I have heard the average inheritance is spent in 72 days. I would
like a current statistic (not before 1990) from a credible source on
the size of the average inheritance and how quickly is it spent (or
another similar statistic that shows the need for caution where
inheritances are
concerned).
Wow!
I've never seen this statistic before but I can well believe it.
Of course, 'spent' might mean 'wasted' or 'invested'.
In my experience, of a woman with 2 sons who inherited a large sum:
The woman invested hers in property and it has grown in value with inflation.
The elder son invested his in various business ventures that all went sour.
The younger son wasted his on foreign holidays, drink & drugs, etc.
That's Life!
Inheritance is greatly overestimated in the US. Only 8% of Americans
will ever receive any inheritance and of those 8%, half will receive
less than $25,000.
http://money.cnn.com/2003/11/25/retirement/inheritance/
**In my oppinion this is due to
1) Aging population: Older people have much higher medical expenses as
well as more years for their money to get depleated
2) A propensity to borrow: Americans today find debt a way of life.
Any debt that people have when they die must be paid (or collected by
legal means) before an inheritance will be awarded.
3) Poor family care of elders: As families tend to not care for elders
as they used to, the burden goes to the elder's savings. They pay for
nursing homes or in home care and with the extremely high costs their
children's inheritance is quickly drained to $0 (kinda ironical)
It's easy to see how those receiving less than $25,000 (again, that is
half of the inheritances these days) would blow that sum on a car or
paying off debt within the first 2 or 3 months. Backlash over Blairs school revolution::
cent, four times the national average. Patrick Wintour and Rebecca Smithers food chain being a potential source; how- ever this area still needs researching.
http://image.guardian.co.uk/sys-files/Guardian/documents/2005/09/om_050912_g1_national.pdfHOME |
Hi Diedre!
The following pieces of information might be useful.
?When baby boomers receive a large inheritance, they don't dawdle.
About 40% of individuals who received an inheritance of $50,000 or
more spent less than a week deciding what to do with it, according to
a study by OppenheimerFunds.?
http://www.usatoday.com/money/wealth/saving/msw109.htm
?According to statistics compiled by the trust industry, in the United
States the average inheritance is spent in just 17 months -- even when
wills and trusts are carefully drawn by experienced attorneys.?
Money Talks: The family fortune -- blessing or curse? by STAN HUTCHINSON
San Diego Daily Transcript.
http://www.sddt.com/reports/2004/03/moneytalks/tc.cfm
Best regards,
Bobbie7
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