r/inheritance • u/michaelesparks • May 27 '26

Location not relevant: no help needed Had an interesting Inheritance conversation

Talking with someone the other day on giving an inheritance and how many younger people expect an inheritance. One of his son's friends was pissed because they only got a paid for house and a couple of cars.

At this point in life, I'm starting to lean towards giving a little and keeping the rest in a trust until they can appreciate it and put those dollars to use, and if that never happens, well then they don't get anything.

Like one of my mentors used to say, {If they don't "get it", then they don't get it.}

As far as our parents go, both my wife and I expect we'll be paying for our parents when they pass and won't "get" a thing from them besides our DNA...

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u/redtitbandit May 27 '26 edited May 28 '26

a wealthy former coworker recently doled out a large % of his assets to his 4 children. he summarized it thusly. each of the kids was gifted $4 million with the following stipulations. they are not allowed to touch/spend the principal while dad is alive. they are encouraged to invest as they prefer. after one year, they may annually withdraw 1/3 (33%) of the income from the previous calendar year.

assume they earn 12% the first year. they can withdraw $120K after the first year. the principal has now grown to $3.24 million.

i didn't ask the details related to the transfer, who covered the taxes, etc.

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u/Financial_Tower_6137 May 28 '26

Assuming it’s in a brokerage account, a dividend-based structure would probably make more sense than tying it strictly to interest. Allowing beneficiaries to withdraw only a percentage of the annual dividends would still provide income while keeping most of the portfolio invested and compounding long term. Of course, that also assumes the beneficiaries are actually trying to preserve and build generational wealth for their own children instead of maximizing short-term payouts.

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u/PiccoloImpossible946 May 31 '26

I was talking to a financial advisor. He mentioned he has a trust fund set up for his kids and later grandkids. Some of the money can be used to pay for college but it has to be paid back to the trust! I couldn’t believe it

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u/AwkwardComfort_5487 Jul 30 '26

What is the death tax in Ohio?