Reply to People with $5M+ NW, why do you still choose to work?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I think it’s weird that so many are working for generational wealth. Future generations will not know you or care about you, and your money will be gone quicker than you can imagine.

Not trying to be a jerk, but every wealth study shows that large inheritances are quickly separated and spent by indulged kids who didn’t work for the money, don’t understand how to make it, and feel undermined by it.

Think about it: if most people work because it’s a necessity and later because they’re good at something, a big inheritance just stops many from even trying.

This isn’t to say that you can’t help your kids, but doing everything for them and your grandchildren before they even try isn’t really a gift; it’s about you showing them how great you are. [/quote]

We have two children.  One will blow through the inheritance and the other will save every penny of it.  I like the idea of the one who spends to at least have a home that’s paid for.  They make enough to support themselves but spend every extra dollar they have.  The saver will end up with a nice home and create even more generational wealth.  Raised them the same but boy did they turn out differently.  [/quote]

Have you talked to your estate lawyer about this? There are ways you could structure the inheritance to make it so the spender can't blow it all. Like, say he only gets the income from the trust until a certain age after which he can only take a certain amount of principal out per age, or give him the ability to disperse the income but put a corporate or other independent trustee in charge of the principal distributions.[/quote]

With a trust, you can document how it can be used, and ensure it's not wasted away.  Even put what it can and cannot be used for.   [/quote]

You can, but you need to have a trustee you trust a lot to manage this for many years. It is much more complex than just giving the money to children, it costs money, there are tax consequences, etc. Most people should try to control the future less from the grave. My parent left a single complex instruction in their will to generation skip an asset, and it means that I have to maintain a trust ownership for the rest of my life jointly with siblings. It's going to cost money and time, and I have to work with the other trust holders on every decision and deal with taxes separately. It definitely complicates holding these assets more than the parent probably thought it would. [/quote]

This is true BUT typically assets can be divided into separate trusts for descendants. For example my siblings each have our own trusts and are our own trustees[/quote]

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