How much wealth should we leave our children and grandchildren?
Mike Cowart
Informing individuals and couples of the hidden tax in retirement assets, and the opportunity to redirect this liability to their favorite charities.
This question is one of the three most important questions in estate planning.
I enjoy reading blogs from Bill High in regards to legacy. In a recent blog, he shares advice from Stephen Lewis regarding this complicated question.
"60 trillion dollars of wealth will transfer by the year 2061. With that transfer, the central question: What is the right amount to leave my kids and grandkids without messing up their lives?
Without answering the question of how much to leave to children, my research shows that if families transfer wealth without providing knowledge and values, it is more likely to be destructive than productive.
As a point of reference, everything we have will end up in four places:
1. You will use it in your lifetime.
2. You will give it to someone you care about.
3. You may give it to charity.
4. The government will take it.
There are 3 things to pass on to heirs: (1) wealth, (2) knowledge, and (3) values. With that in mind, how much should we leave to children.
The amount of wealth you provide to your children should be equal to the amount of knowledge and family values transferred.
The next step? Assess the amount of knowledge and values you’ve transferred before making a wealth transfer decision."
(Stephen Lewis https://billhigh.com/estate-planning/much-give-children/)
"