A story is told about a conversation between two great writers on the nature of wealth. F. Scott Fitzgerald, very enamored of the leisure class, is reputed to have said to Ernest Hemingway: “The rich are different from you and me.” In reply, Hemingway said: “Yes, they have more money.” And then there is the old joke that I won’t repeat here other than to deliver the punch line, “It was either that or dip into principal.”
One of the major goals of estate planning is to make the lives of one’s descendants as pleasant as possible. Pleasant but not dissolute. In a similar vein, John Adams wrote to his spouse Abigail, “I must study politics and war that my sons may have liberty to study mathematics and philosophy. My sons ought to study mathematics and philosophy . . .commerce, and agriculture, . . in order to give their children a right to study painting, poetry, music, architecture, . . .”
In this blog entry, we cite to some useful resources that consider the ways the successful entrepreneur may see his or her grandchildren studying or responsibly enjoying the finer things of life rather than ending up on Page 6 of the New York Post. Obviously, there is no substitute for careful individualized planning that takes into account not just your assets but your family circumstances, the character of your children and grandchildren, etc. Consider this entry as food for thought.
What the coming $68 trillion Great Wealth Transfer means for financial advisors
Managing the Psychological Impact of Inherited Wealth
Four reasons intergenerational wealth is destroyed in 3 generations
How to Help Your Family Wealth Last for Generations