My Parents Want My Inheritance From My Grandparents | Sorry We Missed Your Call

Summary

Podcast Title: The Ramsey Show Highlights
Host/Author: Ramsey Network
Episode: My Parents Want My Inheritance From My Grandparents | Sorry We Missed Your Call
Release Date: December 5, 2024

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Episode Overview

In this insightful episode of The Ramsey Show Highlights, hosted by George Kamel and Ken Coleman, listeners are presented with real-life financial dilemmas submitted by callers. The episode delves into complex inheritance issues and the challenges of managing wealth responsibly. Through engaging discussions and expert advice, George and Ken provide actionable solutions aligned with Dave Ramsey’s financial principles.

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Segment 1: Navigating Inheritance Conflicts

Caller’s Dilemma

The episode opens with a voicemail from a caller facing a sensitive inheritance situation:

Caller 1 (00:23):
"I have a question about a trust my family is involved in. And my wife and I just were notified that grandma had passed away and left us one quarter of a multi million dollar trust. But we're just feeling really weird vibes from her parents who basically felt like they got skipped in the inheritance of it and that we should give them the money back somehow. Anyways, would love to ask about what we should do with this money and how it would work. Thanks a bunch."

Hosts’ Analysis and Advice

George Kamel introduces the caller's predicament, highlighting the tension between different generations over inheritance:

George Kamel (00:58):
"Wow. So grandma passes and says, hey, the kids aren't getting jack squat. The grandkids are going to get it."

Ken Coleman delves deeper into the possible motivations behind the grandparents' decisions:

Ken Coleman (01:07):
"The fact that their first response was, hey, that's bullcrap. We got skipped. Give us our money may be a reason why Grandma was like, I'm not leaving them any money. I'm going to leave it to the next generation."

George emphasizes the possibility that the grandparents intended to empower the younger generation:

George Kamel (01:48):
"Maybe the parents, she says, hey, the parents, they're fine. They're older, they've got the kids. I want to give them a leg up as they begin their journeys as adults."

Ken encourages the caller to honor the grandparents' intentions by being responsible stewards of the inheritance:

Ken Coleman (02:58):
"Be a wise, good steward of that money and use it as though grandmother's sitting at the table with you in ways that would make her smile and bring her peace."

Key Insights

• Respecting Intentions: Understanding that grandparents may have specific wishes for their inheritance can help mitigate familial conflicts.
• Responsible Stewardship: Receiving a significant inheritance comes with the responsibility to manage it wisely, in line with the benefactor’s values.

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Segment 2: Managing Wealth Post-Financial Milestones

Second Caller’s Concern

The next voicemail touches on the challenges of sustaining financial growth after achieving significant milestones:

Caller 2 (03:29):
"My wife and I are baby step seven and we owe nobody a dime. But I have several vehicles, two collector cars and a Kubota tractor that I need to take care of our seven acre property. Do I sell my toys because they're worth more than my annual income even though they're all paid for. And that's my question. We're investing everything the Ramsey way. Thank you."

Hosts’ Discussion and Recommendations

George contextualizes the caller's situation within the Ramsey Baby Steps framework:

George Kamel (04:01):
"Baby step seven, meaning they have completed all the steps, they paid off their house, they're building wealth, giving generously."

Ken provides clarity on when it's appropriate to hold onto luxury assets:

Ken Coleman (04:53):
"If you make 100 grand and the toys are worth 120 total, we're going, oof. That's a lot. Your world tied up in what we would say are depreciating assets."

George emphasizes the importance of aligning asset ownership with financial security:

George Kamel (05:39):
"If you're on track for a great retirement and you have plenty of money to give, save and spend as you please, then I would say you're on track."

Ken adds that being a "technical millionaire" without liquid assets can be misleading:

Ken Coleman (05:44):
"You could be in baby step seven and not have a high net worth. Maybe you're a technical millionaire. The value of your home is a million dollars, but y'all are cash poor."

Key Insights

• Asset Evaluation: Regularly assess whether luxury or non-essential assets contribute positively to your financial well-being.
• Liquidity vs. Valuation: Understanding the difference between net worth on paper and liquid assets is crucial for true financial health.
• Alignment with Goals: Ensure that all assets and expenditures align with long-term financial goals and retirement plans.

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Notable Quotes

• Ken Coleman (01:07):
  "Maybe it wasn't that the parents are mismanaging. There is a reason she was like, I'm not leaving them any money. I'm going to leave it to the next generation."

• Ken Coleman (02:58):
  "Be a wise, good steward of that money and use it as though grandmother's sitting at the table with you in ways that would make her smile and bring her peace."

• Ken Coleman (04:53):
  "We're just feeling really weird vibes... If you have a challenge, call me. If you have a problem, let's talk about it. Otherwise, I'm gonna go do the next right thing."

• George Kamel (05:39):
  "If you're on track for a great retirement and you have plenty of money to give, save and spend as you please, then I would say you're on track."

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Conclusion

In this episode of The Ramsey Show Highlights, George Kamel and Ken Coleman tackle real-world financial issues that many listeners face. From navigating intricate inheritance disputes to managing wealth after achieving financial milestones, the hosts provide thoughtful, practical advice rooted in Dave Ramsey’s financial principles. The discussions underscore the importance of responsible stewardship, aligning financial decisions with long-term goals, and maintaining open communication within families to preserve both wealth and relationships.

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Note: To create a personalized budget and take control of your finances, visit EveryDollar and start budgeting for free today.

Transcript

[Dave Ramsey]

Brought to you by the EveryDollar app. Start budgeting for free Today.

[George Kamel]

We get a lot of voicemails, a lot of calls we can't take. But the producers, they comb through painstakingly and find some of the best voicemails. And occasionally we'll do a segment called sorry we missed your call. And producer James has a few calls for us. A few voicemails lined up for us. James, can we play the first one? Here we go.

[Caller 1]

I have a question about a trust my family is involved in. And my wife and I just were notified that grandma had passed away and left us one quarter of a multi million dollar trust. But we're just feeling really weird vibes from her parents who basically felt like they got skipped in the inheritance of it and that we should give them the money back somehow. Anyways, if would love to ask about what we should do with this money and how it would work. Thanks a bunch.

[Dave Ramsey]

Bye.

[George Kamel]

Wow. So grandma passes and says, hey, the kids aren't getting jack squat. The grandkids are going to get it.

[Ken Coleman]

Yes. And so here's the deal, man. Since since there's only one side of this call, we can't ask any questions. The fact that their first response was, hey, that's bullcrap. We got skipped. Give us our money may be a reason why Grandma was like, I'm not leaving them any money. I'm going to leave it to the next generation.

[George Kamel]

Yeah, well, especially, I mean, Grandma clearly was doing well, managing her money and creating this wealth. So there's a piece of me that says there is a reason. Maybe it wasn't that the parents are mismanaging.

[Ken Coleman]

I know it's more fun for me to create some drama.

[George Kamel]

You know, we say, you know, maybe the parents, she says, hey, the parents, they're fine. They're older, they've got the kids. I want to give them a leg up as they begin their journeys as adults. Who knows what the reason is, but the truth is they can feel all the weird vibes they want and be as mad as they want. But this was not your decision. Yeah, and I would not give them a penny of this money. You don't have to gloat and hold it over them. But this is not, it's really not your money to give. Grandma gave it to you.

[Ken Coleman]

Yeah, I mean, I guess it technically is your money to give, but I just wouldn't. I like what you said. I wouldn't, I wouldn't, I wouldn't just go buy a bunch of new cars and new houses and be like, wahoo. Like, I would be smart with it. I'd sit down with the smartvestor pro and invest it wisely. But here's the thing. We're just feeling really weird vibes. I don't do really weird vibes when it comes to relationship. If you have a challenge, call me. If you have a problem, let's talk about it. Otherwise, I'm gonna go do the next right thing. And grandma left you a quarter of a multimillion dollar trust. Be a wise, good steward of that money and use it as though grandmother's sitting at the table with you in ways that would make her smile and bring her, bring her peace.

[George Kamel]

And this is your wife's battle with her parents to deal with. I wouldn't get involved as the son in law.

[Ken Coleman]

No. But you can buy one of those electric Hummers that the wheels turn sideways and they park themselves. They're kind of rad looking.

[George Kamel]

That'll really make them angry. So that's what dude do with it. Yes, I'd get with a Smartvestor pro, obviously. Run it through the baby steps, pay off your debts, invest for the future and hopefully you can do the same for your grandkids one day. Maybe skipping your kids just to keep the tradition.

[Ken Coleman]

Like the tradition. I like every other one.

[George Kamel]

We got another voicemail. James, you got one in the tank. All right, let's see what we got next.

[Dave Ramsey]

My wife and I are baby step seven and we owe nobody a dime. But I have several vehicles, two collector cars and a Kubota tractor that I need to take care of our seven acre property. Do I sell my toys because they're worth more than my annual income even though they're all paid for. And that's my question. We're investing everything the Ramsey way. Thank you.

[George Kamel]

Great question. So baby step seven, meaning they have completed all the steps, they paid off their house, they're building wealth, giving generously. But he's got a lot of toys, the collector cars, the tractor, and they're millionaires. Some of it we can agree is for fun. Some of it he's saying he needs to take care of this large property. And so I see no problem with this. I mean, we say here's the parameter. That's why he's calling in. We have the parameter of, hey, everything with wheels and motors shouldn't add up to more than half of your annual income. So let's say he makes 100 grand and the toys are worth 120 total. We're going, oof. That's a lot of Your world tied up in what we would say are depreciating assets. The tractor's not making them money. The collector cars may hold their value. Who knows? The collector cars might be a little iffy on this one. Several vehicles. So if it's weighing on him, I would say sell what you need to get the weight off your back. But as far as financials go, I mean, there's nothing on fire here either.

[Ken Coleman]

No. And I think the weight is. He wants to do everything, quote, unquote, the Ramsey way. And we have this principle. I think the principle begins to dissolve when you become a millionaire and you're a multimillionaire. And as Dave says, could you take one of those collector cars and set it on fire in the living room of your house? And it would make a mess, but it wouldn't. It wouldn't hurt your net worth. Yes. You're good. Do you need a tractor to run your property? Yes. And so we're not selling the tractor. You've paid for it. You own it. It's in cash. It's a part of it. Making your life run. Let's don't. Let's don't do that. If you, like George says. Yeah. If those two collector cars kind of wait on you a little bit, sell one of them if you want to. But, man, you're a millionaire. Y'all are there. You can now spend some money on some of these things and give your money away generously.

[George Kamel]

Yeah. The goal of that principle, that parameter, is to allow you to make it through the baby steps to build wealth.

[Ken Coleman]

Right.

[George Kamel]

And so we don't know their net worth. You could be in baby step seven and not have a high net worth. So a lot could be true here. There's a lot to dig into. So if you're on track for a great retirement and you have plenty of money to give, save and spend as you please, then I would say you're on track. But if you're going, oof, we're really not where we should be with our retirement. We could invest more. I might look at selling some of these to, you know, just get rid of the weight.

[Ken Coleman]

Or maybe you're what I would call a technical millionaire. The value of your home is a million dollars, but y'all are cash poor. Yeah. So sell the two collector cars.

[George Kamel]

Your land might be worth a million, but you don't have anything in retirement.

[Ken Coleman]

Right.

[George Kamel]

There's no income.

[Ken Coleman]

It's not because of some secret Ramsey formula. It's. You don't have the money. Yeah.

[George Kamel]

Thanks for the voicemails. We appreciate it.

[Ken Coleman]

I would love a Kubota tractor.

[George Kamel]

It sounds fancy. That's if you're. If you're mentioning the brand name, I imagine it's like the Maserati of tractors. Yeah, I have no idea to. I only know John Deere.

[Ken Coleman]

John Deere is awesome.

[George Kamel]

I'm mainstream when it comes to tractors.

[Ken Coleman]

John Deere is outstanding. I do Kubota's. Yeah. I can. I can covet me a Kubota tractor. I would love one for my property, so. Yeah, you paid for it with cash. Rock and roll, brother.

[George Kamel]

There we go. Create your free every dollar budget today.

[Dave Ramsey]

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