George Appling, a multi-millionaire who amassed $1 million by the age of 36, has made the unique decision not to leave his wealth to his three children as an inheritance. Instead, he plans to use his money to pay for their college education, cars, and other major life events. This approach is similar to that of some of the wealthiest individuals on the planet, such as Warren Buffett and Bill Gates, who have also chosen to limit the inheritance they leave to their children.
Appling’s decision stems from his belief that giving children too much money too early can hinder their ambition and motivation. He and his husband, Brian, waited until Appling was 39 to have children to ensure they were financially stable before becoming parents. They have always believed that it is not beneficial to make their kids wealthy at a young age.
In a recent interview, Appling shared how a lecture at a Harvard Business School reunion ten years ago influenced his views on inheritance. The lecture emphasized the idea that it takes one generation to build wealth, one to maintain it, and one to squander it. This realization led Appling to conclude that providing financial support to heirs when they need it most, during their formative years, can have a more significant impact on their long-term goals.
While Appling’s children, aged 14 to 16, understand that they will not receive a traditional inheritance, they know that their parents are willing to support them in important ways. Appling plans to contribute up to $100,000 towards their college education, help with the down payment on their first homes, and assist with purchasing their first cars. However, he expects his children to make responsible financial choices and avoid extravagance.
To ensure that his children learn the value of hard work and financial responsibility, Appling has set up a trust fund that will provide for their education and housing needs. The trust also includes provisions for business loans if the children present a viable business plan for evaluation. This approach aligns with the Rockefeller family trust model, which offers one loan opportunity per lifetime unless fully repaid.
In addition to financial support, Appling rewards his children with a weekly allowance for helping with household chores. He teaches them the importance of living below their means and making smart financial decisions. While he offers guidance on their financial choices, he also allows them to learn from their mistakes and face the consequences.
Overall, George Appling’s approach to managing his wealth and providing for his children reflects a commitment to instilling values of hard work, financial literacy, and responsible decision-making. By prioritizing support for his children during their formative years, Appling aims to set them up for long-term success and independence.
