Generational wealth & your children

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Sepeng

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So with both my and my wife's parents getting on in age, talk and thoughts inevitably drift towards what will happen when they die. And both sets want to leave stuff for us and our siblings, be it property, cash shares, whatever. Now our view is we don't really want anything from them - they've done their part, given us an education, they must spend their money on themselves, enjoy their retirement years. But is that typical middle class backwards thinking? I mean that's how generational wealth is created isn't it, you leave something behind, hopefully your kids build on that to leave more behind etc?
Assuming you couldn't do both, assuming you couldn't enjoy your life AND leave something behind for your kids, family etc, which would you choose?
If you could would you give your kids a head-start in life, be it a deposit on a house, a car etc, or do you think you should give them an education and they figure the rest out for themselves?
 
My sperm cells aren't even going to get the chance to fertilise an egg; nevermind spend my money!
 
Sepeng said:
If you could would you give your kids a head-start in life, be it a deposit on a house, a car etc, or do you think you should give them an education and they figure the rest out for themselves?
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They are definitely going to grow up knowing what hardship means. If they don't appreciate the time and effort that they put into something then how will they appreciate something that is handed over to them?

Youtube blocked at work but I hope that this is the right link.
Louis CK on rich kids

 
My Dad is leaving all of his legacy in the form of a "Living Annuity" ...
 
Simple, setup a trust and only allow your kid to access to the trust when they turn 35.
 
Sepeng said:
So with both my and my wife's parents getting on in age, talk and thoughts inevitably drift towards what will happen when they die. And both sets want to leave stuff for us and our siblings, be it property, cash shares, whatever. Now our view is we don't really want anything from them - they've done their part, given us an education, they must spend their money on themselves, enjoy their retirement years. But is that typical middle class backwards thinking? I mean that's how generational wealth is created isn't it, you leave something behind, hopefully your kids build on that to leave more behind etc?
Assuming you couldn't do both, assuming you couldn't enjoy your life AND leave something behind for your kids, family etc, which would you choose?
If you could would you give your kids a head-start in life, be it a deposit on a house, a car etc, or do you think you should give them an education and they figure the rest out for themselves?
Click to expand...

I would setup a trust fund that keeps giving to multiple generations. Not something that could be blown away in one generation. Your kids might be fine, but they might go down a bad road and take down what generations before worked on.

So I like the idea of putting any wealth I make into a trust so it helps generations down the line.
 
I plan to spend all my savings. However my life cover is not term, it is life, fees were not that much higher. So if I die later on in life my wife will inherit a big lump sum and from that perhaps there will be something for the kids to inherit along with any remaining cash or property sales. Will be a decent leg up in life I hope but not make or break type stuff.
 
Do both! Education + head start. From my point of view, life is about ensuring your kids are on a better starting block than where you had been at the same point in time when you were younger. As for whether your kids will be spoiled (rich or poor) a$$holes, that depends on the manner in which you raised them. Give them everything they want vs giving them a stepping stone so they can build/buy/make what they want.
 
I don't have kids yet, so I'm still selfish. Assuming I had to do one or the other, and there is no chance of me running out of money before I die, I would spend it all. Assuming I've already paid for my kids education, of course. Getting an education without debt is already a huge head start.
I won't help them buy anything more than a simple starter car, something like a 5+ year old i20 or something similar whey they start working, or if they REALLY need it, when going to varsity.

In reality, I think it is silly to spend all your money as if you will die at exactly the same time as your RA is depleted, and won't need money for anything else, so there will almost definitely be something for someone to inherit.
 
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