Waiting For an Inheritance? It May Be a Long Time Coming

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Children of the ultrawealthy might want to start saving up their allowances.

Fewer than half of affluent Americans believe it is important to leave a large inheritance to their children, according to a new survey by U.S. Trust. Instead, many would rather spend the money on themselves.

“This is a generation that has worked very hard to create their wealth at the expense of their families,” said Thong Nguyen, west division executive for U.S. Trust. As a result, many are now ready to spend their hard-earned money “to start a new business, to travel, to start a new life, to stay forever young.”

In fact, 64 percent of those surveyed said they wanted to use their wealth for travel; 36 percent said they want to put it toward “having fun.”

Many wealthy parents haven’t even told their kids about the family fortune. According to the survey, which polled 457 people with at least $3 million in investable assets, 52 percent of affluent parents have not fully disclosed the extent of their wealth to their children. An additional 15 percent have told them nothing at all.

Among the reasons cited for their secrecy, respondents said they feared the kids would squander the money, make poor decisions or lose motivation to work hard.

Many parents also expressed concerns about their children’s financial maturity. Forty-five percent of those surveyed said their offspring will not be able to handle their inheritance until at least age 35, while a full 27 percent believed their kids wouldn’t be ready until they were older than 40.

“That consideration is very strong,” Nguyen said. “Will it be squandered away?”

Nearly all of the respondents (91 percent) said they have a will, while nearly as many (88 percent) have an estate plan.

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