Wednesday Fluff

iVillage Member
Registered: 02-23-2010
Wednesday Fluff
1697
Wed, 09-15-2010 - 10:00am

I think we need a little fluff :)

1. Have you/Will you decorate(d) for the fall?

2. Have you started any Holiday shopping yet?

3. What is one food (or drink) that you look forward to when the weather gets cooler?

Bonus (it was a discussion at work yesterday and wondered others opinions):
4. If you were able to have an inheritance for your children (or maybe you have already experienced this with your own family), and you were able to live comfortably and was not relying on that money to survive, would you rather spend the money while you are alive and watch your children enjoy the money now or would you rather have it given to them when you died?






Edited 9/15/2010 10:24 am ET by harvardgrad

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iVillage Member
Registered: 08-22-2009
Thu, 09-16-2010 - 7:49am

"An inheritance by definition is given at the death of the person, which I think confuses your question."

Correct. Giving money to one's children while alive is not giving them their inheritance early it is just giving them a gift.

iVillage Member
Registered: 08-22-2009
Thu, 09-16-2010 - 7:56am
My sister and I got an inheritance when my Grandmother died in 2002. We tease our DHs that the reason they married us back in the 70/80s was because they knew the inheritance was coming. We used the inheritance to put in new floors, the inheritance did not quite cover it so we had to add our own money.
iVillage Member
Registered: 01-15-2006
Thu, 09-16-2010 - 8:02am
add me to reading it wrong then too, LOL..i thought the question was would i rather sock away an inheritence for my children or enjoy money with my children while i'm still alive...i think we'll be able to do both.

 

iVillage Member
Registered: 01-15-2006
Thu, 09-16-2010 - 8:14am
this might sound odd but i have no idea what kind of inheritence i'll collect if any, i know both dad adn inlaws have wills and estates but i don't know the specifics inside them and i don't want to know.

 

iVillage Member
Registered: 02-23-2010
Thu, 09-16-2010 - 9:55am
ITA with you that no one knows exactly what will happen in the future but many people go to financial planners so they get an idea of how much they will need, financially.
iVillage Member
Registered: 02-23-2010
Thu, 09-16-2010 - 9:56am
I understand that and some people are not affected by the economy as much as others.
No confusion, some people choose to use the inheritance money while they are living to give to their children instead of waiting until they are gone.
iVillage Member
Registered: 01-08-2009
Thu, 09-16-2010 - 10:08am

Yes, I do not know how exactly one goes about separating "money that we will leave to our children" from "money to be used in our retirement" unless one is wealthy enough to be gifting adult children regularly to avoid them having to pay an inheritance tax. I know of cases where very wealthy parents give their kids and sometimes grandkids up to the maximum every year the kids can receive without having to pay a gift tax (it used to be 10K a year) in order to pay down the eventual estate. This is usually parents in their 80s who do not expect to live longer than another decade or so.

I know of one case where a grandmother paid her grandson's college tuition with the provision that this grandchild would receive that much less when it came time to inherit; that is, she had paid about 100K in college tuition, so when it came time to split up the inheritance, he got 100K less than the other grandkids.

iVillage Member
Registered: 02-23-2010
Thu, 09-16-2010 - 10:12am
But you have a choice of saving that money for when you die or spending it on them while you are alive.
After you are gone it is considered an inheritance, yes but you can make the decision to either have it become an inheritance or not.
iVillage Member
Registered: 02-23-2010
Thu, 09-16-2010 - 10:16am

You can either spend the money for the children before you die or leave an inheritance.
Some parents want to enjoy the children using the money before they pass and will use the "inheritance" before they pass.

Yes, you can gift someone I think up to $12,000 or $13,000/year now.

iVillage Member
Registered: 02-04-2009
Thu, 09-16-2010 - 10:18am
Actually, you can give any amount of money you want. You simply have to file form 709 and pay taxes* on the amounts over $13K.



Edited to add: you only pay taxes once you exceed the $1 million lifetime gift tax exemption.



************

Kitty



"I suppose it is unfortunate that "I counting isn't me strong suite" any more than "you grammar and spelling is you strong suite". We'll all just have to struggle through, huh?"--From the Immortal Wisdom of Xyro

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Edited 9/16/2010 10:20 am ET by puss_boo_kay

************

Kitty

"If you can't annoy somebody with what you write, I think there's little point in writing."-- Kingsley Amis, British novelist, 1971 t .

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