“Inherited wealth is a real handicap to happiness. It is as a death to ambition as cocaine is to morality.” —William Vanderbilt
I somewhat agree with this. Any extremely large windfall has its risks, particularly if it instantly fuels an increase of your standard of living...
I have no heirs, and no real "generational wealth". But if I did, I would make sure it was planned. While I would need some time to plan the specifics it would go something like this:
Setting a monthly payout of 1/2 the avg local salery, a new car, and a median level starter home in the area of heirs choice. this is not quite enough to live on but is enough to be a safety net.
An accounting would need to be provided to the trustee manager for the yearly spending this should demonstrate charitible giving and responsibility.
Year 10 or 25yrold with at least 4 years of acceptable behavior the main payout begins. The stipend increases to avg "industry pay scale" tied to main jobs held or degree earned, a business plan for the rest of the payout is presented in which up to 2/3 of all startup costs are approved by the manager. If there are no plans for the use of the money then this level will remain in force. The manager would have instructions for "raises" based on anual reporting (things such as inflation, life changes, emergencies, bonuses for certain action, even just getting on with life and dropping out of the main program)
Once a level of success is reached the remaining funds are released according to the wishes of the heir. I would hope that by this time there would be a level of responsibility learned, youthful irresponsibility is in the past, etc.
In any case, the heirs health needs are covered, and the manager would have full authority to release funds to cover major medical or old age care (if it came to that and money available)
Of course, this only works for a sizable inheritance, I feel that anything smaller is not a real risk and would just setup a monthly stipend till the money ran out or the heir turns 25... Something like that.
I have no heirs, and no real "generational wealth". But if I did, I would make sure it was planned. While I would need some time to plan the specifics it would go something like this:
Setting a monthly payout of 1/2 the avg local salery, a new car, and a median level starter home in the area of heirs choice. this is not quite enough to live on but is enough to be a safety net.
An accounting would need to be provided to the trustee manager for the yearly spending this should demonstrate charitible giving and responsibility.
Year 10 or 25yrold with at least 4 years of acceptable behavior the main payout begins. The stipend increases to avg "industry pay scale" tied to main jobs held or degree earned, a business plan for the rest of the payout is presented in which up to 2/3 of all startup costs are approved by the manager. If there are no plans for the use of the money then this level will remain in force. The manager would have instructions for "raises" based on anual reporting (things such as inflation, life changes, emergencies, bonuses for certain action, even just getting on with life and dropping out of the main program)
Once a level of success is reached the remaining funds are released according to the wishes of the heir. I would hope that by this time there would be a level of responsibility learned, youthful irresponsibility is in the past, etc.
In any case, the heirs health needs are covered, and the manager would have full authority to release funds to cover major medical or old age care (if it came to that and money available)
Of course, this only works for a sizable inheritance, I feel that anything smaller is not a real risk and would just setup a monthly stipend till the money ran out or the heir turns 25... Something like that.