A recent article in Forbes is a case in point. The article titled “Larry Ellison's Trust Fund Babies” considers the family of Larry Ellison, the third richest man in the United States and longtime rival of Bill Gates for those top few spots. As the article notes:
Regardless of exactly how many hundreds of millions David [Ellison] and Megan [Ellison] are worth, [Larry] Ellison sets a powerful example for other parents who want to transfer big bucks to kids. Minimize the gift tax hit by giving them early stage stock. But more importantly, give them the courage—and the freedom—to find something they really care about, whether or not you share that particular passion.
It seems the Ellison children, Megan and David are doing quite wonderful things as trust fund babies. Both are film producers and financiers of some note these days.
“The sooner my kids get experience dealing with the pluses and minuses of having a lot of money, the better” Ellison is quoted to have said.
So what does this mean to you and your heirs?
With the Ellison family we find one more example of denying extravagant inheritance for purposes of dissipation. Bill Gates is yet another example.
What about you? Do you believe given money helps provide tools to grow or does it stunt growth? What lessons or tools will you leave to your loved ones and what will those mean to them?
Remember: When making your financial, tax and estate plans, don't go it alone. Be sure to engage competent professional counsel.For more information about estate planning in Overland Park, KS, and to download free tools to help you organize your estate, visit my estate planning website.
Reference: Forbes (June 5, 2013) “Larry Ellison's Trust Fund Babies”