If there’s one topic more uncomfortable than discussing how much money you make or where babies come from, it’s the topic of inheritance. Talking about inheritance just feels wrong due to the greed it connotes and the finality of it all. But 100% of us will die, and 100% of us should be thinking about how we should give our assets away in an equitable manner. The best withdrawal rate in retirement doesn’t touch principle so we can ensure there’s money left over for others.
Dave’s post on taking care of his 97 year old grandmother got me thinking about a curious outcome that may occur. No matter how much love and time Dave gives his grandmother, her irrevocable trust will likely stay the same. Most of her assets will likely go to her son, Dave’s father who has financial issues of his own, and then her grandchildren. I’m sure grandmother appreciates all of Dave’s efforts. But at the age of 97, there’s no changing the will/trust to reward Dave for all his hard work during her most difficult years.
I’ve never had the inheritance talk with my parents because to discuss such things feels like extremely poor taste. Besides, they should have decades of healthy living ahead of them.
Thinking about inheritance is similar to how folks under 40 think about Social Security. There might be something in the end, but nobody counts on it. The only people who seem to talk about inheritance are super wealthy families with family businesses succession plans or people who are financially struggling and have no shame to ask their parents for more.