Most parents include their children as beneficiaries in their estate planning documents. Since you cannot predict death’s timing, you are never sure what stage of life your children may be in when they inherit from you. Receiving an inheritance is often a life-changing experience. Here are some questions to ask yourself so that you can help your children prepare for a windfall and protect your estate from reckless spending:
- Are they ready to handle that amount of money?
- Is there someone in their life who can help them manage it?
- What are some steps I can take to prepare them?
Based on your answers to these questions, we may make some changes to your estate plan including adding a trust. You should also have conversations with your children about your spending (and preservation) expectations. Introduce them to trusted advisors such as your CPA, financial advisor and/or estate planning attorney. Designate a trusted friend to serve as someone they can lean on and seek out for answers to tough questions. Lack of planning can cost your estate. For more information on protecting your wealth contact Stouffer Legal at 443-470-3599 in the Greater Baltimore area.