Wills, Trusts & Estates

Other research has shown that many inheritances, large or small, are rapidly
squandered. Similarly, analysis shows that over two-thirds of high-wealth families lose
their wealth within two generations, and almost 80% of high-wealth parents "feel the
next generation is not financially responsible enough to handle inheritance."
Social Stratification
It has been argued that inheritance plays a significant effect on social stratification.
Inheritance is an integral component of family, economic, and legal institutions, and a
basic mechanism of class stratification. It also affects the distribution of wealth at the
societal level. The total cumulative effect of inheritance on stratification outcomes takes
three forms, according to scholars who have examined the subject.
The first form of inheritance is the inheritance of cultural capital (i.e. linguistic styles,
higher status social circles, and aesthetic preferences). The second form of inheritance
is through familial interventions in the form of inter vivos transfers (i.e. gifts between the
living), especially at crucial junctures in the life courses. Examples include during a
child's milestone stages, such as going to college, getting married, getting a job, and
purchasing a home. The third form of inheritance is the transfers of bulk estates at the
time of death of the testators, thus resulting in significant economic advantage accruing
to children during their adult years. The origin of the stability of inequalities is material
(personal possessions one is able to obtain) and is also cultural, rooted either in varying
child-rearing practices that are geared to socialization according to social class and
economic position. Child-rearing practices among those who inherit wealth may center
around favoring some groups at the expense of others at the bottom of the social
hierarchy.
Sociological and Economic Effects of Inheritance Inequality
It is further argued that the degree to which economic status and inheritance is
transmitted across generations determines one's life chances in society. Although many
have linked one's social origins and educational attainment to life chances and
opportunities, education cannot serve as the most influential predictor of economic
mobility. In fact, children of well-off parents generally receive better schooling and
benefit from material, cultural, and genetic inheritances. Likewise, schooling attainment
is often persistent across generations and families with higher amounts of inheritance
are able to acquire and transmit higher amounts of human capital. Lower amounts of
human capital and inheritance can perpetuate inequality in the housing market and
higher education. Research reveals that inheritance plays an important role in the
accumulation of housing wealth. Those who receive an inheritance are more likely to
own a home than those who do not regardless of the size of the inheritance.
Often, racial or religious minorities and individuals from socially disadvantaged
backgrounds receive less inheritance and wealth. As a result, mixed races might be
excluded in inheritance privilege and are more likely to rent homes or live in poorer
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