Do you plan/hope to leave your kids money?

For our own family with two very competent kids, we created a dynasty trust (although we are probably not going to be rich enough to fund the dynasty). The trust is supposed to take care of us if we need it but can go to them for health, welfare, education and housing. So, it could help with a downpayment on a house (although, ShawWife’s mother helped ShawD with a downpayment and so our contribution here might not be needed) or college education. One reason to put it in trust is it is likely that my kids will have very different earning profiles. So, if one kid’s fintech company sells, he could be worth $13 MM or $50 MM or more depending upon whether and when they exit. [I created a trust for his shares]. In that happy circumstance, he would not need help from us.

In addition, we plan to fund 529 plans for grandkids (none exist yet although there are fertilized embryos and frozen eggs). As I have no doubt written, funding education feels like something of a moral obligation if I can do it. It is better than money left in trust as it accumulates tax deferred.

I would not want to provide enough that our kids would not feel like working.

Don’t tell Alabama they don’t exist.

Sorry of the interruption back your regularly scheduled programing.

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You may not need to update your trusts- but it’s a good idea to do a quick review of your beneficiaries. You probably signed your company retirement plan documents on your first day (I don’t know how long you’ve been with your company) but it is very, very common for folks to have beneficiaries who are dead, or from whom they are divorced, etc.

It won’t be time consuming but check to make sure your life insurance, retirement, and even the second signature on a safe deposit box reflect current reality.

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Fortunately for this purpose, my kids are denizens of liberal coastal states.

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We did update our will several years ago. We mentioned it to our kids, and the youngest was quite curious why we did that. We told him that our earlier will was one that the military required us to do many years ago, and it left everything to his older brother (since he didn’t exist yet). Nuff said, he stopped asking questions.

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We updated our will a year or so. It was definitely out of date. It still had guardians listed for my kids, but more importantly it listed my MIL as being executor/control of assets if kids were still <18. And she was already suffering from severe Alzheimer’s. That sure wasn’t going to work.

Thanks - yeah, I see the beneficiaries etc. in the 401ks and all that.

Mine are all younger, not older, etc.

Good to know - we often toy with updating them - it’s just a never make time for it thing.

We redid our wills and trust when the first grandchild was born.

Guardian for my kids (clearly not needed anymore)- end stage dementia.
Executor- dead
Trustee- in the throes of chronic illness, I wouldn’t even want to burden him with having to write the petition to be relieved.

Of course the main message is 'Thank god we’re still alive". But it’s nice to get prodded to evaluate your plan every now and again.

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I have not looked at 401k beneficiaries. Probably no need to change.

The trustee for our trust. Our trustee was selected carefully – close friend, lawyer who retired when her husband became very wealthy so that she is technically knowledgeable and does not need money herself, loves our kids. And ShawWife is the trustee of their kids’ trust. But she is our age. We need to find a alternate. We have two in mind. One is a lawyer who is good friends with ShawD (ShawD was her maid of honor) and is from a very well-to-do family and is not going to have kids. The second is a business school classmate/close friend of ShawSon. Very principled and likely to be very successful. I would like someone who knows both kids.

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We hope to leave our kids money and yes, they know where the “Will” binder is.

In my profession, I worked with a lot of kids, so I didn’t make the kind of money to have a large chunk of income. Because of that, my husband bore the brunt of saving aggressively. It’s not a lot, but it’s divided equally in a trust.
We did gift the kids their college educations because that’s what we promised them. So they don’t have debt.

We’re currently in the middle of our Mom’s issues (90 yrs. still spry/lucid) but just broke wrist from a fall.
She has a property in a low-income area where there is a current boom in remodeling. Prices of houses in San Diego has skyrocketed, so the boom exploded in her neighborhood.

She made the “mistake”, in her will/trust, of leaving her home to the eldest because he was the only child, of seven, who didn’t ever buy a home, financially irresponsible and has mostly lived with our elderly mother all of his adult life.

Now she realizes her error and feels badly that he will receive the home without any inclination to appreciate the gift. All of the other siblings have provided care, and transportation for her. He does nothing because, culturally, as the “macho” eldest, he feels he is due the inheritance.

Mother wants to change the will and leave it to the surviving children (me, included-total 5), because she feels that she disregarded all of the care that each child has provided throughout her adult life.

The eldest refuses because, he still hopes to marry one day and live there with a spouse (fat chance!). It’s a community property state, so our mom is freaking out that a stranger may inherit the home where she used pennies to pay off the mortgage. Everyone is saying it’s too late. But he feels he should get something for all of his grief.
My siblings have tried to reason with him, but he feels he is due is own home and that it is the least our parents could have done for him, “the eldest” is to provide him with some financial benefit.

We don’t want to argue it but our mother is adamant that she made a mistake and is upset that she made a poor choice.

If she passes, most of my siblings have no problem letting him have the house, we don’t want to argue with him and it’s not worth it to us-plus, we just don’t like him and how he has always disrespected our mother’s lack of “American cultural knowledge”.

Most of us don’t have a good relationship with him, sans the “peacemaker” of the family, so he will only be hurting himself as he has always been considered a jerk.

Four of us will be going no-contact with him when she passes. (Edited to add; he’s burned every bridge with everyone except for the family who just barely tolerate him at holiday and family events.)
Our Mother has realized that he has hurt everyone and she doesn’t want us to “leave him alone” because, “he’s your brother”. Sad thing is I think this is what he needs.

The ironic thing is that he may go before she does. She’s healthier than he is! (Gardens daily) He’s about 67-68. A sick twist: most of the family is betting that he’ll go first because he has had anger issues for as long and we can remember.
Stay tuned. Same Bat time, Same Bat Channel. The Soap opera will continue. “All MY Children As The World Turns in San Diego”.

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If she is lucid and can make her own decisions, she can change her will now any way she chooses.

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Your mother can change her will. She doesn’t have to tell her son. He can believe whatever he wants.

Sometimes people aren’t who you thought they would be. Sometimes they are exactly who you always thought

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And to add- the reason to meet with her lawyer isn’t just to change her will vis-a-vis the house.

Anyone with more than one child can benefit from an hour of impartial listening on the end of life plan. Is there a health care proxy in place, and does it name the right person (based on what your mom knows right now?) Who has POA to make her financial decisions if she becomes incapacitated and is THAT the right person? How is your brother supposed to pay property taxes, maintenance, etc. on the house if he’s unemployed or underemployed? Has your mother thought through the implications of your brother losing the house if he is in arrears on the property taxes?

Your mom may or may not change her will. But from what I’ve seen IRL, leaving the house to the child who does not have a steady income and the ability and will to maintain the property (utilities, insurance, taxes) usually ends in disaster. The house may be worth the most right now; no boom ever continues forever.

These are good things to discuss with a disinterested party.

I had a childhood friend living like a character in a gothic novel (huge, unkempt house falling apart at the seams). She learned the hard way that the house’s maximum value was when her mom died. Taxes paid up. Heat and utilities on. Lawn work done. Snow removal contract paid in full every winter. Insurance for a slip and fall by a plumber.

Once the relatively impoverished family member takes on a house they cannot afford, things fall apart at a very predictable rate. First slowly, and then very quickly. Ironic that selling the house immediately (needed updating but all the systems had been maintained) would have yielded enough for a nice condo in the same neighborhood AND money set aside for maintenance and fees. The desperation sale once the house falls apart rarely yields top dollar- even if the house is in a tear-down neighborhood.

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I am completely confused at why you say, “The eldest refuses”. He has no control over your mother’s will. She can do anything she wants, including cutting him out completely. Nobody has to reason with him, she just needs to meet with her lawyer (and hopefully you or one of the same children can be there with her) and it’s done. Get a copy of that will so it doesn’t magically disappear and the eldest happens to have the old one, and I’m assuming the lawyer will keep a copy.

This guy sounds like he has control of everyone, and he doesn’t. He only does if you let him. Why would “everyone say it’s too late?” It’s only too late for her to change the will if she’s dead. Do not let him keep intimidating your mother to do what she doesn’t want to do. If you feel like her safety is threatened, don’t tell him.

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Does he qualify for the 1202 QSBS capital gain exclusion if he sells his business?

Thank you everyone! I appreciate all of your input.

He intimidates our mother and we don’t know what goes on when we’re not there. I really want to report elder abuse but she has to be willing to file a report and she won’t go against him. She doesn’t drive and never has, so we take her wherever she needs to go. We each take weekly turns except for our brother (can’t be bothered).

I am responsible for the health care proxy. My sister has her Power of attorney, since she’s a wiz with finance and organization. Our mother knows that the eldest is irresponsible so she selected well accordingly for her personal needs.

I tried to drag her to the attorney on Monday because I wanted to see a copy of the will. She doesn’t have a copy! So I may check with the county. Odd that it “disappeared”.

Anyway, I will try to “work on her” tomorrow since it’s my turn to take her for groceries. Wish me luck!

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Totally wish you luck! And if she really does want to change her will, she certainly doesn’t have to tell him if he’s intimidating. It can be her little secret that she’s doing what she thinks is right, and it is out of his control.

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It is NOT a kindness or a good thing to leave a property to someone without the means or ability to maintain it, as others have pointed out. It is much kinder to get them some sort of a trust so they can have money doled out by institutional trustee as appropriate.

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I believe so.

I forgot to say that they know we have the trust and roughly our at level. They don’t know how much will be in the trust and 401ks because it depends on whether we need to draw down the trust.