Anonymous wrote:I didn’t incorporate it into my planning until a trust was set up. This is for 5M (and I have two siblings, each of us gets 5; the overall estate is a little more than 15). The income generated by the trust is more than enough to generously support my parents, and they are quite old. We always suspected some money would be coming but you just don’t know what will happen. At this point my parents actually can’t change their mind and, say, donate it all without a lot of legal hurdles, as I’m a co-trustee of the overall estate (and executor when they pass).

And yeah, now I’m thinking I want to travel more and worry less. I’m in my early 40s.

BUT until you get to the point of having legal paperwork in hand, I wouldn’t assume you’re getting anything, even if it’s likely.

Anonymous wrote:OP Here - thanks for the responses. I will respond to individual posts but in generally I believe it's smart to think about these things. It's not grubby or anything like that.

but some background. my wife and I save. I like to save more than she does.

We are 50 years old and have $9-10MM in investable assets and $2MM in Real estate equity. Our HHI income is on the order of $500-700K depending on the year.

She wants to completely spend our HHI each year now. Does not want to save anymore.

Is she being reasonable? Normally I say no but not so sure anymore.

Two sets of parents. 1 of them aren't in the greatest shape and i could see a decade of memory care for both of them. My haircut assumption is $2MM in that case. The other set is healthier and really need to be planning on another 15-20 years. So who knows on that one but i haircut that to be $2MM as well.

In retirement we want to be able to spend exactly (if not more) than we spend today.

Normal retirement planning says withdraw 4% a year. so, in our case that would be 400k. we are about 100-200k short. Hence save is my view.

Wife view - expenses go down so today's life style costs alot less without expenses for kids. And 4% of some value for the inheritance gets us to the 100-200k number anyway.

is she correct?

p.s. we are very lucky. historically we have lived below our means.

Anonymous wrote:It's not part of our planning process. Anything I get I will likely pass straight on to my DCs, anyway.

Anonymous wrote:I do not count on it.

Memory care is $140,000 to more than $220,000 yearly.

They could need memory care and that would eat up 2.5 M pretty quick, especially if there are two.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My DH and I both have divorced parents that range in age from 82-86.

The range of expected combined inheritance across the group of them is 2-10 M (this is my best ballpark for purposes of this thread based on possible spend down for health care and market losses for the one who is an aggressive investor) Both dads are pretty sturdy and have significantly younger wives, which will likely reduce their need to use assisted living. Both moms have lost their partners to death and are extraordinarily stubborn and living independently.

I think of it as money, if it occurs, that we can use to help our kids get a strong financial start. Not counting on it, hoping this will not be soon but realize they are getting older.

We continue to fund our own retirement. There was a point when we moved a substantial part of our investment dollars towards college because we felt comfortable with where retirement was going.

The fact that you think the existence of these younger wives is a money-saving mechanism that is preserving some portion of your inheritance is either funny or sad, depending on how much you need the money. You aren't getting anything from the remarried daddies; time to start being more grateful for your "extraordinarily stubborn" mom and MIL.

Not sure you are worth replying to.

OP asked a question and I tried to give the best answer I could with the information I have. The fact that I consider a wide range of variables that impact the potential outcome does not make me some plotting gold digger, i am simply practical. Could my step mother get hit by a bus tomorrow? Possibly, but it is unlikely. Does her existence impact how long my father can live independently given their 10 year age difference, yes it does. Independent and assisted living in retirement communities are among the largest costs of the last years of one’s life if we are lucky. How much of that care will be needed is a variable to be considered.

I am sorry that you have some other agenda to push. What a sad sack you are.

Anonymous wrote:No. It is not part of your retirement planning.

Anonymous wrote:

Anonymous wrote:My DH and I both have divorced parents that range in age from 82-86.

The range of expected combined inheritance across the group of them is 2-10 M (this is my best ballpark for purposes of this thread based on possible spend down for health care and market losses for the one who is an aggressive investor) Both dads are pretty sturdy and have significantly younger wives, which will likely reduce their need to use assisted living. Both moms have lost their partners to death and are extraordinarily stubborn and living independently.

I think of it as money, if it occurs, that we can use to help our kids get a strong financial start. Not counting on it, hoping this will not be soon but realize they are getting older.

We continue to fund our own retirement. There was a point when we moved a substantial part of our investment dollars towards college because we felt comfortable with where retirement was going.

The fact that you think the existence of these younger wives is a money-saving mechanism that is preserving some portion of your inheritance is either funny or sad, depending on how much you need the money. You aren't getting anything from the remarried daddies; time to start being more grateful for your "extraordinarily stubborn" mom and MIL.

Anonymous wrote:

Anonymous wrote:A lot will go toward taxes, unfortunately, always consider 1/2 need to be set aside for taxes in April...

You don’t know how inheritance works

Anonymous wrote:A lot will go toward taxes, unfortunately, always consider 1/2 need to be set aside for taxes in April...