Rich baby boomers cut kids off
A new survey shows some wealthy people are less interested in leaving money to their children. Many think their kids couldn't handle it.
By Kim Peterson Jun 19, 2012 1:06PM
Wealthy baby boomers have no problem cutting their children out of their fortunes, CNBC reports.
That's because many boomers earned their money the hard way -- on their own with no help from parents -- and think their children should do the same thing.
Post continues below.
The data come from a new wealth survey from U.S. Trust., the wealth and investing management arm of Bank of America (BAC). The survey found that about three-quarters of wealthy people over age 67 and younger than 46 think it's important to leave a financial inheritance to their children. But baby boomers are a different story: Only about half think it's important to leave money to their kids. Some of the rest said they would rather give their money to charity.
Many boomers think their kids couldn't handle that kind of money anyway. Only a third of boomers think their children are prepared emotionally and financially for a big inheritance. Other generations are more confident, with 54% older than 67 and 52% younger than 46 thinking their children could handle the money.
The survey also found that baby boomers seem not to be as concerned with their parents' long-term health. About 33% of those under age 46 have purchased long-term-care insurance for their parents, compared with only 6% of baby boomers. You could argue that baby boomers wouldn't have as many living parents as younger generations, however.
"Our survey points to a shift in generational behavior and outlook, most likely shaped by personal experience and societal responses to economic realities," said Keith Banks, the president of U.S. Trust. "The next generation has not experienced the consistently strong economic growth or investment returns that baby boomers experienced during the longest bull market in history."
More from MSN Money
That's because many boomers earned their money the hard way -- on their own with no help from parents -- and think their children should do the same thing.
Post continues below.
The data come from a new wealth survey from U.S. Trust., the wealth and investing management arm of Bank of America (BAC). The survey found that about three-quarters of wealthy people over age 67 and younger than 46 think it's important to leave a financial inheritance to their children. But baby boomers are a different story: Only about half think it's important to leave money to their kids. Some of the rest said they would rather give their money to charity.
Many boomers think their kids couldn't handle that kind of money anyway. Only a third of boomers think their children are prepared emotionally and financially for a big inheritance. Other generations are more confident, with 54% older than 67 and 52% younger than 46 thinking their children could handle the money.
The survey also found that baby boomers seem not to be as concerned with their parents' long-term health. About 33% of those under age 46 have purchased long-term-care insurance for their parents, compared with only 6% of baby boomers. You could argue that baby boomers wouldn't have as many living parents as younger generations, however.
"Our survey points to a shift in generational behavior and outlook, most likely shaped by personal experience and societal responses to economic realities," said Keith Banks, the president of U.S. Trust. "The next generation has not experienced the consistently strong economic growth or investment returns that baby boomers experienced during the longest bull market in history."
More from MSN Money