Latest news with #adultchildren
Yahoo
2 days ago
- Business
- Yahoo
Sharing an inherited house with your siblings? It can get complicated
Dear Liz: My husband's parents, who are 88 and 93, respectively, have decided to leave their house, worth $800,000, equally, to their three children, who are all in their sixties. The children get along well and all decisions will be made as a group. None of the adult children can afford to buy out the other two, and the three adults and their families cannot all live in the house at once. Everyone would like to keep the home, which is paid for, in the family. What solutions exist for this situation? Where do we begin, and what questions do we need to ask, thinking into the next generation? Answer: Owning real estate with other people can be difficult, even when the individuals get along. Perhaps your generation can pull it off, but there's no guarantee the next one will. Let's say the time has come to replace the roof. How will the group decide how much to spend, and will everyone be equally willing to split that considerable cost? How might the dynamics change if one family is living in the home, but the others are expected to pay for repairs and maintenance? What happens if one inheritor later wants to sell, and the others still can't buy out that share? Keeping the family home can feel like an important legacy to offer to your children, but not if ownership creates strife that imperils family relationships. An experienced estate planning attorney can meet with you as a group and discuss the scenarios and legal documents you may need going forward. Dear Liz: When you're writing about required minimum distributions from retirement accounts, please make sure people know about qualified charitable distributions. Those of us lucky enough not to need the money can donate it directly from an IRA to the nonprofits of our choice. That way, we don't even have it in our income column, and there are no taxes. I am looking forward to making many qualified charitable distributions to my favorite nonprofits when I turn 73. Answer: You don't have to wait. Qualified charitable distributions from IRAs can start as early as age 70½. The distribution limit for 2025 is $108,000 per individual. If you're considering this option, please familiarize with the IRS rules for such distributions and consider consulting a tax pro. Dear Liz: I know you work to maximize people's money. I had a thought about the quality of life with Social Security. I took it at 65, which was then full retirement age. I was fully employed and did not need it to live. However, the extra money allowed us the opportunity to travel to all seven continents, help our kids with debts and down payments, and generally enjoy things with the extra cash. Now the full retirement age is 67, so there are fewer years between full retirement age and when benefits max out at 70. But the difference could still be enough for that motor home or world cruise. Answer: All financial planning requires a balance between current and future spending. If you spend too much in the early years, you may not have enough to make it through the later ones. Retirement planning is further complicated by the fact that we don't know how long we'll live or how our health will hold up. We can delay spending so long that we're no longer able to do the things we want to do, such as travel. Still, the fact remains that when one spouse dies, one Social Security check goes away. That can lead to a devastating drop in income for the survivor. Because the survivor receives the larger of the two benefits, and may have to live on that amount for years, it almost always makes sense for the higher earner to delay filing as long as possible. Liz Weston, Certified Financial Planner, is a personal finance columnist. Questions may be sent to her at 3940 Laurel Canyon, No. 238, Studio City, CA 91604, or by using the "Contact" form at Sign up for our Wide Shot newsletter to get the latest entertainment business news, analysis and insights. This story originally appeared in Los Angeles Times.
Yahoo
2 days ago
- Business
- Yahoo
Sharing an inherited house with your siblings? It can get complicated
Dear Liz: My husband's parents, who are 88 and 93, respectively, have decided to leave their house, worth $800,000, equally, to their three children, who are all in their sixties. The children get along well and all decisions will be made as a group. None of the adult children can afford to buy out the other two, and the three adults and their families cannot all live in the house at once. Everyone would like to keep the home, which is paid for, in the family. What solutions exist for this situation? Where do we begin, and what questions do we need to ask, thinking into the next generation? Answer: Owning real estate with other people can be difficult, even when the individuals get along. Perhaps your generation can pull it off, but there's no guarantee the next one will. Let's say the time has come to replace the roof. How will the group decide how much to spend, and will everyone be equally willing to split that considerable cost? How might the dynamics change if one family is living in the home, but the others are expected to pay for repairs and maintenance? What happens if one inheritor later wants to sell, and the others still can't buy out that share? Keeping the family home can feel like an important legacy to offer to your children, but not if ownership creates strife that imperils family relationships. An experienced estate planning attorney can meet with you as a group and discuss the scenarios and legal documents you may need going forward. Dear Liz: When you're writing about required minimum distributions from retirement accounts, please make sure people know about qualified charitable distributions. Those of us lucky enough not to need the money can donate it directly from an IRA to the nonprofits of our choice. That way, we don't even have it in our income column, and there are no taxes. I am looking forward to making many qualified charitable distributions to my favorite nonprofits when I turn 73. Answer: You don't have to wait. Qualified charitable distributions from IRAs can start as early as age 70½. The distribution limit for 2025 is $108,000 per individual. If you're considering this option, please familiarize with the IRS rules for such distributions and consider consulting a tax pro. Dear Liz: I know you work to maximize people's money. I had a thought about the quality of life with Social Security. I took it at 65, which was then full retirement age. I was fully employed and did not need it to live. However, the extra money allowed us the opportunity to travel to all seven continents, help our kids with debts and down payments, and generally enjoy things with the extra cash. Now the full retirement age is 67, so there are fewer years between full retirement age and when benefits max out at 70. But the difference could still be enough for that motor home or world cruise. Answer: All financial planning requires a balance between current and future spending. If you spend too much in the early years, you may not have enough to make it through the later ones. Retirement planning is further complicated by the fact that we don't know how long we'll live or how our health will hold up. We can delay spending so long that we're no longer able to do the things we want to do, such as travel. Still, the fact remains that when one spouse dies, one Social Security check goes away. That can lead to a devastating drop in income for the survivor. Because the survivor receives the larger of the two benefits, and may have to live on that amount for years, it almost always makes sense for the higher earner to delay filing as long as possible. Liz Weston, Certified Financial Planner, is a personal finance columnist. Questions may be sent to her at 3940 Laurel Canyon, No. 238, Studio City, CA 91604, or by using the "Contact" form at Sign up for our Wide Shot newsletter to get the latest entertainment business news, analysis and insights. This story originally appeared in Los Angeles Times.
Malay Mail
28-05-2025
- Health
- Malay Mail
Building a caring future, today — Nur Faizira Abdul Rahman
MAY 28 — By 2030, 15 per cent of our population is projected to be aged 60 and above, and Malaysia will become an aged nation. While the numbers climb, our readiness to care remains alarmingly low. Who will look after our older generation, and how? There are many shocking news headlines as painful reminders of the reality that many older persons in Malaysia face care issues that lead to loneliness, neglect, and abandonment. As Malaysia is ageing faster than we realise, care issues faced by our older persons are no longer just family issues. Care has been seen as a family duty grounded in moral, cultural, and religious expectations for generations. However, times have changed. Our families are smaller, our lives busier, and support systems stretched thinner than ever. Many caregivers are overwhelmed, underpaid or entirely unrecognised. The reality? We have placed a significant responsibility on family members to become caregivers, especially women and adult children, without giving them any legal protection or support to do it well. Worse still, when things fall apart, we blame them. Preparing the next generation to care Here is another concern. What happens when the young generation becomes the main caregiving generation? Today's young people are digital natives raised on social media and are independent. Many live far from home, pursue global careers, and see traditional caregiving roles as outdated. Nevertheless, in just a few decades, they will be expected to care for an ageing population on a scale never seen before. We must start preparing them now. Care education should begin early, not when crisis strikes. We have placed a significant responsibility on family members to become caregivers, especially women and adult children, without giving them any legal protection or support to do it well. — Freepik pic We must integrate ageing and older persons' awareness into school and university curricula. Other than that, promoting intergenerational empathy and understanding through community programmes is important. Thus, shift the conversation about ageing from fear to responsibility and burden to dignity. A missing legal framework Malaysia's laws have not caught up. While we have related policies and statutes like the Care Centre Act 1993 and the Private Aged Healthcare Facilities and Services Act 2018, they mainly focus on institutions. Informal, home-based caregiving, where most older persons' care happens, is left in a legal grey zone. Meanwhile, our country's neighbours like Singapore, the Philippines, and Thailand have already introduced specific laws that define older persons' rights and caregiving responsibilities. As such, Malaysia cannot keep kicking this can down the road. We urgently need a legal framework that defines caregiving responsibilities across society, not just within families. Further, a law that cares for everyone — older people and their caregivers included. In summary, care is not just a 'family thing.' It is a national and human obligation. For the sake of love, we must empower our older persons to live with dignity, autonomy, and respect. Let us not wait until it is too late, as ageing is not someone else's story — it's your story, my story, and the younger generations' story. If we do not act now, we will keep reading the same headlines, feeling the same outrage, and doing nothing. But if we begin to care collectively, legally safeguard caregiving, and act with compassion, we can change the ending. We can build a Malaysia that honours its older generations, supports its caregivers, and educates its youth to continue the cycle of dignity through acts of care. Because one day, we will all be the ones in need of care. The time to prepare is not in the future, but now. Let us therefore safeguard the love and care for our older persons through relevant laws — because one day, we will depend on the very legal system we choose to build today. * Nur Faizira Abdul Rahman is a doctoral candidate at the Faculty of Law, University of Malaya (UM), a non-practising Advocate and Solicitor of the High Court of Malaya, and currently serves at the Centre for Foundation in Science, UM (Pasum). She can be reached at [email protected] ** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
Yahoo
26-05-2025
- Business
- Yahoo
How Boomerang Kids Are Becoming the New Roadblock to Retirement
There's something to be said for moving back home to support your parents financially in their later years. Between the high cost of housing and inflation, returning home can be economical for the adult children, as well. Learn More: Try This: But many adult children seek financial support from their parents rather than provide it. According to a Thrivent study, 46% of adult children ages 18 to 35 move back home. In 38% of cases, older parents report having their retirement plans and other long-term financial goals impacted by their children living with them. Boomerang children are those who return home after a period of time living on their own. The biggest reasons this happens are housing affordability (32%), inflation (30%) and major life events, like divorce (20%). According to the Thrivent survey, parents who've had their adult children move back home with them cite the following areas of their finances as having been most impacted by the change: Saving for short-term goals: 39% Saving for long-term goals, including retirement: 38% Debt payoff: 34% Savings for future health-related needs: 21% Ability to support their own aging parents: 8% While supporting your adult children isn't necessarily a problem, it certainly can be a roadblock to your other financial goals or needs. 'If your adult child is living with you temporarily, then all is well. If they are living with you on a longer or permanent basis and are helping with bills, that actually could be a financial benefit to all parties,' said Cynthia Campos Delgado, founder and financial advisor at Campos Wealth Management in McAllen, Texas. 'However, when it's a no-end-in-sight scenario and they are not helping by contributing financially, then that becomes unbalanced and unhealthy emotionally, as well as financially,' she added. Find Out: The cost of living is high. According to the latest data from the U.S. Bureau of Labor Statistics, the average person spent about $77,280 in 2023, the most recent available data. When adult children move back home, certain costs — like housing — may decline. But sometimes their parents have to foot the bill for everything else, like increased utility bills or groceries. 'These added costs can directly reduce parents' ability to contribute to their retirement accounts, or even force them to dip into savings prematurely,' said Mindy Yu, a certified investment management analyst (CIMA) and senior director of investing at Betterment at Work. Yu added that the 'financial strain could cause future retirees to delay their retirement date, and for those already retired, it might mean adjusting their lifestyle, cutting back on travel, hobbies or other desired retirement activities.' Fortunately, there are ways to make the situation work. Alex Gonzalez, a financial advisor at Thrivent, had the following tips for those with adult children living at home: Keep the lines of communication open. Approximately 60% of parents don't discuss the financial impacts of having their adult children living with them. Help the adult children make a savings goal and a plan, so they can strike out on their own again. Evaluate your own long-term financial goals and make sure providing financial support to your adult kids isn't getting in the way of that. Check in with your adult children even after they've moved out on their own to make sure they're on track financially. More From GOBankingRates These Cars May Seem Expensive, but They Rarely Need Repairs 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth This article originally appeared on How Boomerang Kids Are Becoming the New Roadblock to Retirement
Fast Company
16-05-2025
- Business
- Fast Company
Why more parents are supporting their adult children financially
Adults with grown children are often still helping support them financially. And sometimes, those contributions take away from the funds they would otherwise be saving for retirement. According to a recent survey of 1,000 U.S. adults with grown children, half regularly assist them financially. Those numbers are going up in recent years. On average, parents are shelling $1,474 monthly to help their adult children, which is about 6% more than they provided the previous year. More than 80% said they helped pay for groceries; 65% said they foot their grown child's cellphone bill; and nearly half (46%) even fund their adult children's vacations. Those monthly contributions add up, coming out to a contribution of around $17,688 per year—around twice as much as they're putting into their own retirement savings. Nearly half (47%) say they've sacrificed their own financial well-being and preparedness to help their grown kids find their footing. While older generations are often quick to call Gen Zers lazy or entitled, young workers are at a financial disadvantage. Not only are unemployment rates rising for recent college graduates, but an increasing number are underemployed. And, according to LinkedIn's 2025 Grad Guide, college graduates are more frequently taking jobs that don't typically require degrees. In fact, the fastest growing field for college graduates is construction. Real estate, utilities, wholesale, and administrative service jobs are up for the group, too, suggesting that four-year-degrees are not necessarily helping graduates land higher-paying jobs as often as they once did. Parents seem to know that their adult children are up against big challenges, which is likely why so many help pay their bills. Forty percent said they felt pressured to give to their grown children even when it negatively impacted their own stability, and 35% said they feel it's their responsibility to provide that support. Some say they've set deadlines for when they will stop funding their adult children's lives. Eleven percent plan to cut the cord within a year; 26% within one to two years; and 28% three to four years down the line. However, for some, the commitment is for life. Around 18% say there is no deadline at all for their grown children to become financially independent.
