It used to be that people with fairly substantial assets worried about the government taking a huge chunk of their money at death. Now, with the estate tax exemption at $5.34 million per person, most people don’t have that worry.
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They have a new worry, according to a story in Forbes.
Now they worry about what will happen to those who inherit all that money.
Maybe one grandchild will use her share to go on to college and become a successful scientist. But another one, who has had issues with substance abuse, what about him?
Many states are also increasing their exemptions.
As a result, many wealthy people are concerned about how their heirs will use all the money they will inherit, the story says. It recounts the story of the Vanderbilts and how all of the heirs squandered nearly every dime.
Some wealthy people have said they will not leave anything to their heirs. They want them to earn their money.
Or they are setting up family foundations to do charity work.
The article suggests sitting down with your estate planning attorney and financial advisor to discuss how your money can support your core beliefs and philosophy and how you can prepare your heirs to do that.
If you have questions about estate planning, feel free to call us for a consultation at (626) 696-3145.
