You’ve worked hard for many years to pass on a decent inheritance to your children. They are getting older now and someday the time will come when they will inherit significant assets.
You trust your children completely but want to make sure that they are prepared for their inheritance. After all, you worked so hard partially so that they could have some security when you are no longer here. Outlined below are a few preparatory steps that might be helpful.
Pass on your financial experience
Throughout your adult years, you had an extremely successful career and may have even run your own business. Your children took a different path and, while successful in their own right, they may not have managed money in the amount that they can expect to inherit. Your financial knowledge can be very useful in these circumstances. As well as passing on the assets you can also pass on your experiences in money management and budgeting.
Encourage sensible investments
While their inheritance may be substantial, it will likely not be enough for your children to live on alone. Nonetheless, it will potentially serve as an opportunity for them to make investments and build up a portfolio of their own. Sometimes, people need a bit of encouragement to go down an informed financial path and this is something that you can provide for your children.
Part of preparing your children to receive their inheritance is to create a sound estate plan. You can utilize a will, trust and other tools based on your own unique circumstances. Having legal guidance on your side will help ensure that your estate plan meets your family’s specific needs and goals.