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Kids Trust Funds. Are you and how you doing it?

TPC

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Most our friends say “The kids can have the equity in the house” and leave it at that.
Not much equity after the reverse mortgage is calculated in.

I got an email from Grandma Axehandle.
She wanted to close a USAA account she had for for Maynard and where to transfer the cabbage?
I’ll get back to that.

Maynard’s older 1/2 brother blew 2 years in college and burned through $70k smoking dope and playing video games instead of attending class.

He’s not my kid so that fuck Up was between him and his dad.
I have enough drama in my life. Do I want to stay with 30” or roll with 32’s on the Can Am has me laying awake at night.

So when grandma Axehandle got ahold of that info, being a steel minded German with attitude, that kids college fund and inheritance got transferred and deposited in to Maynard’s trust fund.

What ever chick Maynard finally hooks up with those kids are financially set for life. Astronomical sum.
Maynard won’t ever touch a dime of it. You can depend on that. That’s how that kid rolls. Not one penny will ever see daylight.

Have you invested for your kids future?
 

RitcheyRch

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I set up an account for my daughter many years ago and now have accounts set up for my grandkids.
 

Mandelon

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Family trust is set up. There is an executor until they are 35. Hopefully I'm still around then

It's not full of cash, but once the rentals are all paid off they could live nicely on the income.
 

Bear Down

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Not a trust fund per say, but have started a ROBO funding accounts for both my youngest kids, very small investments that in 20-30 years can be used for a house or investment. But TPC brought up a point and I don't mean to hijack the thread, what is everyones opinion on splitting inheritance among your kid and step kids? I have my daughter with Wife 2.0 and 2 step kids (good kids). But they have their dad, who will get a Fat check when his grandma passes in the next 10 years. I've never put thought into that and I am sure that topic, once brought up will cause some friction, since my wife is a stay at home. Not sure what the right approach is. Step kids will have inheritance from their day (I assume, but he is somewhat of a loser), grandparents (wifes parents), my daughter on the other hand will just have us.
 

LowRiver2

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One rental property the two kids can split or make profit from, college direct deposit, and most of my DROP money will go to them for a home down payment or higher learning .

My ex has a lucrative family biz and I wouldn’t be surprised if one of my kids ends up in it as well. She has an investment plan for them as well: (12% of my pension) LOL!
 
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LargeOrangeFont

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This is what I buy rental properties for. The income will cash flow their college, and after that provide extra income for our retirement. I can then pass it on to the kids for them to mismanage :)

If it goes to plan I can call it quits at about 60.
 
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coolchange

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Trust funds and inheritance. I told my wife that was what was going to tear her family apart. Started last Christmas. Name-calling, accusations, threats.
At least the half that I don't care for I will never have to talk to again.
To give you a clue of the shitshow.
There were six "dimes". Kids were going through stuff and only found four. Accusations of theft.
I told my wife, wait what "dimes"? She said you know the little gold dimes, with a 10 on them.
I said"there is no such thing as a gold dime with a 10 on it".
That just scratches the surface.
 

2Driver

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I think one of the best things you can do with your life’s successes is to have it live on and produce for generations.

No different than having a successful family business live on
 

HitIt

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I am going to buy a few Magic decks and 2006 diesel Silverados during the next downturn. Going to drive the rigs to a cheap storage spot in flyover. By the time my kids get out of school, they should be worth a few million each.
 

mjc

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I fund some stuff for grandkids but my kids can fight over what is left of ira's and stuff.
 

PlumLoco

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College will be paid for (#1 is 3 semesters into JC already w/ 3.8 GPA)
The two boys will split the same paid for house in Corona that my sister and I split.
The unknown is "Will the investments be enough to outlast me and the wife?". Will there be anything left to split?
 

DWC

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Turning 53 this year and haven’t put much thought into it. All 3 will have their degree and be debt free. It’s at least a start.
Houses will be paid off by the time I’m 60. They can figure out how to split it.. (Hope they keep the Havasu place for family gathering purposes). If the market holds up they’ll have some cash to fight over.
Whatever happens, hope it doesn’t tear them apart. I was the executor of my grandfathers will at 25. Got a call from an uncle and aunt within an hour of returning from the funeral. Never talked to them again after that. Also drug out the payoff for as long as the lawyer would let me. Their kids are currently doing the same thing for the Aunt’s money. Both cases it’s a small house split 3 ways...
 

HB2Havasu

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Most our friends say “The kids can have the equity in the house” and leave it at that.
Not much equity after the reverse mortgage is calculated in.
My mother in-law says the same shit. How she wants her home to be set-up for future generations of her grandkids, all while she sucks the equity out from a reverse mortgage. It's comical how some peoples brains (don't) work, lol.
 

Riverbound

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I have always made my own money and investments. I hope that my parents spend every penny they made. My family does have some properties (vacation and income) that will be split. At this point the split is like 15 ways, So I don’t bank on that coming to anything other than liquidating properties. Some of my family members act like there’s a pot of gold at the end, But I have seen the real numbers of what’s there and they will be sadly disappointed.

one thing to consider is making sure that if you are leaving something to your kids/grandkids it should be fair across the board. No favoring one over the other. If you have a screw up kind put an executor in place to control the funds. Limiting one kid because they have a father with money, etc will cause resentment and bigger problems down the road.

I have seen many families torn apart over this stuff. My goal is to leave my kids enough to take some risks in life but not enough that they are a worthless trust fund kid. Real estate has always been a solid place to park funds for long term investing as well as cash flow.
 

just_floatin

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My daughters are pretty much set when we pass. Rental income will be no less than 40k per year not to mention a few toys and a 40’ storage unit in LHC that could be leased. Brats know they best not mess up and argue over my money or all bets are off. When my oldest daughter left home at 17 before graduating high school her college fund did not follow her. Two years later she came to her senses and asked me for assistance with tuition. I said to her “you see that 2002 HTM SS24 parked behind the gate?” Enough said.
 

84miller

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Been around the block on Trusts. My best advise, parents make sure you plan funds to take care of yourself in old age and not be dependent on your children. It is very, very expensive to have a health issue at an older age. Your children will be in their higher earning years and should not be expected to be available to assist your needs by putting their job and earnings on the back burner. I know this can sound harsh, but being prepared for your old age is the best thing you can do for your children. Have a trust set up, split it evenly, if anything is left at death great. Also recommend not discussing your finances of the Trust with the beneficiaries. Those trust finances can change quickly in old age. The beneficiaries will learn all they need to know after your death, they need not know any preconceived idea of an inheritance. If all works out as planned and your children are left with a great amount of money good job, as it is just a good of job to leave this earth being solely dependent on your own resources. Just the way it was set up in my family and it worked out best in our situation.
 

Ziggy

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Family trust. When we're both pushing up daisies then my two children with separate birthing mothers can hash it out. We basically have it all spelled out and fortunately they are really good, caring bro/sis that have always been close.
One has all the street smarts, the other is the brainy one, but both have huge hearts. Lol, gave 'em each a part of me:p:D
 

Ziggy

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.

I have seen many families torn apart over this stuff. My goal is to leave my kids enough to take some risks in life but not enough that they are a worthless trust fund kid. Real estate has always been a solid place to park funds for long term investing as well as cash flow.
Just saw a movie yesterday with wife called Knives Out, it was about this inheritance scenario exactly.
.
Seen my M-I-L's 4th husbands family of 4 grown adults get at each others throats over petty bullshit(like bedsheets) when their dad died. Those adults just started taking shit from the house. My M-I-L had to tell them to wait because they were even taking stuff that was hers. Totally F'd up family.
 

Xring01

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This is something thats been on my to do list for a while now... update my will to a trust.

As far as setting my kids up for the future... well I did my job.. Taught them all the key things in life, work ethic, decision making, right from wrong, life costs $$$ so better plan for the quality of life you want, got them started in college (basically paying 50/50). College thing is key to me, because I want my kids invested in there future, making decisions for there future, not mine. I have seen to many kids with parents who fund all of college, end up with kids with worthless degrees and not happy with where there life is headed especially in SoCal. (Any degree is worthless without a work ethics).... most parents need to figure that one out.... there are some lazy fucking kids in SoCal... ask me how I know. Most of the kids my kids brought around, left me shaking my head... wow... stupid shit they said.

As far as my kids are concerned... there will not be anything left for them when we die... But obviously I am doing my best to ensure they get more than I got. Which was funeral bills and all kinds of problems when my parents passed... Long story..

IMHO A parents responsibility is to give your kids the tools to succeed in life. Obviously love/support etc etc etc... Paying for College isn't a parental requirement, its helpful, but not required. Teaching your kids to achieve their own goals... Thats the key!, thats what I have focused on.

If my kids achieve their goals, then they will be happy, and I will be happy for them.

Anything more than thats... is just icing on the cake... I guess I should get off this keyboard, and start working harder to buy more icing...
 

pronstar

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This is what I buy rental properties for. The income will cash flow their college, and after that provide extra income for our retirement. I can then pass it on to the kids for them to mismanage :)

If it goes to plan I can call it quits at about 60.
I’m really surprised more folks don’t do this.

Why save after-tax dollars for college?
Let renters make that contribution


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Xring01

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I’m really surprised more folks don’t do this.

Why save after-tax dollars for college?
Let renters make that contribution


Sent from my iPhone using Tapatalk Pro
Location, location, location,,,,
Its not always as easy as it sounds. There are alot of places where 20% on a property and you are still cash flow negative. Which means you have to buy propertys outside of areas that you know. Or better yet have to pay 3rd party's to manage for you, which eats into your profits.

Look at property's in Temecula/Murrieta area... take a look at the cost of them, what they rent for... Tell me if any of them are worth buying and renting out. As off 2 years ago... lost your ass on that. I tried to make it work... it wasnt worth the risk. So I put that money to work for me in the stock market.

I went to far down that path, even looked at houses in Texas. Again cost/rent ratio questionable....at least where I was looking (which is where I have family who can help me with it).
 

Carlson-jet

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I "Trust" the kiddo like tools, shop equipment, boats and cars. :p The properties are to take care of my Wife as I'm a bit older and she will way out live me. That's my contribution.
The wife used the money from breeding "Her"dog for the kiddos college funds.

At what point of net worth is a trust needed?
 

mesquito_creek

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Everyone needs a trust.. its not just about inheritance, it keeps them out of probate. It covers sudden death, advanced life directives, do not resuscitate, medical power of attorney and tells the kids where everything is at like banks, 401ks, properties etc...

Many employers offer "group legal" at open enrollment, sign up for one year and get your trust taken care of and opt out the next. I have used it once for when the kids were minors and a second time to up date when they became adults.
 

Yellowboat

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My grandmother has about just short of 1 mil in a trust set up for her final care. Of which 25% would come to me is she were to die. She does not know about 900k of exists.

I dont want any of it, my grand parents earned that money. It should go to her final care, and only her final care. I am the onky trustee, i also have poa for her.

My hope is that she spends all of it being as comfortable as possible in her last days, we hawk the house for what ever we can get and the check she sends to the irs bounces 2 weeks after her death.

Its her money, she should spend it. Not me.
 

LargeOrangeFont

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Location, location, location,,,,
Its not always as easy as it sounds. There are alot of places where 20% on a property and you are still cash flow negative. Which means you have to buy propertys outside of areas that you know. Or better yet have to pay 3rd party's to manage for you, which eats into your profits.

Look at property's in Temecula/Murrieta area... take a look at the cost of them, what they rent for... Tell me if any of them are worth buying and renting out. As off 2 years ago... lost your ass on that. I tried to make it work... it wasnt worth the risk. So I put that money to work for me in the stock market.

I went to far down that path, even looked at houses in Texas. Again cost/rent ratio questionable....at least where I was looking (which is where I have family who can help me with it).
Buying rental property in any populated areas in the southwest now or in the recent past is not going to make you any money. There are better markets with more opportunity.
 

Xtrmwakeboarder

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IF I ever have kids, the plan is to pay for education, and that's it. My parents invested in my education until 8th grade, and then the tap ran dry. I would have loved to continue with sports and enjoyed HS and College to the full extent, but I, like many others, had to get to work. 2 jobs in HS, 3 jobs in college to graduate debt-free. I'd like to give that opportunity to my kids. After that, you're an adult, and if I did my job correctly, you don't need me anymore.

A lot of my friends are having kids now, and their response to my on the fence attitude is who will take care of you when you're old? Ummm, me...I never want to be a burden on family or society. Set your kids up for their best chance of success and take care of yourself so you don't weigh them down later on in life.
 

bowtiejunkie

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I/We haven’t done any will or Trust. Kids are still young, but I’m more concerned with a decent retirement for the wife and I, than leaving money behind for the kids. I really need the trust though. As it is now, it would big a big PITA for the wife if I died.

I have a copy of my Mom’s Trust. Don’t know what my Dad has setup. I figure if/whatever is received from either, will be what is passed to our kids.
 

Singleton

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These are never easy answers.
My only thought, make sure you tell your kids how it will work before you are unable to do that.

My mom has her trust - gets split 60% to me then 40% to my sisters kids (mom and sister don’t talk). On passing the real estate gets sold.

My dad has a family trust (25% to each kid). Once my dad or step-mom passes, any change in trust requires 80% approval from the 4 kids. Step-mom has her own trust, goes to her 2 daughters. My dads family trust can not transfer any asset to my step-moms trust without 80% approval from the 4 kids once my dad passes. Dad has a few houses, on passing RE can either be sold (split 25% to each kid), or one of the kids can purchase and FMV of house is subtracted from assets being passed.

My trust gets tricky. I have 1 biological child and 2 step-sons. So wife and I had to work through a few things. In the end our trust has it 40 (to daughter), 30 to each step-son. Then it got complicated. Anything my wife gets from her parents is split between the kids 33, 33, 33 with remainder going to charity. Anything I get from my mom is split 70 (daughter), 15 each step-son. Anything I get my my dad goes 60, 20, 20.

Goal is not to spend a penny we get from parents and it all gets passed down. When all kids are old enough, I will tell them the same goal! We have all this documented and will sit down with each kid when they are old enough to understand it.
 

caribbean20

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Everyone needs a trust.. its not just about inheritance, it keeps them out of probate. It covers sudden death, advanced life directives, do not resuscitate, medical power of attorney and tells the kids where everything is at like banks, 401ks, properties etc...

Many employers offer "group legal" at open enrollment, sign up for one year and get your trust taken care of and opt out the next. I have used it once for when the kids were minors and a second time to up date when they became adults.
Pretty sure Ca if it's over 100k it goes to probate, so at least a basic will, trust, directive is a good idea.
What these guys said. At a minimum, create a will and a family trust to hold your assets. We are in probate now for departed parents. They had 1 IRA that did not have the trust as the beneficiary, just an oversight. $60k is the limit in CO. You can kiss $10k goodbye to attorney fees when in probate. I’m wrapping up estates for my parents and my wife’s now if anyone has questions. We’ve done a lot of work.
 

Bear Down

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These are never easy answers.
My only thought, make sure you tell your kids how it will work before you are unable to do that.

My mom has her trust - gets split 60% to me then 40% to my sisters kids (mom and sister don’t talk). On passing the real estate gets sold.

My dad has a family trust (25% to each kid). Once my dad or step-mom passes, any change in trust requires 80% approval from the 4 kids. Step-mom has her own trust, goes to her 2 daughters. My dads family trust can not transfer any asset to my step-moms trust without 80% approval from the 4 kids once my dad passes. Dad has a few houses, on passing RE can either be sold (split 25% to each kid), or one of the kids can purchase and FMV of house is subtracted from assets being passed.

My trust gets tricky. I have 1 biological child and 2 step-sons. So wife and I had to work through a few things. In the end our trust has it 40 (to daughter), 30 to each step-son. Then it got complicated. Anything my wife gets from her parents is split between the kids 33, 33, 33 with remainder going to charity. Anything I get from my mom is split 70 (daughter), 15 each step-son. Anything I get my my dad goes 60, 20, 20.

Goal is not to spend a penny we get from parents and it all gets passed down. When all kids are old enough, I will tell them the same goal! We have all this documented and will sit down with each kid when they are old enough to understand it.
How old where your step kids when you came into their lives?

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Singleton

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How old where your step kids when you came into their lives?

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Since 2006.
Oldest was 10, youngest was 4.

%’s were driven by my parents and I have to respect that. Could % change as I get older, maybe, but not until my mom, dad and stepmom pass.
 

77hallett

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Or you can spend your money as you please. Tell the kids to go to college on a scholarship, apply for grants, or join the military. Then living off of trust funds and inheritance solidifies how current/future generations feel entitled to literally everything. Gotta earn your keep in this world. But I’m just a 28 year old punk who will retire in 10 years lol
 
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HBCraig

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Hopefully our house in HB Will be enough when we are gone. But, I have 529 accounts for both kids
 

LowRiver2

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Location, location, location,,,,
Its not always as easy as it sounds. There are alot of places where 20% on a property and you are still cash flow negative. Which means you have to buy propertys outside of areas that you know. Or better yet have to pay 3rd party's to manage for you, which eats into your profits.

Look at property's in Temecula/Murrieta area... take a look at the cost of them, what they rent for... Tell me if any of them are worth buying and renting out. As off 2 years ago... lost your ass on that. I tried to make it work... it wasnt worth the risk. So I put that money to work for me in the stock market.

I went to far down that path, even looked at houses in Texas. Again cost/rent ratio questionable....at least where I was looking (which is where I have family who can help me with it).
Very true
My Dad’s home will be getting rent in the $3200 a month when it gets passed on. It’s been paid off 30 years. So. Ca. Rental income is hard to make work for a decade at least when starting out .
 

LazyLavey

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These are never easy answers.
My only thought, make sure you tell your kids how it will work before you are unable to do that.

My mom has her trust - gets split 60% to me then 40% to my sisters kids (mom and sister don’t talk). On passing the real estate gets sold.
Similar situation here, Mom left me 50% and my sisters kids 50% (she had a sore relationship with my sister). Needles to say it drove a wedge b/t my sister and myself. Although for months prior to her passing I begged mom not to do.... But it she insisted till the end
I gave sister cars, about 15k in jewelry (which was "suspiciously" stolen in a home burglary) and other valuables, her kids shared their inheritance with her.

Tough to maintain a civil relationship

My girls get 50/50 of what ever I don't spend.... And they'll enjoy the boat!
 

Singleton

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Similar situation here, Mom left me 50% and my sisters kids 50% (she had a sore relationship with my sister). Needles to say it drove a wedge b/t my sister and myself. Although for months prior to her passing I begged mom not to do.... But it she insisted till the end
I gave sister cars, about 15k in jewelry (which was "suspiciously" stolen in a home burglary) and other valuables, her kids shared their inheritance with her.

Tough to maintain a civil relationship

My girls get 50/50 of what ever I don't spend.... And they'll enjoy the boat!
I have told my mom multiple times to tell my sister how it works for the last 8 years. My mom refuses to discuss it, so I asked and received approval from my mom to discuss how it works with my sister this last year. Told her % in December. She took it OK.

Sister started out by saying she wants nothing from mom. I told her good, it goes to your boys and I am the trustee over the funds until your boys turn 35. If my mom passes before her grandsons turn 35, it is worded to only distribute funds for educational purposes (trade school, college, etc).
 

Bpracing1127

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Yea get a trust. My fathers probate case, I will end up paying the lawyer 20,000 plus. Trust is hell of a lot cheaper that that.
 

getoffmylawn

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Everyone for themselves. You want something, you go earn it. That’s the way I was raised. After raising ours, and paying for college, they’re on their own. You want them to think right and pass that mentality on to the grandkids. No liberal thinking here. Nobody rides for free.........
Yes, there will be something left for them. No, we aren’t worried about providing for them anymore.
 

185EZ

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I have enough drama in my life. Do I want to stay with 30” or roll with 32’s on the Can Am has me laying awake at night.
I laughed out loud. The things that keep me up at night are mind boggling lol.

Kid's trust fund???
They owe US money lol.
We've bought them cars and condos and college and cruises and ......
Time for us to live life, they get the leftovers, if any
 

getoffmylawn

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I laughed out loud. The things that keep me up at night are mind boggling lol.

Kid's trust fund???
They owe US money lol.
We've bought them cars and condos and college and cruises and ......
Time for us to live life, they get the leftovers, if any
Brilliant! You said it much better than me.
I haven’t quite mastered the “no sugarcoating” yet, lol
 

Nordie

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No kids here. I'll make sure my wife is setup, because I am extremely confident she's going to outlast me, what she does with it after I die is up to her.
 
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