Richest Woman In The World Says Her Kids Aren’t Fit for Inheritance

by iam1percent on May 24, 2012 · 8 comments

Gina Rinehart (who?) is now the richest woman in the world.  She inherited a $75 million fortune when her father died in 1992 and turned it into $29 billion in 20 years.  What’s even more amazing is that she amassed $18 billion in just the past year!

Most millionaires and 1 percenters did not inherit their wealth, but a small percentage did.  Whenever we think of inherited wealth, we think of spoiled children who do not understand the value of a dollar.  In her case, she not only understood the value of a dollar, but multiplied that dollar 386 times in 20 years.  Her father raised her well and amassed  a fortune; enough to leave to his children and children’s childrenNow is Ms. Rinehart’s turn to pass down her wealth to her children, however, she is not quick to do it.  In court papers, she writes:

“None of the plaintiffs (her children) has the requisite capacity or skill, nor the knowledge, experience, judgment or responsible work ethic to administer a trust in the nature of the trust in particular as part of the growing HPPL Group,”

The question is, why didn’t Ms. Rinehart raise these children like she has been raised?  I know it’s easier said than done, but to withhold an inheritance to your children  because of a lack of worth ethic just adds to the “Paris Hilton” stereo type.

My children are young and don’t even understand the concept of money yet, but as I stated in a prior post, our plans are to leave money to them and to their children.  We hope that we raise them to have a good work ethic and to be good stewards of whatever fortune we leave them.  If I didn’t do that,  it says something about us as parents.  I don’t think there is a right or wrong answer to this debate, but there is a question of fairness on if parents should criticize their children for being spoiled…they raised them.

 

Thanks for visiting I Am 1 Percent. Please subscribe so that you will receive all the latest posts directly to your email!

{ 8 comments… read them below or add one }

Josh @ Live Well Simply May 24, 2012 at 3:26 pm

This story make me wonder if she spent all her time amassing her fortune rather than with her children instilling the virtues we assume she was taught by her father. The lives of the mega wealthy are fraught with similar stories.
Josh @ Live Well Simply recently posted..How to Start Building Credit in 5 Easy StepsMy Profile

Reply

krantcents May 24, 2012 at 3:46 pm

How old are her children? If they are adults, she should blame herself for not preparing them for this fortune. Since she cannot take t with her, what will she do?
krantcents recently posted..Are You Superhuman?My Profile

Reply

Lance@MoneyLife&More May 24, 2012 at 7:24 pm

I would still leave them something but like many have said she should have raised her kids like her father did her. Now if they just decided to skate by because mom was rich and they were depending on the inheritance then that is the kid’s fault.
Lance@MoneyLife&More recently posted..How To Win ScholarshipsMy Profile

Reply

PB May 25, 2012 at 11:39 am

She isn’t dead yet, so I’m assuming the dispute is over the trust her father set up?
Depending on who the beneficiaries are, she may have a point. Also, just becuase she doesn’t want them to have control over the money in the trust from her father doesn’t mean she wont’ end up leaving them money when she dies.

However, it does raise the question as to why she didn’t teach them whatever the family business is and how to run the trust so they could take on some responsibility.

Reply

investlike1percent May 27, 2012 at 3:35 pm

hi, love your blog.

just recently started mine. i have a daughter and am worried about raising her and being infected with afluenze. my wife and i am hoping that if we set up an example for her and bringing her with us to many charity volunteer work where she sees the other side of life that she wont be spoiled.

how to give her everything without letting my daughter experience the downside of life like unfullfillment, disappointment, not getting what you want …all so she doesnt get spoiled.

Reply

Shannon-ReadyForZero May 30, 2012 at 2:50 pm

I don’t have children so I won’t presume to know how difficult it may be to pass down the values you cherish to them. I hope to raise my future children to respect money and give back but that doesn’t mean they may not rebel. Perhaps she’s doing this as a way to teach her children a lesson and give them an opportunity to earn the money?
Shannon-ReadyForZero recently posted..Easy Wallet Hacks to Help Optimize Your BudgetMy Profile

Reply

Mochi & Macarons June 21, 2012 at 3:40 pm

She’s inspiring, but I agree with your assessment, although it is hard to pass down those kinds of values when you’re surrounded by such wealth.

It’s why I seem to find that the ones who ‘make it’ are not the ones who inherit the wealth or businesses from their parents, but the ones who had nothing and fought to the top. It’s just a shame it doesn’t last past 3 generations, or so the saying goes…
Mochi & Macarons recently posted..The Scent of DepartureMy Profile

Reply

Terry August 2, 2012 at 10:33 am

I’d like to know what she DID to amass $18 billion in one year.

Reply

Leave a Comment

CommentLuv badge

Previous post:

Next post:

Hypersmash.com