The problem with inheritances is that old people aren't dying quick enough. They're living longer and enjoying a greater level of health than at any time in history.

Prior to our parents generation, our grandparents saw an inheritance as a major windfall. They could finally pay off the home, travel to that exotic destination they had always dreamed of and maybe buy a new car.

But our parents are too wealthy already and most have a greater financial base than their parents. So when a grandparent finally carcs it the inheritance becomes like a ripple in the next generations finances, barely rating a mention on the Richter scale of appreciation.

This then causes an adjustment, a paradigm shift if you like, as the older generations consider what to do with their accumulated wealth. Here's the options as I see it;

1. Give it away to charity - Your children will only flitter it away as if it were pocket change anyway. It's far better to give it to those who need it than leave the family in a quandary wondering where it should go.

   More and more charitable organisations are targeting older people to include them in their will. On the surface it may appear like a scavenger circling overhead a rotting corpse but it makes common sense. This money if given to families will predominantly spend on materialistic items whereas this option gives a sense of legacy.



2. Give it to the second generation - the parents don't need it. The kids on the other hand are only just setting out in life and a sizable inheritance could be the kick start they need. Buying a piece of property, paying for their kids tuition and maybe buying a decent car are options that the lower generations will invest in.

   They realise that a holiday or new Jaguar are far too frivolous too spend someone's lifetime wealth accumulation. While an inheritance would only be a ripple in the 2nd generations pockets it would be a small Tsunami for the younger ones.



3. Spend it yourself - Well, why not? You earned it. Inheritances have far less importance these days so saving your money to pass on to future generations is less required. Better than splitting it between your kids why not selfishly enjoy it while you still have your health and wits about you?

   In Australia, we refer to them as "Grey Nomads" - the baby boomer generation that retires at 55, sells up and buys a large 4WD and caravan and traverses the nation for the next x years. They even sport bumper stickers stating "Spending the Kid's Inheritance".

Regardless, it's your money and you can do what you like with it.