Those who have planned well, saved a lot and invested for retirement and have a home will most likely have large estate to leave their children. Is it a good idea to live large sums to your children? Should you consider giving part to charity? This is such a personal question and highly depends on your personal views but I would argue that it also much depends on your children’s personality.
When client ask, we usually discuss the importance of leaving the kids enough so they can have a nice start in life or retirement but not so much that they have no incentive to earn a living and contribute to society. Making sure that children know up front that you are planning to enjoy your hard earned money and that what is left as inheritance is a gift, not an entitlement. I like what Warren Buffet is doing which is to review his will every 5 years. Now that he knows that his children are self sufficient and successful on their own, he feels better about increasing the amount he will pass on to them. He also feels that large inheritance have better utility to society than any given individual.
Of course, most of us are far from being as wealthy as Warren Buffet and most will want to pass on the wealth to their family but if you are likely to leave a very large estate, give consideration to a responsible gifting strategy.
Here is the article regarding Warren Buffet’s estate plans.