10M each when we die, possibly a lot more.  It just makes sense for each family to get the money now, while it has the greatest impact (education and possibly a nice downpayment so family can live closer to work or in area with great public schools) to make their lives easier.  And yes, we would never just give a 25yo access to large amounts of money---it will only be for targeted uses.  Goal is for them to use this to supplement life not for it to be their life.  
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Our adult children will each be inheriting what is currently over $10 million when we die but the trusts are also set up to benefit their children down the road. We put $100k into each 529 plan soon after each grandchild birth and we gift the parents the annual gift limit which means each couple gets $72k. They are all doing very well on their own living what is likely an UMC lifestyle. I think we are being very generous without creating an incentive to not work hard. We have had many conversations with them about their financial futures and our expectations of them plus they work closely with one of our financial advisors who can give them professional advice. It's a real balancing act to do it right. [/quote]

I'm the PP.  This is what we do as well.  Gift them yearly so they can maximize the 401k/IRAs.  When GK arrive, we will superfund the 529s.  It is a balancing act to ensure we don't disincentivize them to work hard.  So far it's working.  Luckily our kids work hard and like to save money.  But they also know the gifts would stop if they were reckless (ie let's say buying a $100K sports car when it couldn't be supported by their own earnings_---we are multi millionaires and dont do that so not funding the kids to do it either)[/quote]

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