Playing the Inheritance Game for Passive Income

When it comes to inheriting money, there is no other way to do less, or in some cases, more work for what will be considered a passive income. For those who are blessed to be part of a family that has a fortune to pass on, then your entire job in life becomes maintaining your place to inherit the goods. Many inheritance streams actually pay out over the entire life of the person in receipt. For some estates, the person who is receiving payout is charged with the role of managing the estate. It’s less morbid than it sounds. Rather than waiting around for someone to kick the bucket so you can collect, this form of inheritance as passive income is more like taking on the role of caretaker for land that’s been in the family and receiving pay for it.

In order for this form of passive income to work out, you need to properly balance all the budgets and make sure money is properly allocated. Instead of thinking that this is like coming into the ownership of your own personal castle and having free reign to do whatever you want, you should see it as being commissioned with a task and expectations in order to sustain the wealth so that it can continue to be passed down. An estate that pays for itself is a lovely way to generate an entire lifelong paycheck of passive income.

Some argue that this is not passive at all. In some families, the person receiving the income must obey certain rules and expectations. Some of the rules can be as intense as requiring the heir to marry the right sort of person, behave a particular way in public, and make the right friends. For some people, this seems a gross invasion of privacy and an incredibly heavy set of instructions for how to live each day. Still others find that it provides helpful boundaries and goals for how to be the best they can be. For these people, a life as a caretaker of an extensive property is a well-designed career choice and form of debatably passive income.

The Responsibilities

How passive is an income that comes with lifelong strings attached? It depends on the person. It’s not that much different from the lifestyles associated with the rich and famous, really. There are lots of limitations to freedoms associated with the lifestyle of a famous person. Aside from hiring security personnel, managing threats from fans, and always being in the spotlight, a famous person is expected to live and behave a particular way. The only difference is that most famous people select their lifestyle where inheritance is often the other way around.

For many people, the idea of balancing the budget of a wealthy estate, managing the social engagements, and maintaining the lifestyle that go along with it are ideal concepts. There is, indeed, a lot of money to be made in such inheritance scenarios. Not only is there the person who is allotted the inheritance and its responsibilities, but there are people that assist that person in their responsibilities. To become one of those people, perhaps it’s time to evaluate your social circles.

If you find yourself just a little shy of having oodles of billionaire friends, that’s alright. There are credible ways to turn yourself into an assistant to such elite folk. Aside from being certain to learn the ins and outs of managing estates, you would do well to become friends with people who are in the estate business. Be sure, above all else, to remain genuine. Putting on airs is a paper thin guise and will get you nowhere in the end. You need to be genuinely concerned for the wellbeing of any estate that you become involved with as well as the personal needs of the people charged with its care. Selfish motives will be easily discovered, and you will find yourself alienated from the exact career you hoped to pursue.

In the meantime, it might do you well to start managing your own affairs with keen attention and a long-term focus. With any luck, you may end up with an estate of your own to pass along and in doing so, you will want to be well-aware of how to handle it. Responsibility and attention to detail are key. Spending the time to train the next person charged with care of the estate will be of utmost importance as well.

What would you like to leave your children?

4 Responses to Playing the Inheritance Game for Passive Income

  1. Being a trustee or holding a durable power of attorney entails great responsibility. The legal obligations are more extensive than one may think. The trust document as well as state laws control the trustees actions. Federal and state income tax implications must also be considered in any decision that is made. From a legal perspective, those serving would be well served to engage legal and tax counsel to guide them and to stay compliant with all of the legal and tax laws involved in trust administration.

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