Celebrity offspring may have hit the genetic jackpot, but these kids won’t inherit a pot of gold.
Anderson Cooper, Ashton kutcher, Marie osmond, Simon cowell, and more and more stars have their own reasoning for not leaving their fortunes behind, arguing that passing on large sums of wealth can be harmful rather than useful. But are their decisions practical?
“What I have seen in other parents is that they don’t want to give too much money to the point of depriving their child of its purpose”, Debra radway, a certified financial planner, trustee and investment advisor at Radway Advisory Services LLC, told USA TODAY.
Cooper, who welcomed son Wyatt Morgan through surrogate mother in April 2020, is the latest celebrity to declare that he will not leave his son a legacy.
“I don’t believe in transferring huge sums of money,” CNN presenter revealed on Air Mail’s The morning meeting podcast end of September. “I’m not very interested in money, but I don’t plan on having some kind of pot of gold for my son. I’ll follow what my parents said…” The college will be paid. , and then you have to take care of it. ‘ “
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Cooper, who has an estimated net worth of $ 200 million, follows the same financial footsteps as his late mother Gloria Vanderbilt, which “made it clear to me that there was no trust fund,” Cooper said. Howard stern in 2014.
“I think it’s a curse… Ever since I was growing up, if I felt like there was a pot of gold waiting for me, I don’t know if I would have been so motivated.”
As a trustee and investment advisor, Radway says many of her clients want to provide a safety net for their children, without making them “dependent on the money left in the trust.”
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“It’s not whether their kid is going to be a billionaire, or a millionaire or a middle class individual, they just don’t want to provide too much wealth that will stifle their kid’s desire to contribute anything to this world,” says -she. .
When you think of trust fund babies, names like Paris Hilton, Rob kardashian and Lisa Marie Presley come to mind. The term is generally associated with people who depend on their family’s money without needing to work substantially.
Some stars claim that leaving their children with excess wealth can limit their desire to forge their own path. “It’s terrible to give children a silver spoon. It ruins their lives ” Elton john said to Mirror in 2016.
“If you leave a kid hundreds and millions of dollars, there is potential (they won’t have) a work ethic and will sit and live on the money,” Rawley said. “It’s not healthy. Most people need work to be able to feel fulfilled in life.”
But Rawley says it’s ultimately up to individuals “how to use their money,” adding that it’s not always cut and dried.
From wanting their children to grow up to be self-sufficient or choosing to donate their wealth to charity, it’s the celebrities who are turning their backs on generational wealth.
Estimated Net Worth: $ 200 million
In 2018, Kutcher said he was not leaving trust funds for his two children with his wife Mila Kunis – daughter Wyatt, 7, and son Dimitri, 4 – in hopes that they will earn their life and “will be motivated to have what they had, or some version of what they had.”
“My kids are living really privileged lives, and they don’t even know it. And they’ll never know because it’s the only one they’ll know,” Kutcher said on Dax Shepard’s Wheelchair Expert Podcast. “We will finish donate our money to charity. “
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Estimated Net Worth: $ 500 million
In 2016, John said he plans to leave his two sons with husband David Furnish – Zachary, 10, and Elijah, 8 – a small amount of money, but “anything beyond the base, they have to go out and earn it themselves “.
“Of course I want to leave my boys in a very healthy financial situation. But it’s terrible to give the kids a silver spoon,” he told the Mirror. John, who grew up in a “very working-class family,” added that he “has earned (he) everything by working hard” and that is also what he hopes for his children.
Estimated Net Worth: $ 400 million
Chan, who was named one of the The 10 highest paid actors on Forbes last year, said he would donate his entire fortune to charity, leaving nothing for his son Jaycee Chan, 38.
“If he’s capable, he can make his own money,” Chan said at an award ceremony in Beijing, China in 2011. “If he’s not, then he will just waste it. my money.”
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Estimated Net Worth: $ 600 million
In 2013, the creator of “The X factor” and “America has talent” said he also plans to donate his fortune to charity instead of his son Eric Cowell, 7, whom he shares with his partner Lauren Silverman.
“I’m going to leave my money to someone. A charity, probably – kids and dogs,” Cowell said. Mirror United Kingdom in 2013. “I don’t believe in passing from one generation to the next.”
Estimated Net Worth: $ 20 million
In 2020, the singer and actress announced on “The View” that she would leave “no money to (her) children”. Instead, she said, “I’ll donate mine to my charity.”
“Congratulations, children. My husband and I have decided that you are doing your children a huge disservice to just hand their fortunes because you take away the greatest gift you can give your children, and that is the ability to work. “
Osmond is the mother of eight children from two different marriages.
She shares Jessica, 33, Rachael, 32, Brandon, 24, Brianna, 23, Matthew, 22, and Abigail, 19, with her ex-husband Brian Blosil. The couple also shared their son Michael, who died in 2010 at the age of 18.
Osmond shares his 38-year-old son Stephen with current husband Steve Craig.
“You see it a lot in wealthy families, where the kids don’t know what to do so they’re in trouble, so I just let them be proud of what they’re doing,” Osmond said.
Estimated Net Worth: $ 400 million
In 2014, the police leader said he raised his six children to “have a work ethic that makes them want to succeed on their own merit.”
“I certainly don’t want to leave them trust funds that are albatrosses around their necks,” he told the Daily mail. “They have to work. All my kids know that and they rarely ask me anything, which I really respect and appreciate.”
Sting has two children with ex-wife Frances Tomelty – Joseph, 44, and Fuchsia Katherine, 39 – and four children with current wife Trudie Styler: Mickey, 37, Jake, 36, Eliot, 31, and Giacomo, 25 years old.
He added: “People assume they were born with a silver spoon in their mouth, but they weren’t given much.”
Estimated Net Worth: $ 400 million
In 2007, the Fuck the singer said his two children with wife Shannon Lee Tweed – Nick, 32, and Sophie, 29 – would “never be rich” with his money.
“There will be an annual allowance for their rent and food to be taken care of, but if you want wealth you should do it yourself,” he said on an episode of his TV show. reality show. “Gene Simmons Family Jewelry.”
He added: “I don’t want them to say, ‘Thank you, dad, for making me rich.’ No, you want to be able to stand on your own feet and say, “I did that.”