The Fault in Inheritance

Although many children have no expectation of receiving an inheritance, the vast majority of retirees cling to the intention that they must leave something behind.  While these parents may seem loving and devoted, it is also somewhat foolish.  After years of spending hundreds of thousands of dollars to rear and educate each child, parents ought to cease feeling a sense of obligation.  It is much better to spend their retirement money in the present on making meaningful memories with family members or on healthcare that can help make aging more comfortable. 

In a study at the University of Texas, 86.2 percent of parents ages 59 to 96 expected to leave a bequest.  However, just 44.6 percent of the children, ages 40 to 60 thought they would receive one.  Where parents had no intention of leaving money behind but their children were expecting some, there was only 2.4 percent disconnect. 

The motivation behind inheritance stems from two general areas according to economists.  The first area is the moral obligation that parents feel toward their offspring.  The second is the assumption that parents wish to reward children who help them while they are still alive.

It might be that aging parents are generous to a fault, if a bit manipulative.  However, adult children assume their obligations to care for their parents with little expectation of receiving anything in return. 

See Ron Lieber, Parents, the Children Will Be Fine. Spend Their Inheritance Now., The New York Times, Sept. 19, 2014.

Special thanks to Matthew Bogin, (Esq., Bogin Law) for bringing this article to my attention.