Why I Am Giving My Children Their Inheritance Now
Paul B. Brown has worked for the super wealthy. His former employers include individuals that have owned toys ranging from his-and-hers 747s to luxury yachts with private submarines. In the years Brown spent working for people who spend many times more on their hobbies than he spends on his mortgage, Brown realized that he and his wife are definitely not part of this extremely restricted club of the ultra-affluent. But, Brown and his wife are relatively successful. Brown’s wife has a nationally recognized consulting business and Brown writes a book every decade or so that enjoy moderate success. The pair has put their four children through expensive private colleges and are now enjoying the extra discretionary income that comes with adult children that have all left the home. Having a bit of extra money, Brown and his wife did something unusual; they started giving their children their inheritances.
The impetus behind this decision considered a number of factors. One simple reason for the early gift was that their children needed the money. Buying new homes and having their own children placed Brown’s children in a position where they could use the extra funds to make down payments and fund college education. Brown wanted to help now, when he could spare the money and when his kids really needed the extra funds. Another consideration was the oddity of having children looking forward, even at some subconscious level, to receiving a windfall at Brown’s demise. Each of his children had varying reactions to the receipt of their early inheritance, but all accepted and used the money for their own unique needs. Brown says that he is not worried about how they use the money and remains content with the early provision.
See Paul B. Brown, Why I Am Giving My Children Their Inheritance Now, The New York Times, June 9, 2017.
Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.