Andrew Carnegie, the Scottish-American industrialist and philanthropist who became one of the richest Americans in history is famous for saying that the man who dies rich, dies disgraced.

Carnegie is equally famous for the amount of money he gave away. During the last 18 years of his life, he gave away about $350 million (this equates to roughly $5.5 billion in today’s money), some 90 percent of his fortune to charities, foundations and universities, founding 3,000 libraries across the world.

In a GoBankingRates article about inheritance, financial planner and investment expert John Csiszar uses Carnegie’s example as one where an inheritance is left for the “public good”. An inheritance, he points out as a gift not an obligation.

Intestacy rules

While there are rules in place that govern what happens to someone’s estate should they die without leaving a valid will (intestacy rules), there is now law to say that should leave anything at all.

Other good reasons for leaving money behind are to provide for the family, particularly if the deceased was still working and the main breadwinner. Many people also like to leave money for education or weddings and those people who do not have direct descendants themselves will often still leave their estates to relatives, keeping the money in the family.

In some wills, people specify gifts or rewards to those in their life they feel deserve something. So, this might go to people who have reached milestones in their lives covering anything from graduating from university to becoming a doctor, say.

Carnegie fortune

And while most people will have nothing like Andrew Carnegie’s fortune to give away, he’s a great example of another reason for leaving an inheritance.

It is also a good idea for letting people know their importance to you. Anyone who receive an inheritance knows that you were thinking of them, which is particularly true of distance relatives or non-family members who might not have expected to receive anything.

Specific bequests do not need to be money. Pictures, collections or jewellery might mean more to that person, providing warm memories.

Risks of inheritance

Csiszar warns about the risks of inheritance, as many people can struggle with receiving large sums of money all at once. There are numerous stories of lottery winners, for example, who end up bankrupt, and the same is true for many people who receive an inheritance.

Csiszar cites a study by the Journal of Family and Economic Issues that noted that on average, adults who receive an inheritance save only half, while nearly 20 percent of baby boomers who received $100,000 or more blew through all of it.

Some 70 percent of families lose their wealth within one generation, and 90 percent lose it by the following generation.

Many people also find giving gifts while they are still living is more enjoyable, as obviously they get to witness the good of their donation.

We assist solicitors, banks, accountants and more and in tracing beneficiaries to estate property and assets. Visit our website www.findersinternational.co.uk to find out more. You can also request an information pack or obtain no obligation advice by contacting us on quotes@findersinternational.co.uk or by calling 02074904935.