A recent survey shows that more and more parents are choosing to either spend their wealth on themselves or give it to charity instead of providing their children with an inheritance. A large trust company recently conducted a survey in which it interviewed people with a net worth of at least $3 million or more, not including the value of their homes.
The survey showed that 32% of parents who qualified as high or ultra-high net worth individuals said it isn’t important to leave an inheritance to their children. Amongst baby boomers, that percentage rose to 45%.
When asked what they planned on doing with their wealth, one out of four survey participants stated they would prefer to give their money to charity. Another one out of four stated they would probably use the money for their own enjoyment.
When asked why leaving an inheritance was not important, the most commonly cited reason was that the parents believe that children should be able to earn their own wealth. Others stated that they needed the money for their own healthcare, or wanted to use the money to invest in their children as they grew up.
Of the parents who stated they would likely leave an inheritance to their children, many stated they would not leave their children their entire estate. Many believe that doing so would compromise their child’s work ethic and make their lives harder instead of easier.
It is clear that there are numerous estate planning goals that can be pursued. With the help of an experienced and qualified estate planning attorney, these goals can be accomplished.