Fewer millionaires plan on making rich heirs out of family

Many people work hard in their lives to create a business and success that they can pass on to their families. Some look forward to being able to leave behind their family and friends money that can make their lives easier.

According to a recent study of relatively wealthy people's plans for their estates once they pass, fewer parties plan on leaving their loved ones rich. The following are findings of a survey of more than 1,000 subjects:

• About 91 percent of the subjects plan to leave behind some assets to their children.
• About 82 percent of the subjects believed that their surviving family should make their own money.
• About 82 percent of the subjects have created wills to designate their assets.
• About 52 percent of the subjects have created trusts to designate their assets.
• About 18 percent don't have wills.

It looks like the vast majority of the subjects have taken wise actions to create estate plans. Even if some might not plan on leaving as much money to their family as they could, at least they are saving the family from the stress of there not being an estate plan of any kind in place.

The popularity of trusts could be a reflection of the attitude that family members shouldn't rely on an inheritance. Trusts can set certain stipulations regarding when and how an heir will receive his inheritance. They can be a sort of spending babysitter for those whom might otherwise squander the money that their loved worked so hard for and graciously left them.

Our law firm helps people with a variety of estate planning options. The idea of creating a will or trust might seem daunting, but going through with it can be a big stress off of a person's shoulders in the present and a future stress off his loved ones' shoulders.

Source: Pittsburgh Business Times, "Millionaires want heirs willing to work," Patty Tascarella, Jan. 10, 2013