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A survey by The Motley Fool, which asked 2,000 wealthy people about their attitudes toward inheritance, revealed what they think about leaving large amounts of money with their children, published CNBC Make It.
It turns out that wealthy celebrities like Daniel Craig, Kevin O’Leary and Warren Buffett, they are not the only ones who think that leaving too much money with their children can be counterproductive, because for 67% of the millionaires surveyed (classified as people with a net worth of more than $ 1 million), they are increasingly concerned about the amount of their fortune that they must leave to their children.
The concern is based on the effects of leaving too much to the heirs, including that wealth can be used in ways “Irresponsible” or that the beneficiaries become “lazy”.
“What is clear is that wealthy individuals are concerned about the effects of leaving too large an inheritance,” says Motley Fool research analyst Jack Caporal. “They are aware of and are actively considering leaving inheritances with conditions that encourage their heirs to return to values that they believe are important, such as hard work, doing well in school and finding a good career path.”
Some notable results of the survey indicate:
– 67% of high net worth individuals (HNW) are concerned about leaving too large an inheritance to their heirs.
– The biggest concern with leaving too much money is that it is used irresponsibly.
– Approximately 68% of HNW people plan to leave an inheritance that requires heirs to meet the conditions to access it, a method to mitigate concerns about leaving an inheritance that is too large.
– People with HNW who received an inheritance of $ 500,000 or more were more likely to be concerned about leaving too large an inheritance.
– Taxes are important to HNW people when it comes to inheritances, and the proposed tax changes in the American Family Plan are causing some to rethink their plans.
– 33% of HNW people plan to leave at least half of their assets to an heir.
– 66% of HNW people plan to leave part of their wealth to charitable causes.
– The richest 1% of Americans receive an average inheritance of $ 719,000, while the bottom 50% have an average of $ 7,900.
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