https://fivethirtyeight.com/features/dear-mona-how-many-kids-have-trust-funds/
As of 2010 (yep, it’s a while ago, but this survey is only conducted every three years and SCF has yet to publish 2013’s results), 22.5 percent of respondents said they had inherited money. Only 1.3 percent said they had inherited money through a trust fund.
about 30% of that 1.3% receive over 1 million dollars!
In an article entitled The Prudent Investor Rule and Trust Asset Allocation: An Empirical Analysis, Prof. Sitkoff of Harvard Law reported that according to federal banking data roughly $760 billion was held in roughly 1.25 million private and charitable trust accounts as of year-end 2006.
And according to the latest SCF data available, only 1.3% of the survey respondents who reported receiving an inheritance received it via a trust. In other words, close to 99% of all inheritances are NOT received in trust.
The median inheritance in the survey was $69,000 (the average was $707,291). For trust funds, that median wealth transfer was way, way higher — $285,000 (and the average was $4,062,918).
https://www.quora.com/How-much-does-the-average-trust-fund-baby-have-in-their-trust-fund
The majority of clients I see with or forming trusts are worth about $20-30M, have 2-3 children and about twice as many grandchildren. The think tank figures support that amount of wealth as average for people who will face the estate tax. However, I suspect the median is significantly lower.
$10M growing at 3% (6% return minus a 3% inflation adjustment so we can understand the numbers) over 15 years (time from trust funding until adulthood) comes to about $15M . $15M divided by an average of 5 grandchildren is $3M each.
To me, the term refers to someone who can live off the income from the trust without having work. If you can withdraw 3%-4% per year as income then your principle needs to be about 30 times larger than your income. So if you can live off $50,000/year then your trust should be worth about $1.5 million. If you need $100,000/year then you need about $3 million in the bank.
It’s a bitch, girl, but it’s gone too far Cause you know it don’t matter anyway Say money but it won’t get you too farGet you too far