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A work colleague told me a great story about how his mother spent her unexpected fortune on her children, grand children and relatives.
His mother had a neighbor friend who over the years suffered many debilitating problems. She was the one who took care of the friend taking her to the doctors, helping with errands etc. When the friend passed away, it was to her children and relatives' disappointment that she had left the bulk of her sizable estate to my friend's mother.
Instead of spending the fortune mostly on herself with a big house, new car, fancy clothes etc, my friend's mother spent it on her family. She set up college funds to all the grand children and took her family (all together close to 40 people) on nice vacations to Hawaii, Europe, Tahiti etc.
His mother passed away few years ago. Her children, grand children, sisters, brothers, nephews and nieces all had wonderful memories of the family vacations. My friend still has quite a few of souvenir shirts from these trips. I learned about the story when I asked him about a colorful island shirt he wore one weekend. He told me that nobody in the family had traveled outside of the continental US before his mother's fortune.
We set up 529's for our 2 grandson's- the baby when he was born, but his brother was already 3. We contribute monthly via debit from our checking acct. We picked Utah. I liked that they used Vanguard, have low fees and we still get a modest tax deduction in Maine. Great website as well.
I also set up Roth's for both my children as soon as they began to work. In some years I added to them, but now they both (and my son-in-law) contribute themselves via payroll deduction. Starting them on a Roth at a young age is a wonderful gift. Then pushing them to continue is the key! Also, when my son left his job I ensured his 401K was transferred to an IRA. The letter kind of leads them to withdrawing it, but I knew better. He really doesn't earn all that much (under $30000.00) but he contributes enough for 2 shares of his Roth each pay period. I know from experience that time is totally on their side.
His mother passed away few years ago. Her children, grand children, sisters, brothers, nephews and nieces all had wonderful memories of the family vacations. My friend still has quite a few of souvenir shirts from these trips. I learned about the story when I asked him about a colorful island shirt he wore one weekend. He told me that nobody in the family had traveled outside of the continental US before his mother's fortune.
This is a great story! We take our grandkids traveling in summer, and they all love camping! The oldest (age 17) is an Eagle scout. Now we have a new vacation home in Tennessee, and the whole family will get together there for fishing, cook-outs, and good times. Memories are the only things they'll never lose!
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Originally Posted by ilovemycat
I also set up Roth's for both my children as soon as they began to work. In some years I added to them, but now they both (and my son-in-law) contribute themselves via payroll deduction. Starting them on a Roth at a young age is a wonderful gift.
This sounds like an interesting idea! Once education has been funded, and the youngsters have savings accounts, setting up a Roth IRA for them to add to as they work, is a great incentive!
Do you have long term care insurance, and are you SURE you could pay for all the LONG TERM care you might need?
Are you confident you won't run out of money should one or both of you need care. The look back period is 5 years for Medicaid.
Even a half-million dollars -- at 100K a year is only 5 years.
It can't hurt to know what the look back period is.
Even if you are "set for life," perhaps this might help someone else.
We set up 529 plans for each of the grand daughters, but aside from monetary gifting, one idea I saw (maybe somewhere on the forum) was to give of yourself by setting up an email for the grandchild, and posting thoughts and pictures to it, and then when the grandchild is allowed to have an email account by his/her parents, you send them the username/password. They will then have perhaps years of accumulated writings and pictures from you. We're going to do that as well.
For those of you who have children and grandchildren, have you made any arrangements to give financially to them - either while alive, or after you pass on? If so, what sort of method are you using to do so?
We have two grown daughters, each with families of their own. When we retired, we gave them the bulk of their inheritance, as outright gifts. One daughter opted to take her portion with equity in our former home (which she and her family now live in), while the other received stocks signed over to her.
We also have 6 grandkids, one of whom will enter community college this fall. Three of our grandkids are now in their teens, and college is on the horizon. Scary...they grow so fast! We are mindful that at this stage of life, costs can skyrocket (clothes, computers, cars, schooling, etc). That was part of the rationale behind the early partial inheritance to our daughters; we knew they'd have family expenses to cover.
We have not yet set up anything for the grandkids, individually. We are thinking about that. It seems that as we get older (ages 68 and 65) we have less desire for material things. As long as we have enough to live comfortably, we'd be happy to set up trusts for the grandchildren. Have any of you done this?
When each of our grandkids were born, we set up college 529 savings plans for each of them.
I want to give my money to our kids and grandkids why I am alive so I can see them enjoy it.
When I am dead it is too late....
I agree with you. We give $$ to the kids and grandchildren now, when they need it, so we can see them enjoy it. We have home in trust and 401Ks and accounts signed over to them so there will be no need to probate. When we see they need a car, appliance, or whatever we gift them $$. They always give us an argument that they are fine and we should keep our $$. Why should they struggle now when they need it versus later in their lives when the tough years will be behind them.
I have set up my accounts to be payable on death with a percentage to each child. This removes them from my will and probate. .
My father has funds like this set up for my two sisters and I with the money from the sale of his home. He does have other funds and accounts as well.
He's been in assisted living for a few years now, and we know the monthly cost increases and possible care increases if/when he needs more advanced nursing care etc. As macabre as this sounds, my sister figured out the total amount of money he would need if he lived for a certain number of years (a generous amount considering his health).
The remaining amount is being whittled down with yearly tax exempt gifts to each of us. We've agreed to keep them in whatever fund/investment we so choose, but not to spend them in case the money would have to be used for my father in the future.
We set up 529 plans for each of the grand daughters, but aside from monetary gifting, one idea I saw (maybe somewhere on the forum) was to give of yourself by setting up an email for the grandchild, and posting thoughts and pictures to it, and then when the grandchild is allowed to have an email account by his/her parents, you send them the username/password. They will then have perhaps years of accumulated writings and pictures from you. We're going to do that as well.
Another super idea! In our case, rather than go through the internet (where nothing is sacred anymore ), we bought 1 TB "My Passport" hard drives, where we put photos, videos, music, voice recordings, and Word messages, to go to each of our daughters and their families. If these hard drives get out-dated, we can easily have the whole thing copied onto the 'new' media...and everything remains private!
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Originally Posted by convextech
When each of our grandkids were born, we set up college 529 savings plans for each of them.
A great thing to do, and it will save them a lot of anguish later on!
Quote:
Originally Posted by Ellwood
I agree with you. We give $$ to the kids and grandchildren now, when they need it, so we can see them enjoy it. We have home in trust and 401Ks and accounts signed over to them so there will be no need to probate. When we see they need a car, appliance, or whatever we gift them $$. They always give us an argument that they are fine and we should keep our $$. Why should they struggle now when they need it versus later in their lives when the tough years will be behind them.
That's what we figured. We know a lot of retired people - some much older than we are - who are totally set up for life, but have antagonistic relationships with their kids, and won't give them anything till they pass on. If they're going to get it anyway...?? And why be antagonistic? Life is too short for that!
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), we bought 1 TB "My Passport" hard drives, where we put photos, videos, music, voice recordings, and Word messages, to go to each of our daughters and their families. If these hard drives get out-dated, we can easily have the whole thing copied onto the 'new' media...and everything remains private! 
And why be antagonistic? Life is too short for that! 
