American culture dictates that you don’t discuss money, not even with family members. However, there is an exception to that social norm, as uncomfortable as it may be. You should always discuss your estate with your adult children. A common fear of discussing your children’s inheritance is that they won’t work as hard because they will be expecting a windfall. However, that is the very reason you should talk about their inheritance. If you have minor children, a guardian, conservator or trustee will manage the money, so there is no reason to discuss their inheritance with them; however, this is not the case for most adult children.
Keep the Inheritance Discussion General
While it is essential to discuss their inheritance, you should keep the discussion general. First, if your adult children receive an unexpected inheritance, they may see it as a windfall and spend it quickly or unwisely. When the money is gone, they’ll have some nice stuff, but will be right back where they were financially, and you won’t be here to bail them out.
Keep the discussion general – it’s better that you don’t discuss who is getting what since what you currently have may change over time. You might use some of those assets, or you might acquire more. And, you might be leaving your children different amounts. You can have a conversation that you have been financially responsible by telling them that you saved carefully so that you wouldn’t be economically dependent on your children. You might also inquire about what your children plan to do, such as making sure their children are taken care of when your children are older, or starting a business.
Your Minor Children’s Inheritance
We don’t advise speaking to minor children about their inheritance because they won’t be managing the money if something happens to you before they reach the age of majority. Another reason is that you could cause unnecessary fear and anxiety, especially for children that are not old enough to understand death.
If questions about death do come up from younger children, such as after reading a story or seeing a movie, you can explain that you plan to live for a long time, but in the event that something does happen, you planned ahead so that they are cared for financially.
Money Management
Even from an early age, teach your children about money management. Let them see you comparison shop, whether it’s for something as minor as groceries or something major, such as a car. Teach them about researching investments and donating to charities. These ideals will follow your children throughout their lives, including the time when they do receive their inheritance, and they won’t be as likely to spend it all at once. If you still believe that your adult children will spend the money unwisely, then you can include provisions in your Estate Plan to distribute over time. At Grissom Law, we work with clients to put plans in place that work for their specific situations and families. Call us today to discuss your needs.
Disclaimer
This Blog/Web Site is made available for educational purposes only as well as to give you general information and a general understanding of the law, not to provide legal advice. By using this blog site you understand that there is no attorney client relationship between you and Grissom Law, LLC.