Shaquille O’Neal Gets Creative With Gifting His Children Money
Although Shaquille O’Neal has made millions from his NBA career and endorsements, he has joined a growing number of wealthy parents who limit how and when their heirs will get their inheritance. During an episode of the “Earn Your Leisure” podcast, O’Neal shared his views on giving his kids money, now and in the future: “we ain’t rich, I’m rich“. Like many affluent people before him, O’Neal is taking a creative approach with respect to gifting his children money. Here are three key considerations using Shaquille O’Neal as an example.
Communicate with your heirs. It is important to keep an open line of communication between yourself and those who will eventually inherit your earnings. Be sure to tell your kids what your plans are, like O’Neal. In the podcast, O’Neal says that he explains to his children that they are not wealthy, O’Neal is the one with the money. He has also had discussions with his children about how he will invest in their businesses in the future. O’Neal goes on to explain that his kids will need to get their bachelor’s or higher and if they want dad to invest in their future business ventures, they will need to submit to him a proper business proposal for his review and approval.
Think Big. O’Neal’s plan focuses on setting his children up for long term success, rather than instant gratification and handouts. It would not be difficult for him to just give his children money now, but he chooses to encourage them to generate their own wealth instead of relying on his. This also cultivates a healthy ambition and drive to succeed that they will need in life.
Take your time, but start now. Be sure that when creating your will, there is no room for interpretation. Make your words clear and concise. While O’Neal is still relatively young, there is no time like the present to start planning. Taking the time to consult an estate planning expert is also a great way to ensure everything goes according to plan.
Though your options are virtually limitless, proper estate planning -deciding on the “who, what, when, and how” and executing this with the least amount paid in taxes, legal fees, and court costs possible can be a challenging and an emotional affair to wrestle with alone. For more information, contact Talley LLP today.