I know I sure as hell wouldn't work. Sounds like a good way to provide for your kids without making them ultra spoiled douchebags.
I don't know. If you aren't working, then you're setting a terrible example for the kids.
Best option would be to work a a good job with decent salary, inheritance goes straight to kids education, trust, your own retirement, etc. One can certainly live comfortably on that money alone-easily--but what happens when the kids grow up to that example, yet there isn't any cash to support that undisciplined lifestyle?