How long does the average recepient of an inheritance wait before they buy a new car? Just 19 days.
This fact provided by the New Car Dealer Association provides great insight into how parents leave their wealth to their kids. I read a book by called the Midas Touch this weekend and I was moved by this statement:
“Character is not improved by the sudden receipt of money. It is revealed by it. Just 19 days before they buy a new car. Do you think thats what parents want their kids to spend their hard earned wealth on? How long does it take for the average inheritance to be spent? About 18 months.
Why do you think this is the case? Probably because the kids are not prepared to deal with the inheritance and the estate planner and financial advisors have not bothered to focus on this idea of wealth reception. We are all so focused on the taxes and transferring the assets from point A to B (which is important and should be part of any good estate plan), but we normally ignore the children and the kids relationships between each other and with money.