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Disinherit the children?

Family, children, advice, schooling, finance for children, all things kids.
scrumpyjack
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Disinherit the children?

#435604

Postby scrumpyjack » August 18th, 2021, 10:19 am

What do fools think of Daniel Craig saying he disapproves of Inheritance and won't leave his children anything

Dod101
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Re: Disinherit the children?

#435609

Postby Dod101 » August 18th, 2021, 10:41 am

He is said to be worth $260 million and has said inheritance is 'quite distasteful' Not I guess if you are on the receiving end. But to answer the question it is of course entirely his business and to give away his fortune whilst still living is I think quite commendable. He is only in his 50s I think so he has plenty of time we would assume to give it away and escape taxes (but I do not where he is tax resident)

On the general principle of leaving an inheritance to children, in some jurisdictions (Scotland being one) children are entitled to a share of the estate on death but he appears to intend to give the money away before then. I certainly do not prioritise my children and they know that, although given my age it is quite likely that they will end up with quite a bit anyway. I do not have sufficient to give away too much at this stage of my life although looking back, I have given away quite a lot to my children and others anyway. I will be close to leaving as much to medical charities as to my children I think.

I am not though, close to disinheriting my children.

Dod

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Re: Disinherit the children?

#435619

Postby SalvorHardin » August 18th, 2021, 11:07 am

He doesn't exactly say that he's leaving nothing to his children. Rather he says that he "won't be leaving great sums". The quote from the original interview is below:

“But I don't want to leave great sums to the next generation. I think inheritance is quite distasteful. My philosophy is: get rid of it or give it away before you go."

https://www.telegraph.co.uk/news/2021/08/17/daniel-craig-shuns-quite-distasteful-inheritance-children-miss/

So give some away to your children when you're living, but leave most of what's left to charities, etc. in your will.

This is Warren Buffett's thinking regarding inheritance. Leave some for your children, but not a huge amount. From an interview with Fortune magazine in September 1986 (which has since been quoted in numerous places)

"To him the perfect amount to leave children is ''enough money so that they would feel they could do anything, but not so much that they could do nothing.''"

https://archive.fortune.com/magazines/fortune/fortune_archive/1986/09/29/68098/index.htm

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Re: Disinherit the children?

#435627

Postby Charlottesquare » August 18th, 2021, 11:29 am

I understand his thinking to a degree, whilst not sure I would label distasteful I certainly have observed at first hand (clients) large inheritances being bad for the recipients and I know of one rather successful work colleague who believes that they have too much to leave to family and will instead leave the bulk to charity.

My threshold would I suspect be where offspring would not need to work for the rest of their lives, that to me would be leaving them too much, however if they are say into fifties I would be a tad more relaxed re this if they had up to then been gainfully occupied.

Whilst we are not at the stage where our kids (20s) would be "ruined" by what we might leave them if we were then I would certainly not hesitate to not pass everything to them.

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Re: Disinherit the children?

#435640

Postby monabri » August 18th, 2021, 12:06 pm

Maybe he's just making sure his kids don't sit back and waste their lives because they know daddy will bail them out?

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Re: Disinherit the children?

#435649

Postby swill453 » August 18th, 2021, 12:26 pm

Typically, "children" would be in their 50s or 60s before inheriting, so one would hope they have made a stab at living their own life by then anyway.

(I'm 60, still waiting for my parental inheritance. It won't change my life :-) )

Scott.

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Re: Disinherit the children?

#435650

Postby pje16 » August 18th, 2021, 12:31 pm

I'm the same boat
both my brother and I know the value of money and have enough (from working) without what we will likely inherit
We may have become lazy bums if given a fortune at 17 or 18 :o

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Re: Disinherit the children?

#435683

Postby Loup321 » August 18th, 2021, 2:28 pm

Hmm, so I'm setting my daughter up to fail, probably. My Dad is in his 80's, and whatever he leaves to be split between me and my sister, I probably won't need much of, so I was intending writing a Deed of Variation to pass most of my bit directly to my daughter. She's 10. It won't be vast sums, but should see her through University with no loans (if that's the path she chooses). At the moment, she would take it as meaning she wouldn't need a job and can be a YouTuber, but she is 10. With a few more years of my influence, she might choose something I would be happier with. But it's her life, not me reliving my life.

I suppose, I'm working under the assumption that I won't need the money (and I am working and have the means to earn more), so giving her a bit of a leg up while I am still alive seems more worthwhile than making her wait until she's too old to need it and pass it to her kids.

However, it's my choice, and although my Dad knows what I will probably do, he will still write his will (if he ever gets round to it - don't go there) leaving it to be split between me and my sister.

pje16
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Re: Disinherit the children?

#435697

Postby pje16 » August 18th, 2021, 3:30 pm

If it's not vast sums and it comes to you
you could still hold and give to her at Uni time (assuming you live 7 years after gifting)
and btw what a decent guy you are to look after her like that

scrumpyjack
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Re: Disinherit the children?

#435703

Postby scrumpyjack » August 18th, 2021, 3:47 pm

A few considerations come to mind, all of which I have seen in action in my wider family (apart from the Bill Gates analogy)!

I think almost everyone wants to give their kids some sort of help but there are few people with the sort of wealth Daniel Craig has (and some with a lot lot more, eg Bill Gates). So for most it is a helping hand, not removing any need to work for a living

Where wealth is inherited perhaps there is more of a feeling to pass onto the next generation what has been passed onto you (eg aristocracy, family businesses etc)

Daniel Craig's children will have grown up in a very wealthy household, so perhaps Daniel's idea of limiting what he gives them may be the odd £5m?

Some parents may be reluctant to give their offspring too much because they think it will be wasted or divorce may result it in going to the ex.

Obviously there are special circumstances, eg where your child is disabled

A good education, a loving upbringing and good health are a far more valuable inheritance than money!

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Re: Disinherit the children?

#435706

Postby pje16 » August 18th, 2021, 3:55 pm

scrumpyjack wrote:A good education, a loving upbringing and good health are a far more valuable inheritance than money!

Well said - all my family get on really well (sibling, aunts, uncles and cousins) and as a child I thought everyone's did
As you get older your realise you are lucky

AWOL
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Re: Disinherit the children?

#435828

Postby AWOL » August 18th, 2021, 11:31 pm

I used to think that children should stand on their own two feet and build up from nothing without parental help like I did. However having a disabled child who may not be able to earn for himself (time will tell) soon changes that view. Moreover events can change things between now and ones death.

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Re: Disinherit the children?

#435887

Postby GoSeigen » August 19th, 2021, 10:37 am

scrumpyjack wrote:What do fools think of Daniel Craig saying he disapproves of Inheritance and won't leave his children anything


As someone who has recently been put in this position, I should say it's not very conducive to friendly feelings, especially if you don't explain carefully the rationale. All my life my father has wittered on about how he wants to leave something for us, then suddenly changes his mind and leaves it all to his ex-wife (second wife) who divorced him in his 70s! How to explain to the grandchildren when he finally pops his clogs that he left nothing to them, unlike their mother's mother and father?


GS

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Re: Disinherit the children?

#435904

Postby BobbyD » August 19th, 2021, 11:51 am

AWOL wrote:I used to think that children should stand on their own two feet and build up from nothing without parental help like I did. However having a disabled child who may not be able to earn for himself (time will tell) soon changes that view. Moreover events can change things between now and ones death.


...or worse after, when it is too late to do anything about it.

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Re: Disinherit the children?

#435943

Postby moorfield » August 19th, 2021, 1:39 pm

The intention is to support my children coming out of university with a decent degree and no debt (*) up to a decent house deposit. To some extent they have inherited already - I have put aside a few years of pension contributions which they will realize in 40-50 years time - they can thank me then!

(*) the current plan is for them to take the necessary loans, and I will match the cashflows once they start repaying.

After that, they are on their own as far as cash is concerned, but I expect there will be some assets left over to liquidate and pass on when the time comes.

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Re: Disinherit the children?

#435957

Postby AWOL » August 19th, 2021, 2:27 pm

GoSeigen wrote:
scrumpyjack wrote:What do fools think of Daniel Craig saying he disapproves of Inheritance and won't leave his children anything


As someone who has recently been put in this position, I should say it's not very conducive to friendly feelings, especially if you don't explain carefully the rationale. All my life my father has wittered on about how he wants to leave something for us, then suddenly changes his mind and leaves it all to his ex-wife (second wife) who divorced him in his 70s! How to explain to the grandchildren when he finally pops his clogs that he left nothing to them, unlike their mother's mother and father?


GS


In Scotland the law doesn't permit disinheriting and I must say that for all the downsides of this approach it seams farest.

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Re: Disinherit the children?

#435958

Postby scrumpyjack » August 19th, 2021, 2:36 pm

AWOL wrote:
GoSeigen wrote:
scrumpyjack wrote:What do fools think of Daniel Craig saying he disapproves of Inheritance and won't leave his children anything


As someone who has recently been put in this position, I should say it's not very conducive to friendly feelings, especially if you don't explain carefully the rationale. All my life my father has wittered on about how he wants to leave something for us, then suddenly changes his mind and leaves it all to his ex-wife (second wife) who divorced him in his 70s! How to explain to the grandchildren when he finally pops his clogs that he left nothing to them, unlike their mother's mother and father?


GS


In Scotland the law doesn't permit disinheriting and I must say that for all the downsides of this approach it seams farest.


As far as I am aware, the forced heirship provisions in Scottish law (which apply to someone with Scottish domicile), only mandate a share of 'moveable' net assets to the spouse and children. 'Moveable' excludes land and property, which will be the major assets in most cases.

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Re: Disinherit the children?

#435966

Postby AWOL » August 19th, 2021, 2:56 pm

You are correct. I had forgotten that.

Dod101
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Re: Disinherit the children?

#435970

Postby Dod101 » August 19th, 2021, 3:04 pm

AWOL wrote:You are correct. I had forgotten that.


Yes. If there is a surviving spouse and children of the marriage, the spouse and the children (as a class) are each entitled to 1/3rd of the movable estate. The final 1/3rd stays with estate itself and is distributed according to the Will. That applies irrespective of what the Will says and the beneficiaries have the option of accepting the terms of the Will or taking their legal rights. As I keep being reminded, consideration is being given to changing this in law but no conclusion has yet been reached.

Dod

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Re: Disinherit the children?

#435996

Postby AWOL » August 19th, 2021, 4:30 pm

Dod101 wrote:As I keep being reminded, consideration is being given to changing this in law but no conclusion has yet been reached.

Dod


Hi,

I keep seeing that it's unlikely to actually change. Do you know, if the discussed changes happen, what the most likely outcome is?

I don't think it's ever likely to be an issue for me but I am interested.

Cheers,
AWOL


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