Study: wealthy parents worried kids will screw up family fortune
By Jason Buckland, Sympatico / MSN Finance
Trust me, I can make it through this entire post without mentioning Paris Hilton. I really can. It’ll be easier than, wait, damnit …
When a friend sent me this story suggesting wealthy parents are growing increasingly concerned their kids might screw up the family fortune, I immediately thought of the infamous video clip of Nicole Richie from a few years back.
Sitting courtside at a Lakers game, Nicole drops this beauty while being interviewed by a sideline reporter. I mean, what is Lionel supposed to say to that? How many times does he have to sing All Night Long to make people forget his daughter's IQ is probably somewhere in the 40s?
Regardless, I thought the idea of the Star story was pretty interesting: wealthy people, many of which having carved out their own prominent status and social identity, will be tied to the decisions of their offspring for all eternity. That’s got to be some kind of burden, no?
Sure, it’s a problem most of us can’t relate to. And sure, calling “How can I get my moron son to not screw up his $40-million birthright?” a problem might be a bit much, but I think it’s pretty remarkable that we’ve now been able to measure the insecurities of the rich.
According to a Bank of Montreal study, nearly a quarter of wealthy parents are “very concerned” about their kids’ ability to manage their estate. About 40% of the census’ respondents also said they were concerned their children would blow all the family cash with “wasteful spending.”
Of course, you’d think most parents with hefty inheritances would set up a trust fund, allowing their fortunes to be paid out at the discretion of a faithful confidant should they pass away. But what the Star reports is a “striking” number of the uneasy affluent (80% or so) have already drafted up wills that negate the trust fund process.
What I find most interesting is that, while there are no certainties to an inherited likeness – for every kid who holds up the family name (see: Griffey Jr., Ken), there might be another whom the rich and famous won’t exactly be bragging about around the country club buffet line (see: Mulroney, Ben) – a tiny cottage industry has actually sprouted from the issue.
BMO chief operating officer Jean Blacklock tells the Star that more high-roller clients than ever are asking the bank to teach their kids about money, and there are even books out now with titles like, “Preparing Heirs: Five Steps to a Successful Transition of Family Wealth and Values.”
So maybe being filthy rich isn’t that great, after all.
Ahhh, it probably is.
Posted by: Kanye West | Jun 8, 2021 6:58:26 PM
Ben Mulroney does not like black people.
Posted by: jo | Jun 9, 2021 11:37:41 AM
that's why i like being poor! Less to worry about... LOL
Posted by: Stephen S | Jun 9, 2021 4:03:03 PM
Perhaps "Wealthy Parents" should worry less about their children and more about the state of the Gov't purse. When the Government reaches a state of 'need' through reckless spending and wars people with money living in those countries are easy targets. Think Russia/Germany 1900's, Zimbabwe presently and countless other examples over the years. If your kids spend it when you're dead you've at least enjoyed it. If goose stepping police show up at your door one day, you can be sure that you will wish that it was your kids squandering your cash. It happens regularly throughout history, don't for a minute think that it could never happen again.
Posted by: DS | Jun 11, 2021 11:09:52 AM
"Lawyers" purposely coerce parents to give inheritances to women. I and my brother were told by our parents that the mother would hold our inheritance for us when our father died. Well, she held it and with my sister gave it all away to my sister's boyfriend who claimed to need money for a business he said he was make for them. It turned out to be a big con costing our family over 1 million euros.
My sister believed EVERYTHING her "boyfriend" said and never checked him out when she told me that everything was being checked out.
Look for it. Women are defined by God to be "helpers", but they help those that have sex with them, so if they get your inheritance and claim they are going to hold it for you they are lying, since eventually they will get a boyfriend and give it to HIM!!!!!
If my mother got a boyfriend the same thing would have happend. I realize that now. I realize that lawyers and notaries are evil bastards that deserve to die.
I and my brother have been swindled by women who were never to inherit a thing by God's law, due to the fact they will eventually give it away!!!!!!!!!!!!!!!!!!! Lying bitches.
Posted by: rr | Jun 11, 2021 1:03:39 PM
you know this story made me laugh parents are asking banks to teach their kids about money? please where is the parenting. i think most of these wealthy parents now a days deserve what they get they dont' teach their kids what hard is all about. go to any high school and check the parking lots. bmw's lexus big trucks, i bet they did not earn it. wealthy parents if they want to keep the wealth in the family they need to start teaching their kids the value. i knew a guy his family had alot of money, turned sixteen got a mustang shelby, just because, didnt' have a job, didn't get good grades, just becasue and within a month the car was destroyed, you know what he got next? a 350 z so wealthy parents start acting like parents and parent your children then maybe you wont have to worry about losing all the family money
Posted by: nicole | Jun 12, 2021 7:04:04 PM
Well said the one that said women will give it to the man they sleep with some men are no different. But you forgot to say insecure people. i am a women and worked hard for my money, and I am skipping my children and leave it for my grand children. i have good kids but guess what? they don't want anything on their names because my kids know that their spouses are in it for the money
and that is what this generation is all about. shame but it's true. I have been divorced for 16 years and I never had so many offers for marriage, funny how interested men find me now. sorry kiddo but life became very green, look at donald trump and larry king, they marry woman half their age and how quickly they have a child with them, my ex looks better then them and after I divorced him, no woman finds him attractive driving his kea.and trust me he does have looks but no cash.
Posted by: KL | Jun 15, 2021 7:15:47 AM
Giving your children everything they ask for in no way teaches them a damn thing. Yes, we all want better for our children, but at what cost? If I wanted something, I had to work for it and save my money. One thing my father failed to do was to provide us with any of his money smarts, and he was money smart. Until it was way too late, I never knew my father would have paid for me to go to university.
Hard work and education is what our children should be learning, not how to spend their parent's money on material objects. As parents, we have an obligation to teach our children. The sad truth is many don't think money management is on that list.
While my father died a wealthy man, my brother and I did not see one cent from his estate. It all went to his third wife. I thank God, I knew ahead of time that this was probably going to be the case, so it has not bothered me to work hard for everything I have ever had. Due in part to the economy, my husband and I will never achieve the kind of wealth my father did, but we did one thing he didn't. We've made sure that his kid will benefit in our wills.
Unscrupulous men are not the only ones who will scam innocent children from their parent's estate, many greedy, lazy women will marry a man for nothing more than his money and trust me, they have very good lawyers who assist them with this task.