Rethinking Wills and Estates

Who are you giving money to in your will? Children, if you have them? Perhaps grandchildren or nieces and nephews? Hey, maybe even some friends? A little to charity? In America—and most of the world—it is assumed (and it is law if you pass intestate—i.e. without a will) that you should give the lion's share of your estate to your kin, your heirs.

The huge problem for American inequality is this proclivity replicates—and increases—the wealth gap between the haves and the have-nots over time. Right now, white America has ten times the wealth of Black and Latinx families and thirty times the wealth of Native communities. And, it's rising: the wealth gap has doubled since 1989.  This is because our entire economic system works towards maintaining and extending the wealth to the haves—which is primarily white America.*

It's past time, of course, to close the gap. Needless to say, to do so will require a large change in public policy. Here is a long—but not exhaustive—list of the sort of changes that are necessary. 

But what I am arguing in this piece is that people like me—privileged white, well-off folks—should not wait for the policy, but lead by deed and example: Give your wealth, in donations while you are still alive but mostly through your will, to projects dedicated to ending the wealth gap.

The impulse to give to your own children is strong psychologically, even if the children do not need the money at all. Of course, most parents want to show their love through giving. But, in addition, the way society views it is if children don't get the money, they are disinherited, with the progeny usually feeling hurt and shame. If parents don't plan to give their kids money (or give it unequally), there is often dissension within the family. The pressure from some kids is "gimme, gimme, gimme" even if they are well-off. Others might think there is a family dysfunction of some kind - that the children weren't deserving in some way unrelated to money. All this leads to an automatic tendency, whatever the circumstances, to give your own children (or, perhaps, grandchildren).

We need to forever change this thinking.

People in America overwhelming imagine that they somehow deserve the wealth they have and deserve to pass it to whomever they want. They believe they played by the rules, worked hard, saved, invested and, dammit, they should be able to pass it on to whoever they want.

I say bunk. First, the rules were unfair. The dice were loaded! Privileged white people had a super-highway of success, particularly the baby boomers; others traveled on a rutted dirt road. It's luck: of birth, of race, educational opportunity, community, mentors, tax law, structural inequality benefiting white communities, in-born ability and/or intelligence and so much more.

If you think you did deserve it, do you believe that those in disadvantaged communities who have not "made it" also deserved their fate? Come on! White Americans built our wealth on a foundation of exploitation and unconscionable discrimination and injustice—throughout American history and to this day—of communities of color (within the country and internationally). This has been brought into sharp relief in this Covid-19 moment. And, of course, this wealth-building has had a huge and massively destructive side effect: climate change.

I believe we have a moral obligation to make it right personally. I believe all wealthy white people need to rethink their wills to give, as much as possible given their individual circumstance, personal reparations and restitution to those communities —particularly of color (nationally and internationally)—who have been systematically disadvantaged in order to help us white folks get much more wealthy than we would have been in a fair, equal-opportunity economy. If you were planning to give to your adult kids or other adult relatives, talk to them! Do they really need your charity? If not, please re-think your giving. 

I want to acknowledge at this point that the biggest crisis facing the world is climate change, which has had a disparate impact on communities of color in the United States and the world.  Thus, both racial equity and climate change must be addressed hand in hand.  

For childless couples like us, this is as close to a no-brainer as exists. Right now, I am actively creating a list of projects to give to and re-writing the will. If anyone would like to see my list—or make suggestions—let me know.

And, in the meantime, fight for a fairer tax code so that the money stops flowing to the haves, and instead leads to equal opportunity for all! Vote!

* Many of my friends, who I think are wealthy, demur at the description as applied to themselves. They are looking up at Bill Gates or Jeff Bezos. Well, look down! The average white American has a net worth of $171,000. Are you far above that? Then, you are, in fact, wealthy compared to most white people and the vast majority of people of color in the US, not to mention the world. Some other tests: are you worried about making ends meet during Covid-19? If not, you are wealthy. Do you worry about paying bills or paying for an unexpected emergency? If not, you are wealthy.

Here is a three-question test from the NY Times to identify where you are in the wealth scale. Leslie and I are at 90%. Like most people in Santa Cruz, much of that is housing wealth—a great emergency cushion not available to most Americans.