Should You Leave Money To Grandkids?
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- Опубліковано 10 лис 2019
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This post is about the decision whether to leave your estate in its entirety to your children, or whether you should carve out a portion for your grandchildren.
For prospective law firm clients who want to schedule a free 15 minute initial phone call with Paul Rabalais, go to: go.oncehub.com/Paul8
People who tend to leave a bequest to grandchildren typically do so because they want to either help them get a start in life, help them get a college education, or acknowledge their grandchildren through their last will or living trust. Others leave a bequest to grandchildren because they feel like their children will spend the inheritance and the assets will never make it down to the grandchildren.
Others who tend to leave their estate to their children in their entirety choose to do so because either they feel like the children will take care of the grandchildren, they don't know how the grandchildren will mature so they prefer to leave their estate to their children, or from personal experience, the grandparents realize that they never received a bequest from their grandparents, so they carry on the tradition.
It's a personal decision whether you leave an inheritance to your grandchildren. If you do, and your grandchildren have not reached full maturity, you should consider leaving it to a trust for them so that someone you trust will control the inheritance for your grandchildren and make sure the trust assets are used for the right reasons until the grandchildren have reached a point in their life where they have the financial maturity to handle the inheritance.
This post is for informational purposes only and does not provide legal advice. Please do not act or refrain from acting based on anything you read on this site. Using this site or communicating with Rabalais Estate Planning, LLC, through this site does not form an attorney/client relationship.
Paul Rabalais
Estate Planning Attorney
www.RabalaisEstatePlanning.com
Phone: (225) 329-2450
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My grandparents (Depression era) had nothing to leave. My parents were responsible and long-lived. What was left of their estate was a blessing to all four of their (retired now) children, who have used it wisely. Thanks, Mom and Dad.
The scenario I like the best is leaving a percentage or a specific amount to the grandchildren, which will be placed into a Trust that will be created after the grandparent's death. The Trust will have specific provisions of how the money may be used and at what age the grandchild may take over the management of the remainder of their trust account. If you want to ensure your grandkids inherit something from you, then leave it to them directly. Don't count on your kids to pass it along to their kids. Circumstances change.
Do not leave a percentage of the Estate, leave a fixed dollar amount that can flow out of the Estate and into a trust. Do not leave a percentage, this will cause significant cost for lawyers and accounting fees. Also if the Trust has been set up incorrectly it can cause major tax consequences.
Open a bank account to grandchildren.
I was raised by my grandaprents. My grandfather is a retired Marine (combat connected). an alcoholic and verbally/emotionally abusive. After years of abuse I finally stood up for myself after the birth of my son feeling like Ive had enough and I wouldnt let my son grow up to see me treated like that. After standing up to my grandparents I was disowned by that entire side of the family as if I had done something wrong/disrespectful. Im fine with that. Ive moved on and am a happy father and person in my life today.
Money can’t buy what you’ve given your child. I say that having lived it. God Bless you.
My mother opened TOD savings accounts for each of her 12 grandchildren with the rest of her estate going to her 4 children. She had control of the monies while she was living, but each one was acknowledged after her death. Simplified planning, but it worked well.
I’ve opened savings account for each of my grandchildren when born. The accounts are in my name with naming the grandchild as beneficiary upon my death.
@@tamaradavis4054 Just know that when they turn 16 they can access funds on their own.
You have hit a topic that I am pursuing at this time. Even though I am not in your state, I do so appreciate the advice you are giving. My grandkids do deserve a portion of the share of my trust that is going to my daughter as I do not want it to go to her "significant other" as she proposes. I will definitely pursue this avenue in my state. Thank you for you excellent videos and advice!
I think of this as Grandpas last life lesson. Plan 1 x$ split in 3rds given to the kid at 20/30/40 years of age. That way they can learn if they blow it not to and it should be bigger with compounding. Plan 2 with a trust allowing for education but only as a reimbursement of completed work. No pass no play. And welding school is just as good as collage. If they choose not to go to school see plan 1.
When I was about ten, I saw a copy of my grandparent's will that they had given to my parents. At first I was hurt that they planned to leave all their money equally to my mother and her only brother, and didn't mention me specifically, by name. I was also confused as to why, if either my mother or uncle died before my grandparents, that neither my father nor my aunt were named as heirs but were skipped over and only named as trustees for their own children who would equally inherit their parent's share. When I was about 12, I was able to discuss this with my grandmother she explained my grandparents' reasoning. They didn't want to favor one child over the other, even though my mother had more children. They wanted to show their children that they were proud of them and loved them both. They felt that it was up to their children to decide what they wanted to do with the money and how they wanted to provide for their own children. Though my grandparents were very fond of both my father and my aunt, they didn't want to risk the money going to a subsequent spouse, but wanted it to go to their grandchildren if their children were no longer around. My uncle had arranged for my grandmother to live off the proceeds of the sale of my grandparents' house. One of my uncle's greatest regrets was that his mother didn't survive his father long enough to really enjoy the money she had after my grandfather died. My grandparents were exceptionally generous to us during their lifetimes. So when they died when I was in my late 20s, I didn't have any false expectations. It was freeing to know that neither of my sets of grandparents were leaving me any money and that if I wanted money, I would have to work for it. My parents and aunt and uncle divided up my grandparents' household goods among themselves and us, the adult grandchildren and we all got furniture, cook wear and dish wear. I still use mine every day. My mom still wears some of her mother's suits which still look good even now. I am exceptionally fortunate that both my parents and my uncle and aunt are still with us, 25 years after losing my dear grandparents. My siblings and I are encouraging our parents to enjoy their money and not to worry about leaving us anything. Nothing that they leave us would be better to have then to have them for as long as possible. I've made sure that I've told my mother-in-law the same thing.
9 98
The Bible says "
A good person leaves an inheritance to his grandchildren, And the wealth of a sinner is stored up for the righteous."
Proverbs 13:22
No one asked besides the Bible is a book not a law 🤣🤣🤣🤣
Not for abusive children
I like the idea of giving the grandkids some $$ now & see how they handle those funds
I like idea of testing the waters. On 16 birthday: $1,000 in cash & $1,000 in mutual fund.
I want to help my children 1st. But I want to acknowledge my grandchildren. I want them to know that they too are important to me. So I intend to leave the bulk of my finances to my children and a small , but significant portion to my grandchildren.
My grandparents left the 3 grand kids equal amounts in the trust. We used it to put a down payment on each of our homes and did well in real estate. That was a smart move and worked out well.
I like the idea of leaving the grandkids a beginning retirement fund. Looking into that.
I've been contemplating this very decision lately and glad you made a UA-cam on it. It gives me a better perspective regarding my grandchildren. The entrust sounds best for me for my grandchildren versus giving money to my daughter...
I think the best thing a grandparent can do is provide for their grandchildren’s education. My children benefited from this and it gave them a leg up in life. Two of the three pursued advanced degrees and will always be able to find a job in their profession.
2 out of 3 ain't bad.
It rather depends on how the previous generation distributed wealth to you and your spouse. My husband is an only child. We have four children. My husband and four children have been treated almost equally in the distribution of the inherited wealth. So based on this fact, I am more inclined to see our money go to our grandchildren since our children have already benefited from the previous generation.
They don’t talk to me but we sure did give them gifts with no thank you…finally stopped it all
❤❤totally agree💯👏👏👏👏👏
In my family ,from my great grandmother on down every thing was left to their children. My mother always said , it’s up to you if your children have something when you die. I have no kids, and my brother dose,he already spent his and has nothing for his kids. I invest and have more then I need
His kids work hard and have made good choices in life . I’m leaving it to them. I feel they will make the right decision when the time comes . For some reason my brother think I’m leaving him something. He always been a selfish person. Maybe his kids will give him something,but I don’t care I’ve be dead.
That's a beautiful thing you're doing for them. Some people would buy things for themselves and you're thinking about your nieces and nephews.
I will give our kids our estate n assets when we die. If our siblings die their share will go to their kids ( our grandchildren ) right?? Thank you 4 your adviced!!
I watch these from New Zealand and although some are not relevant here, they always provoke something to consider in the planning of a will or estate. Thank you
My brother-in-law and I have opposing views on inheritance. He says that what your parents have is theirs and nothing to do with you. I think his father was self made and so is he, so I understand his viewpoint. I, otoh, have a concept of family money - possibly because my parents' modest wealth was largely earned by my grandfather and passed down to them. My oppinion is that what you earn yourself is yours to spend as you like, but what you inherit is family money and should be passed on. Invest it, save it and live off the interest, or buy property and the rental income is yours. But the capital is not yours to spend. My great grandfather died in the early 1900s leaving £3 million (according to public records). A huge amount in those days. He had three unmarried daughters who spent the rest of their lives livng off this money in great comfort. His grandchildren from his other children were left with nothing in the end. It doesn't matter as they all made their way in the world. I just think it's a great shame that all that money was spent on the lavish lifstyles of three women who could have lived just as well by investing it in some way and benefitting future generations.
On the one hand I like giving the grand kids some "test" money. On the other hand, you don't want to condition them to expect handouts. Also, I wouldn't specifically leave money for college. The price of college is so high now that the young adult might be better off learning a trade than wasting money for college. At the very least, I'd say they could get whatever they didn't spend on college when they are 25 or 30 to give them incentives to be frugal with the college costs. If a kid has a pile of money that can only be spent on college, they might go to one of those crazy colleges with water parks or rock climbing walls.
You think!!. I am thinking it was great to receive the inheritance at 8.
Overall, I like your style of communication. If I had to choose an attorney s/he would have a style like yours.
I am thinking it is 100% right to leave money for the grandkids. At an early age give them money and have them open a brokerage portfolio. Every year have them write an essay on investing and what they would do with $5,000. After giving them the money, have them at the end of the year write what happened to the investment and what they learned. If they are learning and growing the portfolio, give them more money.
I have a living trust, I designated the grandchildren recieve the money at a certain age
I’ve been binging on your videos all morning. Very good info.
Lol 😂. Best comment ever on the channel GF.
I like the idea of leaving something to the grandkids. It would make their starting out a little easy. Maybe they won't go to college. Maybe they wanna buy a car or their first apartment or maybe invest some of the money. I also like the idea of giving them maybe 1000 to see how responsible they are with money but, yeah I'd leave my grandchild money but, in a trust.
I have 3 children which I plan to leave equally. My reasoning is that 1 has 1 child, 1 has 2 and the 3rd has 3.
I feel I would be unfair taking away from my son who only has 1 child.
1 child, 3 grandchildren, shared 4 ways, stipulation money be in a trust until age of 25 for grandkids hopefully old enough to know better😉& college is complete
Thanks Paul
Late 60's with a RLT, $3M in assets, & 2 kids who are professionals, no kids of their own. My plan is to leave most to my 2 kids, and some to charity. When my kids turn 60 and are past most threats of divorce, judgements, etc, they can take whatever portion they like. In the meantime, they only take what's required by law - the SECURE Act, etc. I told them I don't want to alter their lifestyle, goals, etc., but instead give them an opportunity to retire earlier. The SECURE Act resulted in me leaving more (Traditional IRA $$) to charity instead of the kids having to give it to the government.
Your presentation is very good . Thanks
Paul, you are providing the best advice I've heard.
One aspect that I have not heard is when momma or dad have dementia and one sibling takes everything, has the will changed to benefit themselves only, sets up a Social Security Rep Payee account to conceal theft, helps mamma make large cash withdrawals, takes momma and puts bank adds their name, takes dad and has the cars put in their name...literally mamma or dad dies with nothing.
One consideration that wasn't mentioned in the video: What if more grandchildren are born after you die? Your money has already been distributed, so the new grandkids would not receive an inheritance from you, while their older siblings/cousins do. Something to seriously think about if you have children still of child-bearing age.
... and even a 55-year-old could adopt, right? I have friends whose children left their grandchildren with them because they were unable to raise them. So their children are adopted children but biological grandchildren (it's less confusing in real life than it sounds, but more to protect the children from being yo-yos when the bio parents might want to swoop in and collect them later).
A good set of thoughts to go over, thanks for the in-sight
Glad it was helpful!
Humans must to make life on their own. I will give away all my fortune to honest Animal charities because they are where my heart is.
Great topic. Thanks!
I feel like what isn't mentioned as a consideration here is considering where your children/grandchildren are in their lives. On both sides of my family, we live LONG. Living into your eighties is expected. Nineties isn't remotely unusual. By the time my grandparents died, my mother was basically retirement age, with a paid off house, healthy 401K, etc. In a situation like that, I feel like it makes more sense to give money to grandchildren. (When my last grandmother died, my brother was the youngest out of the grandkids at twenty-five.)
I think it's funny that when older people talk about squandering inheritances it's things like, "How dare that twenty-one year old buy that sportscar?" But you see just as many middle age people buying sportscars, expensive travel, useless home renovations, etc? A LOT. There's a stupid double standard that middle age people deserve those things, but the young are spending frivolously. When you divide up your estate, think of whose lives you could really change. Your kids probably don't need a $10,000 cruise, but your grandkids might need seed money to start a business.
(On a personal note, this last year I inherited enough money from my childless great aunt that I could pay off half my mortgage. I'm in my early thirties. so when my husband and I have a kid, when that kid is ready for college we'll be mortgage free. My mother received multiple times what I did, but even if she hadn't, half my mortgage wouldn't have made a huge difference in the grand scheme of her retirement portfolio. That amount of money makes a huge difference to me, and my future kid, because I can tell my kid, "Pick whatever college you like." That's a much better use of an inheritance than a sunroom or a nice car. Be generous when it comes to leaving money to your grandkids.)
Middle aged people DO deserve those things because they WORKED and SACRIFICED for many years whereas the young people didn't. They haven't made it that far in life yet so there is no comparison. We are newly retired and we are continuing to travel (always traveled while working, just not any time we wanted), making home improvements, and treating our grandkids while we are still living. We are not wealthy but we were very wise about saving and spending.
Well said Karen😂👍
Definitely agree this is something each party has to decide. We are most definitely leaving portions to each of our grandchildren who are already in their early twenties.
I like your ideas. I think I will leave a share to my grandchildren
Wow I didn’t really get an answer you got so many variables I didn’t get much out of this usually I do when you’re on UA-cam‘s just too vague too many variables but I’m gonna keep watching because I want to learn. Thank you
Good discussion...I shared it with my two children and three grandchildren and asked for their input and consideration as to what their thoughts were as to a fair distribution and what they wanted?
Friend, you are a “uge” blessing to me. Thanks for your wisdom and clear cut communication about how to navigate end of life directives and arrangements. Do I need to find a lawyer in my state of Texas, or can you help me? Or recommend anyone in the Fort Worth, Tx area?
Thanks for your insights. 😊
Paul, my wife and I have set things up such that some money passes to our grandchildren because the parents haven’t shown any sort of fiscal constraint. However, I would like to be in a position to guide some of my grandchildren’s financial decisions while we are still living. Matching contributions into a Roth IRA when they’re eligible, for instance. The oldest turned seven this year so we have sometime yet. Thanks for your videos. They have helped me navigate into and through retirement quite effectively…so far!
2 sister, who were acquaintances of my late father, were beneficiaries of their mothers 1st will. Shortly before the mothers passing she changed her will to bypass her daughters with the assets all going to grandchildren, which she wanted to be a surprise for them. The sister thought otherwise. They already had possession of the 1st will and were then given possession of the 2nd being the nominated trustees . On their mothers passing they destroyed the 2nd will and split the assets equally as per the 1st will. This is not all they got away with.
Definitely want to have the grandkids receive a share of the inheritance. I want them to know I cared for them.
Thank you for your time,I would like to leave my assets to my two grand children ,the reason why I think the world is getting too tough for them to get education and the life is getting too hard, this way they can get something for them instead of my two children .
Very interesting discussion. Thanks to the RMD requirement, and that we don’t actually need the cash, I’ve been giving it to the kids and grandkids every year as birthday and Christmas presents.
Good idea
Mr Rabalais,
Your videos are excellent & I enjoy listening to all your thoughts on the law. Sense you asked for comments on this one can I add one thought " If you have worked your entire life and are gifting some time think about what gives the one gifting the most joy" Let me explain once you've had success in your life $ I think a lot of people can wonder what was it all for.....Gifting to a grand clild or anyone is outstanding but gifting and feeling it is something even more special. My accountant once told me if you want to see real joy in someones face give them a new car then all those years of hard work may seem to not ever be in vein. Just a thought.....Your a good man keep up the good videos!
Brilliant! Thank you, it did not occur to me to give a little when still living to see how they spend it before deciding how much to give in the will after death
How would you know how they spend it?
Very helpful information! We MUST get a will! Haven’t know how to do it, how to handle it. Your thoughts have helped a lot!
Get a trust which will avoid probate. A will does not avoid probate.
My grandsons will get a very small "token" payment when I die ($1,000 to $5,000), but will then get their larger amount split at age 35 and 40 (in come cases, perhaps 30 and 35 would work also). By splitting it to two disbursements, if they blow the first payment, perhaps they will make better decisions with the second payment. I want them to learn to be financially responsible before they receive a larger amount for a larger purchase (house), make investment or other wiser purchase;. Most estates are not high enough to warrant setting up an actual trust for the grandchildren as it would require yearly tax returns, etc. so I decided to put the parents as caretakers of the money until they reach the required age. This works for me since my grandsons are now are all either in college or have graduated and are working.
My aunt had the same exact name as my grandmother…somehow someway, her will was updated to were she was the sole executor . Her and her children are the only family members that have possession of anything. My mother is very non confrontational and said she wasn’t going to worry about it because she wasn’t in any need. As a grandchild not to receive anything, even if it wasn’t monetary is still heartbreaking until this day.
Exact same situation my grand parents raised me from 12 weeks old, all money was left to their children… and I didn’t receive a thing. I will ensure when my time comes to include all my grand children, as there is never a guarantee their parents will give them, or leave them.. anything.
I agree it’s ok idea to see how they handle a little money . When my ex husband died he left his house and estate to my son , within a year he spent the lot and lost the house, his dad worked for years to buy.
It really depends on the people involved. One family I know, the matriarch put the money into a trust. The kids got a quarterly payment based on the growth of the money over the last quarter. When the kids passed, the trust is dissolved and split evenly between grandchildren. Given that the kids have to have passed before the grandchildren inherited, the grandchildren were older when they inherit.
I was super close to all my grandparents, they left nothing to me … all to my parents, and when my parents die… I won’t receive anything.. not a dime… so when my time comes, I’ll be including my grandkids, and my children, all equally!
I did not list my grandchildren in my will, however, I did set up a saving account for them. I put money in their saving each month and it will be there for them once I die or when they are adults. Currently they are 5 and 3 years old and have no need of money yet.
Hello from Australia. I'm 65yrs now. With no children of my own. But I do have great nieces and nephews that I'm considering to leave some of my estate for education or live enhancing travel !! , , Thank you.
Love your videos! Thanks so much for taking the time and energy to put them out for us. It is very kind of you.
Rather than wait until I die to leave money to my heirs, I'm gifting it yearly. I have no grandchildren at this writing, but I've set up gift accounts for my nieces and nephews through the UGMA act, which gives me years to grow a small initial amount, about $4,500 each, into a substantial amount. Under the UGMA law, the children acquire control over the accounts at the age of 21. Naturally, there is some risk that they will blow this gift, but I will try to educate them about money management through the years, and will talk to them before they turn 21 about the lump sum they're about to receive. Naturally, I'd like to see the money be used to pay for an education, or as a down payment on a house, but if they blow it on sports cars, so be it.
I have 2 grand kids... talk to me. I like the money test for grand kids. My wife is not financially wise, I on the other hand have made a small $500,000.00 Estate. One will get my house, you gave me a very good way to see who is qualified to get it. My grand parents left everything to their kids. I got $2,000 from a grandmother because my mother passed away first so I was next in line. It was nice but back then it really didn't help me much. My estate is much larger than hers. Nice ideas, very good advice.
What are financial obligation to estranged stepchildren , if widowed.? Leave them a small sum or is more required.?
I think you should leave grandkids something, but only if your estate is big enough that you can leave at least a million dollars to each of your kids first. If you can't do that, don't leave anything for the grandkids. My wife's grandmother had an estate worth about $12 million in 1986, when she died. She left $35,000 in Westinghouse stock to each grandkid (there were 4.) My wife's mother inherited the rest (only child.) We married in 1987, and in 1989 used half of the stock as a down payment for a house. Without that "cushion" it would have been so much harder. My wife's mother is still alive (90th birthday was in March 2021). So leaving it to just the kids can keep it out of the grandkids hands for a looooong time. My mother-in-law is a tough old bird. She has contracted and survived covid twice. I way like having her around instead of getting the inheritance (she has dementia now, but she's still very funny), and part of that is we got something from my wife's grandmother. An inheritance from my MIL will be nice, some day, but we don't need it because we got that nice start from my grandmother-in-law.
What is best inheritance tool to use for reckless spending grandchild?
I have a little designated for grandchildren, mostly non-monetary, but my favorite part is a CRUT that they can only use to help others-the greatest form of empowerment towards getting some happiness from money.
What is a CRUT?
@@hollyaldrich15 Charitable Remainder Unitrust
I like your videos very much. They have not only educated, but has given me lots to think about. I have 3 children by previous marriages. they are estranged to me for reasons I'm not clear of. I also have a granddaughter by my current wife of 30 years thru marriage, ,who my wife and I raised since she was 3, and is now 22. My plan, is leave all to my wife, then next to that granddaughter.
My wife and I plan on splitting anything we get from our parents 60/20/20 between us and our two kids to see how they handle things. This will inform our next steps. (The amount we expect to see will not change our lifestyle)
I'm not married and have no children, so I'm leaving my money to my two nieces. I have it written so that my money is split 50/50 between the two of them, and they each can withdraw $20,000 a year from 18-23 for education expenses, and from 21+ they can withdraw a matching amount of their gross income for that year. That way they never get a lump sum of money, and if they don't work they can't withdraw any of the money for themselves that year.
I would totally encourage giving an inheritance to all my nieces and nephews even though it would cut my inheritance, me and my brother and sister wouldn't need it as much and are already solid and having that cushion for them to get started seems fine, if they blow it, who cares, hopefully it will speed the velocity of money up a smidge and wouldn't want to take that life altering experience away from them, would have made life much better if my grandparents hadn't given everything to only their children.
I appreciate your full disclosure on being left money by your grandmother which causes you to be biased towards leaving grandkids an inheritance. I am personally more old fashioned and will leave everything only to my two kids. If anything is left it’s my kids responsibility to leave their kids an inheritance (if they want to). Now if I had millions to distribute I would include my grandkids but I am no where near hedge fund rich so whatever I have left will be left to my two kids. I have no more living parents or grandparents and I could not buy a loaf of bread on sale with the (lack of) inheritance I have received. Literally nothing from either parent or grandparents.
He is going to be looked after that's for sure 💯🙋♂️
It depends on each family, their relationships and the amount you have.
Paul,
Even though I am in Texas, your videos have been very helpful and/or provide great things to think about and consider...regarding my Estate Planning. Thank you.
I am curious, was the inheritance left for you in a Trust? If not, what form was it bequeathed to you (and the other 12)?
Thanks again for the effort you put in to these!
Gregg in Dallas
It was not left in trust. My dad was the custodian until I turned 18, when it was put in my name. Fortunately, I didn't do anything dumb with it at age 18. Thanks for watching Gregg.
I have 10 grand-kids (over the age of 21) three of which are step kids and of those three, two I really don't even know because my older son remarried late. We always honor the fact they are part of the family because our kids do. I have wondered what to do in this regard?..
I have four children all over the age of 40 and my relationship with them is so diverse and in some cases, unstable...very difficult for me at 75 years old and I have no will at this point in my life...Thanks for your thoughts
We're about to have our first grandchild. My wife and I have basically structured the trusts to divide our estate equally between our children. Makes it easy. But we will "endow" our grandchild (and any that we are blessed with to follow) with separate real-time specific contributions in their name before our inevitable demise. Our kids can figure it out after we are gone, but our decision is to do it this way.
That said, we are fortunate to have the financial resources to do so, and in today's economy, that is not always the case.
I like your suggestion if you have teenage grandkids and expect to live until all reach 16, but I am still thinking of channeling this through a testamentary trust with the kids as trustees
Leaving something to the grandkids is often appreciated. I encouraged my father to leave $5,000 to each of the grandkids. Much more might have been waisted. That amount was significant for the grandkids and did not make a significant difference to the kids. It should be left, with no strings attached. The parents should be raising the kids to ensure the money is spent/invested well. If they are not raising the kids in a way that they will handle it well, leaving it to the parents will have the same effect.
Well, they say "shirtsleeve to shirtsleeve in 3 generations". Give the grandkids a small but meaningful sum of money while you are alive, monitor their actions, then make a decision from there.
is possible to make a separate trust fund for grandchildren to use on their fortune college education only?
Hello.....I really enjoy your videos but I don’t live in Louisiana. Do you know of a “RABALAIS” type attorney who can provide this type of information for this Kentucky resident? It’s so informative. Again, I really enjoy your simplified way of getting this important information out there.
Is an inheritance a gift and do the grandkids or nieces and nephews pay gift tax on inheritance money?
This all changes if the death tax exemption drops appreciably so it impacts the majority of estates. If that happens, then it seems as much estate as possible should skip as far ahead as possible to avoid death tax with each generation
It really depends on the realationship alot of grandkids are grandparents only good thing also they are their living legacy in alot of cases.. it makes sense to leave them atleast something because you sure as hell cant bring it to the grave. HAVING A STRONG TRUST making sure all the benificeries know of helps more then alot would think.
How do we fix it so that if there is any money to leave, the estranged son doesn’t get any but my specific grandchildren by them get what there is to leave for them and the other grandchildren
I am going to help my Son buy a home 🏡 where ever he chooses to live. I talked to him yesterday evening to look 👀 for houses under $100,00. He said he has to finish College first and have a secure job. Next week he will be interning at a company that matches his College Studies of Mechanical Engineering. He interned last Spring and Summer at a paid apprentice
I was 22 when my son was born, 25 for my daughter. I’m 68 now. We have three grandchildren 11-18.
Of course who knows but I’m on the 30 year plan. If I pass when I’m 98 then my son will be will be 76 and my youngest grandson 41.
We decided to split our estate in 5 equal portions. The thinking is that my if my son hasn’t figured out retirement then what we leave him won’t help him but it can really help the grandchildren.
The grandchildrens money goes into a trust until they are 30.
Can a grandparent which my wife and I have 12 grandchildren. Can we set up a trust for each one of them that can’t be touched to a certain age?
How about when your estranged from your husband’s adult children to his first wife? We have grandchildren but barely see them. Our relationship with my adult children is great. We were thinking to leave my husbands children’s portion to their kids instead of them. Thoughts?
My husband and I are in our 80s and in the process of getting our estate planned. My parents left their estate for just their kids. However we did give something to each of the grandkids. But I want to give our only grandaughter some money. She is 24 and just married and having their first baby. Her husband however does not have a great track record with money. I don’t know what to do. I don’t want him to squander the money because I want it to be for her in case the marriage doesn’t work and she is left on her own. But how do you say that to the granddaughter. We are really having a hard time with this decision. Your videos have helped a lot.
I prefer that something be left to the grandkids. I would be worried that there will not be anything left for them. I won't have much to leave, but I want to help them get started in life.
You’re a good grandmother 👍
Presently I am creating a revocable living trust. I have four children who have college degrees and are considered successful. I decided to bequeath all of my liquid assets to my grandchildren using the trust I am now creating with the stipulation that the co-trustees of my living trust (son and daughter) be entrusted to manage the assets until all the grandchildren reach 25 years of age at which time these assets will be evenly divided among the grandchildren to use as they best see prudent.
My assets are in trust for my 9 grandchildren for college/other education, first home, or wedding. Two of my daughters are estranged from me, so I made the decision that if my daughters don't want to be a part of my life, then they won't benefit from my death. I would prefer their children get a good start in life.
What do you think of buying long term insurance
Nope. Term.
The politicians in Washington did us no favor when they eliminated the ability to pass along a retirement account to a grandchild or child. While you can still do so, they must withdraw and report as income within 10 years. Wealthy people still have the means to pass along significant $ to their heirs.
Good!
I think part of the consideration of kids or grandkids should depend on how the kids are doing. My son after the Military got busy working hard, married a hard working woman who was taught about money (I wasn’t I give a lot away) now they are many as much in 2 years as is in my grand babies soon to be trust. My son doesn’t need my help. He gets my home his kids get the cash but not all at once.
I have left a percentage to each of my siblings (I have no children). I have stipulated that if my sibling dies before me, the portion that they (my sibling) would receive goes in equal portion to their children. If no children, the leucémie of the pie increases ti the rest of my siblings. The spouses of my siblings are excluded.
We are leaving our remaining assets to our granddaughter via her father who is our executor. This money will go to her when she is age 30 (mature enough to handle it) and it should be used for her education/higher education, to buy a home or if her health is bad and she needs help there. She is mature for her age and she will have the guidance of her father.
Can a minor be left a portion of a Vanguard investment account?
A couple of ideas:
Help fund a Roth (If eligible): Somewhat safeguards abuse during immature years, helps during retirement when no scholarships or loans are available, Protects from parents, etc.
Having a irrevocable trust is also good, but costs $$$.
One question: How to find a good Trust managing company? (Don't know what to call these companies other than the Bank and would you recommend them over your family to keep the fiduciary responsibilities.
What great service you are providing. (Note: Suggestion for improvement: You can start every segment with a lawyer joke :))
I’m watching this because Proverbs 13:22 says A good person leaves an inheritance for their children’s 👶 children.
My husband passed.kids are already fighting over .who gets this or that.how do you split or just sell .give all to grandchildren.
I have always thought in an ideal world, money would get passed to grand kids. However I can see the irresponsability being an issue. Even if we all instill that knowledge in our kids, there is no telling what they will do with it.