A woman (let’s call her “Marge”) wrote into an advice column about the fallout over her sister’s inheritance. Unlike most of the stories we’ve written about inheritance, “Marge” wasn’t exactly upset about it. In fact, she was glad that her sister inherited everything from their late mother. Unlike other articles, this isn’t about a typical sibling inheritance dispute. Not at all.
According to “Marge,” the mother left everything her sister, “Charlotte,” and “100% earned it,” for all the care “Charlotte” gave their ailing mother. “Marge” explained that the mother’s personality of “throwing tantrums” had a cumulative effect of a) forcing multiple carers to quit, and b), escalting to the point of getting kicked out of multiple senior homes (three, to be exact).
Someone like that would naturally be very difficult to deal with: “Marge” kept limited contact with her mother, limiting their interactions to holidays and supervised visits. “Charlotte” on the other hand, stepped-up, took care of their ailing mother, and even organized her schedule around doing so. To take some of the burden off “Charlotte”, “her sister “Marge” would always watch her neices and nephews, while “Charlotte” took care of the mother. In this way, everyone was involved in taking care of the family.
After the mother’s passing, “Charlotte” was rewarded with an inheritance large enough to treat both herself and her children: galivanting about on trips and buying her children nice toys. No hard feelings on “Marge’s” part, no sibling inheritance dispute here, but “Marge’s” children want to know how to explain this turn of events to her own children, who now are asking why they can’t go on the same nice vacations, have nice toys like their cousins, or worse yet, why grandma didn’t leave any money to “Marge.” “Marge” is befuddled about how to handle this delicate situation, and wants advice. There was no mention as to how old her kids are, and how much “Marge” can tell them.
It’s a thorny situation: ideally, “Charlotte” would be including her neices and nephews into mix, perhaps buying them in a nice toy or two, but ultimately, she did earn the inheritance. She can spend it the way she wants. No doubt, “Marge’s” children would question the money either way.
The answer the sister was given:
“Marge” was definately taking the high road, and thankfully, wasn’t upset about being essentially disowned by her difficult mother. “Charlotte” did all of the heavy lifting, and while she doesn’t begrudge “Charlotte” at all, the issue lies with how her own children are taking the issue regarding the money.
Perhaps some would tell “Marge” to just come out and be honest with her children about the disinheritance. However, “Marge” was provided with an entirely different path:
“Marge” was told that she may not want to break the news to her children yet, at least not until they were older. All “Marge’s” children really needed to know, was that “Charlotte” was given grandma’s money to pay for some nice things, and that “Marge” wasn’t, because she and grandma weren’t as close as “Charlotte” and grandma were. “Marge” was further advised to tell her sister that she was going to have this conversation with her kids, and it might lead to her kids talking to their cousins, which may bring up a (further) uncomfortable conversation among the entire family.
All in all, despite the fact that “Marge” wasn’t close with her mother, everything does sound wholesome: there was no animonisty between the siblings, no split between the sisters, no jealousy on anyone’s part, just sisters helping each other out when necessary.
It’s a refreshing inheritance story that (thankfully) doesn’t involve any sibling inheritance dispute. One of the few stories that we’ve written about where an inheritance doesn’t lead to a battle among family members.
It’s no secret that Millennials and Gen Z are in a financial quagmire. That’s old news: the cost of living,inflation, and a stagnant job market have all pushed younger generations to the brink of despair. Millennials (born between the early 80’s to the late 1990’s), and Generation Z (born in the late 90’s) have had it rough: many are struggling to keep afloat in an economy that has been less than kind to them. This goes all the way back to the 2008 great recession, which was the start of a chaotic, bumpy, economic ride that has affected elder Millennials several years later. Then came the pandemic, which upended the lives of many Millennials and Gen Z (economically speaking). There is, as of 2024, a looming recession on the horizon which is going to (further) diminish what little finances the younger generations have.
So, naturally, parents wants to help out. We think.
The great wealth transfer between Boomer parents and their Millennial children is hopefully on its way
How are parents helping their kids out?
Housing is probably the most pressing issue for many younger people, as the astronomical cost of housing/rent has forced many young people (at a time when their parents were living on their own at the same age) to either move back in with their parents, buddy up with roommates, live off the grid in rural areas, or as a last resort, move out of North America altogether. Those who move often settle into cheaper countries, like Mexico, Portugal, or Thailand.
Usually, those who move have either a cushy job or remote job already lined up. If it’s a remote job, it’s through a North American company all lined up.
Living abroad can come with a set of unique challenges to deal with: cultural differences, infrastructure, climate, etc. It’s a whole new way of adapting to a new life.
The ability to up and leave may not be so easy: many have family, friends, and a network of people in Canada and the U.S. So moving to another country may not necessarily be the best option for younger people (or older ones, for that matter).
Younger generations (literally) can’t survive in the West, not with the cost of living the way it is.
What is the solution for younger Generations?
For those who are choosing to stick it out, they continue to struggle, hopeful that the economy will improve, that the job market will bounce back, and that inflation will eventually ease. We’re seeing some of that take effect; the easing of inflation will no doubt help younger Canadians save, but it’s not a permanent solution to the whole mix of issues that Millennials/GenZ are facing.
What can parents do to help?
Millions of young people across America are expecting an inheritance from their parents. In fact, around a third of U.S. Millennials and 38% of Gen Zers are expecting a payday when mom and dad pass, according to Northwestern Mutual’s 2024 Planning & Progress Study.
Canadian Millennials and GenZ are following suit: more than HALF are banking (no pun intended) on an inheritance to help boost their income and their savings, according to an Edward Jones study.
Look, relying on the bank of mom and dad isn’t pleasant, but the reality is that while Millennials/GenZ are struggling, they need extra help: help that they’re parents didn’t need to the same extent (we’re generalizing here). A “living inheritance” – an inheritance from parents to help pay for the essentials while their (adult) children are in the prime of their lives – can go a long way to help members of the younger generation “launch.”
A member of the younger generation receiving money for a living inheritance
A study conducted by Northwestern Mutual shows a cavernous gap between the expectations of Boomers and that of their children: while 38% of Gen Zers and 32% of Millennials are expecting (or hoping) for an inheritance, only 22% of boomers expect to leave an inheritance.
Boomers, like everyone else, are feeling the financial pinch, too. The idea that Boomers will be living large on a sunny beach somewhere, during retirement, isn’t really the reality for a lot of Boomers: they, like everyone else, are worried about their finances.
Boomers are feeling the pinch and (mostly) spending less: they’re saving for their own retirement, which includes the healthcare facilities they might they wind up in after retirement.
So with everyone feeling squeezed, is there a way for Boomer parents to help themselves, their children, and save for retirement?
As it turns out: yes!
Is spending down all your assets really smart for you?
Well first, planning to either spend or squirrel away every cent of your retirement money may not make sense: maintaining a safe withdrawal rate, on the other hand, leaves enough money in your retirement account without penny-pinching, and sacrificing your lifestyle after retirement.
What remains of your retirement portfolio when you pass away can be an inheritance for your kids. If you own a family home and want to stay in it until you die (as a Forbes survey revealed 92% of older adults do), this valuable asset could be passed down to your children. You could even joy being part of a multi-generational household.
Enjoy your future as a (maybe not-so-big) spender, while providing for your family.
A Boomer saving for retirement – meanwhile, Millennials and GenZ don’t know when they’ll ever retire
Baby Boomers Can Give their kids a Living Inheritance and prep for Retirement
As Baby Boomers edge closer to retirement, the topic of the transfer of wealth into the hands of the younger generations (for Gen Z in particular) has been brought up numerous times in the media. A generation, struggling to begin their adult lives, striving to keep afloat, would really benefit from a “living inheritance”— wherein parents would provide financial support while parents are still alive.
Hey, a “trickle down” concept that may actually work!
Understanding the Concept of a Living Inheritance
It’s basically as described – a “living inheritance” is supposed to help out the struggling members of Generation Y and Z. The money provided to these (adult) children is supposed to help pay for milestones: students debts, save for a house, etc.
The fun stuff, like trips, concerts, etc., can all be paid for by themselves when they have the money.
If parents really want to do this, they need to be able to balance their support with careful retirement planning. Parents need to ensure that they can both help their children, doling out money for their needs, while maintaining their own lifestyle in retirement.
Steps for Baby Boomers to Provide a Living Inheritance
If you’re a Boomer looking out for your own retirement, while trying to help your kids, you’ll want to follow these steps:
1.Assess your healthcare needs: You may want to sit down with a financial planner on this one. Someone who can assess your potential healthcare needs and what you might need in the future: visits to the doctor, medicine, what type of healthcare facilities you may reside in, etc. All of this may take time, so discussing this with both your children and a financial advisor, could help.
2. Tax Considerations: Just as with your healthcare needs, you may want to discuss the implications of gifting money to your children with your financial advisor. There may be, depending on the area you live in, a way to gift a specific amount of money tax-free. Again, all of this should be discussed with your financial advisor.
3. Trial-Run: One financial advisor recalled how one of his client’s had gifted his (adult) Millennial child with $200k as a “test-run.” Essentially, the parent wanted to see how well the child would spend his/her inheritance. Can you guess what happened?
The child squandered it. This was an adult, by the way. So, the parent decided that instead of a “lump-sum” inheritance to their child in question, to instead dole everything out in Trust. You can find information about Trusts, here.
One way to avoid this is to discuss what the money (the living inheritance) will be used for. If your children use it pay off their debts/put the money in savings, you’ll know the money is being used responsibly.
A Boomer looks to make payments towards his retirement, healthcare and wants to help his kids out
The Benefits of a Living Inheritance
So this is, like everything else in life, all about balance: your needs, desires, and whatnot with the need to help out your children.
That is a discussion for another time, but in the meantime, if you want to help out your child(ren), a living inheritance may be your best bet, particularly when it comes to housing. This can strengthen the relationship between you and your children, and set them up for success.
No matter what the verdict, the trial sullied O.J.’s reputation and lifestyle: many were already convinced of his guilt even before the trial wrapped up. His subsequent arrests in the late 2010’s didn’t help.
The 1994 trial would be considered “viral” if it was taking place today: it captivated everyone’s attention, the media was obsessed with it, the trial was splashed across every news outlet, and everyone was fascinated by how the trial would play out.
The family hasn’t seen a penny of that money. The reason they haven’t been paid for decades? Perhaps it’s because that any payment to the Goldman family would be an admission of guilt, but, strangely enough, the NFL player who once lived an lavish lifestyle claimed that he couldn’t afford to pay the Goldmans.
Simpson died in April of 2024 of cancer, and the Goldman family has continued to fight his estate for the amount the civil court awarded them decades ago (although now with $100 million tacked on for interest!) O.J. Simpson’s death has reignited the media’s interest in the late football star’s estate.
Malcolm LaVergne, O.J.’s longtime lawyer and estate executor, boldly declared that the Goldman’s weren’t going to get “a penny of the (late) football star’s estate.” LaVergne had seemingly been publicly sparring with the Goldman family, shortly claiming after O.J’s death, that: “his hope was that the Goldmans get zero, nothing.”
The lawyer soon backtracked on his (rather harsh) words, claiming, “that the Goldman’s claim will be accepted.” LaVergne insisted that his initial damming words were not meant for the family, but rather for the attorneys representing the family. In other words, according to him, LaVergne wasn’t really battling it out with the Goldmans, he was duking it out with their attorneys.
Either way, it may not have been a good look, because LaVergne soon backtracked.
Many people view inheritance as a gold ticket: it’s the key to paying off debt, travelling the word, and living a life of luxury. Many Millennials have been suffering through a prolonged period of economic hardship since the great recession in 2008. The supposed “wealth transfer” might (hopefully) mitigate some of that financial blowback. An inheritance can change the person’s life for the better, if the money is blown on stuff they don’t need. Even a small amount of money is life changing in this day and age. If you’re lucky enough to inherit a small fortune, don’t blow that money. Besides doing the responsible thing and paying off your debts and mortgage, you can use it to have fun AND spread it around to your community.
Many people have used their inheritances to create positive and lasting impacts, honoring the legacy of their benefactors. When people inherit money, jewellery, or anything of value, there are those who choose to invest in their education or grandchildren, which releases a lot of the financial burden for their own children. While many people are relying on the possibility of an inheritance these days, only a few lucky ones may have the money to direct their efforts towards philanthropic efforts. This would include charitable foundations, funding scholarships, supporting medical research, etc. The latter is what we’re going to focus on today.
Let’s delve into the ways inheritance can be used as a widespread force for good:
Leaving a legacy is important for many people. Regardless of an inheritance or not, many people do want to give back to their community. Many people choose to leave money for schools and hospitals. Some people have given back by donating to their local school system, either because they really believe in the importance of education, or they had a good experience at their former alma mater, or both. The people who inherit and choose to do good with their money aren’t just leaving behind a legacy in the field of education, they’re changing other aspects of society as well:
Catalyzing Social Change
Many wealthy people often leave money to charities or foundations in the form of philanthropy. There are a variety of causes to support and charities always need money. Philanthropy can ease the burden and leave a legacy behind for your heirs. There are some billionaires, for instance, who have promised to donate their entire fortunes when they pass away.
Humanitarian Aid Efforts
An inheritance can also bolster humanitarian aid efforts in other parts of the world. An inheritance can go to worthwhile causes, such as Doctors without Borders, provide support for organizations around the world, and much more.
Empowering Entrepreneurship and Innovation
There are always startups looking for seed money: startups offer new innovative ways to offer products that can change people’s lives for the better. Supporting these startups can lead to supporting something brand new and innovative.
Guardian of the Sydney Harbour
This brings us to Australian native Andy Orr: the 55 year-old former school teacher inherited enough money to leave his job and dedicate his time to something he truly passionate about: sweeping up the Sydney Harbour. Every morning, Orr leaves his house with his trusty hat, bucket, and gloves in tow. He spends each morning picking out the plastic litter that sweeps across the harbour. He came up with the idea while strolling along the harbour with his wife a decade ago. He began cleaning up the plastic debris in his spare time.
The inheritance he received in 2020 has allowed him to quit his job and pick up trash full-time.
The most common piece of garbage that he often finds? Plastic straws. Reflecting on the activity, Orr says that picking up litter full-time is a “meditative” process. He finds it calming.
What happens when the 55 year-old’s knees give away? Orr says he’ll continue his work from a boat.
You might argue that Orr is only making a small impact on the world; but he’s doing what he loves and his inheritance has freed him of any financial restraints. He’s doing good in the world. Will you do good in the world as well? Inherit and do good!
Inheritance can make a meaningful difference in the world.