Anonymous
Post 06/03/2023 19:38     Subject: Re:Ultra high net worth and how much to leave to kids
Consider that charitable bequests which occur after your demise may be going to organizations whose missions, management, efficiency, and effectiveness may change over time, potentially to the point of not being at all what you had in mind at the time you wrote your estate plan. Once your money is out of your family's hands, it's gone forever, no matter how the charity changes, how the world changes, and how the needs of your heirs change. In other words, there is substantial risk when you give away money that it may not be used in the way and for the purposes you had in mind. Maybe that choice is more sensible if you know for certain that your heirs are spendthrifts with poor judgment, no ambition, no impulse control, and easily swayed from a righteous life by an increase in income or assets, etc. But, barring those circumstances why take the assets out of the reach of your family? Will they not seek to do good with their resources even if they also enjoy more financial security and more comfortable lives than they would enjoy otherwise? Is there something bad about being financially secure in the face of life's uncertainties?
Anonymous
Post 06/03/2023 16:16     Subject: Ultra high net worth and how much to leave to kids
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:Dh and I are extremely fortunate and currently have a net worth in the upper 30s, all self made, although our parents provided some help for college such that we were able to borrow just the federal student loan max for our state schools. We are in our mid 40s.

We have 3 kids currently in middle school. We do not believe in generational wealth. I’m inclined to provide them whatever they need to finish school (wherever they want to go and for as high a degree as they want, inclusive of room board and incidentals). DH would like to leave them something more but not the majority of our wealth. We have another $12M in life insurance so if we died tomorrow each would inherit roughly $17M.

If we died before they graduate college we would keep everything the same until they graduate and then they would receive their inheritance.

The question is how much to leave them each after education expenses and living costs through college in todays dollars?

Our current thoughts are one or some combination of the below:

1) $1M each
2) a family trust for education so that future generations don’t have to worry about college costs (this would obviously benefit our kids).
3) the max that we can leave not subject to estate taxes without playing gifting of partial interest games. We recognize that this figure can change. We are sorta indifferent if the number stays the same or reverts as current scheduled.

Everything above what we leave them we will donate.

Thoughts?


Your life insurance will cover estate taxes. Agree that this sounds like a troll. Obviously you should have a FA. We work with Goldman, which takes people with investment portfolios of $10M or higher.


Op here. I don’t see this is a FA question nor do I think a FA would provide unbiased advice. They will obviously be concerned with maximizing the amount they manage. This is a morals question.


Oh honey. You have no idea how much Goldman PWM provides to UHNW clients. Namely, investment & networking opportunities you would never know of otherwise.


Is it one person who posts “oh honey” all the time or multiple? And is it clear that this person/these people try too hard to everyone or just me?
Anonymous
Post 06/03/2023 15:29     Subject: Re:Ultra high net worth and how much to leave to kids
Anonymous wrote:I would leave $10M to each, the rest to charity. Vesting schedule so they get it at 35.

I’d be honest with them about the money and your expectations for it while you’re alive. Raise them to be good humans and live your values. We expect you to contribute to society, we value education, hard work, honesty, respect for all, charity, and humility. If at any point in our lives you aren’t living those values, then we will reevaluate whether you’re able to be good stewards of our money.


So nonprofit execs can pad their pockets? No thanks.
Anonymous
Post 06/03/2023 15:28     Subject: Ultra high net worth and how much to leave to kids
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:Dh and I are extremely fortunate and currently have a net worth in the upper 30s, all self made, although our parents provided some help for college such that we were able to borrow just the federal student loan max for our state schools. We are in our mid 40s.

We have 3 kids currently in middle school. We do not believe in generational wealth. I’m inclined to provide them whatever they need to finish school (wherever they want to go and for as high a degree as they want, inclusive of room board and incidentals). DH would like to leave them something more but not the majority of our wealth. We have another $12M in life insurance so if we died tomorrow each would inherit roughly $17M.

If we died before they graduate college we would keep everything the same until they graduate and then they would receive their inheritance.

The question is how much to leave them each after education expenses and living costs through college in todays dollars?

Our current thoughts are one or some combination of the below:

1) $1M each
2) a family trust for education so that future generations don’t have to worry about college costs (this would obviously benefit our kids).
3) the max that we can leave not subject to estate taxes without playing gifting of partial interest games. We recognize that this figure can change. We are sorta indifferent if the number stays the same or reverts as current scheduled.

Everything above what we leave them we will donate.

Thoughts?


Your life insurance will cover estate taxes. Agree that this sounds like a troll. Obviously you should have a FA. We work with Goldman, which takes people with investment portfolios of $10M or higher.


Op here. I don’t see this is a FA question nor do I think a FA would provide unbiased advice. They will obviously be concerned with maximizing the amount they manage. This is a morals question.


Oh honey. You have no idea how much Goldman PWM provides to UHNW clients. Namely, investment & networking opportunities you would never know of otherwise.
Anonymous
Post 06/03/2023 15:26     Subject: Ultra high net worth and how much to leave to kids
Anonymous wrote:30M is not ultra high net worth. Weird post.


OK, Donald
Anonymous
Post 06/03/2023 15:26     Subject: Ultra high net worth and how much to leave to kids
Anonymous wrote:I think a million each is a good amount.
Anonymous
Post 06/02/2023 10:48     Subject: Ultra high net worth and how much to leave to kids
Anonymous wrote:30M is not ultra high net worth. Weird post.


By definition it is, it's the start of UHNW
Anonymous
Post 06/02/2023 09:51     Subject: Ultra high net worth and how much to leave to kids
Anonymous wrote:
Anonymous wrote:Guess I am poor but what is “partial interest games”?


I believe it's like this. The estate tax gift limit is $5mln, and youh have a $10mln house,so you gift htem a 50% interest in it, while the remainders stays in the estate (via trust).


"Five's a nightmare......
Can't retire.....not worth it to work.
Five will drive you un poco loco, my fine feathered friend.
Poorest rich person in America
The world's tallest dwarf......the weakest strong man at the circus."
Anonymous
Post 06/02/2023 08:00     Subject: Ultra high net worth and how much to leave to kids
30M is not ultra high net worth. Weird post.
Anonymous
Post 06/02/2023 07:56     Subject: Re:Ultra high net worth and how much to leave to kids
I would leave $10M to each, the rest to charity. Vesting schedule so they get it at 35.

I’d be honest with them about the money and your expectations for it while you’re alive. Raise them to be good humans and live your values. We expect you to contribute to society, we value education, hard work, honesty, respect for all, charity, and humility. If at any point in our lives you aren’t living those values, then we will reevaluate whether you’re able to be good stewards of our money.
Anonymous
Post 06/02/2023 00:39     Subject: Ultra high net worth and how much to leave to kids
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:Dh and I are extremely fortunate and currently have a net worth in the upper 30s, all self made, although our parents provided some help for college such that we were able to borrow just the federal student loan max for our state schools. We are in our mid 40s.

We have 3 kids currently in middle school. We do not believe in generational wealth. I’m inclined to provide them whatever they need to finish school (wherever they want to go and for as high a degree as they want, inclusive of room board and incidentals). DH would like to leave them something more but not the majority of our wealth. We have another $12M in life insurance so if we died tomorrow each would inherit roughly $17M.

If we died before they graduate college we would keep everything the same until they graduate and then they would receive their inheritance.

The question is how much to leave them each after education expenses and living costs through college in todays dollars?

Our current thoughts are one or some combination of the below:

1) $1M each
2) a family trust for education so that future generations don’t have to worry about college costs (this would obviously benefit our kids).
3) the max that we can leave not subject to estate taxes without playing gifting of partial interest games. We recognize that this figure can change. We are sorta indifferent if the number stays the same or reverts as current scheduled.

Everything above what we leave them we will donate.

Thoughts?


Your life insurance will cover estate taxes. Agree that this sounds like a troll. Obviously you should have a FA. We work with Goldman, which takes people with investment portfolios of $10M or higher.


Op here. I don’t see this is a FA question nor do I think a FA would provide unbiased advice. They will obviously be concerned with maximizing the amount they manage. This is a morals question.


Then only you can answer it. Sounds to me like you know your kids will be slackers if they have too much money, so just cover the basics and put the rest in a foundation that funds something you care about. Maybe one of your kids will get involved and choose to work for the foundation -- that's what one of my UHNW friends does.
Anonymous
Post 06/02/2023 00:19     Subject: Ultra high net worth and how much to leave to kids
Anonymous wrote:
Anonymous wrote:Dh and I are extremely fortunate and currently have a net worth in the upper 30s, all self made, although our parents provided some help for college such that we were able to borrow just the federal student loan max for our state schools. We are in our mid 40s.

We have 3 kids currently in middle school. We do not believe in generational wealth. I’m inclined to provide them whatever they need to finish school (wherever they want to go and for as high a degree as they want, inclusive of room board and incidentals). DH would like to leave them something more but not the majority of our wealth. We have another $12M in life insurance so if we died tomorrow each would inherit roughly $17M.

If we died before they graduate college we would keep everything the same until they graduate and then they would receive their inheritance.

The question is how much to leave them each after education expenses and living costs through college in todays dollars?

Our current thoughts are one or some combination of the below:

1) $1M each
2) a family trust for education so that future generations don’t have to worry about college costs (this would obviously benefit our kids).
3) the max that we can leave not subject to estate taxes without playing gifting of partial interest games. We recognize that this figure can change. We are sorta indifferent if the number stays the same or reverts as current scheduled.

Everything above what we leave them we will donate.

Thoughts?


Your life insurance will cover estate taxes. Agree that this sounds like a troll. Obviously you should have a FA. We work with Goldman, which takes people with investment portfolios of $10M or higher.


Op here. I don’t see this is a FA question nor do I think a FA would provide unbiased advice. They will obviously be concerned with maximizing the amount they manage. This is a morals question.
Anonymous
Post 06/02/2023 00:16     Subject: Re:Ultra high net worth and how much to leave to kids
Anonymous wrote:We have a high net worth and some of what you wrote seems off to me. $12 million in life insurance? You have this many millions and no estate document left? So until now, you were okay with them inheriting everything all at once upon their emancipation?


Op here. We have estate docs currently (wills and trusts). We are updating them.
Anonymous
Post 06/01/2023 09:24     Subject: Ultra high net worth and how much to leave to kids
Anonymous wrote:Dh and I are extremely fortunate and currently have a net worth in the upper 30s, all self made, although our parents provided some help for college such that we were able to borrow just the federal student loan max for our state schools. We are in our mid 40s.

We have 3 kids currently in middle school. We do not believe in generational wealth. I’m inclined to provide them whatever they need to finish school (wherever they want to go and for as high a degree as they want, inclusive of room board and incidentals). DH would like to leave them something more but not the majority of our wealth. We have another $12M in life insurance so if we died tomorrow each would inherit roughly $17M.

If we died before they graduate college we would keep everything the same until they graduate and then they would receive their inheritance.

The question is how much to leave them each after education expenses and living costs through college in todays dollars?

Our current thoughts are one or some combination of the below:

1) $1M each
2) a family trust for education so that future generations don’t have to worry about college costs (this would obviously benefit our kids).
3) the max that we can leave not subject to estate taxes without playing gifting of partial interest games. We recognize that this figure can change. We are sorta indifferent if the number stays the same or reverts as current scheduled.

Everything above what we leave them we will donate.

Thoughts?


Your life insurance will cover estate taxes. Agree that this sounds like a troll. Obviously you should have a FA. We work with Goldman, which takes people with investment portfolios of $10M or higher.
Anonymous
Post 06/01/2023 08:16     Subject: Re:Ultra high net worth and how much to leave to kids
We have a high net worth and some of what you wrote seems off to me. $12 million in life insurance? You have this many millions and no estate document left? So until now, you were okay with them inheriting everything all at once upon their emancipation?