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The very generous gift

August 7th, 2013 at 06:21 am

This past weekend, my in-laws gifted my wife $30,000. For more background on the gift see my most recent post in the forums.

Steps that have been taken so far:

The checks were deposited into our account on Monday.

The credit card was completely paid off this morning.

We scheduled the builder to begin work on our back porch today. It is raining.

We scheduled an appointment with an attorney to set up special needs trusts for our boys. We'll be meeting with the attorney this Friday afternoon.

Our emergency fund is housed at DW's home-town bank, and that transfer has not been made yet.

Our girls already have 529's set up, but we have not allocated any new funds toward them.

I received some good advice from my forum post. We may pay off the truck (10K) and set up an automatic monthly payment for a Roth IRA for DW for the amount that had been going to the truck payment.

Still not sure exactly how everything will be spent and allocated. It will not be spent on a luxury car or a Caribbean cruise.

$30,000 represents a bit more than half of my annual salary. Heck, 10 years ago, I wasn't even making 30K in one year. I (we) are overwhelmed by the generosity of this gift. It gives us the flexibility to attend to some savings goals that have been sorely neglected, as well as make some needed improvements around the homestead.

10 Responses to “The very generous gift”

  1. momcents Says:

    Bless your inlaws for their generosity! I haven't made it over to the Forum to read the original post about the circumstances. I haven't had my morning coffee yet and read it as $3K, until I saw the long list of accomplishments! Smile

  2. creditcardfree Says:

    How wonderful! Less debt and making retirement plans are great ideas.

  3. scfr Says:

    Sorry for offering unsolicited advice, but did you check with your bank about the availability of the funds? Our bank always holds funds if we deposit more than $5K at once. Would hate to see you incur any bank fees by writing too many checks too soon.

    Congratulations on getting the credit card paid off.

  4. SecretarySaving Says:

    That was very nice of your in laws. I've heard on Dave Ramsey's podcast that if you give more than $13K to someone then they (the inlaws) will pay tax on the $30K. In the podcast, Dave suggested gifting the wife $13K then the husband $13K and the rest the following year to avoid the taxes. Just food for thought! I'm so glad you are working on those special needs trusts and have 529's set up. Great job! woo hoo Hey, what's wrong with taking a vacation too?

  5. MonkeyMama Says:

    Congrats again, on the generous windfall! (I always think it's nice when living gifts are made. As opposed to the usual inheritance or gift when someone passes).

    Anyway, I hope you have your own wills and life insurance in order. I would hope these things were well in order before you set up a trust, and the lawyer will probably mention this too. Just checking... I can't tell either way, but I keep meeting very careful "ducks in a row" types who are thinking about getting life insurance and wills now that their kids are in college... O.M.G. {I know *way* too many people who lost a parent or two in childhood, so this just strikes me as insane. I think most people figure they don't have to worry about it}.

  6. Bob B. Says:

    scfr: Yes, the money has cleared and shows up in our account.

    SS: The 2013 exclusion is 14K. Because we are a married couple, the effective exclusion is 56K: 14K from MIL to DW, 14K from FIL to DW, and 14K from each of them to me.

    MM: Thanks for checking. Yes, we have adequate term life insurance through my work. The premiums are deducted from my pay check each month. Our wills were written up within a handful of weeks after DD1 was born 11 years ago.

  7. PNW Mom Says:

    Congratulations on your windfall!

  8. IndianGal Says:

    What a wonderful gift! Good job on checking the tax exclusion. Glad to hear all the wonderful uses it will be put to.

  9. MonkeyMama Says:

    I would very seriously consider a term life insurance policy outside of your work. The problem is that ends with your employment. Look into it - we really don't pay that much for a LOT of coverage. $1 mil in coverage for $500 per year - that is two policies, might be cheaper with one policy. (My spouse is completely un-insurable, so thank goodness we got a good private policy when young. But, it's not just us - is a fairly common scenario. You get sick or develop a condition, and then you can't get insurance anywhere else. You have a lot of dependents to support, so I'd be concerned).

  10. LivingAlmostLarge Says:

    Awesome gift!I like the idea of you doping something that helps the people who gifted you the money?

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