Planning for Life

By Harry S. Margolis

Many affluent parents are concerned about the effect of leaving any wealth to their children and grandchildren. In some instances, they fear that the recipients will misspend the funds on drugs, fancy cars or failing businesses. In other cases, their fear is simply that their children will simply lose their drive to achieve and overcome barriers that may present themselves if there's no financial necessity to do so. (See my blog on Should You Stiff Your Kids?)

By Harry S. Margolis

Bill Gates, Warren Buffet, George Lucas and even Sting won't be giving their millions and billions to their children. Instead, the bulk of their estates will be going to charity. According to an article on CNBC.com, this is not because they don't love their children or just because they think that there are others in the world more in need of their support, but also because they don't want to undermine their children's initiative. Apparently Bill and Melinda Gates, who are worth $79 billion, plan to leave each of their children $10 million, certainly enough to live on, but not enough to purchase several mansions and a Lear jet.