Will Your Children Be Responsible with Their Inheritance?

Sean Sevey |

This week I had a great conversation with a client who expressed valid concerns about leaving a decent size inheritance to their children.

As we journey through life, one of our greatest desires is often to provide for our loved ones, especially our children and grandchildren, long after we're gone. However, the road to ensuring a smooth inheritance process can be fraught with challenges, particularly if financial education and responsibility aren't firmly established.

For many of us, the thought of leaving behind an inheritance is deeply tied to the hope that it will serve as a safety net, a means to support our children's future endeavors, or even to fulfill their dreams. Yet, the reality is that not all adult children are equipped to navigate sudden windfalls responsibly.

Financial education plays a pivotal role in preparing adult children to handle inheritances wisely. Unfortunately, this aspect is often overlooked or underestimated. Without a solid understanding of budgeting, investing, and long-term financial planning, an inheritance can quickly evaporate, leaving little to show for years of hard work and sacrifice.

Moreover, there's the crucial question of trust. Do you trust your adult children to handle the inheritance responsibly? It's a question that weighs heavily on the minds of many clients I've had the privilege to work with over my 24 years in this field. Some parents express deep confidence in their children's ability to manage the inheritance wisely, while others harbor doubts, fearing it might be squandered on frivolous expenses or risky ventures.

As yourself these questions:

  • Would your child buy a home or a new car?
  • Are your children natural Spenders or Savers?
  • Do you trust your children’s spouses in the event of a divorce?

The truth is, navigating these concerns requires open communication, careful planning, and sometimes, difficult conversations. It's essential to discuss your wishes and concerns with your children, imparting not only the value of the inheritance but also the responsibility that comes with it.

If you find yourself grappling with these challenges, know that you're not alone. I've had the privilege of guiding numerous clients through similar situations over the years. Together, we've explored strategies to ensure that their hard-earned assets are preserved and utilized in ways that align with their values and goals.

Whether you're seeking to enhance your children's financial education, establish safeguards within your estate plan, or simply want to discuss your concerns and explore potential solutions, I'm here to help. With my 24 years of experience and dedication to serving families like yours, I'm committed to providing personalized guidance tailored to your unique circumstances.

Let's start a conversation today and chart a course toward a secure and prosperous future for you and your loved ones.