Why the uber-rich are not leaving a lot to their kids

[Ad Orientem]

http://www.washingtonpost.com/lifestyle ... story.html

What do Sting, Bill Gates and Warren Buffett have in common? All three have huge fortunes, and none of them are giving it to their kids.

Sting just revealed that most of his $300 million won’t end up with his six adult children. “I certainly don’t want to leave them trust funds that are albatrosses round their necks,”? the musician told the Daily Mail in June. “They have to work. All my kids know that and they rarely ask me for anything, which I really respect and appreciate.”?

Philip Seymour Hoffman, who died of a heroin overdose in February, left specific directives in his will, which was made public last month: His son should be raised in a large American city and “be exposed to the culture, arts and architecture”? that such a setting offers. The will was created before the birth of his two younger children, but the actor deliberately didn’t give his $35 million to his children because he didn’t want them to be “?‘trust-fund’ kids.”? (They’ll be fine; his entire estate went to their mother, his longtime girlfriend.)

The rap on trustafarians — all those spoiled rich kids with more money than sense — is that they won’t make smart choices or live healthy, productive lives if they have unfettered access to a large inheritance. Celebrity chef Nigella Lawson has stated she has no intention of leaving a substantial inheritance: “I am determined that my children should have no financial security. It ruins people not having to earn money.”?

[Ad Orientem]

I guess "alot" is relative...

Bill and Melinda Gates are giving a reported $10 million for each of their three children: pocket change compared with their $76 billion. Buffett’s three kids each have a $2 billion foundation funded by Dear Old Dad.

LOL

[clacy]

I guess "alot" is relative...

Bill and Melinda Gates are giving a reported $10 million for each of their three children: pocket change compared with their $76 billion. Buffett’s three kids each have a $2 billion foundation funded by Dear Old Dad.

That's kind of what I was thinking lol, but respectively even thought these are insane amounts of money for most people, I do respect them not giving away the whole enchilada.

$10m-20m sounds about right if I were in the Gates/Buffett range.  Although I would also set up a nice size trust to be used only for educational purposes that would pass down for generations. 

[dragoncar]

I guess "alot" is relative...

Bill and Melinda Gates are giving a reported $10 million for each of their three children: pocket change compared with their $76 billion. Buffett’s three kids each have a $2 billion foundation funded by Dear Old Dad.

That's kind of what I was thinking lol, but respectively even thought these are insane amounts of money for most people, I do respect them not giving away the whole enchilada.

$10m-20m sounds about right if I were in the Gates/Buffett range.  Although I would also set up a nice size trust to be used only for educational purposes that would pass down for generations.

For the Gates kids, at least, it's the difference between never going hungry/never worrying about a roof over your head and sailing around the world all year on a mega yacht.  The kids will be rich, but not fabulously so. 

[Pointedstick]

If it takes $10M to get to a point of never going hungry or worrying about a roof over one's head... Could you pass me the soylent green, please?

Yeah seriously. I'm shooting for $600k…

[clacy]

If it takes $10M to get to a point of never going hungry or worrying about a roof over one's head... Could you pass me the soylent green, please?

Yeah seriously. I'm shooting for $600k…

Ha, I've read some of your expenses in other posts.  I think the Buffetts and Gates kids may have slightly different tastes, despite the "aw shucks" image that Buffet has displayed. 

[Pointedstick]

Oh don't get me wrong, I'd love to have $10 million to throw around. I would hire people to build me a superinsulated, impregnable castle with a massive self-sustaining permaculture food forest and a 200-yard soundproof subterranean shooting range. But that's just a stretch goal. If I only make it to financial independence and a lifetime of freedom, that's pretty good too.

[dragoncar]

That's kind of what I was thinking lol, but respectively even thought these are insane amounts of money for most people, I do respect them not giving away the whole enchilada.

$10m-20m sounds about right if I were in the Gates/Buffett range.  Although I would also set up a nice size trust to be used only for educational purposes that would pass down for generations.

For the Gates kids, at least, it's the difference between never going hungry/never worrying about a roof over your head and sailing around the world all year on a mega yacht.  The kids will be rich, but not fabulously so.

If it takes $10M to get to a point of never going hungry or worrying about a roof over one's head... Could you pass me the soylent green, please?

It's a sufficient not necessary amount for FI.  It's neither sufficient nor necessary for fabulous lifestyles of the rich and famous

[dualstow]

$10MM for Gates' kids? I always thought they were getting $100,000! Wow, they're really going to be roughing it, LOL.

[Libertarian666]

If it takes $10M to get to a point of never going hungry or worrying about a roof over one's head... Could you pass me the soylent green, please?

Yeah seriously. I'm shooting for $600k…

I hope that is inflation-adjusted!