Give Kids Their Inheritance Early, Says 'Die with Zero' Author

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• Bill Perkins, hedge fund manager and author, advises parents to give children their inheritance between ages 28-33.
• Perkins' perspective challenges traditional financial advice, advocating for enjoying wealth during one's lifetime.
• IRS rules allow parents to gift up to $17,000 per year to any number of individuals without tax consequences.

Hedge fund manager Bill Perkins, in his book "Die with Zero," proposes a controversial approach to wealth and inheritance.

Perkins suggests that parents should start transferring their wealth to their children when they reach the age of 28 to 33. This age range, he argues, represents a period of mental and physical maturity, making it ideal for handling financial gifts responsibly.

Perkins' philosophy is grounded in the belief that life should be about fulfillment and enjoying the journey, rather than accumulating wealth for its own sake. This contrasts sharply with the advice of other financial experts like Dave Ramsey, who advocate for aggressive saving from a young age. Perkins believes that hoarding wealth for retirement often leads to missed opportunities during one’s prime years.

An important aspect of Perkins' advice is the legal and tax implications of gifting. According to IRS rules, parents can gift up to $17,000 per year to an unlimited number of people without incurring federal gift or estate taxes. This policy is significant, especially considering the expected large-scale wealth transfer from Baby Boomers to their children in the coming decades. Perkins himself practices what he preaches, having set aside funds for his children to enjoy when they reach the appropriate age. However, he also highlights the importance of being aware of tax rules and regulations to avoid unintended financial consequences.

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