Matthew
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I think it's stupid to not "stick together as a family" and give your children an edge -- if you can -- against the bankers, etc.
So these people work their whole lives, and they're going to force their children to struggle, limit their children (which most people will do), pay on a mortgage (French for "death lock") for decades, etc.?
If a child has "gone astray" or is rejecting you and your beliefs, you can always exclude them. But especially today, it's ridiculously hard (almost impossible) to start with "nothing" and build any meaningful wealth. All the loans the children will have to take out will wipe out a huge chunk of their weekly paychecks.
Inheritance: Some ultra-rich pick charity over kids
By Blake Ellis @CNNMoney June 18, 2012: 7:45 AM ET
NEW YORK (CNNMoney) -- Tough luck, kiddos: Your rich parents may give the fat inheritance you're expecting to charity instead of to you.
About 32% of high and ultra-high net worth Americans say it isn't important to leave inheritances for their children, according to a report released Monday by U.S. Trust, Bank of America's private wealth management division. Among baby boomers, that percentage rises to about 45%.
The top reason respondents cited for not leaving money to their children was that "each generation should earn its own wealth."
One in four respondents said they would rather give that inheritance to charity, while more than one in four said they worked hard for their money and plan to enjoy it themselves. A small slice, 7%, said they don't think they will have any money left to leave for future generations.
Other reasons people gave were that they need the money to fund their own health care, they would rather invest money in their children while they're growing up, their children will have enough money without an inheritance or they want to use their money "to solve difficult social problems."
And then there are people who will give a little money to their children -- but not their entire estate.
Glenn Walker, a 65-year-old from northern Kansas who took the survey and falls into the high net worth category, said he plans to leave "something" for his two children. But because he and his wife have both worked as teachers for years and want to help the education system, he said most of the money will probably go to scholarship funds at local high schools and colleges.
"They will inherit something, but both children seem to be doing fairly well," said Walker. "And I think they -- and we -- all believe that if you've made your money here in the American system and you love this country, it's okay to share some of that wealth with others outside of your family."
Of the survey respondents who do think it's important to leave an inheritance for their children, most say it's because they feel it's important to preserve their family's wealth and to positively influence the lives of their children after they pass away.
And they have a lot of wealth to decide what to do with. About 37% of the 642 respondents have between $3 million and $5 million in investable assets other than their primary residence, 31% have between $5 million and $10 million, and 32% have at least $10 million. The study classifies people with $3 million or more as high net worth individuals, and those with $10 million or more are considered to be ultra-high net worth.
But even if some respondents are planning on giving their children a chunk of this money, their kids may have no idea how much to expect.
Only 37% of respondents said they fully disclose their wealth to their children. About 12% of all respondents said they haven't disclosed anything about their wealth to their children, and 51% have only disclosed "a little" information to them.
The main motivation behind not telling their kids how rich they are is concern that it would "negatively impact their work ethic." Some respondents also worried that their children would discuss the information publicly, some said they were taught to never discuss wealth, while others said they simply don't
know how to bring it up to their kids.
Walker, however, said he is an exception to this trend. He and his wife consider it extremely important to keep their children involved with all aspects of their financial planning.
"I think sometimes they think we bring it up too much," he said. "But I don't think you should be tricky and hide things about your finances -- they need to be involved and know what's going on."
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| Posted Jun 18, 2012, 5:31 pm |
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Matthew
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For one thing, I think we've forgotten what true wealth is (State of Grace, children, land).
How can a young couple EVER hope to own land -- even 5 acres -- if their parents don't help them in some way?
It's a fact that passing on land and property to one's children is a custom from time immemorial. It must be part of the Natural Law.
I know what it's like to do it on your own -- let me tell you, the stars all have to line up just right, you have to have lots of hard work, luck, patience, and BOTH spouses have to be great with money and very frugal. Not just frugal after marriage or after stumbling upon Dave Ramsey, but I mean from an early age!
I'm saying your future wife has to do things like buy a new (but sensible) car that comfortably fits 3 children in the backseat, and have it paid off before she meets you, so you can avoid a car payment for the first 5 years of your marriage. And to do that, she obviously can't work at Wal-mart or Target -- she has to make pretty decent money. But not too much, or she won't want to stay home with the kids later on. Oh, and that good job can't come at the cost of an expensive degree, or she'll have student loan baggage, which can be worse than a car payment.
Can I hope that my son will find someone like that? I seriously have my doubts.
I should also point out -- marrying someone from a well-to-do or rich family will backfire, too, because then she'll be used to a higher standard of living. Things you consider "normal" will be a big sacrifice for her.
But 5 acres is nothing. Any REAL amount of land you pretty much have to receive it via inheritance, or not at all. Unless you invent a generator that runs off water and can be sold for $100 each, you're not going to make enough money on your own to purchase 300 acres.
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| Posted Jun 18, 2012, 5:49 pm |
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Elizabeth
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My siblings and I are deprived of a huge inheritance involving awesome land and etc.
The money will go to PETA (I kid you not) or some such. It is too sickening, but God must have a plan..anyway, the in the 3rd Joyful Mystery we ask for a love of poverty. Anyway, we have very soft lives compared to billions of souls on Earth.
When I recall what my kids are missing, what my Grandparents planned for us-- 
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| Posted Jun 18, 2012, 6:59 pm |
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