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- Manlobbi
Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤
No. of Recommendations: 0
For those of us in the US, I'm curious what others with large estates are planning.
I have Trusts for all my children and grandchildren. Large IRA and more going 100% to my named charities.
https://www.wsj.com/personal-finance/taxes/the-mov...'We're looking at a golden opportunity to make tax-free transfers,' said Shamisa Zvoma, a certified public accountant with Wiss in Florham Park, N.J.
The $10 million figure in the Trump tax cuts of 2017 was indexed for inflation. For 2023, the combined gift- and estate-tax exemption is $12.92 million per individual, or $25.84 million per married couple. That is the amount you can give away during your life or at death tax-free.
Next year the exemption amount will likely be adjusted to $13.61 million, estimates Peter Tucci, an estate lawyer at Proskauer. For 2025, it could be $14 million per person, before dropping by half in 2026 to about $7 million."
No. of Recommendations: 13
Very interesting subject. I've asked a large number of estate attorneys and FA how giving to grandkids works out. Their response and my own personal observation has been-- not very well. Big, big decision.
Love to have a good conversation about the subject. My experience is that people clam up when asked to think about the results of providing for young people. Even though they admit it does not workout for the recipient a good share of the advisors admit it works out for them. I do not see more than a 50% probability it works out well. The ability to make it on their own is something I don't want to take away from my grandkids. Education yes, very important along with a good upbringing. Harvard has a wonderful program called "Generation to Generation." They start the program with the saying, from shirt sleeves to shirt sleeves in three generations. Then explain that there is the same saying in every language in the world.
There are worst things in the world than to write a very large check to the government. The government is inefficient but so are charities. Helping people that need and deserve help might be better. I do contribute now but em searching for good ideas all of the time. My kids have all the money they will ever need. PM me for deeper discussion if you like because everyones situation is different. At my age I think about this a lot.
Growing up on a farm my mother used to refer to some neighbors as having more money than they know what to do with.
No. of Recommendations: 2
The government is inefficient but so are charities.
I don't think that applies to the Bill & Melinda Gates Foundation.
No. of Recommendations: 0
"PM me for deeper discussion if you like because everyones situation is different. At my age I think about this a lot. "
I do as well...
how do I send a private msg on this Board?
No. of Recommendations: 2
' The ability to make it on their own is something I don't want to take away from my grandkids.'
Amen! Totally agree except for me it is my kids, who are still young. I like how my late Dad arranged things. He kept family assets very private, lived frugally, loved the game of investing more than the money. After my brother & I had earned professional degrees (and were in our 30s) and had shown that we were responsible, he discussed a ILIT he and his wealth mgt. team had created that would be directed to each of us upon his death and my mother received the remainder of the assets. She has a revocable trust and we have a generation skipping option. Dad did his charity contributions along the way.
I have arranged something similar for my kids with a family trustee but funds will be received over time & staggered based on age. I plan to direct more towards charity along the way and when my time comes. I realize it is far from guaranteed how they will manage assets but I have started them early with small brokerage accounts and have been reviewing the basics of early investing in productive assets and basic math & compounding. They are well aware of WEB & CTM and hope some osmosis has taken place over the years.
No. of Recommendations: 9
The government is inefficient but so are charities.While most charities are inefficient, the charity evaluator Givewell.org is the value-investing equivalent of philanthropy. Like Mr. Buffett searching for his next elephant, Givewell is always searching for high-impact, cost-effective charities backed by evidence and detailed analysis.
My wife and I have found Givewell's analysis and recommendations to be extremely useful for our annual giving for the past 9 years or so.
In recent years, 1) Bednets/medicine to prevent Malaria and 2) Supplements to prevent vitamin A deficiency have been the two major causes areas where my wife and I have been happily giving. Givewell currently estimates that these are among the most cost-effective interventions in all of global health at approximately $4,000-$5,500 per life saved.
https://www.givewell.org/charities/top-charities
No. of Recommendations: 16
Helping people that need and deserve help might be better. I do contribute now
..
Growing up on a farm my mother used to refer to some neighbors as having more money than they know what to do with.
I have met some kind people, admirable people, and kind plus admirable people, but Oscar255414 is the kindest person, whilst oozing with curiosity, optimism and sincerity, that I ever met in my life. This is no exaggeration.
If you want to be both be perceived, and feel, significantly younger than your age, kindness might be a good strategy. I have found that being kind to others is one thing but don't forget to be kind to yourself (forgiving) at times also.
I did know know until the above post, however, that Oscar255414 grew up on a farm, and actually this does not surprise me. Working with various people, I have found that those raised on a farm tend to be more sincere and kinder than city-raised folk. You don't have to be quite raised on a farm either - just having a lot of nature around your parent's house to explore during childhood (such as living near a forest or gully) can be enough. The mind is a complex organ, like the kidney, or the eyes, and so on, which develops necessarilywith continual feedback/response to stimuli. No stimuli, no development (experiments show that if you blindfold a kitten for a while after birth, it remains permanently blind). The busy and noisy city was not part of our evolution, so unlikely to be the optimal developmental environment.
- Manlobbi
No. of Recommendations: 1
<You don't have to be quite raised on a farm either - just having a lot of nature around your parent's house to explore during childhood (such as living near a forest or gully) can be enough. The mind is a complex organ, like the kidney, or the eyes, and so on, which develops necessarilywith continual feedback/response to stimuli. >
Interesting. Perhaps people are more threatening than nature does. When growing up with other kids, one needs to learn to compete and fend off bully.
No. of Recommendations: 14
Farm boy here. Interesting take on farm-raised citizens, Manlobbi. All I know is it is psychologically therapeutic for this farm boy to clamber aboard his John Deere lawn mower and mow the lawn. Some of my best thinking has occurred during those mowing sessions. I tend to think my inner programming is drifting back decades to those youthful years driving tractors on the farm.
I am in the same camp with Oscar regarding inheritance planning. Gaming the system is terribly constraining for all concerned. My instinct is to grow the pile, give away some of it to charities and let our heirs liquidate some of the stocks to pay the taxes. Our children are doing quite well growing their piles and we only have one very young grandchild, so it is a potential classic generational skipping spoilage problem shaping up for our grandchild. Here's hoping DNA rules and she is a classic pile grower like her daddy and his parents.
My dad was a vocational agriculture teacher and we farmed on the side. Our farm was pretty much my dad's experiment station and he let us kids keep the profits as a tax advantaged way to accumulate funds. He told me one day I would appreciate the FFA State Farmer degree I earned and I do. Vocational agriculture at small high schools sixty years ago involved teaching welding, carpentry, brick laying, horticulture and animal husbandry. A surprising number of his students went on to own small companies ranging from welding businesses to radio stations (a FFA public speaking award winner student became a DJ in the Air Force and went on later to own several radio stations). We are seeing a similar vocational renaissance now in our area. The companies in our county are teaming with the local community colleges (the new name for technical schools) for apprentice programs. Many of these apprentices are now in their late 20s and have steadily risen in responsibility in these firms. We are seeing fewer kids opting for college and instead going this route. Toyota is building a huge EV battery making operation in our county and is literally hiring legions of late teens to twenty-somethings. Toyota is actively training them for jobs at a plant not opening until 2025. This is the reality for companies seeking to grow and meet their employment needs going forward. I think good days are ahead in the 2030s as more opportunities open up via non-college apprentice programs. I think good days are ahead with all manner of opportunities in the 2030s. In the meantime, there will be value opportunities arising for us value investors. Unsettled times create long term opportunities.
Uwharrie
