Is leaving all your inheritance to your children unethical?

[brasty]

I have been reading this article which argues that if you are leaving an inheritance to your children, that you should also leave some money to charities who help disadvantaged people, in recognition that not everyone inherits. It argues not to do that is unethical.
I think I agree, unless the inheritance is a very small amount - under £5k.

www.theatlantic.com/business/archive/2017/12/ethics-inheritance-nussbaum-levmore/547934/

I disagree. There should be more done to close down the loopholes for the ridiculously wealthy who avoid inheritance tax (like that bloke who inherited half of central London possible exaggeration and didn't pay any tax).

However for the ordinary citizens who have earned their relative wealth and wish for future generations to benefit from it, they should have a say in how that's distributed and it certainly shouldn't be mandated by the government because you can guarantee it'd be siphoned off somewhere nefarious.

I'm set to inherit nothing. There is no wealth in my family, but I'm not bitter about my friend having a beautiful 5 bedroom detached house because she inherited. I'm happy that she's had the opportunity to make her life better without substantial sacrifice beyond that which we all endure (bereavement).

I think all inheritance should be abolished

Even if parents die leaving behind dependent children?

There's no inheritance for my brother or me. Our dad left everything to his 'new' family and my mother didn't see why her subsequent partners should be valued at any less and so has rewritten her Will many times in favour of her then partner.

This notion that all parents want to do the best by their children and pass on the wealth and keep it in the family and the expectation and reliance on that happening for things like home ownership etc, is ridiculous and unfair.

I don't agree with what my parents have done, but I do agree that people should be free to do what they want with their money/assets.

BarrowInFurness.

You are absolutely right to do this. What makes you think otherwise?

Please ensure that you get legal advice though, as setting up a trust fund might be something to consider in the circumstances.

@AmySueGina I think all inheritance should be abolished. It's partly how the filthy rich keep the wealth and even lower down the socio-economic scale, it reproduces inequalities.

So what should happen to the assets that people would have inherited?

there's also an argument for leaving it to people in need generally....and they are often not best served by charity.

I realise there's a high threshold before you pay any tax but not sure what the point is of leaving it to a charity. I myself have had some interesting pay rises when working for a charity.....!

Not all charities are the same. I have left some money in my will to a charity that I know does brilliant work with not enough resources. There are other charities I would not go near.

I think economic inequality would be more effectively dealt with by closing tax loopholes and making big corporations pay the proper amount of tax.

The thing is when you lose your parents, even as an adult, you lose your safety net.

How many of you with parents still alive know that if you lost everything, you could still go home to mum and dad?

brasty agree not all charities are the same.

I do have a charity named in my will though I am not leaving anywhere near the threshold!

I think there are a lot of issues with massive inherited wealth but in reality we need to do something about the super rich and no government is interested. Meanwhile I actually think it's decent to leave to your DC. I find it more annoying when people who have inherited millions take an ordinary paying job tbh. That's £15k that can go to someone who needs to earn it.....seems to happen particularly in the arts.

sorry, I'll stop going off topic now!

My son is a disadvantaged person and we will be doing all we can so he inherits everything we have left.

I am spending the lot

The title is not really representative of the article. Clickbait.

Australia manages very successfully without inheritance tax. The tax on a person's estate is the same as it would be if they decided to sell their assets during their lifetime (capital gains tax). There is no logical reason why there should be a difference between divesting yourself of assets in life and in death.

My mum worked hard all her life - professionally and in a voluntary capacity too. She made charitable donations throughout her life too - not huge amounts, she wasn't in the 40% tax bracket, but she did what she could.

She also scrimped and scraped for her retirement, assuming that she would have a long one ahead of her. That didn't happen. So when she died the entirety of her estate came to me.

What a strange suggestion that she - and others - shouldn't have been allowed to do what she liked with the money she earned.

Those who've had bad experiences with charities and executing wills - could I ask what the issues were? I need to write a will shortly.

I think it's a shame when people think charitable giving should be left to the rich as mentioned by some of here. Most people in the UK are some of the richest on earth even when living modest lives

Yes I can understand your annoyance in the arts.
I am also nowhere near the threshold and not leaving everything to charity, but I am leaving a bit.

Lots of people get no inheritance or family safety net. That is why we have a welfare state.

Micah that's not at all correct. If you die without a will depending on the size of your estate it is split between your spouse and your children (and potentially grandchildren if any of your children have died) based on intestacy laws.

Anyhow, in the UK, inheritance tax accomplishes the same thing.

Why does economic inequality actually matter though? Surely it is more important to make sure that everyone has means if acres to basic needs like food, utilities, education, healthcare etc. than expending all of our energy on stopping rich people from getting too rich. Heavy taxation can hamper economic development making everyone poorer in the process and creating dependency on the state and on charities which is a horrible way to live. If you want to tax inherentence it should be withbthe aim of preventing poverty not preventing wealth.

The thing is when you lose your parents, even as an adult, you lose your safety net

You can say that again.

Also what charities should you leave your money to? When the earthquake hit Mexico City earlier this year, people wanted to donate but I couldn't think of any trustworthy charity to recommend. The Mexican Red Cross is as corrupt as they come.

As it is the government "lost" all the official donations.

Lots of people get no inheritance or family safety net. That is why we have a welfare state.

I won't be needing the welfare state for quite some time unless something catastrophic happens, thanks to inheritance.

Can't imagine why anyone would think the alternative is preferable.

Charity can contest the will to get more money and take the other heirs to court. I kid you not. Check out what the RSPCA does, it is a disgrace.

well it depends on how much you inherit surely? Millions like the Duke of Westminster would it be such a hard ship to leave some to homeless charity or scholarships on top of their usual charity work - to off set the fact they didn't pay a single penny in inheritance tax?

Without affecting the life style of the children what so ever? But massively benefiting others...someone who received a few hundred thousand...maybe a few hundred or thou to charity depending

I don't agree. We have worked hard and I fully intend to leave whatever is left (after any care home fees etc) to my children. I pay a huge amount of tax and will likely pay inheritance tax too. That's more than enough.

I'm not leaving anything to anyone, I intend to have a very decadent old age and spend every penny

Jeez, we already pay >50% of our income to the state to support the NHS/ jobless/ low wage-earning- shouldn't we be allowed to decide what happens to the minority of the income we actually receive?