Inheriting
wealth rather than earning wealth is gaining money through material goods
through the means of a person passing or gifting you money and material
possessions. It’s a popular practise in upper-class families, and keeps the
wealth constant through the family history- usually passed down through the
family in order to keep a house or to keep the family at a constant class
level. It’s very much “keeping it in the family”, however, there has always
been controversy about money and it’s a very controversial subject. It is
sometimes seen as unfair, with not everyone getting the same opportunities to
gain wealth or get a head start in life that money may bring them. There are
some people who inheriting family businesses, gaining millions and yet there
are people who work hard day in and day out just to keep their heads above
water. The debate about whether wealth should be inherited has happened for
centuries, causing family splits and bitterness among people. Not all is bad
however, with families having the opportunity to give loved ones a gift at the
sadness of their passing, and giving them more opportunity in life. People who
have worked all their life, only to get inheritance tax by the government are
in uproar. Why should their hard earned savings be put in the hand of the
government? And isn't their money theirs to give to whomever they please? It’s
an issue that is individual to each person, and it’s only possible to scratch
the surface in this article about the different circumstances or issues that
may come about when inheriting wealth.
There are plenty of pros when it
comes to inheritance. It gives people a head start in life. It’s hard enough to
get on the property ladder these days; so many young people rely on inheritance
from elder family members in order to get a financial head start. It also keeps
your money in your family; which may mean protecting the family name and wealth
you may have built up. It’s a popular practise in middle class or upper class
families, and it keeps their class constant throughout history. Even a small
inheritance can go towards education or business opportunities that bring a
better life to all. There is also the fact that it won’t go in the governments
pockets (well, at least some of it won’t); and why should someone’s hard earned
money that they have saved all their life go into a system where they don’t
know where it will end up? It gives a person control over their life, and a
purpose for saving or buying an estate. It is a person’s money, and after all
it’s theirs to spend how they choose. However, it’s not all as clean cut. Some
people inherit millions from family members, yet seem to have no prospects or
purpose. They are simply known for being rich- which tends to give them a
privileged air over others. It’s argued that these people are undeserving of
their wealth- and everyone should be given the same start in life.
This brings us to the cons of inheriting
wealth. Inheriting wealth can create a divide between classes and people. It’s
sad but true that money does open a lot of doors in life- you just have to look
at the difference between third world countries and first world. Why shouldn’t
everybody be given the same start in life? Obviously that would be insanely
difficult to put in place- but to an extent it is an extremely valid point.
Inherited wealth creates more advantaged people with more opportunity. Those
who have worked hard all their life may feel belittled or scorned meeting
somebody such as Paris Hilton, who, by chance has walked into a life of luxury
and mansions just because she was born into her rich fathers Hilton network.
You can also inherit a money mess. When a loved one dies, it’s one thing to
have to go through a basement full of boxes and quite another to get stuck with
the departed’s debt. A person could have died unexpectedly, intending to sort
out their debt beforehand. Tax liens and debt could be now your problem. This
leaves us wondering, if it’s not all sunshine and rainbows- how much
responsibility do we have for someone else’s wealth?
The government stance on inheritance is pretty
much, as long as they get inheritance Tax they are happy to let inheritance
happen. The inheritance Tax threshold is currently £325,000 and stands at 40%
of anything above this threshold. The executor of personal representative for
the person who has died pays the inheritance Tax using the funds from the
estate. This has to be paid within 6 months from the end of the month of which
the person died. The money is split between the individuals if the person has
written a will, and if not it will go to the married or civil partner of the
deceased. If there is no surviving spouse or civil partner, it’s distributed
between any surviving children- and goes throughout the family in order of
blood line. Eventually, if the money has no place to go- it goes to the
government who puts it into government funds.
There are plenty of famous faces who are
famous for inheriting wealth. Some people call inheriting wealth luck, and
others just say that it’s being born into the right circumstances. Sam Branson
is the son of Sir Richard Branson, and is worth an estimated $3.8 billion. He
is the man behind Virgin, a well known company that is famous for Virgin
Records, Virgin Atlantic Airways and Virgin fuels. These are not all they
provide and the list is endless. Sam is due to inherit the wealth, but it would
be interesting to see just how involved he is in his father’s business-
something that I believe will show his true character when it comes to the
sensitive subject of money. Then there is Ivanka Trump- the daughter of Donald
Trump. She is due to inherit all her father’s personal wealth and estate.
However, she is very involved in the family business and is vice president of
real estate development and acquisitions of the Trump Organisation. It’s good
to see someone with such wealth still working in life, something that I feel
would really lack in a person’s character if they simply just lived the life of
luxury with no real input into working and gaining independence. Paris Hilton
is a very famous heir, and seems to have forged a career for herself simple
from inheriting money. Critics say that Hilton epitomizes the title of being
famous for being famous and she is an example of the modern phenomenon of the
“celebtutant”… this is the celebrate who is famous not because of their talents
but because of their inherited wealth. Hilton sees herself as an icon, and
personally, it’s not an icon I’d like any future daughters adoring.
Socially and economically, it’s sad to see
that individuals from disadvantaged backgrounds receive less inheritance and
wealth. It’s common throughout history that individuals with a substantial
amount of wealth often intermarry with similar classes- therefore creating a
cycle of privilege. This creates a hierarchy system, which ultimately divides
society.
There are some things to think about when it
comes to inheritance.
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Who
deserves money?
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How
to you differentiate?
-
Should
we all have the same chance in life?
-
Should
those inheriting wealth be forced to live a certain type of lifestyle?
-
If
it any different to winning a cash prize?
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Should
hard working individuals get taxed, even whilst dead?
I decided to conduct a survey to find out what
people thought. I conducted my survey using an online survey website, survey
monkey. 10 people answered my survey, with 7 people saying “yes, money should
be inherited”. Some of the reasons included: “I think the person whose wealth
it is should have the choice. In a way they already have. They can chose to
spend their savings on themselves when they retire of can chose to save it for
their children for example.” Another said, “Yes, you should be able to inherit
but it would be prudent to cap it at something like 2 million”. 3 out of 10
people however said no, they didn't think wealth should be inherited. The most
popular reason for this answer was it was “unfair”. Sadly, not many people who
said no gave a reason as to why it should not be inherited. There are a few
issues with the survey, such as it was based on a small demographic and I am
unsure of the age/background/class or wealth of the people who answered.
In conclusion, I do believe that wealth should
be allowed to be inherited. If your parents want to leave you money, then why
not? As long as people work hard in life and never lose sight of what is real,
there should be no problem. I don’t believe that wealth should be a “career”
however, and feel embarrassed by people who are famous for simply just having
money and spending it crazily. In this world, it’s important to know the value
of money and never leave sight of that. If you do inherit billions, the moral
thing to do would be to help out the world with things such as poverty and
charity. There is never enough money when it comes to such issues. This is all
dependant on how much you get, of course. A “regular” person may just get
enough to perk their life up, enable them to go to University or purchase their
first home. Some people in life of course won’t get any, but I don’t feel they
should let it control them, in the same way that people who may get inheritance
let it consume them. You shouldn't rely on it, and never let it change your
character. Life is full of ups and downs, and sometimes it’s unfair. This will
never change.
Jessica Martin
