Should people inherit their 30s money? Readers have a say
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One of the hottest topics in private banking right now is the transfer of wealth to the next generation: how much will be passed on, who will benefit and what is the right way to go?
The first two questions are relatively easy to answer. Ultra-high net worth alone is expected to pass $ 3.9 billion to the next generation over the next decade, according to a 2016 report from Wealth-X, with $ 30 billion expected to be passed on over the next 30 years. coming years. Research conducted last year by RBC Wealth Management suggests a similar situation, with $ 4 billion expected to flow to the US, UK and Canada “within a generation.” And the beneficiaries will be what’s known as Generation X, born after the baby boomers, and millennials born between 1981-97 – offering at least a foothold on the property ladder to a lucky few of this generation.
But to find out how the wealthy intend to transfer the money, we’ve created an online survey to ask our readers, who most often plan to pass on the sizable sum of £ 1-5million.
An interesting finding from the 102 responses is that not all readers want to give the same amount of money to every child – a controversial position, given how much private bankers tend to emphasize the discussion of money transfers. wealth with the next generation. While three-quarters of readers intend to distribute it evenly, a quarter was unsure. One of them frankly stated – stray grandchildren take note – that it would depend on “how well I get along with them, how often I see them and how much effort they make to. keep in touch with me ”.
A lack of respect for private bankers – private bankers take note – was also a common theme. When asked if they had discussed wealth transfers with their advisers, the answer was mostly ‘no’, with comments such as: ‘They don’t have the expertise or the experience to help as per. the past ” ; “No need, they just want to sell you inappropriate and expensive ‘products’; and my favorite: “Yes. Some. But they nod in deference. Stupid people.
Others have suggested that the decision of who gets what might be based on merit: “If one is able to spend the money better than the others, that person will get more of it,” said one. ‘them. There was also a strong willingness to leave at least some money to charity, with only a quarter of respondents saying they would not leave anything at all to charity. One commented philosophically: “My family will be fine, and I think money for a businessman is more a sign of success than a need. So put it back in the company and move on.
of people think dependents should be at least 30 years old before receiving
In fact, one of the most striking findings is that a majority of respondents believe that people shouldn’t inherit anything until they have at least 30-56% in total, with an additional 19% saying that you should be at least 25. This suggests that readers are well aware of the pitfalls of wealth inheritance – and the need to transfer responsibly. Perhaps – in fact, hopefully – this factor more than any other will drive the great wealth transfer to come.
Readers’ comments on the legacy
Some children can responsibly manage an inheritance from an early age. Others will never be old enough.
- In Asia in particular, it is necessary to overcome the taboo of talking about death. This prevents many from planning more effectively.
- It may be easier to give my waiver time than to let the heirs / executors decide.
- Experience has taught me that it is important to be open with our children about our succession plans and to treat them equally to avoid conflict.
- I hope to give most of it in my lifetime.
- The increase in life expectancy postpones many inheritances to an age when it is too late to enjoy or spend them.
- Too many associations waste donations or are poorly managed.