The Moneyist: ‘We will not outlive our money’: How can we give $10,000 to our nieces and nephews without offending the rest of the family?

by | Oct 19, 2022 | Stock Market

Dear Quentin, My husband and I learned that we had accumulated a sufficiently large nest egg and will not outlive our money. We had always intended to recognize our nieces and nephews in our wills with a modest gift ($10,000 or less). However, we hopefully have many years left ahead of us. Most of our nieces and nephews are just starting college or starting families.   It seems like it would be much more useful for them to receive a gift now. It would give us a great deal of joy to see them use this gift for a wonderful vacation, or paying for extras while in school. This should be easy, but it quickly became anything but. 

“‘One niece has a hardship scholarship: If we gave her $10,000, her college would subtract that gift from her financial aid.’”

Firstly, two of our nieces are minors. We did not want to give gifts to them now, because we did not want to trigger a kiddie tax. Secondly, we also did not want them to feel upset when they saw their older siblings getting gifts. Thirdly, we learned that the nieces and nephews in college were still considered dependents, and gifts to them might also trigger a kiddie tax.   One niece has a hardship scholarship: If we gave her $10,000, her college would subtract that gift from her financial aid. Do we give $10,000 to our nephew and another $10,000 to his new bride? That might open us up to providing an additional gift to the remaining clan when they married. Would giving a gift t …

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