Giving money to adult children?

[Menonut]

I don’t want to jump on the Beckham bandwagon but I’ve just read that Nicola Peltz receives an allowance of $1 million a month! Surely that’s insane?
What motivation has she got to go out and achieve anything for herself when she can basically sit on her backside and receive that.
Is that madness or AIBU?

I understand wanting to help your children and do the very best for them, and we will help our son as much as we can to get his foot on the ladder, but surely a time comes when they’ve got to be self sufficient and stand on their own two feet?

I’ve always like Peter Jones’s approach to this. He said he will double his kids earned income so if that income is 0 they will receive 0. If they choose a role that is in the charity sector or the NHS for example the amount he gives them will be increased. This means they are not scraping a living on minimum wage, but they have a purpose to their life.

It's a genuine question. How do we know what strings are attached? How do we know the amount quoted is even true? Billionaires don't stay billionaires by handing out 12m a year to each child.

We know nothing about their actual lives of arrangements, only what they share which is very selective to portray certain images.

You think how do we know is a stupid question, but just blindly believe something that's been read by someone on an anonymous forum?

I don't think purpose only comes from working. I imagine she'll have kids then that will be part of her purpose, same as any other stay at home mum, it's not like they lack purpose.
She will probably do charity work too.
I think it's funny that regular working people are trying to tell billionaires how is best to live, we all know we would switch given the chance!

I agree with a pp who said there are tax advanges. Given the option between working or being given £1 million a month, I'd take the money and anyone who says they wouldn't is telling porkies.

And yes, I think BB had a falling out with his parents over money. Still, no reason why he can't work if he has to

I would never give my adult child an allowance.
I think that’s setting them up to fail if you can’t keep on top of it.

But if I could afford it I would 100% buy them a house, deposit, holiday, car etc.

It’s the regular payment (for doing nothing) that is the issue.

I mean, I have no idea about this stuff but it just sounds like a way of transferring wealth without paying tax or something.

Please can you explain this more?

I am flabbergasted that grown adults get an allowance!

Why not just buy you a house?
I am assuming it’s your inheritance so why not just give it all to you now?

£12 million is nothing to a Billionaire. That was explained on YouTube with coloured stones during Covid, when Billionaires were laying people off and not paying cleaners etc.
So your a Billionaire and want to meet up with your children, are you really going to not throw them the equivalent (to the rest of us) of £25, rather than have to work around their work shifts? Or not go on holiday because they can't get the time off?

In the UK I believe there is a way of giving your adult children money which does not come under IHT. I think it is,if it is a specific regular unchanging amount , for the foreseeable future and it comes out of spare income ( so not having to dip into savings to cover it. ) Whether that is the same in US or not I don't know. I haven't done it myself but I do believe it is a way of passing on money , legally , without incurring gift tax or later IHT.

So a sudden one off larger amount for a deposit or a house would come under gifts . I think I'm right here but those who know more than me , please comment

Why do you think she doesn’t have a purpose in life?

With that kind of wealth, a family trust would be an effective way of distributing to offspring without ruining them with excessive wealth, whilst having tax benefits (though trusts are taxed)

Same - giving a million is probably the same to them as me giving a few hundred!
I’d always help my kids, can’t understand people that won’t.

All rich people to this. How do you think the Royal family get money (and no, I don’t think cutting ribbons counts as a purpose in life). The people who appear in ‘Made in Chelsea’; the children of Rod Stewart; etc etc; Princess Di back in the day - they live in beautiful homes but have ‘creative’ or low paying jobs - if any - because daddy pays.

I’m shocked people don’t know this.

People shouldn't automatically believe everything they read.
But if it's true then that's up to them.

@Sarah2891 and it's up to us if we want to have an opinion on it.

I think some people on this thread are missing the point.

Of course we all want to help our kids, and smooth their path. But we also want them to be well-rounded human beings, with a sense of self worth that comes from being largely independent.

Giving your kids a helping hand with a house deposit, or buying them a car, is not the same as giving them so much money that they never need to lift a finger as long as they live.

Controversial but I've been getting an allowance from my dad since I went on maternity leave with my first born, it tops me upto what my income was pre kids. It was only meant to be for a year but nearing 3 now and I would really struggle without it.

worth mentioning, I live with my partner but we don't share finances. My allowance lets me feel semi independent and I doubt our relationship would have survived otherwise

Just because you're a billionaire doesn't make you a control freak.

I'm not going to BUY my children's time.

However, if that's what they're doing, then it absolutely does come with conditions doesn't it.

Same here.

I work, my job is t my purpose or reason for getting up in the morning- if I win the lottery tomorrow I’d chuck it in and even if I had no kids or pets would still get up for a hobby, help out with charity work. A job is only most people’s purpose because it’s forced into them

She’ll be wheeled out more and more now to repair Brand Beckham - poor Harper.

I don’t think she gets that much, who could spend that every month.

She is definitely given a hefty allowance though and is a super spoilt little princess.

She’ll drop Brooklyn as soon as she’s bored and daddy will probably sue him for whatever reason she feels displeased about. I also think she is pregnant and she’s used it to leverage him cutting off his family.

I heard this too, and apparently he was bemused David beckham wasn’t giving his kids as large handouts. I think the children of wealthy families should work whether that’s learning the family business eg business school then doing the jobs in the business starting in the post room, or find their own way with a bit more financial support perhaps eg Jamie Oliver’s daughter is a nurse I read, good on her!

If you have as much money as her and her family does she never needs to work a day in her life so she doesn’t have to achieve anything unless she wants to. If she doesn’t achieve something you’ll know she cares and is actually passionate about something.

When I achieve something it’s because I have to pay the mortgage and need to be paid.

I would love to not have to achieve anything. I’d love an easy life, so I can’t complain when someone has my dream life for living theirs.

It’s all relative. Her dad is worth 1.6billion, at 5% he’s earning 80 million a year…. And has made her accustomed to a certain way of life.

He may as well pass it on now, gifts out of regular income don’t attract inheritance tax …..

I've told my adult dc that should I win the lottery, they will get enough to do something but not enough to do nothing.
We all need purpose in life