Written by R. A. Stewart
“Whoever can be trusted with very little can also be trusted with much, and whoever is dishonest with very little will also be dishonest with much.”-Luke 10:16
Should you leave your money to your kids or grandkids?
I think the answer to that question can be a “Yes” or a “No”.
New Zealand financial advisor Mary Holm wrote, “Don’t leave all of your money to your grandkids for them to spend, spend it yourself.”
I disagree with Mary but not entirely, because it all depends on how responsible the recipients of your generosity are with money.
If they are just going to fritter the money away on booze, cigarettes, drugs, and whatever then I would not leave them a cent or if you are in the UK, a penny.
But, if they are responsible with their own money then it is a good idea to help them out.
That does not necessarily mean just leaving them a sum of money and allowing them to decide what to do with it.
In New Zealand, the retirement savings scheme is called “Kiwisaver”, which cannot be accessed until you reach the retirement age of 65, but there are circumstances when one can access this money and one of these is to use some of the money to go for a deposit for your first home.
If someone is responsible and mature enough to be able to save for a mortgage then they deserve all of the help which they can get, but you just have to let go of those who have no interest in gaining financial literacy because if you do not spend your money then someone else will.
The alternative is to leave it to charity, but if you are going to do that then it may be a good idea to donate to a charitable cause while you are still alive; well if you are living in New Zealand because you will receive one third of your donations back from the tax man, provided of course that the recipient of your generosity is registered as a charity..
Young people do not give much thought about what happens to their property after they go and as a result do not bother to make a will. This can leave problems for their loved ones if the unexpected arises.
There was a case several years ago when a 20-year-old lady died unexpectedly and had money in her kiwisaver account, but her family did not receive any of it, the lawyers did because she did not have a will.
Problems will arise when one dies without a will and making a will is one less worry for the family to deal with.
About this article
The contents in this article are of the opinion and experience of the writer, therefore discretion is advised. You may use this article as content for your blog or website.
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