Spending the Kids Inheritance
Most of us would like to help our kids out financially if we could, especially these days with housing affordability at at all time low.
The dilemma is --- Do we spend ALL we have now or try and pass on some, perhaps the family home and what's left over to the kid(s).
We are also living longer, so by the time many kick the bucket, the kids would already be middle aged themselves, so should we be trying to help them out in the early years to get a leg up ?
I think you have to leave a nominal amount to your son otherwise he will get it through the courts.
bummer - that's the scary part. kids get married, divorced, married again and by the time you know it, what you left them could end up in the hands of greedy spouses and lawyers :)
Jaguar I think that is where discretionary trusts may come in, you may be need to speak to a lawyer.
thanks viv. been thinking about that for a while.
need 2 trustees as well I think.
lots of complications with transferring realestate, stocks, super etc.
It is our life, our money and we will do what we want with both. There will be assets left after we have gone, the family home and investments, and the kids will receive equal shares. We are happy to give them a hand up, they will not receive hand-outs.
I was 52 when I inherited a half share inheritance from my parents. It wasn't a huge amount of money but enough to turn our lives around. It enabled us to pay off our mortgage, travel o'seas for the first time and have some money left over to grow for super. I feel really grateful for having received it and definitely want my kids to receive from us when we die. If we live a long time there won't be much left for them but they'll get the house because we will do everything to preserve that for them. They (and their partners) keep telling us to spend it on ourselves. None of them are greedy but it is important to us to leave them as much as we can. My Husband also told his mother to leave her house to our kids rather than to us.
We also plan to arrange our will so that our children's partners receive any child's share who may pre-decease us. Why? Cause we love them dearly. They too are family.
PS. My iPad gave ''husband" a capital H. I wonder why?
Robi, your iPad recognised that he wa a male, therfore showed some respect by giving it a capital H. Remember your wedding vows? To love, honour and Hobey?
i agree with your and Seth's comments below. We love to see our children happy. I had nothing when I started out, built a modest portfolio and have always lived well below my means, except for the first few years of work and again when newly married and with child. It was struggle street initially.
having some financial freedom allows one so much more flexibility and ability to live a less stress free lifestyle.
i think giving kids too much too soon before learning how to manage money, can be counter productive.
Jags, I just did an experiment and my iPad will not give 'wife' a capital W. I have a sexist iPad! Surely I didn't unconsciously endow the capital H myself? No, banish the thought!
I so agree with your last sentence. One of the best things I learned in life is the ability to survive and be happy with little money. We expected our kids to find their own way and tried to be quite thoughtful about where it was wise/not wise to help them out. Inheritance is something else again. For me there is something satisfying in the idea that I can gift my children after I'm dead.
In reality, I'm just another wuss. My son lives 10mins from University. I bought him a brand new Mazda323 in 2012 when he started Uni, only becuase that was the only way to ensure he got to classes on time :)
What is wrong with helping your children while you are still living? I was in a position to just do that, so now they all own their own homes which has given them the opportunity, to venture into their own professions, without mortgage pressure.
If a family member is left out of a will, they have a good case going to court, to fight the will. it is far better to leave a nominal inheritence.
Am I in your will Seth? I could be your long lost love child from the 60's.
Peace, and love Dad
Jag, sorry,I gave up grog earlier than the 50s.
No smokey da hoochy koochy even? Man seth, you haven't lived unless you've had some.
You're like the Bill Gates of the IT industry, not like my main man Stevie Jobs.
Abby it is well truly stiched up they haven't got a leg to stand on even thru the courts
From the time I was a 1st year apprentice I always worked two jobs.
My first, 2nd job was cleaning from about 6pm to 12. Then as I grew bigger and stronger I started doing martial arts. By the time I was 18 I was working as a Doorman.
I worked hard, I fought hard and I bought houses.
We retired and started travelling at 55. We have two kids, we give them cash as presents. Thats it.......oh we have bought them cars and we always paid their insurance.
Nobody ever gave us anything, we worked hard for everything we have.
From the time they (the kids) were little we always told them the value of saving, if they cant work it out by now.......well they can fight over what is left, If anything, 'cause we know how to spend it, and it is ours.
Cheers.......Scull
Heartwarming. Wonderful tale and text book parenting style Scull. Thanks for sharing.:)
Of course the other reason why parents off load money onto their children is so they can pass the means test and get the pension.
Abby! what a great idea!!! beats burying it in the back yard in rusty tins.
Travelling is out,,, I get chronic exhaustion, also get very tired.
Last year the Labor Government accused the pensioners hiding their loot under their mattress - unfortunatly following that announcement quite a few pensioners got robbed.
So your idea burying it in the back yard is also good, as if you keep a couple of shovels handy the thugs can dig your vegie garden :)
Even your kids might help too.
Yes a lot of good came out of that accusation though, My house was thoroughly ransacked, we felt terrible at seing the mess. Then we noticed on the mantle piece an envelope with a lovely handwritten note, the thieves apologising for the mess and leaving a $50 note to buy some food, they felt so sorry for us that the next day a huge bundle of 2nd clothes were dropped off. We placed an ad inviting them to rob us at any time.
Seggie. One has to think very very wisely about money as one gets older. Usually there is a home to be left if one is lucky enough to own one or not have to go into a nursing home and then only the ones with plenty of money will have anything to leave their family. Abby is right, Jessej. Make sure you have a very good solicitor when you write your will and if you don't intend leaving your family anything, remember it is wise to leave them even a couple of dollars (they don't seem to be in your good books) then they cannot or should not contest your will and say you forgot them. Love to all.
It's interesting that people seem to fall into two camps - those who think it's good for children to mainly fend for themselves as we mostly had to do because it will build their character and those who believe that they should help their kids as much as they can because they DIDN'T have a lot themselves. I guessi t's like child rearing generally - very diverse views on how to do it best!
I'm an only child with a 92 yr old mother and will eventually inherit a substantial sum from her. I intend to spend what I feel like spending as my three sons will receive a share of the house anyway and none of them is desperately in need of money right now. There will be super capital left as well so I am going to enjoy it while I can. I guess I am one of those who doesn't believe in handing out large amounts of money to adult children. I helped them when they needed it at various times but not just as a handout.
Spend it all, let the children etc know your intentions and then wait and see if they still come and visit. That's the best test for anyone. Just leave them with your funeral expenses.
Kids should not expect the parents to leave them anything,I gave my youngest son the deposit for his house,a car and paid the rego and insurance for a few years to help,but now I am on the outer with his wife because I stipped giving so now neither of them speak to me,so my will is made so they can't get one cent