Asking well-off parents - how do you plan to transfer wealth to kids while not demotivating them? especially if your kids go premed route?
I am doing estate planning recently. I am 42M with net worth at a bit over $8m, of which half is in real estate and the other half in brokerage/retirement. My annual HHI is around $1m, and I have no plan to retire shortly, so my leftovers will most likely exceed the inheritance tax threshold.
I have set up a living trust for my only child, moved all real estate in, and will gradually move some taxable brokerage accounts into the trust as well before total amount inside might grow to hit the threshold in the end.
For the remaining part - I am gradually transferring to my son's UTMA accounts, before it ever grows to a bigger amount.
My son is going to college. Both he and I wish him to become a physician. We are living way below our means and my son is not aware of what kind of inheritance he would get when we pass away. He is not aware of the living trust either, nor does he know his UTMA accounts and other accounts. Medicine route requires him to work extremely hard before attending. He is working hard, but I feel part of his motivation is the future physician income.
While executing our plan, my biggest concern is that it might demotivate him to set up his own life by himself. He will get to know the accounts anyway once he starts to file his own tax, this is inevitable.
Any suggestion here? Am I worrying too much about kids knowing how much he would inherit, gonna cause a negative effect on his own future?
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