Reply to How much is considered generational wealth?

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[quote=Anonymous][quote=Anonymous]My grandparents passed away with about a 65m estate. It was divided up amongst the 6 siblings equally with a large chunk going into a charitable trust. each kid got about 7M (with the rest to charity). On top of what my parents had, yes they are totally fine but once they pass that will get split up between 3 of us. So let's say they have 10M, we each get 3M.

Is that life changing, of course, does it cause me to be a waste, no. 60M trickled down to about 3M for me..If my grandparents weren't as charitably inclined, the amounts would be higher but I think that is the most valuable lesson I learned.

To answer OPs question, I think my grandparents fit the bill for generational wealth transfer, but it all depends on how many heirs, charity etc. If my mom was an only child, then of course we'd be set for life..

[/quote]

Good point.  If, on the other hand,  your grandparents had set up a perpetual trust with the stipulation that no more than 3% of the estate was to be distributed each year and it should be equally distributed between people who are direct descendants over the age of 30 and should not exceed 100K (say) a year per person (create your own rules).  Index that for inflation.  The 65M would have earned $3.9M (at 6%), had $1.95M available for distribution but only had to distribute $600K in the first year.  Depending on when this started, it would have grown substantially over the past decade and should be able to accommodate new members being added for a very long time and for many generations, don't you think?  [/quote]

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