Originally Posted by ultramarina
Yes, I know that some of the money being given to 20-somethings (the paper emphasized "mid-20s") goes to education. But I'm still not terribly impressed with the outcome of your tiger-momming if you're still signing checks for your 25-year-old. Nobody was giving me a dime at 25.
Currently, the amount of an estate above $5.25 million is subject to a 40% federal estate tax and possibly a state-level estate tax. Each parent can give $14,000 annually to a child without eating into the lifetime gift tax limit, and there is no limit on gifts used for education. So it makes sense for rich Tiger Parents to give their adult children $28K per year if those children are responsible.

What you see as a failure of Tiger Mothering may be in part intelligent estate planning. JonLaw understands this.