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RE: Money and Estranged Adult Children (Follow-Up #35)

posted by: athlete2010 on 07.16.2008 at 12:37 am in Parents Forum

I think that a lot of retirees vastly underestimate the long term care that they might need as they get older.

A sixty year old could live to be one hundred. If they spend the last ten years of their life incapacitated due to a stroke or alzheimers, long term care is going to be very, very expensive. If they can afford supplemental insurance, that's great. However, it may not cover most of the expenses. I know one case where it fell far short.

I am a firm believer that children should not be raised to expect an inheritance. This gives them an undeserved sense of entitlement, and encourages them to adopt a waiting attitude. So, their mindset changes to the point where their potential is self-limited, and their appreciation is lost.

There are so many bad things that can happen in life - major illness, losses in the stock market, the housing bust, an accident, lawsuits, etc. We should plan for the worst while still hoping for the best.

I think it's better to teach children that they will have to become independent at a certain age. In terms of inheritance, they should know that there are no guarantees in life. This will help them adopt a healthier mindset about family money.

Another important lesson for kids is that actions have consequences. That's why I support leaving nothing to ungrateful children who have turned their backs on their parents. If they do receive an inheritance, it will reinforce their bad behavior. Why? Because even their own parents have let them get away with it.


NOTES:

Send to Jim.
clipped on: 02.11.2011 at 09:26 am    last updated on: 02.11.2011 at 09:27 am