The rich fear leaving ‘too much’ money for their children

The rich fear leaving 'too much' money for their children

Wealthy celebrities like Daniel Craig and entrepreneurs like Warren Buffett and Kevin O’Leary aren’t just afraid of leaving too much money for their children: millionaires worry about the fortune to be passed on to their children.

That’s according to a survey by The Motley Fool, which interviewed 2,000 high net worth people – classified as having a net worth of over $ 1 million – about their attitude toward inheritance. In regards to.

Among those polled, the biggest worry was the possibility of leaving too much money to their heirs, mentioned by 67% of those polled.

Respondents had several concerns about the effects of leaving too much money to their heirs, including whether the money would be “used irresponsibly” or “make beneficiaries lazy”.

“What is clear is that people with high net worth worry about the effects of leaving a huge legacy,” Motley Fool Research analyst Jack Caporal told CNBC Make It. “They know and are actively considering leaving a legacy with terms that encourage their heirs to embrace the values ​​they deem important, such as working hard, doing well in school and finding a good career path.”

The survey found that 85% of high net worth individuals who had to meet certain conditions to receive their inheritance agree that it is possible to leave too much wealth to an heir. Among respondents who received an inheritance between $ 500,000 and $ 1 million, 84% agreed.

“The results and their reactions were certainly guided by their own experiences, which is interesting because you get the impression that these were not unfounded concerns, but related to their own experiences, which are known to have a lot of properties. . inherited, ”says Corporal.

However, only 78.5% of those receiving inheritances between $ 100,000 and $ 500,000 agreed and 69% of those receiving less than $ 100,000 did.

But despite their concerns about the size of the legacy they should leave, 60% of those polled said they found leaving a legacy “very important” and nearly 34% said they passed on more than 50%. from their assets to their heirs. planned to leave.

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