The American super rich think $26 million is too little for one heir

[n2doc]

Merrill Lynch’s private banking group is looking out for its clients’ financial interests, so it published a white paper (PDF) on inheritance titled “How much should I give to my family? The risks and rewards of giving”.

It’s mostly tips on minimizing your tax exposure and instilling financial responsibility in younger generations—”stewardship” is a recurring theme. But for those of us who probably won’t need such tips, there’s still plenty to gawk at. One section uses a survey to break down some of the social parameters around figuring out the appropriate amount to leave, with super-wealthy families eager to strike the right balance between $26 million and $63 million.

But size isn’t the only factor here. The money needs to be spent wisely as well:

The rising generation tends to have a greater sense of ownership of family money when they’re included in family discussions about wealth and develop financial literacy over time. In turn, they’re more likely to view distributions as a privilege and themselves as stewards of wealth, rather than just inheritors.

On the other hand, consider the grandchild who thinks of her grandfather’s monthly distributions as her paycheck. Because of a sense of entitlement to family wealth, an heir like her may be less likely to utilize the money thoughtfully.

Great fortunes are hard to build, but easy to lose.

more
http://qz.com/396168/the-american-super-rich-think-26-million-is-too-little-for-one-heir/

[daleanime]

1. ......

[upaloopa]

2. The stewards of wealth are the ones who can

never have enough money like the Kochs.
The one who sees the money as income will spend it rather than horde it.

[malthaussen]

3. Who was the entitled celebrity who thought $3000 per month was too little...

... for her child's entertainment costs? Whoever, the word "piker" occurs.

-- Mal

[hifiguy]

4. The fortunes are getting so big now - see the Walton family -

that there is no way they can be dissipated. And the feelings of entitlement are stronger than ever.

Ear the rich! The poor are tough and stringy!

[closeupready]

5. I wish I had the problems of ANY party to this story.

[yeoman6987]

8. Me too. I would love to have 4 million

I would do a lot of good with it as well as a lot of travel. Just a dream as I don't play the lottery and my annual salary does not equal to 4 million over lifetime.

[Johonny]

6. The real answer is a robot body with transplanted memories

why should those losers get my money due to some luck of the biological draw. It's my, all mine and me and my money should live forever!

[Stallion]

7. Ha! Saw that Yesterday and Almost Posted-Reminds me of that Great Sprint Commercial of Spoiled Brats

...who are too rich to care about saving on their phone plan.