Is It Obligatory to Leave an Inheritance to Your Children?
Parents are often torn between leaving an inheritance and letting children build their own path. A financial planner's take on where the priority should sit.
Stack of Indonesian rupiah notes representing inheritance planning
Is It Obligatory to Leave an Inheritance to Your Children?
Nearly everyone shares a similar mindset when it comes to the relationship between parents and children. From the moment a child is born and raised, parents generally love their children and are willing to offer every form of support and protection for their comfort. In return, children are generally expected to love, respect, and obey their parents.
However, once a child becomes an adult capable of building a career, earning an income, and taking on responsibility as a productive member of society, a fairly significant difference in mindset emerges among parents. One camp consists of parents who feel obligated to provide an inheritance for their children, while the other consists of parents who believe children should build their own independent lives through their own effort. Neither mindset is necessarily tied to the financial standing of the parent or child — some parents with modest means still feel the need to leave an inheritance, even when their adult child is already financially comfortable.
For the camp of parents who don't feel obligated to leave an inheritance, the reasoning is fairly clear: an adult child capable of working is expected to fund and pursue their own needs, so the idea of "receiving an inheritance" becomes simply a bonus or stroke of luck if it happens. Meanwhile, parents who feel they must leave something behind often cite the ability to provide an inheritance as a source of pride, or as a way to ensure their child can live comfortably. Others see the promise of an inheritance as a kind of "insurance," a way of ensuring their child will care for them in old age.
Whatever view one holds on inheritance, Budi Raharjo, a financial planner at One Shildt Consulting, offers a useful guiding principle for parents: leaving an inheritance should never become a burden, since by nature inherited wealth is what remains after one's own needs have been met — only once there is a genuine surplus should that surplus become an inheritance.
Funding Life in Old Age
When planning how to fund life in old age, parents should hold onto this same philosophy. Throughout their lives, parents have worked, and often sacrificed, to raise and educate their children into independent adults. Once a child reaches adulthood, a parent's responsibility to support the child's financial needs has essentially concluded. If a parent needs their own funds or assets to cover their own living needs, that should take priority.
A responsible child should also hold onto this same principle, particularly once a parent is no longer able to independently manage their finances or make their own decisions. With assets that have been gifted or will be inherited, a child should be willing to use them to provide the best possible quality of life for their parent.
As a provider of housing and services for seniors, RUKUN Senior Living fully understands the challenges seniors and their families face in determining and deciding on the best services to support quality of life. With a range of options and service combinations available, seniors and/or their families can design a service arrangement suited to both the senior's needs and the family's circumstances. These include:
- The Villas, offering villa options for those aged 50+ that can be purchased with HGB land title ownership, allowing the asset's value to be passed on as an inheritance.
- RUKUN Senior Living Resort, resort-style apartment living with monthly/annual rental options, as well as a "Live Free" payment scheme in which daily living costs are covered for life through a fully refundable deposit guarantee.
- RUKUN Senior Care, a residential facility offering high-support services related to dementia and physical care needs, also available with monthly or "Live Free" payment options.
For seniors living at home or with family, the following are available:
- RUKUN Senior Club, for independent seniors to take part in activities throughout the day.
- Dementia Day Program, a series of daily activities and social interaction for seniors with dementia to optimize their daily life. Available at Darmawan Park, Sentul, and the Dementia Support Center, Cipete.
- RUKUN Home Care, for seniors who need professional caregiver services at home (available in the greater Jakarta area).
For further information, contact 021 8795 1525 or visit www.rukunseniorliving.com.
RUKUN Senior Living
Darmawan Park Area
Jl. Babakan Madang No. 99
Sentul Selatan – Bogor 16810
Phone: 021 8795 1525
Facebook: RUKUNSeniorliving
Instagram: @rukunseniorlivingindonesia
Reference:
lampung.tribunnews.com
There's no absolute obligation. Some parents feel they should leave an inheritance, while others believe a capable adult child should build their own independent life.
According to Budi Raharjo of One Shildt Consulting, leaving an inheritance should never become a burden, since inherited wealth is, by nature, what remains after one's own needs have been met.
A parent's main priority should be funding their own living needs in old age, since the responsibility of supporting a child's finances generally ends once the child becomes an independent adult.
A responsible child should be willing to use gifted or inherited assets to provide the best possible quality of life for their parent, especially once the parent is no longer able to manage their own finances.
The Villas offers villa options for those aged 50+ that can be purchased with HGB land title ownership, allowing the asset's value to be passed on to heirs.