All Things Money
Rather than being stingy, a substantial proportion of the parents surveyed said that while they hoped to leave their children some money, their biggest priority was funding essential needs in retirement and making sure their money lasted.
In the UK, research from SunLife also showed an expectations gap. One in five adults relies on getting an inheritance, hoping for an average £147,000 ($274,000) windfall to get them out of money trouble.
However, family members will actually be bequeathed around £119,000, and if historic trends are an indication, will “blow” more than £21,000 of it on holidays, home improvements and big-ticket items rather than clearing debts.
As for the heirs of American baby boomers, a survey by investment firm US Trust revealed just 49 per cent of millionaire boomer parents consid- ered leaving money to their kids a priority.
One-fifth of respondents fear their children would squander an inheritance, and one quarter thought it could make their heirs lazy. These parents suggested that after decades of personal and professional sacrifices for their children, and after paying for education and helping with first home deposits, enough was enough.
Survey results and anecdotes from financial advisers around the world point to common themes.
There are often unrealistic expectations, with people expecting to receive far more than they actually do; confusion arises from a lack of communication, and discussion around money and inheritances can