When the kid inherits the money, but not the "millionaire work ethic"

Richmma80

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I'm old enough to have experienced a few of these happening. Millionaire parents passing on the company they had built to their children, only for the children to destroy the company because they did not inherit the good work ethic and businessman mindset that made their parents wealthy. The kids start off wealthy right off the bat, only to become broke before they reach old age.

One I know of was a plumbing company that had a very good reputation doing commercial building projects. The dad retired and passed away. The son fucked up so much that the company's reputation was tarnished and could no longer even get bids. The company went bankrupt and the son ended up broke as shit.

Second one was a commercial carpet installation company. This time it was the mom that had built it from nothing, only for her to entrust it to her son who had a gambling problem. The company went under also.
 
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Not me. I seen kids blow their parents companies up after they give it to them.

A tape company I work for had the owner die and then the wife took over and started crashing. Their son took over and got it back in the black quick and he was coke head 24/7 til he saw the money coming to an end.
 
Spencer Pratt and Heidi Montag syndrome.
 
We also have a few of those around here. One is a big shot realestate guy, construction, politics, .... his hand in everything. His children on the other hand.... Constantly broke and spending millions of euros. His son borrowed like a million+ euros from some friend of his dads, supposedly for starting some business. Spent like 10-20% on that business that from what I know failed immediately. The other 900k ? Bought a couple of cars, went of a cruise with a yacht, etc...
2 years later the guy comes to collent. You can guess who paid for it ?
 
If I was really rich and had stupid or lazy kids, I'd set up a family trust they couldn't touch and make sure it was reinvested and paid out to my descendants going forward. Hell I'd probably do that anyway.

...as it is, I'll probably just give it all to charity when I go.
 
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Usually the kids want nothing to do with the company and end up selling it.
 
Better than being a broke lazy cunt and inheriting a crippling debt you had no clue about

I hope my parents, especially my dad, have no secrets.
 
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IDK I kind of feel like the kid deserves it by birth right even if they are going to ruin it
 
Usually the kids want nothing to do with the company and end up selling it.

Thats what I would do if I inherited a company I didnt have any interest in. Use the money to start a business you like or invest or whatever. I ain't doing carpet cleaning just cuz I randomly inherit a carpet cleaning company, fuck that.
 
I've seen it cut both ways. It probably depends on the kid, the business, and the parent.

Theres a common wisdom among financial advisors and wealth management people that fortunes only last 3 generations. It's called the 3rd generation curse.

From what I've seen the best way to preserve wealth is to set up a trust fund that pays out dividends and interest while growing the core fund in a way that will always have enough. The fund is protected from the future generations, and the payments protect them from themselves. Essentially they can never really go broke no matter how stupid and reckless they are.
 
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