Podcast Summary: Being Fair With Inheritance

Podcast Information

• Title: Jill on Money with Jill Schlesinger
• Host: Jill Schlesinger, CFP®
• Episode: Being Fair With Inheritance
• Release Date: July 10, 2025
• Description: Host Jill Schlesinger tackles sometimes uncomfortable and even controversial money and investing issues, providing actionable insights to help listeners make informed financial decisions.

Introduction

In the episode titled "Being Fair With Inheritance," Jill Schlesinger delves into the sensitive topic of distributing inheritance among adult children. Throughout the show, Jill addresses listener questions, offers practical advice, and engages in insightful discussions to help her audience navigate complex financial and familial matters.

Listener Questions and Discussions

1. Virginia's Inheritance Dilemma

Timestamp: [03:31]

Virginia, a listener from Virginia, shares her predicament involving her three adult children. She has savings and has designated that upon her passing, any available funds should be split equally—one-third to each child. However, one child, who recently purchased a condo with an $80,000 down payment provided by Virginia, was later informed that this amount is considered part of her inheritance. This revelation upset her daughter, who was unaware of this stipulation, while the other two children found the arrangement fair.

Jill's Response: Jill empathizes with Virginia and emphasizes the importance of equitable versus equal distribution. She suggests that Virginia explain to her daughter that the $80,000 is an advance on her inheritance, similar to deducting from the total estate before equal division. Jill advises maintaining fairness by perhaps clarifying, "I think that if you had a million dollars when you died, the 80 grand would come off the top to each of those kids, and the rest would be split one third each" ([06:15]).

Co-Host Mark's Input: Mark supports Jill's perspective, highlighting the importance of transparency and fairness in inheritance planning. He reassures that Virginia's approach aligns with equitable distribution principles, stating, "The other two kids will get 80 each, and then whatever's left will be divided a third. A third, a third" ([07:25]).

2. Matt's Retirement Planning

Timestamp: [07:35]

Matt, another listener, discusses his financial situation and seeks advice on planning for early retirement. At 39, with a combined investment portfolio of $850,000 at Vanguard and a $600,000 home with a $275,000 mortgage, Matt and his wife are considering retiring between ages 50 and 55. They earn a combined income of $245,000, with significant contributions from Matt's parents towards their expenses and investments.

Matt's Concerns:

• High net worth of parents and their contributions
• Desire to achieve financial independence without relying solely on inheritance
• Managing taxable and retirement accounts for flexibility

Jill's Guidance: Jill affirms Matt's solid financial standing and recommends continuing with Roth accounts to maximize tax-advantaged growth. She advises building non-retirement assets to maintain flexibility, stating, "I don't think you have too much tied up in retirement accounts now," and suggests, "If there's a Roth version of the 457 plan, go crazy and put a bunch of money in there. If not, build up your taxable brokerage account" ([09:10]).

Mark's Agreement: Mark concurs with Jill, reinforcing the strategy to diversify investment vehicles and maintain financial flexibility ([08:45]).

3. Ty's Investment Choices: T-Bills vs. CDs

Timestamp: [10:50]

Ty from California poses a question about his retirement investments, specifically comparing Treasury bills (T-bills) to Certificates of Deposit (CDs). He mentions that his T-bills are yielding returns close to what CDs offer and seeks advice, considering California's taxation on these instruments.

Jill's Advice: Jill explains the importance of assessing the tax implications, especially in high-tax states like California. She recommends conducting a "tax equivalent rate of return" calculation to determine which investment offers better after-tax returns. Additionally, Jill suggests considering California municipal bonds as an alternative, highlighting their tax advantages despite being slightly riskier than federal securities ([11:20]).

4. Ernie's FIRE Abroad Strategy

Timestamp: [14:15]

Ernie, part of the "Fire Fine" movement, shares his and his partner's plan to retire early by relocating abroad. With a combined investment portfolio of $740,000 and $212,000 in retirement accounts, they aim to live on approximately $36,000 annually in South America. They are uncertain about their Social Security eligibility and plan to supplement their income through freelance work.

Jill's Perspective: Jill encourages Ernie and his partner to pursue their adventurous plan, considering their lack of dependents and the feasibility of their strategy. She remarks, "I don't think there's a huge downside... what's so bad?" suggesting that even if their investments dip, they have the flexibility to return without significant consequences ([14:24]).

Mark's Support: Mark echoes Jill's sentiment, emphasizing that their lack of obligations makes this a suitable experiment ([15:00]).

Further Recommendations: Jill advises maintaining a balance between investments and freelance income to ensure their living expenses are covered without depleting their investment accounts. She recommends aiming to earn $50,000 annually through freelance work to comfortably live on their $36,000 budget ([16:00]).

Conclusion

In this episode of "Jill on Money," Jill Schlesinger adeptly navigates complex inheritance issues, retirement planning, investment choices, and the pursuit of financial independence through early retirement. Through thoughtful responses and practical advice, Jill provides valuable insights that empower listeners to make informed and fair financial decisions within their families and personal lives.

Notable Quotes:

• "If you had a million dollars when you died, the 80 grand would come off the top to each of those kids, and the rest would be split one third each." — Jill Schlesinger [06:15]
• "I think there's a huge downside... what’s so bad?" — Jill Schlesinger [14:24]

Resources Mentioned:

• Website: jillonmoney.com
• Podcasts: Money Watch on the Odyssey app
• Financial Tools: Roth accounts, taxable brokerage accounts, California municipal bonds

Connect with Jill: For more personalized advice or to join the conversation, visit jillonmoney.com and click the "Contact Us" button.