What is your unique estate plan? (besides evenly split among all kids) (spouse, stepfather)
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From talking to an estate planning attorney for the past few year the equal distribution is the most popular. Even when the children have different needs.
Depending on the amount of money another option is a trust that distributes 1/3 at age x, another 3rd at xx and the rest at xxx. The reason is that when some children inherit a lot of money they do not know how to manage it so they spend it all. Splitting up the inheritance lets then have a couple of chances of learning how to manage money.
Another option would be an income annuity for life.
I know someone who inherited what would be equivalent to almost $1,000,000 in today's money when he was a 20 or 21 year old college student. He went though the entire amount (yes, almost a million dollars) in less than two years. It was really sad. He ended up losing the gigantic house that he bought to foreclosure, his expensive cars were repossessed, he dropped out of college and he ended up having to move in with a relative when the money was gone. The worse thing was that all of his many "friends" who "loved him" when he taking them on expensive vacations, paying their bills, buying them dope, etc. completely disappeared when his money was gone.
I am sure that his dad never intended that to happen but his young son had no idea how to handle that much money.
I hope that all of you who are on second marriages and are planning on your spouse getting all of the money and when they die they will leave the money that is left to BOTH sets of children, not just their own biological children have really thought that out.
I personally know several cases where the children from the first marriage were completely cut out of their step-parents will, which was never the intention of their parent (who was unlucky enough to die first).
That reminds me of the joke that I told at the medical school recently when talking about working with indigent patients at the various free clinics in the are.
"Look around at all of these patients. They all have a greater net worth than you do."
I expected the students to be a little offended. Instead, they were nodding in agreement.
That is sad.
We own our human capital; a young doctor is worth millions in future income; an indigent patient is not. Count your blessings.
We live middle class and I turn 65 in a couple years and will truly feel rich when I reach Medicare not Screwyou-care because our elected saps won't do the right thing and allow everyone to have decent insurance like senior citizens do.
Hmmm. That is one way to look at it. I think you are "allowed" to have any insurance you can negotiate with your employer or else pay for yourself. A great many people have excellent insurance.
I hope that all of you who are on second marriages and are planning on your spouse getting all of the money and when they die they will leave the money that is left to BOTH sets of children, not just their own biological children have really thought that out.
I personally know several cases where the children from the first marriage were completely cut out of their step-parents will, which was never the intention of their parent (who was unlucky enough to die first).
This is absolutely true and I have also seen it happen several times. The "promise" from a second (third, etc.) spouse that your children will receive an inheritance is pretty worthless unless legally written and enforced. Even your longtime spouse can be tricked or sign something they misunderstand.
Two older men I know were preyed upon and ended up in marriages where their children were completely cut off. One had early dementia but fighting the new will in court was difficult and expensive.
Another emotionally fragile widow was duped (yes, her fault but still . . .) and her children were cheated out of land that the deceased husband had in his family for over 100 years. The "kids" didn't even know it was happening until she died and the new husband inherited it all.
We have trusts for our kids to protect them from divorce or lawsuit situations, at least. I would also suggest passing along any special items, like jewelry or heirlooms, while you are living. Things become messy and overlooked when there is a death and a home needs to be emptied quickly.
Everything I own, house, car, possessions, etc., is going to my youngest daughter. I have two older daughters, but neither one wants anything to do with me, so they will get their wish!
My daughter and I agreed that after I die, she will rent out my house to worthy people, such as single working mothers, at a discounted rate to help them progress in life and take care of their children. I was a single mom and, call it luck or the grace of god, managed to pull myself out of poverty and into the middle class.
I live in an excellent school district, so those children will also benefit and get a boost from a good education. Also, this house is a lucky house! I was pretty much down and out when I bought it (3% down and I wrote a long letter to the mortgage company, begging them to give me a mortgage!).
We hope to pass on the good will/good luck to others.
I hope that all of you who are on second marriages and are planning on your spouse getting all of the money and when they die they will leave the money that is left to BOTH sets of children, not just their own biological children have really thought that out.
I personally know several cases where the children from the first marriage were completely cut out of their step-parents will, which was never the intention of their parent (who was unlucky enough to die first).
My paternal grandparents had 3 children: my dad & my two aunts.
My dad died when I was 12, leaving behind no assets but lots of debt.
When my paternal grandparents passed, they left their assets to their two surviving daughters (my aunts), who in turn left everything to their own children when they passed.
It was my grandparents' money to do with as they pleased, of course. At the same time I felt bad because I realized when my paternal grandparents passed, they effectively cut my side of the family out of everything (my mom, my mentally retarded sister, my autistic brother, and me). I understand the logic of leaving everything to their surviving children, but still felt bad about it. It wasn't life-changing money, but still I felt bad.
At the end of the day, everything worked out for me, but still I felt bad about it.
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Originally Posted by RobertFisher
Equal distribution seems to be the default option for many and is a logical thought. I am just trying to see what other ideas there are out there.
But anyone is welcome to articulate the benefits of equal distribution.
I didn't think our plan was too unique, but does not seem to be the norm here...
Since the kids are now adults...
No arguments (?). 100% of our estate (not much) goes to charity / our Charitable Trust / Family Donor Advised Fund. Kids are the future designators of the contributions (Their choice of charities). Funds should last in perpetuity, or they can give it all away the day after we depart! (That might cause an argument, so we will address that soon!)
We actually gave our accumulated wealth to our family donor fund while we were in our 30's. We live inexpensively, and quite adequately.
this is a second marriage and we each are leaving everything to each other .
we did get small life insurance policies to leave to the kids so if their parent is the one to die they get something right away and not have to wait for a non parent to pass on to see anything .
Is there any way to NOT leave everything to a surviving spouse if they don’t agree with it and there is no pre-up?
Isn’t everything in a marriage with no prenup considered common property?
I ask because I know of a close friend who is terminal and has a wife who had a serious stroke and needs 24 hr care. The kids (his, hers and theirs) are all going nuts thinking the money is all going to go to the nursing home she eventually ends up in.
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