Grandparents leaving money to grandchildren?

[Honeysucklelane]

I read an article recently about the rise in grandparents leaving their will to their grandchildren instead of their children.

I believe my in-laws may be doing this and I’m not sure how I feel about it. On one hand thrilled for my children, but on the other worried they may come into a ton of money at a young age.

How do other people feel about this?

The main problem with the parents inheriting directly is sideways disinheritance. So if they die or divorce then a new partner can potentially inherit instead of the kids. Therefore, it is better that the grandparents give directly to the grandkids to avoid the wealth leaving the family via a death or a divorce.

I would be happy if my parents left everything to my kids.

And if the grandchildren divorce and remarry?

grandparents money still goes to strangers.

Exactly this.

Exactly, always seems more palatable if it’s fictional strangers for some reason.

Presumably same applies if grandchildren die or divorce then a partner would inherit.

My mother recently pondered this. She came to the conclusion that it would be unfair to leave everything to grandchildren since only one of her kids has children. Also, I think it is slightly off to nit leave anything to your children if they are not financially settled, having your child work into their 70's to make end meet while grandchildren/greatgrand children would get significant amounts of money. This obviously can be divided more equally and considering financial positions.

My grandfather wrote down that he expects his sons to give he grandchildren "significant amount". Obviously this is only morally enforced and worked in our family set up. My grandma had expressed that she wanted her life insurnace to be divided amongst the grandchildren. Again only enforced morally but it was equally divided to 9 of us. Grandparents trusted their kids to follow through, but obviously they could not have.

I just find it extraordinary that some people appear to be waiting to inherit money in their 70s. Just in time to use it to pay their own care home fees, it seems, sometimes.
Skipping a generation, in non exceptional cases, makes sense with people living so much longer. Let it go to the grandchildren while it's useful and they can enjoy it. We are probably talking in more and more cases about the grandchildren pushing 30 and having kids of their own, not some irresponsible 17 year old.

If the grandchild is an irresponsible 17 year old, then of course don't do it.

Quite. You see far too many wealthy middle agers getting a huge inheritance and pissing it away on holidays and luxuries, while the younger generations re struggling to get on the property ladder.

But the grandkids would have benefited from the money. If the parents split/remarry the grandkids often get nothing

It's their money/assets, totally up to them. I never understand quibbling about wills and inheritances.

I do not resent the children getting money. Just worry it’ll come at a stage in their lives when they won’t spend it wisely and it could be wasted. Mind you, I know someone in their late 30’s who came into money that would have helped them buy their council house, but it got frittered away.

fear not! My husband & I have one GCSE between us (art 🤣). We are not massively wealthy, but have done well & are way above average, on the income scale. Exam results do not have to hold you back.

My FIL has told us recently that he is leaving his house to his only grandchild , this could well mean he will inherit a house in his 20’s to sell , rent out whatever . Nice as that sounds I do hope he is sensible when the situation arises .

How does your partner feel about that?

Agree. Wealth at a young age can cause problems with direction and be an initiative killer. I also don't understand why it has to be all or nothing? Why not give some to both generations if you want to help out the grandkids too?

Leaving a sum of it to grandchildren but majority to children is a good idea.

Depends on how much money the grandparents have surely!

How old you think the grandkids have to be before they can be trusted to spend it wisely, as a general rule? Is your point more that money shouldn't be left to people who are too young, rather than shouldn't be left to grandchildren? If the kids are 55 and the grandkids are 30 what's your view then?

On one hand thrilled for my children, but on the other worried they may come into a ton of money at a young age

Inheritance = dead people. You are literally anticipating the death of your in-laws. Are you really giving headspace to this?

The problem arises when child 1 has more children than child 2 so child 2 feels hard done by as indirectly child 1’s family gets more than the family of child 2.

@Honeysucklelanefil has savings he is leaving to dh , dh isn’t bothered just wishes his dad would spend his money and enjoy it now !

It goes to individual people, not families.
Makes no difference how many siblings each particular child has.

Well that depends on the will.

But if we've been married for decades it's not likely we'll divorce, while grandchildren are still at the marrying/meeting new people stage so haven't proven the test of time with their relationships? Could still happen.