Author Topic: Do you expect to inherit?  (Read 27121 times)

mustachecat

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Do you expect to inherit?
« on: October 03, 2012, 09:00:01 AM »
Yes, it's morbid to think about, but do you?

I'm not sure for myself. My parents could easily leave a significant estate, and given their very modest material lives, they probably will. Most likely, I'll inherit everything (I'm an only child).

And let me be clear: I don't think my parents SHOULD leave me anything. They've worked hard all their lives, and their money is theirs to do with whatever they want. If they spend it all down, I'd be happy as long as they got enjoyment and value out of it.

In any case, I haven't included any amount of inheritance in my financial planning.

RoseRelish

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Re: Do you expect to inherit?
« Reply #1 on: October 03, 2012, 09:06:52 AM »
I know my parents could leave a pretty sizeable estate too. I don't expect/plan for anything. I agree that they worked for the money and should enjoy it however they like. I think they'd at least leave their house - even if they spent every single dollar. I hope to leave quite a bit to my own kids - by building a big pile of dough and living off of the returns only. Tough topic to think about though.

tooqk4u22

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Re: Do you expect to inherit?
« Reply #2 on: October 03, 2012, 09:12:16 AM »
No, they don't have much.  I am more worried about the potential costs as they age. 

As an aside, I think this can affect a persons view on spending - I have a good friend whose father is quite wealthy.  My friend lives modestly overall, lives where he wants, and has a job that doesn't pay much, but he has spendy eating out/vacation and classic car habits (pretty much spends entire income on these two things) and doesn't save a dime.  I think this is the result of his father has always served as a backstop/emergency plan, if you will, and he knows he will get a sizeable inheritance.

kkbmustang

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Re: Do you expect to inherit?
« Reply #3 on: October 03, 2012, 09:19:32 AM »
We both have very successful, frugal parents. (Well, my mom isn't frugal, but my dad is. Both of The Hubs' parents are frugal.) We will likely inherit a significant amount between the two. But we assume and act as if we will inherit nothing. I wish I could say the same for our siblings.

We've told both sets of parents we'd prefer that they spend every last dime since they worked so hard for it.

bogart

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Re: Do you expect to inherit?
« Reply #4 on: October 03, 2012, 09:21:56 AM »
Probably; my mom is a "don't touch the principal" sort of investor/spender, has a 'stache, has health insurance through her pension system, and has a reasonably decent long-term care insurance policy, and a propensity to plan ahead (e.g. will likely downsize/move to a retirement community etc. before such are really necessary). 

OTOH I am not planning on it and encourage her to spend her money on herself, including in ways she finds extravagant/frivilous.

jpo

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Re: Do you expect to inherit?
« Reply #5 on: October 03, 2012, 09:23:33 AM »
Yes, my parents have always been smart with money. I'd bet they are close to being able to retire if not already able (they are in their mid-50s).

I expect it but am not counting on it.

lauren_knows

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Re: Do you expect to inherit?
« Reply #6 on: October 03, 2012, 09:25:23 AM »
From my parents? No way. Both will be subsiding on SS entirely. I'm more worried about having to support them than inheriting from them.

On the other hand, my wife's parents are pretty frugal, were well paid when they worked, retired at 51, and paid for our wedding.  I don't know their actual worth, but her father was an Actuarial Consultant for a retirement/benefits company, so I'm sure he has planned out his retirement to the penny. 

Either way, we don't plan on any sort of inheritance.  Even if we did, they have longevity in their family. We likely won't see a possible inheritance until our 60's or longer.

igthebold

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Re: Do you expect to inherit?
« Reply #7 on: October 03, 2012, 09:27:11 AM »
I don't expect to inherit, just as I don't expect to get social security. My main goal is to make sure my own financial engine is operating on all cylinders, capable of taking hits or windfalls, but not planning on specifics. I've successfully treated the whole issue as irrelevant to my life.

Also, I just hate the dynamics that money can bring into family life. It's unwise to ignore the issues, yes, but I don't want great expectations to cloud relationships, which are far more important.

tooqk4u22

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Re: Do you expect to inherit?
« Reply #8 on: October 03, 2012, 09:31:57 AM »
We both have very successful, frugal parents. (Well, my mom isn't frugal, but my dad is. Both of The Hubs' parents are frugal.) We will likely inherit a significant amount between the two. But we assume and act as if we will inherit nothing. I wish I could say the same for our siblings.

We've told both sets of parents we'd prefer that they spend every last dime since they worked so hard for it.

That's the right attitude and right not to plan for, all too often parents will leave the inheritance, or a larger share of it, to the ones that need it more in their eyes, even if it is due to irresponsibility/keeping up with jones lifestyle and the responsible ones are viewed as being able to take care of themselves.


KulshanGirl

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Re: Do you expect to inherit?
« Reply #9 on: October 03, 2012, 09:34:36 AM »
My parents have always been smart with money and are fairly well off in their retirement.  That said, I wouldn't be at all surprised if they managed to totally break even and reach the end of life with everything perfectly spent, they are that good at planning.  I imagine that my sister and I will share a modest inheritance in the sale of their house, as well as having a truly epic garage sale.  But I am not counting on or expecting some great inflow of cash from my parents. 

kkbmustang

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Re: Do you expect to inherit?
« Reply #10 on: October 03, 2012, 09:39:58 AM »
Both sets of parents are very egalitarian, so I don't see that happening. We've both had discussions with our respective parents about the inheritance issue in general terms. (I have no idea about net worth for either set.)  Whatever is left will be split evenly among all kids.

For my side, my brother has complete spendthrift tendencies, so I've discussed with my parents the idea of leaving amounts in trusts that will disburse in chunks at certain intervals. Sort of saving him from himself. They won't do that for him and not me, so that will likely happen for both. I don't care either way for myself, but it makes sense for my brother.

For the Hubs, he has two siblings. One is bat shit crazy and a complete disaster. The other could give MMM a run for his money. The Hubs and the frugal sibling are trustees for the bat shit crazy sibling.

kisserofsinners

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Re: Do you expect to inherit?
« Reply #11 on: October 03, 2012, 09:47:23 AM »
My grandparents were (gma still is) very frugal people. Grandpa bought his house with one income and 3 kids. He did all the work on them himself. Whatever is left of his estate will be split 3 ways to the kids. My aunt and uncle died last year, so their portions get split between their kids.

My mother generation did not develop the discipline with money that my grandparents had. My cousins aren't much better. I hope to teach my sister.

To answer...Whatever is there will be absorbed by people who will squander it. I'll see nothing but a great example of what not to do. I'm getting used to it and have found it very positive over all.

I have seen what waste looks like. I have seen what frugal looks like. I'm making really good decisions for myself now and inheritance will not make or break me. These lessons are priceless.

mustachecat

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Re: Do you expect to inherit?
« Reply #12 on: October 03, 2012, 10:25:58 AM »
I really appreciate all the responses. I've wanted to ask this question for years, but it's not exactly a nice dinner conversation.

Seems like most of us are expecting something, but counting on nothing.

I bet this topic is a lot less taboo for the very wealthy, for whom estate planning really matters.

gdborton

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Re: Do you expect to inherit?
« Reply #13 on: October 03, 2012, 10:34:30 AM »
Given my family history, I'd wager that my GMA's 3 kids will inherit her house minus the 20k or so left on the mortgage.  The money from the sale of the house will be spent in about a year.  The alternate outcome being that my mom gets the house, then loses it in 2 years.

The only thing I expect to inherit is responsibility for my siblings.

Orvell

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Re: Do you expect to inherit?
« Reply #14 on: October 03, 2012, 10:51:59 AM »
Haven't a clue. My folks are very closed-mouthed about finances. It's just not polite in their view, and I respect and understand that sentiment.
Anything gotten would be a boon, and under no circumstances an expectation.

TLV

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Re: Do you expect to inherit?
« Reply #15 on: October 03, 2012, 11:30:04 AM »
My grandma has willed most of her estate to charity, but she says I get the piano :). Hopefully I'll have a place to put it by then.

I probably will inherit something from my dad eventually unless his new wife spends it all, but he's not even 50 yet so it shouldn't be any time soon. I intend to be FI long before then.

arebelspy

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Re: Do you expect to inherit?
« Reply #16 on: October 03, 2012, 11:33:15 AM »
No.
I am a former teacher who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and am now settled with three kids.
If you want to know more about me, this Business Insider profile tells the story pretty well.
I (rarely) blog at AdventuringAlong.com. Check out the Now page to see what I'm up to currently.

starbuck

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Re: Do you expect to inherit?
« Reply #17 on: October 03, 2012, 11:36:04 AM »
Nope not at all, from either side of the family. My parents don't have much in assets to speak of, and will be relying on continuing work and social security payments. They were never lavish spenders - just the unfortunate circumstance of raising 4 kids in a HCOLA and never quite being able to recover from a job layoff. A few years ago they relocated to a much lower cost of living area in the midwest. To echo others, I'm also preparing myself to support them in their later years, with only a little help from my older siblings. I've never had a frank discussion with them about the next 25 years, but I can see the writing on the wall already.

My in-laws are pretty much the opposite - high income earners, but high spenders as well. Snowbirds, new cars, lots of cruises. My father in law always jokingly warns the kids that they're spending their inheritance, which doesn't bother me. They've always been generous - paid for my husband and sister in law's college education, and always try to give us money/pay for things. I just hope they save money for the twilight years as well.

$_gone_amok

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Re: Do you expect to inherit?
« Reply #18 on: October 03, 2012, 11:44:17 AM »
I plan to be FI before that happens so I don't expect anything.

kisserofsinners

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Re: Do you expect to inherit?
« Reply #19 on: October 03, 2012, 12:10:14 PM »
My grandma has willed most of her estate to charity, but she says I get the piano :). Hopefully I'll have a place to put it by then.

I probably will inherit something from my dad eventually unless his new wife spends it all, but he's not even 50 yet so it shouldn't be any time soon. I intend to be FI long before then.

Score Piano!!! I should also mention that i just got what i assume to be the most valuable items in GMa's kitchen, the kitchenaid mixer and a really nice meat cleaver...Heirlooms are good. :)

Catbert

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Re: Do you expect to inherit?
« Reply #20 on: October 03, 2012, 12:20:52 PM »
Well, I'm the age of many of your parents so I've already got my inheritance...45k in an IRA plus about 15k in cash.

I don't have any kids but my heirs will get a bunch to divide up (7 figures) unless they piss me off enough that I leave it all to charity.  Or I figure out a way to spend it all.

Jamesqf

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Re: Do you expect to inherit?
« Reply #21 on: October 03, 2012, 12:30:00 PM »
Nope.  Or better to say, didn't inherit anything, and didn't expect to.

jrhampt

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Re: Do you expect to inherit?
« Reply #22 on: October 03, 2012, 12:48:22 PM »
No, my parents will be relying on SS and have no house and negligible retirement savings.  My husband is already providing minimal support to his father (supplements his monthly spending money and pays his phone bill), who has moved from low income housing to assisted living in the past few years.  The other set of in-laws (since his mom remarried) have 4 kids between them and we are considered the responsible ones -- the others are not doing well financially, so if there's an inheritance there, I assume they would get the bulk of it.

zinnie

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Re: Do you expect to inherit?
« Reply #23 on: October 03, 2012, 01:42:45 PM »
I expect to inherit--my dad is very open about his finances and his plans for his estate.

I've never let that factor into my plans, though. If I did, I could retire today, but I strongly believe that I am responsible for earning/saving/investing for myself. Anything beyond that is just a bonus.

sideways8

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Re: Do you expect to inherit?
« Reply #24 on: October 03, 2012, 01:56:06 PM »
Nope. :) Even if I did, it would never ever fill the hole in my heart that would be there when my parents go. Well, except maybe my dad's car. It is pretty sweet. :P

freelancerNfulltimer

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Re: Do you expect to inherit?
« Reply #25 on: October 03, 2012, 03:22:09 PM »
This is just a wild guess but I'll probably get about $250,000 from my Dad. My brother would also get $250k. Dad's house is in DC but I'm guessing he will sell that and move to Florida when he retires so he should also have a paid off home to sell or rent out. This would all depend on whether he remarries again.

I doubt my mother will leave us anything. She's a high income earner but she spends it all. I suppose her house will be paid off by the time she'd be in the realm of dying from old age which would leave something for me and my brother to split. Maybe $70,000 each?

My paternal Grandparents are no longer living. I received $4500 from my recently departed Grandma which I will be using to replumb my home (needed).

When my maternal Grandparents pass away I will inherit 3% in a family business which is fairly profitable and may stay that way for many years. Of course the patent will probably expire before they pass away so who knows. My Grandparents have sizeable assets that I'm sure will get split equally among my mother and her siblings. My mom will probably immediately share her inheritance with me and my brother and spend all of her bit.

I expect to inherit a fair sum of money. I don't plan on it though. I also don't plan on SS. (I'm 28 y/o)

Nudelkopf

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Re: Do you expect to inherit?
« Reply #26 on: October 03, 2012, 04:08:43 PM »
My parents just retired (Mum only last week!), so hopefully they've got quite a bit of life yet. I think they have the plan to skip a generation though - i.e. their grandkids get the money, since they're assuming me & my brothers will already be set up in life.

c

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Re: Do you expect to inherit?
« Reply #27 on: October 03, 2012, 04:33:51 PM »
No, they don't have much.  I am more worried about the potential costs as they age. 


Pretty much this.

StetsTerhune

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Re: Do you expect to inherit?
« Reply #28 on: October 03, 2012, 04:36:34 PM »
I already inherited about 200K from my (living) Grandfather. He gave large gifts for a decade or so to avoid paying taxes on his estate. Paid for college for me and now makes up a good amount of my net worth  (I guess I have no idea what percentage it actually is). He stopped giving anything about 10 years ago, he says because he started getting slightly worried about how much he had left (this was around the first market crash). Though I also suspect he started to worry that we might get corrupted by the money if he kept giving it.

I certainly am not "counting on" ever getting anything more, but I am including in my planning that I will most likely get a similar amount at some point in the future (hopefully not anytime soon, but he's in his 90's).  I don't know about the rest of you, but I have a "minimum" number for FI and an "Ideal" number for FI. They're only a couple of working years apart, but it will be hard to keep working after I hit my minimum, given that it seems like I'll get to my ideal anyway.

TheDude

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Re: Do you expect to inherit?
« Reply #29 on: October 03, 2012, 04:44:32 PM »
Great Topic I think family economics/dynamics is a great topic.

I really have no idea if I will inherit anything or not. My mom has a fairly sizable next egg (maybe 1mil plus a pension) but I know I was in the will for $1 at one point. I think she has long term care insurance so my sister maybe in for a fair amount of money. She also has a younger husband so he will probably get some. My father may leave a little in the way of a house but not much and probably not for another 30-35years.

My wife's parents don't have a ton just a house probably. Its going to be crazy when they go because they wrote one son out of the will so it will be split between the other two. The one that got written out of the will will probably hold a huge grudge. I anticipate we probably won't take anything from the estate just because we have no desire to get involved in the in a dispute with her siblings.

herisff

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Re: Do you expect to inherit?
« Reply #30 on: October 03, 2012, 04:58:59 PM »
No - right now we are using a fair chunk of my Mom's assets to pay for her assisted living costs (>$5k/month). She has dementia and diabetes and so needs a bit higher level of care, which increases the cost. All of us kids are just hoping that she has enough assets to last throughout her life. I don't know about the rest of my family, but I know that I don't expect any inheritance, since we're spending a goodly chunk of it now and that side of the family tend to be long-lived.

Uncephalized

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Re: Do you expect to inherit?
« Reply #31 on: October 03, 2012, 05:49:42 PM »
Yes.

My maternal grandparents are quite well-off, and my parents are solidly upper-middle class. My aunt (mom's sister) has done quite well for herself as well as far as I can tell from her living situation. I'm an only child and my aunt doesn't have any children, so I'm sure I'll come into some money down the road. But I have no idea when or how much, and I don't plan to sit around waiting on the charity of my ancestors to achieve FI! I'd much rather still have my grandparents around than have more money, by a long shot.

ShanghaiStashing

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Re: Do you expect to inherit?
« Reply #32 on: October 03, 2012, 08:13:59 PM »
Yes, likely 7 figures. The wife's family is phenomenally wealthy so I suspect we'll get a sum at some point.

We act as though we won't get anything, save 70% plus, and generally never ask them for anything.

Nords

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Re: Do you expect to inherit?
« Reply #33 on: October 03, 2012, 09:21:46 PM »
Seems like most of us are expecting something, but counting on nothing.
Up until 18 months ago I wouldn't have expected anything.  My father was living as though he barely had enough pension & Social Security.

However between mid-stage Alzheimer's & multiple myeloma, things have changed.  He's doing "as well as can be expected" now with medications (and after chemotherapy) but there's just no way to predict his longevity.  After extensive research, the best I can say is that it's more than one year and less than a decade. 

I'm now his conservator, too, so I've learned that for the last 25 years he's been living on half of his pension/SS and investing the rest in equity mutual funds.  I suspect that he won't outlive his money.  Any inheritance will be a very meaningful sum to my brother and could put him over the top to ER.  Of course the exact opposite is true for spouse & me,  since we're already ER'd, and we honestly have no idea what to do with the money.  My Dad's father spent 14 years in a care facility with dementia (but not Alzheimer's) so my spouse's cynical plan is to use my share of any inheritance to pay for my eldercare expenses.

I've tweaked Dad's asset allocation from 85% stocks down to about 35%/15%/50% equities/bonds/cash.  His long-term care insurance will cover most of his expenses through late 2014, and after that he'll still have his pension/SS to slow the spend down.  There's just no way to predict what the best use of the money could be until we actually end up going through probate. 

My brother will get his fair share so there's no need for me to disclaim my share to him.  I worry about affluenza & entitlement for our daughter, but she's almost 20 years old now and over the next decade I'm pretty sure I'll stop worrying about that.  I mostly spend my time wishing Dad had not lived such a frugal life, but he ER'd at the age of 53 and enjoyed over two decades of the things he likes to do. 

Ironically Alzheimer's has taken those memories.  He currently thinks he's on a protracted 1960s business trip, working at the care facility and being allowed to stay there on weekends until he finishes his project.  He says he wants to earn enough money to give some to us when he dies.  We reassure him that he's done a great job and that he should do what he wants, and he says he has nothing that he wants to spend the money on.  A few minutes later the entire conversation starts from the beginning all over again.  At least it always has a happy ending, so he feels good about how well he's taken care of us.

One lesson learned from his decline into Alzheimer's is that it can cost $10K of medical & legal expenses before things settle down.  I was also another $20K into the care facility expenses before the long-term care insurance claim was finally approved (and backdated).  This was for a guy living a very simple life with minimal possessions in a 2BR apartment, so I can't imagine how much worse it would have been with real estate or business partnerships or other entanglements.  I never expected to be spending an emergency fund on those kinds of expenses.

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Re: Do you expect to inherit?
« Reply #34 on: October 03, 2012, 09:45:16 PM »
No. It's far more likely that I'll be supporting them as they grow old.

travelbug

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Re: Do you expect to inherit?
« Reply #35 on: October 03, 2012, 10:32:12 PM »
Interesting topic.

We will.

My parents RE in their late 40s and have sufficient funds for them to live off so my brother and I will inherit half each. My brother is shocking with money and is 35 with nothing plus some debt, so I am hoping he will settle down then and invest wisely.

My parents are in their late 60s, but not in the best health, so I think 10-15 years.

We will be FIRE next year, so we will invest the money for our children and let it roll over and over.

DHs dad has passed away and his mum is in her 80s. We will inherit a small amount from the sale of her house, but DH is one of 6 children so it wont be much.

But I really have no idea what MIL is worth as their family doesn't talk about money, whereas my family has discussed at length the will.


tkaraszewski

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Re: Do you expect to inherit?
« Reply #36 on: October 03, 2012, 11:43:00 PM »
The only thing my parents have of value is a house, and unfortunately, I think they will have to sell it and move somewhere cheaper to retire.

momo27

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Re: Do you expect to inherit?
« Reply #37 on: October 04, 2012, 02:08:24 AM »
No, I don't expect to inherit anything. My father is in his mid-60's, up to his eyeballs in debt and at least 10, if not 15 years from being able to retire (he's a dentist). He also still has kids at home, the youngest is 12. There are six kids in all, and also his wife is quite a bit younger than him, and even less fiscally responsible than he is. Even if he manages to retire okay, there will be nothing left by the time she's finished.  My husband's parents will likely leave something, they live fairly frugally. But he is one of five kids, so there will be a lot of people to split it amongst.

I don't actually expect to outlive either my parents or his. My mother died when I was 8, her mother died when she was 7, her mother's mother died when her mother was 2 and so on. I've researched my maternal line back 7 generations and each mother died before her daughter's 10th birthday. Now, the causes of death that I know of (only have that info going back 3 generations) were not anything genetic. My mother died in a car accident, my grandmother in a wheat harvest accident and my great-grandmother died from a suspected infection in the pre antibiotics days. So there isn't any family history that directly makes me more likely to die young, but I have simply never expected to live long enough to see my children into adulthood, let alone living long enough to bury my father.

simonsez

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Re: Do you expect to inherit?
« Reply #38 on: October 04, 2012, 06:29:16 AM »
Yes.  From grandparents and parents.  From wife's grandparents and parents.

No, I don't account for that just like I don't for SS.

However, I don't like the idea of encouraging a loved one to spend more than they have to just to "enjoy" what they had earned over his or her lifetime.  Seems like consuming for consumption's sake.  I'm not selfish and would be perfectly fine if I wasn't receiving anything from relatives.  The relatives I will receive inheritance from are currently all able to live comfortably and have expressed enjoyment in passing land, cash, book collections, family heirlooms, etc. on to other generations of the family to enjoy.  I like this idea myself.  I would love to be able provide my own children one day with important articles to pass down along with cash and perhaps provide the grandchildren with a little money to help with a wedding or college costs.

Kamikaze Emu

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Re: Do you expect to inherit?
« Reply #39 on: October 04, 2012, 08:01:28 AM »
The only thing I am expecting is to inherit the cottage as I can't see it leaving the family.  In terms of money, etc I expect my parents to use what they've earned and eventually maintain on my mothers pension.  I am very fine with this and hope they enjoy. 

Zaga

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Re: Do you expect to inherit?
« Reply #40 on: October 04, 2012, 10:14:00 AM »
We are not expecting anything.  The only ones with potentially enough to pass any on are my mom's parents, and they are 91 and 93 and have 3 kids and 7 grandchildren and I have no idea how many great grandkids.  I think they are likely to split things evenly between everyone, or just their 3 kids.  Either I will get very little or nothing.  I'd prefer that they gave to their kids because my mom is completely broke and living on social security and a pension for a total of $1,100 a month.  It's just not quite enough and any help my brothers and I get taking care of her we will be grateful for.

Angelfishtitan

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Re: Do you expect to inherit?
« Reply #41 on: October 04, 2012, 12:20:30 PM »
I am not sure what to really expect, but it doesn't matter since I will have been FI for many years (and it better be many years Mom and Dad!) before even having to think about it. My parents are middle class and are relatively decent with money (I would not call them frugal however), so I imagine there will be a small sum for me and my brother. Possibly the same on my in-laws side, though they are not as careful with their finances. Either way, I will probably just donate to charity anything extra I receive in inheritance (whatever seems appropriate depending upon the person), it would do much more good for someone else at that point in my life.

MooreBonds

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Re: Do you expect to inherit?
« Reply #42 on: October 04, 2012, 09:40:09 PM »
Yes.  From parents. 

+1

No, I don't account for that just like I don't for SS.

+1

However, I don't like the idea of encouraging a loved one to spend more than they have to just to "enjoy" what they had earned over his or her lifetime.  Seems like consuming for consumption's sake. 

Another +1...although I would add that if you do encourage a parent to "enjoy it while you can", and they take your advice....and then their health deteriorates later in life, without sufficient money to pay for adequate care, which will you do:
A) Let them die a miserable death, alone and suffering
B) Become their full-time primary caregiver after putting your entire life on-hold,
C) Spend down your portfolio significantly just so they have a meager sustenance end of life for 2, 5, 8 years - and then be left with far less of your own stash after they pass on, and be forced to work long after you wanted to retire, just because you told your parent(s) to live it up?

Yes, my parents raised me and sacrificed for me, and I would do the same for them in return (and have already)...but I'm not going to necessarily encourage them to spend frivolously just so they don't die with more than $50 to their name, at the risk of jeopardizing my own sacrifices and delayed gratification.

cdngb

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Re: Do you expect to inherit?
« Reply #43 on: November 26, 2012, 09:46:24 PM »
There are many ways an expected inheritance may disapear.


The largest increase in divorce demographics are seniors. Ask any guy, it is expensive.

Many men who lose their wives replace them with newer models who go through cash faster than the older model.  The companionship is worth it to them.  Your share may be reduced by what is given to your step-mother and may be divided by her children who get an equal share of Dad's cash.

Medical bills can wipe out a nest egg in a few years.

Money can be spent, lost or given away so there may be nothing left.

Trillions of dollars of real estate value has been wiped out in the last five years.  Usually the family home is the largest asset in most estates.  Often there will not enough time to recover all the losses.  Thanks Wall Street.

Baby Boomers are more selfish than their parents and leaving a nest egg for junior is not the priority that it was previously.  Spending habits in retirement is different for them than their parents.  They retire sooner, live longer and spend more.

Money has ruined many relationships between parents and children.  Some parents use it a bargaining tool.

Remember your spouse or other creditors may have a claim on it after comes in.

Wills can be changed with the stroke of a pen.  In today, out tomorrow.  Sorry about your luck.

Seniors are easy targets for cons.  Remember suckers are born evey minute.  Right Bernie.


Bottom line.  If it happens and you do get the windfall treat it as bonus or a lottery win.  Do not expect it or count on it.  It is not yours until the death of the second parent and Uncle Sam takes his increasing share.  I understand that the tax free amount of an estate decreases on January 1st.  Someone has to pay for the deficit.   

Good luck.


PJ

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Re: Do you expect to inherit?
« Reply #44 on: November 26, 2012, 10:29:44 PM »
There are many ways an expected inheritance may disapear.

The largest increase in divorce demographics are seniors. Ask any guy, it is expensive.

Many men who lose their wives replace them with newer models who go through cash faster than the older model.  The companionship is worth it to them.  Your share may be reduced by what is given to your step-mother and may be divided by her children who get an equal share of Dad's cash.
 
cdngb, I'm hoping you didn't mean this to sound as offensive as it does. 

Historically, women have actually ended up in worse financial situations post divorce than men have, due to factors such as lower salaries, years out of the workforce to raise kids (therefore less contributions to pension plans, etc). 

Nowadays, that may no longer be true as such a general rule, but I can tell you that of my friends and family members who have gotten divorced, it's still mostly the women who have ended up in more precarious financial situations.  In some cases, the women have walked away carrying the debt load incurred during the marriages, only because their ex-husbands are such irresponsible idiots with money that they had no hope of getting any assets out of them.  One as much as told my friend that if she tried to get him to pay any of the debt (which was in both their names) that he'd just declare bankruptcy - leaving her on the hook for it anyway.  (May I say that amazingly, she still left him the car, because she knew that he needed it for his job more than she did - not all women are out to screw their exes, even in the face of provocation!) 

I'm not saying that all men are gamblers, deadbeats and idiots - just that some of my friends' husbands have been - but that there are stories on both sides and that generalizations are dangerous.

As for using the same terminology for women as you'd use for cars ... it's pretty offensive, actually, which I suspect you'd realize if you stop to think about it.  Please, don't. 

cdngb

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Re: Do you expect to inherit?
« Reply #45 on: November 26, 2012, 11:38:40 PM »
You are correct.  I should have said anyone not guy.  Sorry. 




PJ

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Re: Do you expect to inherit?
« Reply #46 on: November 26, 2012, 11:39:30 PM »
Appreciate your response.  Thanks.

chucklesmcgee

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Re: Do you expect to inherit?
« Reply #47 on: November 27, 2012, 09:33:34 PM »
No clue. Parents are divorced and about 65 in reasonably good health. Probably around ~1 mil each in savings including their house.  By the time they do pass away I expect medical costs or routine withdrawals to have more or less eroded most of their savings. Oh well, they put me through college.

Ozstache

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Re: Do you expect to inherit?
« Reply #48 on: November 28, 2012, 04:01:29 AM »
Yes, but I'm only factoring that in my ER as backup funds.

kolorado

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Re: Do you expect to inherit?
« Reply #49 on: November 28, 2012, 08:10:58 AM »
Expect....a loaded word. Well, I'm also in the boat of probably having to help my own parents so I know I will not inherit anything from them. My husband is a different story. His parents have been reasonably responsible with money. Both parents worked and saved and they have a pension, investments and SS. And both of my husband's parents had their last surviving parents die within the last few years leaving them both estates worth over $250K. They'd already retired with all they needed at that point. My husband's 30yo sister and her elementary school aged child live with and are completely supported by my husband's parents. Honestly I don't know if anything will be left of the "estate" in 10 years time with that kind of unexpected drain on their finances. We've never made any possible money part of our retirement funding plan. It will be a help, surely, if such an inheritance comes about, but we aren't counting on it.