Fortunes and families - what is your stance?
Fortunes and families - what is your stance?
Conversations with a friend recently and current news stories have had me thinking about this quite a lot. Life is expendable and no one is here forever, which is sad but it's the truth, and at some point I'm well aware Alfie will inherit everything we've ever worked for... but in addition to that, he'd also inherit whatever we inherit from loved ones who pass before we do.
As it stands, he'd be set to inherit a substantial sum, taking into account life insurance policies, the house, the business, savings, family inheritance, and everything else that comes with it. A part of me would be thrilled that he'd have the funds there to really enjoy life, another part of me worries he'd just blow it all though we are trying to teach him the value of money so hope that he wouldn't, and another part of me is concerned if he inherits the money at a younger age especially he'd become entitled and expecting.
We are raising Alfie to be financially conscious. Yes, he's lucky and has access to so many things. He travels and never, ever goes without what he needs. But we don't raise him spoiled. He knows the word "no" (and is told it pretty often truth be told!), and gets his own spending money to learn how to budget and save for things he wants that might cost more. It's no secret that Alfie I'd obsessed with Lego, and we all know that comes at a cost! He gets these for birthdays, Christmas, second hand from charity shops if we ever come across them, and sometimes will buy his own bits.
Anyway, I digress... I'm thinking the most sensible option now to have set for when we do eventually pass, is to have stipulations set in our will or directive that state what he can or cannot do with the funds, or when he should be entitled to it. Maybe we make it a stipulation that he invests it? Maybe we have them release a little every month to help him get by without it funding his entire life and lifestyle - enough to survive but not really enjoy life to the max so he *has* to work if he wants to live a fulfilling life or do anything beyond the realm of existing.
I see more and more in the news of those with massive fortunes making public statements about not leaving their wealth behind for their children because they believe they should make their own legacy and their own money.
On the surface this seems like a sensible thing to do for them, but then the pessimist in me thinks "but they've already benefitted so much from that fortune that they may as well have inherited it to begin with" ... inheritance by proxy, if you will.
That immediate access to work others have strived and fought their entire lives for - I don't really keep up with celebrity news beyond what I see on the front page but note recently that a certain stars young child got essentially gifted a role in the West End, in front of children who had worked years for the same role and had the same talent to perform it, if not more... in that sense not sharing a fortune after death feels a little futile. Maybe it's just me.
It differs so much family to family really. A good friend of mine is the opposite to me, and says she'd hate for her children to have to graft to the point of exhaustion and if she could leave behind millions for them to travel, explore the world, not working the 9 to 5 grind and not struggle, she would without question.
What are your thoughts about inheritance, especially for your own children?