Former US country singer, Marie Osmond, made waves today when she announced on the CBS show The Talk that she would not be leaving her children any inheritance after her passing.
According to Osmond, it is a disservice to simply hand over a fortune to one’s children, as it takes away the valuable gift of the ability to work.
But Osmond is not alone in her decision.
Elton John, the renowned singer, revealed in 2016 that his children, Zachary and Elijah, would not be inheriting his staggering wealth of $771 million.
He believes that his children should grow up with a sense of value, just as he did.
They will have to pay for their own new car and start with a second-hand vehicle, and they will also have to do chores around the house to earn rewards.
Even Microsoft co-founder and one of the world’s wealthiest individuals, Bill Gates, has decided not to shower his children with vast sums of money.
Gates has stated that each of his three children will inherit $10 million, which is only a small fraction of his $165 billion fortune.
His intention is to strike a balance where his children have the freedom to pursue their passions but are not burdened with excessive wealth.
In Australia, around 80% of individuals plan to leave an inheritance for their children, according to a survey conducted by Monash University and AustralianSuper.
The most common forms of inheritance include the family home, cash, and superannuation.
This desire to leave a legacy is influenced by various factors, such as socioeconomic and cultural backgrounds, family traditions, and personal values.
However, while only 18.5% of Australians plan to leave cash as part of their inheritance, research from funds management firm Perpetual reveals that approximately $3.5 trillion worth of wealth will be transferred between Australian baby boomers and their descendants over the next two decades.
It is crucial to have a will in place to ensure that your wishes are legally recognized and to prevent any potential disputes among surviving family members.
Without a will, assets will be distributed according to local laws, leaving loved ones to navigate complex legal processes.
Writing a will becomes particularly important as one accrues more assets.
Seeking advice from a solicitor can help simplify the process and provide peace of mind for the future.
In conclusion, the decision by millionaires not to leave their fortunes to their children reflects a desire to instill values such as hard work, responsibility, and a sense of value.
While many Australians still plan to leave inheritances for their children, it is essential to have a will in place to ensure a smooth transfer of assets and avoid potential conflicts.
