Inheritance Tips So You Don’t Screw Up Your Child’s Life

Inheritance Tips So You Don’t Screw Up Your Child’s Life

Posted by Financial Samurai

If you’ve amassed a decent amount of wealth, you will likely want to leave some of it to your children. Let’s discuss some inheritance tips so we don’t screw up our children.

One of the reasons why my 30-year-old neighbor still lives at home with his parents is probably because he expects to inherit a boatload of assets. His parents’ home, alone, is probably worth about $2.5 million.

The great thing about my neighbor’s living situation is that his parents only come to visit during the weekends. His parents have another home in the North Bay. He also rents out one of the rooms to his friend.

By continuing to live rent-free in his parents’ house, my neighbor is not only saving a lot of money, but he’s also laying claim to his future assets. When his parents eventually pass, surely the house will go to their by then 50+-year-old son who has been living in the home all this time.

However, despite being in a position to inherit millions, my neighbor doesn’t seem to be progressing in life. Although he graduated from college in 2015, he still works at a dead-end job. He’s not in a relationship either. Instead, he’s used much of his disposable income to buy and maintain two cars and two noisy motorbikes.

Awkward Neighbor

It would be one thing if he was cheerful and happy every time we cross paths. However, he never says hello and always seems angry.  One time, I was walking down the sidewalk pushing my baby daughter in her stroller. He decides to pull out one of his vehicles and block the sidewalk. He sees me, but doesn’t say hello.  I stop to play with my daughter, assuming he would continue driving his truck into the street or reverse back into his driveway so we could pass. We wait for three minutes. Nothing happens. Instead, he decides to get out and leave his car in the sidewalk. Nice.

If I was his father, I would be concerned. As a parent, all we want is for our children to be happy and independent. I’m afraid that if we can’t teach our children social skills or develop their emotional intelligence, then some of us will decide to just throw money at our children.

Millennials Are Going To Be The Wealthiest Generation

For all the talk about Millennials getting financially screwed over by Gen X and the Boomers, the Millennials seem to have it pretty good. Millennials get to benefit the most from their parent’s prodigious wealth accumulation without having to do much on their own!

By 2030, Millennials will have inherited roughly $68 trillion dollars of wealth according to one study by the real estate brokerage, Coldwell Banker. I’ve seen the figure range from $38 trillion to $68 trillion. Whatever the real inheritance number is, Millennials will be inheriting a crap ton of money!

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https://www.financialsamurai.com/inheritance-tips-so-you-dont-screw-up-your-childs-life/