Look, if Warren Buffet is doing somethig with his money usually it is going to be a good sign that you should do the same, and that youll make some money in the process. Well his latest moves are a bit different, Buffet is quoted as saying “My family wont receive huge amounts of my net worth…. I sitll belive in the philosophy …that a very rich person should leave his kids enough to do anything but not enough to do nothing.'” This is becoming a common practice, wealthy parents do not want to effect their children’s worth ethic: what are you doing with your wealth?
- A 2014 Study from the Boston College Center on Wealth and Philantropy projects that$36 trillion will be passed down between now and 2061 if you include living gifts estimates reach $59 trillion.
- A diffferent stuy in 2014 by U.S. Trust Wealth and Worth survey found that baby boomers are less likely than any other generation to believe its important to leave an inheritance to their heirs. Specifically while the average is 68% of people who feel leaing an inheritance is important but only 53% of the baby boomers do.
- Why? Survery crafters feel that this generation is more “new money” than any other generation and this self made generation does not feel it owes that to its offspring.
Whats the flipside of this giving boom? If you are a wealthy individual considering the “Buffett” plan I have to remind you its not so simple some unexpected situations could complicate putting all your excess funds into a revocable trust:
- family issues such a divorce may cause unforseen expenses
- different siblings may need new unforseen assistance
- you may be left with debts that reduce your relatives share while leaving the charitable interests whole.
Obviously charity a great thing but so is estate planning and you dont want to leave your family to little. If you want to leave signifigant funds to charity thats great but talk to a Palm Beach Probate Attorney today to get those plans in order rather than second guessing.
Wanna read more about the “Buffet Plan” check out a great article here.
Want to learn more about Palm Beach Probate and Estate Plans? Check out our FAQ video library here!