My Grandmother Loaned Me $230,000 From My Trust Fund...
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- Опубликовано: 14 ноя 2022
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Grandma has a good lawyer.
They are protecting the granddaughters inheritance in the event of a divorce with the loan.
I think when its in the home if he divorces he gets half
@ruthirwin8222 , half of a mortgage?
That's the point. If they have no equity there is nothing to get.
They’re both like “how do I ask is she gonna die soon without sounding mean.” 😂
Some people never die, just ask them. They don't buy life insurance, make a will........
@@alinatamashevich3354 “some ppl never die”
@@reese85 And the funeral homes hate them.
@@alinatamashevich3354 you he
@@alinatamashevich3354 you he o
When Dave asked, “how’s her health?” I literally laughed out loud, but I really didn’t want to.
Just pay it off like you would a mortgage. It isnt your money till she passes. Its a blessing she loaned it to you rent free in the first place.
I'd rather owe grandma than a bank!
She is one lucky girl to have that trust fund!
Right !!
for real i’m jealous
Yes it must be nice.
People with "lots of money" problems. I can't relate. 😑
Do not be envious. Be content!
I can, or at least I want to relate.
Only person with some money is grandma! The granddaughter and her husband both are working two jobs!
@@ralfbo685 oh, I am! Less worries. 😊
@@elainepatterson5587 glad to hear! I misinterpreted your comment.
Grandma is awesome. Teaching responsibility and being generous. Pay yourself back like your paying interest. So grandma can see what a good steward you are
Lol the caller ain't paying it back
Grandma structured it as a loan so that if they divorce or the caller wants to keep the trust separate, it is, it’s her inheritance. Once it’s in the matrimonial house he gets half.
Ding!Ding!Ding!. Your answer is correct and Bonus Points awarded. (c'mon ramsey, wake up)
ye-up
Yep!! It’s a bit of a red flag as well that he doesn’t want to treat it like a loan, he’s already ready to consider that money his.
Very smart!!
Is it put
"in Sturpes?" That is a way to protect the money.
This is perfect. Aint no way I would take a mortgage when she is offering me cash from my own trust fund. Pay it back at baby step 6 speed.
There is nothing really wrong with what she did. She got an interest free loan and as long as she pays it back no harm done. I think grandma saw this.
So if she pays back $2000 a month in 10 years that’s $240k but it’s you just saving your own money 💪🏾
Exactly!!
Seriously! A great deal
I’m saying like I wish I had this problem lol like boo hoo
It's a dumb loan. That $240k in the trust fund could be making money via interest or stocks. That $240k could have been a mortgage with an interest rate you pay on.
Causing problems where there doesn't need to be problems.
Keep paying it back. Once you paid it back you are debt free and mortgage free.
Grandma, is it really you??..I’ve been looking all over for you and I finally found you!!!
I agree with Dave when it comes to grandma, however I am going to say she is an example that everybody should follow. She’s left A inheritance to her children’s children, and she is making sure that those who receive the inheritance are people of integrity. So it comes to grandma she is a shining example of what we should all be
If everybody involved keeps their mouth shut, how will the cousins and siblings ever know?
Possibly grandma is testing granddaughter's character. If grandaughter pays back what is essentially hers anyway, then grandma can feel confident she did the right thing leaving all this money to her granddaughter.
thats what ide do
It’s not hers, it’s out of a trust fund that the grandmother doesn’t have to give. If grandma wanted you to treat it like a loan you do it. Grandma can leave money to someone else if she doesn’t feel like granddaughter is trust worthy.
But if it’s in a trust fund can grandma get it back? Sorry not sure how they work
You are very smart. Grandmother is testing her. Maybe that's how she is going to help other kids. Yep.
The problem is though, what's the recourse if she doesn't pay it back? Not give her the rest? Not making sense from that standpoint.
You owe yourself for the purchase of your house? Sounds like a nice spot to be in, frankly. BTW, really nice grandma!
Tax and interest free too!
She gave herself a interest free mortgage. Nice.
Yep, sounds pretty good. Interest free mortgage
By requiring she pays it back , she's teaching her responsibility which it appears she is responsible
This is essentially an advancement, with like a lesson attached.
We hope Grandma lives to 100 years old. We need her wisdom and love.
Me too. That way it will take forever for that girl to get the rest of her trust fund. 😃
@@ryder4508 No why I said that. I was thinking if I had a Grandma like that I'd want to keep her as long as possible.
the hubby has to love this deal!
It’s like she putting the money in a Saving Account.
You can tell the caller is completely embarrassed by the situation
I think this young person and grandmother are very smart. I hope she pays this off before her grandma sees she is responsible. Congratulations young lady. Neal
Sounds like grandma may have been concerned about what would happen to the trust in a divorce situation. My mom has her assets in a trust and mentioned in passing that she consulted a lawyer about making sure it stays in the direct family line. When I looked puzzled, she said “keeping spouses out.” So maybe that’s what this is about? But regardless of grandma’s reasons, this caller made a promise. Kinda shady of the husband to interfere in my opinion.
I don't understand why Dave has a problem with this. I think the Grandma did a wonderful thing. The granddaughter sounds like she is extremely responsible. I think it sounds like a win/ win for everyone. I must have missed something. The granddaughter is basically paying herself back. Once she spends the money on the house it is gone. This way she has replaced her principal and only loss the interest. Otherwise she would have had lost a good chunk of change. She would have had a house, but this way she will end up with both.
Perhaps he is not too supportive because she did not really earn the money, and it was given to her. However, she agreed to pay it back.
However, perhaps, if she is working two jobs, then maybe she should have waited like her husband initially wanted to, or purchased a smaller home/foreclosure.
Probably only because the caller is already a responsible adult in her 30s and being fiscally responsible is a lesson she has probably already learned. But very little harm here (it's almost like the grandma is just treating this trust fund as her own estate).
I think I need a hearing aid cause I definitely heard "early 30's" when he asked for her grandma's age.
I heard "early 30's" also.
Same
Me too!
Haha same!
3/4 of the way thru the call, we finally have the story. It's like pulling teeth from the caller on this one.
I was thinking the same, just give all the information lady!!
I know I hate that
"The Fair only comes once a year and today isn't the day."
I can tell you this much, Grandma has got her stuff wired tight and it seems like her granddaughter does to. Knowing this, she probably would have preferred to just give her granddaughter the money to buy the house outright, but that would have upset the other grandkids (most of whom I suspect would just blow the money if she gave it to them). Hence, this unusual mortgage arrangement.
I won't be able to sleep tonight worrying about her situation.
I truly hope you're joking 🤣
Um what
@@xthebluenitex No joke. Dead serious!
@@front331 yikes 🤣
What a massive problem! So glad she got advice from Dave 🤦🏻♂️
Right a 0% interest loan. Thats pretty sweet
LOL
@@Hallowsaw Hopefully it was a sarcastic comment. 😂
Grandma, I love you!
This is actually awesome! If you have a trust, why not use it as a secondary way of avoiding debt
Because it is a primary way of avoiding debt.
A trust fund should provide a constant income source via interest while protecting the corpus of the trust assets. Cashing it out is how wealthy people become poor within a generation.
She didn’t borrow FROM the trust fund. She borrowed against the future trust fund.
Very nice grandma +1
If she just gave her granddaughter the money, her husband would be immediately entitled to half of it, no? Very smart lady.
There is NOTHING wrong with paying yourself back
Frankly, I think Grandma did a great thing....she is helping out by not charging interest, but not handing out a 'free ride'. I think the granddaughter is feeling guilty about the transition from paying extra to just the agreed amount. She should just have a chat with Grandma and explain what's going on. She's not being irresponsible, she's just shifting priorities.
Keep the loan, and pay it back with GAZELLE intensity and give grandma the satisfaccion to know that her grandaughter is a trustworthy person.
Agreed. Except the 'Gazelle' intensity is not needed since her inheritance from the trust will just be reduced by the loan balance and it gives a show to grandma ( for lack of a better term ).
Grandma may be happy already because they are ahead on it.
She said they both have 2nd jobs. And without those it would take an extra year. Imho they can just do what Dave says.
Dave never thinks of taxes. I would think distribution of this money would be considered for gift tax, which the grandmother would be responsible for, whereas upon her death it's tax free.
I though there was a certain amount that could be given tax free per person each year?
@@donaldlyons17 $16K per year
There is no inheritance tax in most states.
Best Dave answer ever 😂😂
Good advice...Not really, what happens if they split. He gets half. Taken as an inheritance and kept separate it's hers to keep. Dave never even considered this which is why you speak with an attorney when big money is changing hands. That should have been part of his advice. Makes for good podcast fodor for his fans but that's all it is. Very bad advice even if it's already a done deal. Others could learn from it. Dave gives excellent advice most of the time but sometimes he misses the obvious.
Dave sounds like he has a wonderful family.
Grandma did right
The other thing that should have been said was just pay it off as fast as possible because basically it's taking money from your front pocket and putting it in your back pocket and it makes grandpa feel better
We finally got to the vital information later on in the call.
She's basically paying back herself
Which is more than fine. She is getting early access to money that otherwise would not be yet available to her.
Until your kid decides not to talk to you
Good idea. No lien on the house. No mortgage. Lucky girl.
It pays to be born rich.
More dollars than sense.
This is all and all a great deal for her. She’s “paying off” her mortgage and then gets to get the money back in 20 years.
Pay aa agreed. Honor the agreement with Grandmom. She is generous.
If this is a "bad Baby Step 6," I want to be in such a position. There's no problem, here.
Loan is a noun. Lend is a verb.
I thought so, too. I looked it up to double check. Language is always changing and loan is now considered a noun and a verb. To each his own, though.
Just pay the agreed upon amount. That's what grandma wants, and it's her money, for now, to set terms with, which is presumably why she hired a lawyer to draft a contract. No reason to pay it off more quickly, because it's 0% interest, so there's no penalty, and there's not obligation to the grandmother, because the contract dictates the terms. I think it's pretty awesome that her grandmother did that for her, because it will have saved them a significant amount in mortgage interest.
What a bizarre situation. I've never heard of that scenario happening before.
I do the same, I save money and then borrow from myself if I need a bigger amount and always pay it back to my account. It’s interest free this way.
😂 i was getting ready to get on grandma 🤣 Dave funny asf when he want to be
What an awesome strategy- interest free mortgage essentially. Plus she will have the house and all payments she made to it. 👍
A trust fund is not a bank. The money remains in the trust.
Granny is awesome!
What a problem to have.
I am going to be that type of grandparent…
Nice Grandma!
Curve ball for the baby steps.
I actually wish I could do that. Way better than having interest.
That's why rich people just get richer and richer.
$750k I don’t think is rich and grandma prob invested and saved that money up her whole life and have nobody else to leave it to
@@icantwiththis They do smart things with money. Not lease Mercedes, I phones and get mani-pedi's every week.
@@alinatamashevich3354 You're exactly right. So many people think that buying that 5-10$ starbucks coffee or scratch off ticket everyday isn't making them poor... but it is.
@@reese85 it seems rich if the grandmother is putting it aside in a trust fund while the grandmother is still kinda young. And the caller mentioned cousins, insinuating that the grandmother set up a trust fund for all the grandkids, who knows how many.
She hustle grandma. Wild!!!
One thing that might go wrong (but probably won't, since the caller is almost done paying it off) would be if grandma didn't have long-term care insurance and then needed the money for her care, assuming that she doesn't have enough assets to pay for her care. That would be a reason for another grandma to not do this.
Grandma probably has her own insurance or her own money set aside for this.
I understand the reason for the loan besides not letting cousins/siblings find out; by loaning the money, there is no gift tax yet, right?
I think you’re right there but there could be some imputed interest. Meaning the grandma could be taxed for the interest she could have made on the loan.
I think you’re right there but there could be some imputed interest. Meaning the grandma could be taxed for the interest she could have made on the loan.
Good for them!!! They are off to a great start to their marriage debt free other than their mortgage.
At first I was saying " NO " ! However. I realized it was the same as a bank loan. Pay it like a mortgage to the the trust fund. I agree you are force saving your own money. Pretty simple.
Must be nice.
but there was a stipulation between the grandma and daughter, she should still honor her grandma and stay gazel since it's a family thing. when it's family it's more important because the food tastes different between family members at thanksgiving.
It's call forced savings...
Lucky lucky lady.. interest free.. just pay her back as planned
I want to know what the nature of those cousins is that she didn't want to give them access to their trusts just yet.
I am thinking I would not taken the money in the first place..
That lady is BLESSED to have such an amazing & awesome Granny! I wonder if she's looking to adopt more G-children! LoL!! Way to go Granny! I hope that young lady is as wise as her Granny!!!
I got a little chuckle at "it's just a document between me, my grandma, and a lawyer." Uh honey, that's a contract.
She gave her Grandma her word, she needs to stand by it.
I have seen it before, where the relative will not provide a legacy eary unless it is to buy a house. She may do the same for the other potential heirs. I'm no tax attorney, but is a gift tax involved? A lawyer prepared the agreement, so hopefully all is well. This is not a regualr loan from a relative. Grandma has already "assigned" this money to this relative. Go Grandma.
WHY? This is WEIRD!
What a pointless exercise. Whats the point in paying back money that is yours anyway?
TAXES
This makes no sense!
Seems like Grandma doesn't trust you to be sensible with the money unless she's acting as a brake. Which given how vague grandchild is about the details doesn't seem completely unjustfied. There's a good chance the money will grow better in the trust than in hubby's hands, anyway. (He doesn't sound totally on board with the whole fiscal responsibility thing) So best to pay it back as quickly as circumstances allow.
Money is the root of all evil folks. This life is a joke. A piece of paper to dictate life
Pay the trust fund back as if it's a mortgage.
I suspect the gap between the have and have nots will only continue to get worse while there is an estate tax exemption of up to 24million for a married couple. 750k is literally a life time of retirement savings for some. Some people just get it as a gift from grandma and start on 3rd base. Much respect to everyone who is trying to make it all work without the help.
That being said. By the time they get to be worth a million, grandma might still be alive and they would be part of the self made millionaires club anyway.
Lol 😅Hey grandma I could use some trust fund money!
I found it quite weird myself to have them pay back what is technically their money on a proper investment. Oh well, it is what it is.
Just pay as u go, she will prolly pass b4 it’s paid off
LOL Dave is so confused by this call.
What does the trust fund not own the house
She said that if she doesn't pay it back she just gets the balance and there's no legal action against her if she doesn't pay it back. I am confused as to why this is even an issue.
I’m pretty sure taxes matter here.
People with trust funds make me sick honestly. Sorry, I said it. They usually so entitled and think theyre so much better than people around them.
Or it gets wasted.
Then they lecture you on how you need to be "more responsible".
I don't get !?!
Grandma trying to cover her granddaughter for potential divorce issues! + Keeping the cousins of the pipe, for now... 🤣
She needs an attorney