If you have an estate that will allow you to leave substantial amount of inheritance to your children or other family members, you may want to think twice before you decide to give the entire amount to them. Those who inherit large sums of money often face challenges that are rarely spoken about, yet no less difficult. Here are a few reasons why a sudden large inheritance can leave your children unhappy and unfulfilled.
Concern 1. Bankruptcy.
It’s estimated that more than 70% of NBA players are bankrupt within five years of retirement. These players can earn tens, if not hundreds, of millions of dollars, yet still they are left in financial dire straits. The fact is, that if you are not prepared to deal with the financial realities of having a lot of money, that money can go away almost as quickly as you receive it.
Concern 2. Isolation.
Once you inherit wealth, your role in society and the way society views you becomes almost instantaneously changed. Many people will approach you only in an attempt to obtain some of your money, whether honestly or not. This can often turn heirs into guarded, isolated, and untrusting people.
Concern 3. Happiness.
Scientists who have studied happiness have determined that while poverty is definitely more likely to cause unhappiness, wealth is no more likely to make someone happy. To truly become happy, you must have enough money to meet some basic needs, yet you must also be able to set goals and achieve them. Those who inherit too much face few challenges, and a large inheritance can often lead to a lifetime of unhappiness.