Want to avoid raising spoiled kids?

[Strychnine]

http://blogs.wsj.com/wealth/2011/05/10/shutting-out-the-kids-from-the-family-fortune/

Sick burn.

By Robert Frank


Want to avoid raising spoiled kids?


Consider the Wellington Burt School of Wealthy Parenting.




Wellington R. Burt was a rich timber baron from Saginaw, MI. He died in 1919 with a multi-million-dollar fortune – one of America’s largest at the time.

Yet rather than risk messing up his kids lives with a huge inheritance, he created an unusual will.

He stated that* his fortune would be distributed to the family – but only 21 years after his grand-children’s death.

His children and grandchildren weren’t entirely deprived. *Burt gave his “favorite son” $30,000 a year but* the rest of his children got allowances roughly equal to those he gave his cook and chauffeur, according to the Saginaw News.

“I’m pretty sure he didn’t like his family back then,” said Christina Cameron, an heir and a great-great-great grandchild of Burt’s.

Now that it’s 21 years since the death of the last grandchild, the fortune is finally being turned over to Cameron and 11 others, including three great-grandchildren, seven great-great grandchildren and another great-great-great grandchild. The fortune is valued at more than $100 million. (She’ll get a little more than $2.6 million, since those further up the family tree get more under a master agreement).

Saginaw County Chief Probate Judge Patrick McGraw said the estate is “one of the most complicated research projects” he’s faced in his 12-year career in Saginaw.

Of course, skipping a generation is not unusual among rich parents who want to send a message to their kids (but somehow not their grand-kids). Generation-skipping trusts and other estate-planning structures have been around for ages.

But Burt’s will takes kid-skipping to a new, almost punitive level. Who knows, maybe his kids and grand-kids were better off for the lack of inheritance, or maybe the money would have allowed them to lead fuller, happier lives. We’ll never know. It would be interesting to compare the lives of his new heirs with those who were shut out.

What do you think of Burt’s School of Parenting?

[Broncojohnny]

There are a lot of kids who have their lives ruined by inheritance or the anticipation of inheritance.

[Cooter]

yup yup...

my Grandfather was worth $2-3M... I don't even know what happened to the money after he passed.

I did hear at one point he was threatening to write a check to OSU and cut everybody out (he had Alzheimer's, and was pissed about being told what to do, etc.) and my aunt told him to please himself... nobody was trying to take his money.

His passing was pretty recent, and growing up, I never really thought about what he was worth and was surprised to hear the number actually. Never thought about it and honestly won't be surprised if he gave it all away! LOL

Seen a LOT of trust fund/inheritance kids let money ruin them... they never had to work for anything, and it really isn't their fault. You can't teach an old dog new tricks, and they were given everything through their formative years, it actually LITERALLY causes the brain to develop differently.

[03trubluGT]

My wife's grandfather did a generation skipping will. Of course his children were all professionals in their 60's when he passed. They did not need the money.

The grandkids (wife) gets a check each year, but not on the principle. The interest gets divided 8 ways. The largest check we have gotten is about $26k.

[Unicorn Jeff]

My wife's grandfather did a generation skipping will. Of course his children were all professionals in their 60's when he passed. They did not need the money.

The grandkids (wife) gets a check each year, but not on the principle. The interest gets divided 8 ways. The largest check we have gotten is about $26k.

So that's where you get all your money!

[Big A]

I got a decent sum when my grandmother passed, and it is to be used for college or a home. Part of me says I'm an adult and can use it as I wish, but the frivolous side of me is thankful that I'm not allowed to blow it on a C6 and mods.

I don't know that skipping a generation is any better than direct inheritance though, because then you have a younger generation that hardly knew their grandparents work ethic spending a windfall.

[03trubluGT]

So that's where you get all your money!

Naw, I just roll drunks...


Actually this last couple of years has been close to nil. The economy is hard on funds.

[Cooter]

So that's where you get all your money!

that and bribes!

[03trubluGT]

that and bribes!

Nah, I just keep the dope!

[71chevellejohn]

I barely remember one of my grandparents(last one passed when I was 4 and we live in another country), so I've never had a thought of getting an inheritance. I probably wouldn't know how to react if something like what the article described happened to me. I'd probably just put it up for my future family; I live fairly comfortable as-is these days.

[Cooter]

Nah, I just keep the dope!

hook it up, I'm a buyer

[Big A]

I barely remember one of my grandparents(last one passed when I was 4 and we live in another country), so I've never had a thought of getting an inheritance. I probably wouldn't know how to react if something like what the article described happened to me. I'd probably just put it up for my future family; I live fairly comfortable as-is these days.

It all boils down to personality and upbringing. Look at the chick that blew $100M and is filing for bankruptcy posted on the first page, or the numerous lotto winners that end up broke or destitute. I don't think that gapping a generation will solve that at all, at least the direct decendents are well aware of the hard work and financial responsibility that it took to amass the money in the first place.

My mom and her 3 siblings will be recieving over $1M apiece when their aunt and uncle eventually pass (no kids of their own), and I promise you that she has no intention of blowing through it.

The moral of the story is to not have kids if you wanna be rich.

[03trubluGT]

hook it up, I'm a buyer

What u want? Weed, meth, ice, crack, powder, X??

[ceyko]

Wonder how many people are just living their lives hoping their parents pass away so they "get everything?"

[scootro]

its sad when people have to kiss ass in order to receive inheritance money from their favorite relative