Here's an interesting question to ponder, as a parent: Let's say you happen to be "ultra-rich." (No, I didn't make that term up.) "Disposable income" is your middle name. Money up the wazoo. But of course, you can't take it with you, so where do you want it to go when ... well, when YOU go?
The obvious answer would be to leave your beloved children a sizable inheritance. Right? I mean, I'll admit I'm not "ultra-rich," but I've always thought part of the point of BEING ultra-rich is having the ability to provide for your family for generations to come. Or maybe not. Because according to a report from U.S. Trust, Bank of America's private wealth management division, some 32 percent of the super-wealthy "don't feel it's important to leave an inheritance for their children."
Why? Well, some folks planned to donate their money to charity, which is cool, while others figured most of their funds would end up paying for the medical expenses of their old age anyway. But apparently the majority of people who took part in the study didn't want to leave their kids an inheritance because they felt that "each generation should earn its own wealth."
Okay, I kind of get this on an idealistic, teach your kids self-sufficiency, nobody gave me any hand-outs level. Learn the value of hard work, blah blah blah. But what if the economy gets even worse and earning wealth becomes an impossibility? What if unforeseen circumstances arise -- illness, natural disaster, a zombie apocalypse -- and your kids are left high and dry through no fault of their own?
Personally, I think Bill Gates has the best approach (well, he is sort of a smart guy). He's said that his children "will be given an unbelievable education and that will all be paid for. And certainly anything related to health issues we will take care of. But in terms of their income, they will have to pick a job they like and go to work."
Naturally, since their dad is Bill Gates, his kids will probably have way cooler job opportunities than the average young adults. But the concept still applies. Like I said, I'm not ultra-rich, but I hope to be able to provide education (it may not be unbelievable) and health care for my kids, too.
And an inheritance, if I can.
Do you think the ultra-rich should leave their kids an inheritance?
Image via David Beyer/Flickr
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Comments 27
No one should feel entitled to an inheritance-its a gift! I have an in-law that makes me sick...will openly talk about what they are going to do when they get their split of Grandmas money when she dies....because though Grandma made good fiscal decisions over the years and has over a million saved, the in-law has been highly irresponsible and has nothing. We are also set to get some, but if she changes her mind and we don't- we don't care! It is not our money to have any say in-I personally think Grandma should take an amazing vacation and blow it all!
NOPE, had to work hard for my money, maybe if I was in a position of receiving millions I would say yes.
I always liked the attitude of, "Leave them enough they can do anything, but not so much that they can do nothing." But, at the same time, I don't feel like it's owed at all. It's their money, so they can do whatever they choose!
yes responsibility should be tought and the entitled mentality shouldn't be the factor. With out a doubt they need to learn hard work is rewarded. Though also the wealthy need to consider just because they worked hard and earned the money nobody gave to them; there were most likely sacrafices the whole family made & or paid while they were off doing what they did (which should count as part of team work) also they should remember opportunities that came to them dosent always come to everone just because they have a great education or worked hard. I dont think it should just be handed they should be taught to look for opportunities and work hard --though they probably lost out at times thier parents were off traveling the world making movies, no privacy from the public, or parents always at the garden club etc. (in that since thats the least they could have something)
Everyone should have to work with their money. But each family is different and has different values. My view is go to work and set up <a href="http://www.mysolo401k.net">solo 401k</a> or some sort of retirement plan.