Quote:
Originally Posted by Enoch Root
Another thing that we tend to see is that the recipients tend to spend the money (one study suggested that most recipients spend at least half of the money fairly quickly (within a couple years or so). One of the complaints about saving is that the money isn't being spent - it isn't isn't 'in use'. However, once passed to the children it does tend to get spent. So that concern isn't all that great either.
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This is superficial in the extreme. If an average inheritance is like $5000, I would certainly expect it is spent quickly.
If you're like a friend of mine who inherited about $50M in real estate, none of the principal has been spent and he's worth about double that now.