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  • You have worked hard all your life. You've made your first million by thirty and hopefully, many more by forty

  • And along the way, you've still found time to start a family and have children

  • But now, as you reach your fifties and sixties, and your children reach their teens, comes the tricky question

  • of how to leave your money to your children without screwing up their lives.

  • So how do you, as Warren Buffett once said, leave enough for them to do something, but not enough to do nothing.

  • We spoke to a range of experts, wealth managers, and to the wealthy parents themselves about what you should do

  • and came up with a five-step plan

  • First, determine how much is too much. In the FT's long-running interview series, "My First Million,"

  • the question: "Do you believe in leaving everything to your children?" has rarely elicited a resounding yes

  • Leslie Pierce had the best response saying that beyond help with property and education, she intended to spend as much as possible

  • adding, "If I had to stay in a nursing home, it would be a posh one"

  • Next, think about the values you want to instill in your children.

  • For John Roberts, chief executive of AO.com, the XXX electric retailer, it all comes down to family values

  • He said he wanted his children to work hard, think of others, and have respect for what they have and what they earn

  • But critically, all of this, he added, was for them to live their own lives

  • Third, education, education, education. Your children need to know more about money than merely spending it

  • Many organizations offer programs, internships, as well as residential courses, that will teach the next generation financial planning and investing, philanthropy

  • the dynamics of shared family wealth, and longer-term issues, including wealth preservation

  • Fourth, give it all away

  • For philanthropist and entrepreneur, and Tom Hunter, it's a pressing dilemma

  • He told me that he was worried that great wealth would be a burden,

  • but even the super rich are stumped when it comes to determining how much is too much to leave their kids

  • When I pushed him on how much exactly he was going to leave, he said, it was still a work in progress

  • And finally, control your wealth, even after your death

  • There are many ways to pass on wealth through the generations, but one of the most effective and tax-efficient, is through trust

  • Many families would opt for the traditional trust fund, accessible when the child reaches 18, or increasingly, when they turn 21 or even 25

  • But ultimately, we all want our children or dependence to be happy and healthy, but be careful

  • wanting to help financially can sometimes end up doing more harm than good

You have worked hard all your life. You've made your first million by thirty and hopefully, many more by forty

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B1 INT UK wealth education leave family trust leslie

How to keep kids from getting spoiled | FT Comment

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    Chloe Tyan   posted on 2016/08/15
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