Children of wealthy parents miss out on inheritance
The growing interest in philanthropy among Britain's rich will mean children of wealthy parents can expect to enjoy less of their inheritance, according to new research.
Wealthy individuals are following in the footsteps of inspirational entrepreneurs including Bill Gates and Duncan Bannatyne who have withheld large sums of their legacies in an attempt to instill a work ethic in their children.
Research by Richard Harris, founder of online will writing service, totallyfreewills.co.uk, found 62% of people with liquid assets of more than £250,000 are planning to spend their money or sink their wealth into charitable organisations.
Harris said: “Wealthy philanthropists, in particular self made multi-millionaires, are adamant their children are given the incentive to work hard by limiting their inheritance.
“Parents don’t want to take away their children’s ambition and instead are passing on the majority of their fortune to charitable causes they feel passionate about. They are placing more emphasis on leaving a legacy that will benefit society.
“Only ten years ago, 75% of The Sunday Times Rich List was inherited wealth, today that figure is completely reversed.”
Notable philanthropists that have chosen to limit their children’s inheritance include:
-Duncan Bannatyne – Dragon’s Den entrepreneur and father of six has set up a trust fund for his children but has warned they have to demonstrate sufficient moral fibre to justify any inheritance.
-Peter Jones – Fellow Dragon has told his five children they will have to work but has promised a trust fund will double their income each year and if they work in the charity sector or take up a socially responsible vocation, the trust will pay out three times that salary.
-Bill Gates –Plans to give away most of his fortune before he dies but leave each of his three children $10 million and give the rest to charity.
- Warren Buffet – American investor worth $62 billion declared he would leave his children, “enough so that they feel they could do anything, but not so much that they could do nothing”.
- Barron Hilton – Grandfather of heiress Paris Hilton said he will give 97 per cent of his $2.3 billion fortune to charity.
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