NW-Bound
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jul 3, 2008
- Messages
- 35,712
There is a recent thread with a poll asking how much people are expecting to leave in their estate. The majority answers "More than $500K". This was also my answer. I also jokingly elaborated that although I wanted to spend it all, but being chicken, barring some catastrophes, we most likely will underspend and have money left behind. The truth is that it is not so simple, nor are we so selfish.
We have two children. I don't know how many grandchildren we will have, if any. And we like to leave them something. Yes, money can buy some temporary happiness, e.g. travel, RVs, toys, etc..., but there is also the joy of giving that may be longer lasting. The problem is how to do it.
Yes, giving right is a difficult thing to do. We never leave our children wanting, but do not want to spoil them either. For example, we delayed their driving as late as possible, then gave them a clunker first before getting them something nicer. We want to make them work a bit for their money, but also do not want them to go into debt for their schooling. I do not believe parents should go into debt for their children's education. But I also don't think it is right for well-to-do parents to not pay for their children's schooling, yet leave them with a big inheritance.
So, one of my children has graduated, got a decent job in her field of study, and her employer will pay for her graduate studies. I hope my second one will follow suit in a couple of years. Both get a nice start, with no debt. I myself got out of school with only minimal debt, and that really helped.
We encouraged our daughter to buy her small first home. We would have given her a substantial amount of at least a 20% down payment if we felt she could handle the payment and the household expenses. But she said she was not ready and was more comfortable in an rental apartment. So, we did not push it.
The point is that it would (could?) be a joy to give to your offsprings. And if you are child-free, perhaps you have some close relatives like a niece or nephew that you love and would want to share the fruit of your labor and savings with. On the other hand, we do not want to spoil them, to condition them to expect free handouts as if it were their birthright. We know that pitfall very well, having seen plenty of examples.
Now, on the other direction of wealth transfer, I have posted here that my inlaws are broke and need our support, but my mother owns two houses and has some money. Being frugal, she is not likely to spend much of that although we encourage her to. Another fact is that the inheritance, when divided among my offsprings and myself, would be 5 to 10% of my current networth. So, I am indifferent to it, but perhaps would be edgy if we had not built up our own stash and saw my mother go into big spending mode.
We are lucky and happy to be self-sufficient as we have been. Of course, we want our children to be the same. But what if they cannot, due to economic circumstances beyond their control, or due to their vocation not paying as well as mine did? In fact, my daughter trained vocation is not likely to pay as well as mine has (but of course if she can get herself into a CFO position, well, the sky's the limit ).
So, we will play it by ear, and if we feel our children need that "inheritance" before we actually croak, we will help them as we feel appropriate. Even though we prefer that they do so well that they do not care about our money, we also will not let them wait until our death if the converse is true.
I will now hear your opinion and story.
We have two children. I don't know how many grandchildren we will have, if any. And we like to leave them something. Yes, money can buy some temporary happiness, e.g. travel, RVs, toys, etc..., but there is also the joy of giving that may be longer lasting. The problem is how to do it.
Yes, giving right is a difficult thing to do. We never leave our children wanting, but do not want to spoil them either. For example, we delayed their driving as late as possible, then gave them a clunker first before getting them something nicer. We want to make them work a bit for their money, but also do not want them to go into debt for their schooling. I do not believe parents should go into debt for their children's education. But I also don't think it is right for well-to-do parents to not pay for their children's schooling, yet leave them with a big inheritance.
So, one of my children has graduated, got a decent job in her field of study, and her employer will pay for her graduate studies. I hope my second one will follow suit in a couple of years. Both get a nice start, with no debt. I myself got out of school with only minimal debt, and that really helped.
We encouraged our daughter to buy her small first home. We would have given her a substantial amount of at least a 20% down payment if we felt she could handle the payment and the household expenses. But she said she was not ready and was more comfortable in an rental apartment. So, we did not push it.
The point is that it would (could?) be a joy to give to your offsprings. And if you are child-free, perhaps you have some close relatives like a niece or nephew that you love and would want to share the fruit of your labor and savings with. On the other hand, we do not want to spoil them, to condition them to expect free handouts as if it were their birthright. We know that pitfall very well, having seen plenty of examples.
Now, on the other direction of wealth transfer, I have posted here that my inlaws are broke and need our support, but my mother owns two houses and has some money. Being frugal, she is not likely to spend much of that although we encourage her to. Another fact is that the inheritance, when divided among my offsprings and myself, would be 5 to 10% of my current networth. So, I am indifferent to it, but perhaps would be edgy if we had not built up our own stash and saw my mother go into big spending mode.
We are lucky and happy to be self-sufficient as we have been. Of course, we want our children to be the same. But what if they cannot, due to economic circumstances beyond their control, or due to their vocation not paying as well as mine did? In fact, my daughter trained vocation is not likely to pay as well as mine has (but of course if she can get herself into a CFO position, well, the sky's the limit ).
So, we will play it by ear, and if we feel our children need that "inheritance" before we actually croak, we will help them as we feel appropriate. Even though we prefer that they do so well that they do not care about our money, we also will not let them wait until our death if the converse is true.
I will now hear your opinion and story.