Reply to How Much of an Inheritance is Too Much for Kids

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Enough to do anything they want with their lives. Not so much that they can do nothing.[/quote]

This is the truest statement. So the answer, Op, is $2-3m. They would still need to work - but could live incredibly well even on a teacher or hairdresser's salary if that's the field they chose. More than $5 million and believe me, they will do nothing. My most worthless manchild cousins are the ones who received $10M -- unemployed, not involved in the community, and still cry to mommy for more. [/quote]

Thank your giving thoughtful feedback. But how do I discourage them from taking a low paying job and making up for it with the inheritance. If they are not capable of working in a higher paying jobs it’s fine, but I don’t want a lazy smart kid to rely on the money. [/quote]

You seriously have nothing better to do with your time? How sad that a man with no kids in his thirties is spending his time like this. Me? I’m in my 50s and am a parent, so I have an excuse. Once you actually make real money, you will go to a lawyer who specializes in estate planning like all the rich grown ups do. She will tell you what her other rich clients do and the pros and cons of structuring trusts. You will learn that you set up trusts with conditions, etc. For now, why you do something more productive.[/quote]
I already know about trusts. I used to do consulting for people that had SLATs, GRATs, etc. They would leave their kids like 20-30M+ each and it honestly didn't seem to affect behavior of the kids much. They were still going to medical school or working at startups and stuff like that. It just made me hesitant be because it seems like about 75%-80% of the clients kids were fine. However, for the the 20% that turned out badly having access to this wealth absolutely ruined them. [/quote]

There are far more kids like that---who know they have big trusts, who have college and needs (living/car/travel) fully paid for who "excel at life" and are not lazy.  Some are lawyers/doctors/engineers/high paying jobs, others chose to pursue careers they love that don't happen to pay quite as well.

We put plans in place to determine when the kids will get the money.  For now, our kids are smart, motivated and fairly frugal and working hard, so they get a portion yearly now to maximize gifts.  The trusts will give them a portion at 25 and beyond, with always having access for medical and education.  Basically, our kids are 26 and 21, 26 is gainfully employed, 21 is well on their way with college.  At this point, we are 99% certain them having $5M will not make them ungrateful, lazy adults (should we drop dead soon).  We also have 2 trustees we trust in place to make decisions should it be needed. [/quote]

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