Crypto millionaire says his kids will inherit $3 million fortune on one condition
Many celebrities, millionaires and others are now increasingly worried about how much of their fortunes should go to their kids. It's no different for Siam Kidd who says he doesn't want "nepotism" in his house.
Kidd, who owns the trading advice website The Realistic Trader, is a former Royal Air Force (RAF) pilot from Norwich in the United Kingdom, who comes from humble beginnings and understands the importance of hard work.
The crypto multimillionaire, estimated to be worth $3 million, firmly believes in the mantra, "do, fail, learn and pivot". He feels that when a person inherits loads of money, they hardly end up contributing to the world.
"So if you're a nice person you might help more people build more things, more solar panels or whatever," he said. "If you're a d*uchebag and you just inherited loads of money, guess what? You become a super d*uche," he added, via Newsweek.
Kidd talks about how he started thinking about the future after he lost a few of his close friends in 2018. "Suddenly I was like 'if I die I'm leaving them no knowledge,'" he said.
He says that if in the future his kids want to have any involvement in the running of that fund, they will have had to complete the Wealth Action Plan and grow a business for seven figures, and that's the only condition.
"If someone has never set up, run, grown, and sold the business to seven figures, they don't have the prerequisite knowledge to run an entity with that amount of money," he explained.
This was when he went ahead and changed the terms of his will. While his family will maintain control over a small portion of his wealth, which will ensure his kids have a roof over their heads and their medical expenses covered, a larger fund was set aside for charitable causes.
"I don't want nepotism in my house. I want to run my businesses on a meritocracy-based system," he adds.
Kidd says that while his wife is not sure about this whole idea, he wants to give them a "clear idea of what they want to do." He says his goal is simply to ensure that his two sons are prepared for the world of business and a lot more.
While we may assume that millionaires want to keep their wealth in their families, the surveys and studies seem to paint a different picture. According to a survey conducted by The Motley Fool, which asked 2,000 high-net-worth individuals about their outlook on the subject, 67% of the respondents said that they had concerns about the effects of leaving too much money to their heirs.
Mark Zuckerberg, who has an impressive net worth of over $100 billion, famously said that his children will get only a fraction of it. Warren Buffet, who has a net worth of $119 billion has pledged 99% of his cast fortune to various charities.
“After much observation of super-wealthy families, here’s my recommendation: leave the children enough so that they can do anything, but not enough that they can do nothing,” he once said to shareholders, via CNBC.
Moreover, even if the parents want to leave their kids all the money they have, studies find that the younger cohorts may miss out on inheritance and may fail to see the "great wealth transfer", partly because of the extremely expensive healthcare. According to the Nationwide Retirement Institute research report, more than 25% of Americans believe paying for long-term care will diminish their children's inheritance.
