Who will you leave your fortune too?

[Sultan of Swing]

I thought this was an interesting article that I'm sure some of us will have to give some thought to in the future.

http://www.stuff.co.nz/stuff/0,2106,3614681a1864,00.html

A few quotes:-

Warren Buffett won't be giving all of his $36 billion fortune to his heirs: `The idea that you get a lifetime of food stamps based on coming out of the right womb strikes at my idea of fairness.'
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"Whatever their circumstance, they all talked about the difficulties of finding your own identity and achieving in your own right and of coming out of the shadow of your family and fortune."
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"It's interesting that very few people see an inheritance as seed capital to try to outdo the parent," says Merrill Lynch's first vice-president of investments, Matthew Koch. "Look at Kerry Packer and Rupert Murdoch. They used their money to outdo the father."
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Door-to-door salesman turned retail guru Gerry Harvey was among Professor Gilding's survey participants in 1999. He echoes the professor's findings when he agrees to be interviewed, saying, "but you can forget about talking to my kids, they won't want to be interviewed".

Mr Harvey confesses that inheritance is a topic close to his heart: "I don't believe in dynasties," he says. Then again, you could say Mr Harvey has been burnt.

In 1998, he was forced to tell shareholders that his son, Michael, his anointed heir, had "dogged it on him", quitting his post as managing director after only four years to spend more time surfing. As he farewelled corporate life, Michael quipped he was never going to be short of a quid so why become yet another burnt-out executive.

 

[Rixter]

I will be leaving mine to my wife, sons & charity.

 

[wish-ga]

I did not have a will until I bought property.

I have left my estate to my mother. If she has passed on then it all goes to my best friend.

Other instructions:
Proceeds from sale of my car divided betwen my two adult siblings.

Instead of divvying up my jewellery amongst my dearest friends (as it may not be to their taste) I have left a token amount (approx $1000) and asked them to please buy an item of jewellery and remember me when they wear it.

 

[Mr. Fabulous]

Rixter,

Be careful leaving assets to charity as they may be liable for CGT. Something along those lines.

Who will I leave my fortune to? Well since I never plan on getting married or having babies, I think I'll leave my fortune to......

*closes eyes, spins around*

YOU!

No, I'll probably leave it to my neices and nephews, provided their parents give them a financial education of course.

Mark

 

[Rixter]

Rixter,

Be careful leaving assets to charity as they may be liable for CGT. Something along those lines.

Who will I leave my fortune to? Well since I never plan on getting married or having babies, I think I'll leave my fortune to......

*closes eyes, spins around*

YOU!

Mark

WOW thanks for leaving them to me Mark......


P.S - CGT that wont be my problem

 

[Mr. Fabulous]

Yeah Rix, but the charity may not appreciate forking out thousands for it, hahahaha.

Mark

 

[Rixter]

Yeah Rix, but the charity may not appreciate forking out thousands for it, hahahaha.

Mark

Yeah Mark, they could always sell it and donate the profits to charity and claim it as a tax deduction

 

[thefirstbruce]

Mine is going to family and a school bursary for unconventional excellence. There's a lot of kids out there who are of average intelligence, but have superior imagination, practical nous, and social skills. They are more often overlooked by the ruling elites who so often have less imagination and vision..

If I have enough, I'll also leave enough for another award for school teachers who make great mentors. A handful of teachers changed my life. And they are so poorly paid.

 

[DaleGG]

Hi

At the moment, mine goes to my wife first and ishe dies before me or with me, then everything i split between my 3 children.

Bye the way, has anyone else been intrigued by the "spending the kids inheritance" group (or SKI as they call themselves)

Dale

 

[Monopoly]

Bye the way, has anyone else been intrigued by the "spending the kids inheritance" group (or SKI as they call themselves)

Hi Dale,

Yes I have friends who claim to subscribe to the "SKI" club theory, although whether they will totally follow through on this I don't know!! Sure, they spend a lot of their money on themselves, but I don't believe they will entirely consume their wealth before they meet their maker!!

Personally I figure, I can't take it with me, and I have enough to do as, and buy whatever I want right now without sacrificing my children's inheritance, so why worry. Besides, I didn't work this hard just for myself, I want my kids to be comfortable when I'm gone, AS LONG AS they don't "chill" too much while I'm still alive on the premise that they don't HAVE TO work "cos mum's gonna leave it all to me later"!!! And trust me, they don't!!

Cheers,

Jo

 

[Sultan of Swing]

Bye the way, has anyone else been intrigued by the "spending the kids inheritance" group (or SKI as they call themselves)

Dale

It’s an interesting idea but I think it's been around for a long time, it's just that it's been more widely publicised in recent times.

I'm not sure if they intent to spend the lot but I can see why they do it.

A lot of older people I've spoken with during my RE career have been of the opinion that they don't want to spend too much or be too extravagant so that they can leave something for he kids. It's a noble idea but in this lucky country of ours, a lot of the kids are well able to make themselves quite comfortable. I think that's partly how the SKI club has evolved, seeing their kids comfortable and not feeling like they need to leave the so much.

Then there are those that have kids that have been poor money managers and the parents can see that the kids would more likely blow the lot in a short amount of time on frivolous living. Leaving their estate to them would have the same result as one of their kids winning Lotto, more than likely being in a worse financial position in a year or two than they were before the inheritance.

Unfortunately, this is my current position. If my wife and I were to leave everything to our two, it would all be gone within a year, we're sure of it. With that in mind, I have no problem with becoming one of the SKI club, as, if it's going to be wasted, why not waste it myself? Charities are also an option for us. (Not that we have a lot to leave anyway but with life insurances etc it soon adds up.)

Then there's my darling granddaughter. We could leave a chunk in trust for her and hope that she has more money sense than her mother, but with the example she has, it's unlikely. Perhaps leaving it to her is doing her a disservice by taking away any ambition she may otherwise have had and perhaps disabling her from reaching her full potential as a human and achieving her own dreams and goals? Who knows?

Just my 2 cents...

 

[Monopoly]

If my wife and I were to leave everything to our two, it would all be gone within a year, we're sure of it.

Hey SOS,

That's an excellent point!! And one that I have often pondered. I "trust" (no pun intended) that my children will have the good (money) sense to not blow it all on whims, and if their current money management behaviours are any indication, then I have nothing to fear. But hey, who knows "what if" they partner up with people with different money habits to their own?? I have often thought about "safeguards" for my (future) grandchildren (ie. trusts) but at the end of the day, IMO no system is 100% inpenetrable!!!

I guess it all comes down to, you're gone and no matter how hard you try to protect them, THEY will do whatever they see fit, so the best (and maybe easiest temporary solution) train them now. And if no matter what you do, if they can't be trained to think "smart" about money while you're still here, then you......start SKI-ing NOW!!!

 

[Sultan of Swing]

I guess it all comes down to, you're gone and no matter how hard you try to protect them, THEY will do whatever they see fit, so the best (and maybe easiest temporary solution) train them now.

They're 30 and 27 and still live week to week, often day to day. I've tried to teach them in the pst but there comes a time when you just have to let go. It's one of the most frustrating things I have to deal with.

I could go on a rant but I'm not to comfortable airing family stuff on a public forum...

 

[Monopoly]

They're 30 and 27 and still live week to week, often day to day. I've tried to teach them in the pst but there comes a time when you just have to let go. It's one of the most frustrating things I have to deal with.

I could go on a rant but I'm not to comfortable airing family stuff on a public forum...

Fair enough SOS, you can only do, what you can do!!

Therefore, my only advice to you is...don't foresake anything for yourselves in the interest of their future. If THEY can't think ahead enough for themselves, why should you do it for them??

 

[agent 86]

Monopoly and Sultan,

Agree, and in some cases it would be dangerous to leave an inheritance to children, esp ones with problems.

 

[agent 86]

Sultan,

Re your Q, 'Who will you leave your fortune to'.

Depending on my last post, it will be my Kids, but I'm hoping that they will look at it as a minor thing as they themselves will be wealthier.
Teach a man to fish.....

 

[kierank]

Our kids are 20 (today) and nearly 22. We have put them thru private school (primary and secondary) and thru Uni/TAFE. Both have left home and are now working. As they were growing up, we had to scrap and do without. We love our kids and have no regrets - we would do it all over again.

Now is OUR time. It is our plan to build up our net wealth, stop working before we are 55 (in next 5 years) and enjoy our life ourselves - that is, do the things that WE really want to do but didn't have the money and time to do before.

If all goes to plan, the money will run out just as they throw the last shovel of dirt on our graves. We have told our kids that we have given them a great start in life (the best we could afford) and far better than the ones their grandparents could do for us. It is now their turn to build a life for themselves.

If things don't go to plan, there is always the testamentary trusts which will give me some control after we are gone

 

[peteb]

If all goes to plan then my fortune will be so large that even if I do 'live like a king' and spend as we please there will still be a lot left over for our two children .......

 

[kierank]

If all goes to plan then my fortune will be so large that even if I do 'live like a king' and spend as we please there will still be a lot left over for our two children .......

Totally different plan - my plan is to spend it ALL (no matter how large it is) so there is NOTHING left over for the kids

 

[geoffw]

Totally different plan - my plan is to spend it ALL (no matter how large it is) so there is NOTHING left over for the kids

That would be like picking the peaks and troughs of a market- how do you know how long you're going to need money?

Like many baby boomers, my parents struggled when we were younger- but now they're comfotably off. They effectively retired at 50, and are now almost 80, and extremely healthy. They may well outlive their investments- certainly they don't plan on leaving much for us kids, and that's the way it should be. (Some of it they left for us before- they put a substantial sum towards an overseas trip many years ago- I met my wife on that trip).

I figure that if I'm not going to leave anything for my kids, I won't tell them beforehand. After all, they're going to choose my nursing home.