Trust Funds

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Michigan
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Are you a Trust Fund Child? I met a nice young lady at the ymca, she works there part time, she gets 1000 a month from her TF and her health insurance is paid for from it. One would assume that having trust would enable a person to take more risks in life/career, would that be a fair assumption? Or will it have the reverse effect? I remember when I was 20 some and first job out of college and bought a $250k house and had to take it in the man.. from my employer for years as I could not risk losing the safety net of having a job to make the payments. Disclosure: I am also a trust fund child, I trust the funds will be there. ;-)
 
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Middlesex County CT
I usually avoid threads like these, but it comes down to values and upbringing. The YMCA gal uses her position to operate in society with modesty. Others might use it to bludgeon the less fortunate and enrich themselves.
 

CT8

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Idaho
It could allow some to be bold and other to acquiesce in mediocrity. Decades ago i met a guy thar did nothing with his life waiting for the trust fund to disperse money.
 
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NJ
$1000 a month isn't that much. Certainly not what I would consider a trust fund child. I was friends with a trust funds guy. He was part the Wedgwood family. He referred to himself as independently wealthy and therefore, didn't need to work but made money buying and selling stuff. Lots of hobbies and tried to make them positive cash flow.
 
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Central Coast, Calif.
I know trust fund people that are very upstanding, life is just easier for them. On the other hand, I worked for a mechanic that got trust money and he was a scam artist with almost no morals. Like most thing you can't have prejudice because you'll probably be wrong.
 
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Connecticut
Originally Posted by simple_gifts
I usually avoid threads like these, but it comes down to values and upbringing. The YMCA gal uses her position to operate in society with modesty. Others might use it to bludgeon the less fortunate and enrich themselves.
This, 100%. Like anything else it depends on values and upbringing. I know two people who are "trust fund kids" and they are actually polar opposites. One acts like money is no object, the other is very frugal and intelligent with finances, both were brought up with different values and had different life experiences.
 
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140
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New Mexico
Although not "trust fund" but a number of years ago I believe the Washington Post had an article on a few early Lottery winners Not the more recent mega-bucks but the $1,000,000 winners and what happened. It mentioned one was driving a Taxi and folks were surprised. When he stated out the winnings were over 20 years so $50,000 per year and he'd gotten divorced so split that in half he stated he needed more than $25000/yr to live. Not sure what he did prior to winning but seem to recall it was a guy just working to get through life and had the benefit of some extra money for a number of years. Not significantly more than the $1000/mo mentioned in the original post.
 
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America
Trust fund is simply rich relatives not trusting the young offspring with their money. These offspring can be any type of a upper class person with or without a trust fund.
 
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Central Florida
Dog the Bounty Hunter went to Mexico cause a trust fund adult male turned into a rapist and fled the country. Luckily Dog was able to sniff his trail and apprehend him. The guy now serving life in prison.
 
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Chicago Area
Sounds like she's happy with what she's doing and isn't wanting for anything. More power to her. I don't know anyone who's got a trust fund per se; the closest is a coworker who won $400,000 in the lottery a while back. In his words, it's not enough to retire on, but it was enough to pay off the house, set up college funds for the two kids and remove some worry from them on what happens if he or the wife lost their jobs (we were in the middle of several rounds of lay offs at the time).
 
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CO
I used to work with someone whose family received the benefit of a trust fund. He said if you met the condition of being employed, you received $1MM at the age of 21, $50k/year, and then another lump sum of $1MM at the age of 50. He owned several properties, including two in the mountains that he made money on and was a good employee. He told stories of some in the family that were not nearly so responsible. I also met a man who won the state lottery about 20 years ago or so. He was in his mid 40's and ended up with around $700k cash and invested it all, saying he would have a comfortable retirement. So yeah, it depends on what type of person you are.
 
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New England
I know a few who seem to work decent jobs. I think they tend to take more risks and further career for sure because of it as they have a fallback and less worry. One though teaches disabled kids how to ski as a job and lives a simple life and nice small homes in Park City Utah and Coastal New England town.
 
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Central Coast, Calif.
I know 2 brothers that received large amounts of trust money in payments. One brother would spend all of his trust money and ask mommy to harass the executor for more money to "survive" living an upscale lifestyle. The other brother would often not cash the payment checks and the executor would have to remind him to cash checks. Both grew up in the same house.
 
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Texas Hill Country
Nah we were lower middle class. Mom and Dad once had a Gerber savings account for my college, at one point it had about $2500 in there. Asked my parents if those funds were available when I turned 18 and wanted to go to college. My father laughed and said we spent it long ago. My wife was raised sort of similar. She received a couple small inheritances but nothing over 5-10 grand. Down here in Texas I come across a lot of people with huge money and tons of Land that has been in the family forever. Many have several hundred acres, and they have a site to build their home on, and live near other family members. Great people, very hard working, and many of them are multi millionaires. You would not tell because in addition to keeping up the ranch, they work full time jobs and wear worn wrangler jeans.
 
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Michigan
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We never had oooodooles of mulas, just enough to get by growing up. When I started my working career, I lived well below my means and I still do so I can take risks and be stress free. I would have loved to have a trust fund. I live in a little town where nearly all the big houses on the lake are owned by trusts with children who have trust fund. Property taxes for these houses start at 100k/year. yolo baby, to each .. own, being content with what you have or where you are is perfectly fine. I think it is great that someone has a safety blanket
 
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Los Gatos, CA
Originally Posted by stockrex
I live in a little town where nearly all the big houses on the lake are owned by trusts with children who have trust fund. Property taxes for these houses start at 100k/year.
Property taxes that start at $100K per year? Did I read that correct? Wow! What are the properties worth?
 
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15,897
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Silicon Valley
Depends on the size I think. If you will be expecting an inheritance of any large amount (i.e. enough to pay off a house full where you live) then I think it sorts of put you in the category. That said, a lot of people I know who work very hard and are very cautious about their spending are trust fund kids. To them it is just a number until they use it for some major investment (i.e. a home purchase, sending their kids to colleges, etc). Typically parents who think about estate planning already did their parenting right, and those who didn't parents right tend to not have much to pass down. I also know people who were in a family business empire and feel like it is a trap / prison that they live in. Yes you have billions but you also have the obligation to grow that instead of letting it inflate away, plus the politics between different branches of the family competing for control, and you need to perform to stay on top of the food chain. As for myself, I am probably going to inherit a few houses and apartment buildings in a few decades. Knowing me and how frugal my parents are, you probably already know our lifestyle living way below our mean, and run the math of how grocery discount of 25c here and there adds up.
 
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