A fascinating piece recently found in The Telegraph…
https://www.telegraph.co.uk/money/tax/inheritance/inherit-100m-im-giving-it-all-away/
I’m sure we’re going to have quite a few opinions on it.
Personally, I’m not sure if inheriting more than $10 million in cash or its equivalent is really beneficial to most people. (Full disclosure: I inherited. The benefits and drawbacks have pretty much cancelled each other out in my case.)
It takes an incredible amount of self-knowledge and discipline to handle a $1 million windfall without repercussions. If you’re educated, you’ll probably be okay. If you’re already wealthy, you’ll probably be okay. If you’ve been raised with Old Money Values, you’ll probably be okay. If you’re working in a business or profession that you really love, regardless of the paycheck, you’ll probably be okay.
The people who might not be so ‘okay’ are your family members and friends who aren’t as wealthy as you are now, after the inheritance. Which is why I advise everyone I know to keep their windfalls secret, or at least private.
But that’s another issue.
The big obvious question: is this inheritance really going to help? Sure, the financial security is a wonderful feeling. You don’t have to work, maybe. You don’t have to worry. But you will. You’ll just worry about other things.
The more nuanced situations involve not the children of self-made millionaires and billionaires. They’ve probably benefited from the family fortune, even if they are left nothing in the will.
It’s the children of potential heirs, the grandchildren and nephews and nieces. Should they not have the opportunity to get a first class education? Yes, a fortune can be given to charity and do a lot of good for a lot of people. Maybe.
Personally, I’m more inclined to offer opportunity (in the form of education) to young family members first. Adults, in my opinion, have made many of their own choices and are more likely to be set in their ways. There’s a limited amount of change that most people over 40 are going to embrace.
But with children, teenagers, and young adults, the sky is the limit, and the fuel for that potential is education.
Let me know your thoughts on inheritance. How much? When? And to whom?
Thanks.
- BGT