The Best Inheritance Advice for Smart Parents
Money-savvy parents save for a lifetime because they want to secure their children with a hefty inheritance. But you will probably worry about how they will handle the wealth because not everyone can deal with a sudden windfall. Moreover, there is always a chance that too much money deprives the heirs of ambition and hard work. Sibling disputes are another concern for parents looking to bequeath their assets to their children. But smart parents foresee the challenges that may come down the line and resolve them during their lifetime. Here is the best inheritance advice to follow if you want to do your bit for your heirs.
Facilitate open communication
Even before inheritance planning, you must facilitate open communication with your children. It makes sense to discuss your wealth with them so that they have clear expectations about the impending inheritance. Getting all the children on the same page is crucial as it can prevent disputes down the line. Discussing money may make you uncomfortable initially. But it is something you have to do.
Give your children a financial test
If you plan to bequeath massive wealth to your kids, giving them a financial test is a good idea. It enables you to judge their ability to manage the inheritance in the long run. Consider gifting them some money and letting them use it the way they want to. They may utilize it to pay off debt, invest it somewhere, or even splurge it on unnecessary expenses. Once you know the strengths and weaknesses of your kids, you can guide them while alive.
Get rid of unwanted assets
Most parents fail to get rid of unwanted assets during their lifetime. They even end up passing on the stress to their kids. It makes sense to eliminate them when you can. A timeshare property is the first thing you should get rid of so that timeshare maintenance fees can end. You can collaborate with one of the reliable timeshare exit companies to close the process for you. It is the best option to prevent saddling your children with a property that is more likely to be a liability than an asset.
Tie distributions to events
Parents can be smart with bequeathing wealth by tying distributions with events. You can create a trust that provides them small amounts of money every year and bigger amounts in the milestone years. Alternatively, you can time distributions to pay them on key life events such as college education, wedding, or buying a house. An expert can guide you about trusts and distribution, so seek advice and plan accordingly.
Write a will
Another step you shouldn’t miss out on is writing a will while you are alive. It clarifies the distribution of assets between your children and prevents disputes down the line. You may also mention donations and the passing of the assets to other relatives besides your children. Also, mention the person who will manage your estate if the children are minors. Hire a legal professional to write your will because it needs proper drafting to ensure validity.
Parental responsibilities go on for a lifetime, and even after. You can do your bit for your children by planning inheritance wisely and ensuring that they get the best.
Thank you,
Glenda, Charlie and David Cates
