Anonymous wrote:

Anonymous wrote:I will be receiving an inheritance soon, and I would like to share some of it with my (adult) kids. I have 4 kids; currently ages 19, 21, 23, and 25.

This is the probably the only way I will be able to share a significant amount of money with them. We've paid for/are currently paying for their college (undergrad) in full, and our own retirement/end of life expenses are covered. But we do not have the financial ability to give them hundreds of thousands for the down payment on a house, or pay for major expenses for grandchildren, etc.

I would like to give each somewhere between $50-100k. What is the best way to do this?

You're going to give 4 adult kids between $50k and $100k, and you think this means you *don't* have hte ability to give them down payment money or cover major expenses for their grandchildren?

DCUM is so bizarre - no matter how well a person is doing they always post with this hangdog, "I'm just one of the little poor guys, it's so sad how I have to live, all I've done is paid for four undergrad educations and completely funded my retirement, but I don't know what to do with the giant inheritance I'm about to get."

OP here
Did you miss that this is an inheritance?

I'm not claiming to be "poor"--but no, we do not have the type of income or assets to make a 100k gift out of our own money. Our HHI is $175k/year. The inheritance will be approx. $500k, so once I give the money to my kids, there will not be much left.

Anonymous wrote:You are allowed to sign over a portion of your inheritance directly to a child. Ask your attorney about paperwork for generation skipping. That way you would not run into any tax consequences.

Again, for the back of the room:

THERE ARE NO TAXES DUE ON GIFTS UNDER $14 MILLION OVER THE COURSE OF A LIFETIME

You have to fill out a form when you file you taxes for the year you made the gift, if the amount you gave is over $19k:

https://www.irs.gov/forms-pubs/about-form-709

And then if in any future years you give more than $19k, you add to the form and file it again. That's it.

You are allowed to sign over a portion of your inheritance directly to a child. Ask your attorney about paperwork for generation skipping. That way you would not run into any tax consequences.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I will be receiving an inheritance soon, and I would like to share some of it with my (adult) kids. I have 4 kids; currently ages 19, 21, 23, and 25.

This is the probably the only way I will be able to share a significant amount of money with them. We've paid for/are currently paying for their college (undergrad) in full, and our own retirement/end of life expenses are covered. But we do not have the financial ability to give them hundreds of thousands for the down payment on a house, or pay for major expenses for grandchildren, etc.

I would like to give each somewhere between $50-100k. What is the best way to do this?

You're going to give 4 adult kids between $50k and $100k, and you think this means you *don't* have hte ability to give them down payment money or cover major expenses for their grandchildren?

DCUM is so bizarre - no matter how well a person is doing they always post with this hangdog, "I'm just one of the little poor guys, it's so sad how I have to live, all I've done is paid for four undergrad educations and completely funded my retirement, but I don't know what to do with the giant inheritance I'm about to get."

+1 Like the comment from the OP of a thread who was contemplating quitting her job but made sure to say her family's lifestyle is not "extravagant" with over half a million HHI and family support. It's interesting why they do this.

It's a cultural thing that comes to us from the WASPs (and to them from the Brits). Extravagance is a problem in that subculture, and that's spilled out to other subcultures from the decades (centuries?) of WASP influence.

Anonymous wrote:I would probably invest and give it to them later in life when it could serve a meaningful purpose, like buying a house, funding grandchildren, or funding the startup costs of a business. What are they going to do with $50-100k of cash in their early 20s anyway?

Get on the property ladder early?

I would probably invest and give it to them later in life when it could serve a meaningful purpose, like buying a house, funding grandchildren, or funding the startup costs of a business. What are they going to do with $50-100k of cash in their early 20s anyway?

Anonymous wrote:

Anonymous wrote:I will be receiving an inheritance soon, and I would like to share some of it with my (adult) kids. I have 4 kids; currently ages 19, 21, 23, and 25.

This is the probably the only way I will be able to share a significant amount of money with them. We've paid for/are currently paying for their college (undergrad) in full, and our own retirement/end of life expenses are covered. But we do not have the financial ability to give them hundreds of thousands for the down payment on a house, or pay for major expenses for grandchildren, etc.

I would like to give each somewhere between $50-100k. What is the best way to do this?

You're going to give 4 adult kids between $50k and $100k, and you think this means you *don't* have hte ability to give them down payment money or cover major expenses for their grandchildren?

DCUM is so bizarre - no matter how well a person is doing they always post with this hangdog, "I'm just one of the little poor guys, it's so sad how I have to live, all I've done is paid for four undergrad educations and completely funded my retirement, but I don't know what to do with the giant inheritance I'm about to get."

+1 Like the comment from the OP of a thread who was contemplating quitting her job but made sure to say her family's lifestyle is not "extravagant" with over half a million HHI and family support. It's interesting why they do this.

Give each the maximum gift amount every year. To those in college or higher, send directly to 529. For those out and working, send to their personal account with suggestion to contribute it to their retirement. Only give to your kids, not their spouses/partners.

You create trust accounts if you don't think they will manage the money responsibly on their own. Otherwise you give them the cash in yearly increments under $18k or you give them more and file the proper paperwork with the IRS to report it.

Anonymous wrote:I will be receiving an inheritance soon, and I would like to share some of it with my (adult) kids. I have 4 kids; currently ages 19, 21, 23, and 25.

This is the probably the only way I will be able to share a significant amount of money with them. We've paid for/are currently paying for their college (undergrad) in full, and our own retirement/end of life expenses are covered. But we do not have the financial ability to give them hundreds of thousands for the down payment on a house, or pay for major expenses for grandchildren, etc.

I would like to give each somewhere between $50-100k. What is the best way to do this?

You are doing it now. We put about 100k for each kid and now it’s about 300k now. Not too bad.

Anonymous wrote:I will be receiving an inheritance soon, and I would like to share some of it with my (adult) kids. I have 4 kids; currently ages 19, 21, 23, and 25.

This is the probably the only way I will be able to share a significant amount of money with them. We've paid for/are currently paying for their college (undergrad) in full, and our own retirement/end of life expenses are covered. But we do not have the financial ability to give them hundreds of thousands for the down payment on a house, or pay for major expenses for grandchildren, etc.

I would like to give each somewhere between $50-100k. What is the best way to do this?

You're going to give 4 adult kids between $50k and $100k, and you think this means you *don't* have hte ability to give them down payment money or cover major expenses for their grandchildren?

DCUM is so bizarre - no matter how well a person is doing they always post with this hangdog, "I'm just one of the little poor guys, it's so sad how I have to live, all I've done is paid for four undergrad educations and completely funded my retirement, but I don't know what to do with the giant inheritance I'm about to get."

Anonymous wrote:If you are married, then you and your spouse can each give $19k a year. Wire it in December and January. That gets you close to $80k each in the next 6 months.

You can give more than $19k a year, just need to file a form after that. Not taxed until a much higher threshold.

If you are married, then you and your spouse can each give $19k a year. Wire it in December and January. That gets you close to $80k each in the next 6 months.

Wire the money

I will be receiving an inheritance soon, and I would like to share some of it with my (adult) kids. I have 4 kids; currently ages 19, 21, 23, and 25.

This is the probably the only way I will be able to share a significant amount of money with them. We've paid for/are currently paying for their college (undergrad) in full, and our own retirement/end of life expenses are covered. But we do not have the financial ability to give them hundreds of thousands for the down payment on a house, or pay for major expenses for grandchildren, etc.

I would like to give each somewhere between $50-100k. What is the best way to do this?