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."

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126Comments
Jun 20, 2012 9:43AM
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We are set up to give our daughter 1/2 of our estate.  She went to college, learned how to support herself, owns her own home, operates a successful business and has made us very proud of her

.  My son however, cant hold a job and hasn't for over 20 years, is a doper using crack, etc.  We have tried at least 6 times to help him through treatment, each time as soon as he is out, he goes right back to the bad "friends" and is back on drugs before the day is over. 

 I  told him that I would not leave him any of the estate to buy drugs with and had my lawyer draw up a will which excluded him from any  participation in our estate.  It will instead go to provide Scholarship funds for Graduate Students in a local college.  This country needs young people with Masters and Ph.D degrees to help rebuild this country's economy.  It alreadyhas  more crackhead than it needs.

 My lawyer has been instructed that if my son institutes a lawsuit to try to gain the estate, he is to be told that I instructed the lawyer to spend every dollar left in the estate before ending a defense of the will, insuring that neither my son or his lawyer will receive one penny of the balance of the estate.  No lawyer will take a case when he knows in advance that the defense will liquidate the estate before ending the defense.

Jun 19, 2012 10:41PM
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As a 29 year old, I find this article amusing. I don't expect anything from my parents or the rest of the baby boomer generation. Nor do I expect to receive any kind of pension, social security, or medicare when I do grow old. I don't expect to sail off into a golden retirement. However, I do expect to pay for the irresponsible economic policies of the baby boomer generation. I do expect to pay for the $20 trillion dollar national debt that the boomers are leaving me. The whole idea that anyone is entitled to an inheritance/social benefit is a complete baby boomer fabrication, that has resulted in the current economic disaster that we are in. So to all the boomers out there, keep your money. Live the good life. Travel the world. Get more liposuction. Buy more large empty homes. And when you go to the grave know that you have left the world a much worse place than you found it.  
Jun 19, 2012 10:26PM
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I didn't expect a dime of my parents' money when they died.  When my dad died, my mom was able to travel around the world, take several cruises, and road trips.  She spents thousands of dollars and enjoyed the last 10 years of her life.  That was exciting to see her enjoying life since my dad was so sick.  I recieved a small amount of money, but the time she spent with me was more important.  I glad she was able to spend that money.

Jun 19, 2012 7:22PM
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Well,  being a baby boomer myself....I know some things...I wouldn't transfer any weath to my adult kids until they are 37 to 47, they need some life experiences and somewhere in those years they'll have mastered how to manage, control and tool money safely and beneficially for the next generations. Giving a windfall to a 27 year old is completely dangerous.....not to mention a complete waste of money.
Jun 19, 2012 8:02PM
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My wife and I made both of our children get part time jobs at the age of sixteen. They paid for their own cars and insurance and college. Both are now in their late thirties, married, have good jobs, own their own homes and each has a child. They both tell us making them work for things was the best thing we did. We have no problem passing our investments and property on to our children and are doing everything to protect our wealth for them and our grand children. I passed on to them the knowledge that my parents passed on to me, that their is no free lunch in life.
Jun 19, 2012 6:51PM
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No one should expect an inheritance from a parent whether they are able to give it to you or not.  Everyone needs to learn how to live within or below their means and save for their retirement.  This is not a process that starts in the forties or fifties.  It must be something that starts as a young teen or even younger.  It is called discipline and not instant gratifcation.

 

There will always be those who fall through the cracks for various reasons and they for the most part will need help from community organizations, churches as well as the Federal government-but way to many think they deserve a lifestyle even if they do not earn enough to live like the Jones' next door.  Then when retirement gets close they say I do not have enough money saved and I owe more money than I ever have!

 

Retirement is as much about getting your fixed expenses as low as possible as well as having a plan to save for retirement at an early age.  You can not expect  to retire and have massive debt; it will NEVER work for you! 

 

It is not easy, but discipline is paramount at all costs.

Jun 20, 2012 3:06AM
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Gees...not all Boomers are inconsiderate. Some of us got hit hard by the downturn and had our retirement raided by Wall Street. Trying to figure out how we will pay down our upside down mortgage and still think about retirement before 75. That doesn't leave much time for fun and games people. Can't take it with us...whatever is left I gladly give to my kids and grandkids, but sure as hell don't want to leave them any debt. Working hard not to do that. Been working since 16 and never had anyone give me a handout...but I sure as hell am tired of working to make other people rich while I work until I'm dead. F that sh#*$!
Jun 19, 2012 9:36PM
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That's okay, my parents can use whatever inheritance to pay for their medical expenses....with the way things are going, they may need it.
Jun 19, 2012 11:34PM
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Expect nothing.

Earn everything.

Let your parents enjoy what they worked for.

If you think you will retire the same way, think again.

I haven't expect social security for 20 years (age 38 now), have worked for 25 years and don't expect anyone to hand me anything.

I want my parents to spend their military retirement money on, hmmm, lets see.... THEMSELVES...

If they want to give it to charity, so be it.

If they want to give it to me, cool deal, but I"m not expecting a thing from anyone. 

I'm not blaming them for the f'd up world we live in, that goes to the politicians who cant do anything without spending money.

**But wait, here's a thought. **

How do we fix it?

Of all the problems out in the world, this is one of the most minor outside of celebrity issues...

 

 

Jun 19, 2012 6:40PM
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No confidence in their kids, being able to handle a little money is their own fault by how their kids were raised by them! Spoiled!
Jun 20, 2012 11:02AM
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It seems like I am in the minority here, but I am in my late twenties and I am happy to hear that boomers don't want to give away their hard earned cash!  You have to earn your keep, even though yes it is a little harder now then it was then, but what are you going to do with that money?  Sure some will invest it, but with the generations of "me first" coming through the pipes, it is going to get spent on stupid things. 

 

 I would say to boomers, you earned it, spend every bit of it and enjoy your lifes work and its rewards while you can!

Jun 19, 2012 8:09PM
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Not providing an inheritance is a premise of communism.  If you raise your children responsibly, they will act responsibly with that money, investing it in the future success of your family (i.e. through education, property, investments, etc.).  This will allow your family to have a stable future and for them to pass even greater benefits to future generations, not forcing them to become reliant on the state.  If you say your children could not handle that windfall, you have no further to look then yourself.  
Jun 20, 2012 10:39AM
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It was easier years ago to make iy your own. Certainly I worked hard but there was a reward instead of a rigged treadmill. There was also cheap housing and no population pressure. We arguably have too many people now and very scarce resources. I remember in the 70s my folks sitting at a table in drawing up plans for a new business. Within a week they had the start up capital they needed and within 10 days we kids (teenagers) were working at the new store. It was a success for more than 30 years. They sold it for a nice profit. Try starting something like that today.
Jun 20, 2012 8:52AM
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Look at the debt we are leaving the next generation. It will be harder for them.

 

 

Jun 20, 2012 12:48PM
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The parents crippled their children by giving them everything and not teaching them good work ethics. Now they want to throw them to the wolves.  They should have been teaching them all along.  I think the parents should put the kids in their Will, but in the meantime, no more handouts and  the kids need to get out there and hit the pavement just like their parents did.
Jun 20, 2012 1:11AM
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I simply hope that I don't inherit debt. That's not to say my parents aren't smart with money - they just don't have anything to waste to start with.
Jun 20, 2012 12:08AM
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Forget about the fact that the economy has tanked in a major way, with no real recovery likely.  Forget about the fact that many boomers have pensions, whereas workers in younger generations were cut out from that old pension system.  Forget about the likelihood that social security will take more from the younger generations, and give less. 

The boomers (as a generation), as always, expect (and get) the best of everything, and don't seem to care much what legacy they leave for the younger generations. 

Jun 20, 2012 12:03AM
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My concern is that people who have worked hard, invested, and saved will be raped by the federal government.  The money will be stolen from those who have earned and saved and given to a bunch of welfare freeloaders, both legal and illegal.

 

Only 52% of people in this country pay taxes.  The others do not pay or even get refunds and never paid anything into the system.

 

The illegal, lying Kenyigar allowing younger illegals citizenship will not help this country!!!!!

Jun 20, 2012 9:16AM
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More Selfishness from the Selfish Generation...

If they don't know how to handle the money, then look no further then the Parents!

Isn't that your job to teach the younger  generations (your Kids) your tricks of the trade?


Jun 20, 2012 12:04PM
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you always help your kids! & your family my dad passed away in 96 the last 3 years of his life he needed money & I stepped up & helped, payed elect, gas, water bills food out of my pocket for 3 years & when he was ready he move in with me he did so & passed away 4 months later. I received nothing out of it except a law suite from his ex for his home by the time the home was payed off & lawyers paid there was $0 left. At 35 I did not think twice about it & it was not easy with 2 kids at the time so these boomers should help if needed not give so much that the family does not want or need to work but help ! shame on these folks if they dont help. I hope it comes back to bites them in the **** ! These are the old people you see at Wal-mart complaining about everything & everybody , how they earned there money BS not anymore so than anyone else ! YOU HELP FAMILY !
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