Wealthy Americans Don't Want to Leave Kids Inheritance Outright

I found this to be an interesting article in Financial Advisor magazine.   First, I found it interesting that less than half of those surveyed believed it to be important that their children receive an inheritance.  Then there's the fact that 2/3 of them haven't told the kids the full extent of their net worth.  From my experience, that reluctance to share the net worth is based on many factors, including a desire to keep family members from trying to mooch or pressure Mom and Dad to spend more than they are comfortable.  But there's also the wish to make sure the kids don't get so comfortable they don't try to create their own nest eggs. 

The age question was interesting too.  There's something wonky about the way the statistics are reported, as the total exceeds 100%, but it seems to support the conclusion that most parents don't think their kids are old enough to manage an inheritance until the kids are at least 30 years old, and maybe 35.  My mom always said that her sons didn't reach maturity until 27. 

The concerns of those surveyed match those of my clients to make sure their wealth is transferred in a way that reflects their values and is a positive, rather than a negative, influence for their heirs.


 
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Comments

  • 5/25/2011 8:12 AM John A Warnick wrote:
    Karen,

    Thank you for sharing this article. I continue to follow your blog with great interest and appreciate the work you are doing to not only serve your clients but to share best practices and wisdom with other advisors. Your leadership and efforts are greatly appreciated.

    John A
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