Are Your Heirs Prepared?
Discussing your estate with your heirs can be an emotional and exhausting process but it is important that your loved ones are prepared to carry your torch when the time comes. You have spent years saving up and investing and with every penny you pass on comes a greater responsibility for your heirs to carry on the family legacy. That adventure can be positive if they have been properly prepared. Talking about the details of your will with those loved ones who will be taking on your estate can make the entire process much less stressful and much less painful for them. Instead of painstakingly reading your will for the first time when you pass, your heir will have an understanding of your intentions and can better carry out your wishes.
Wealth education can start very young with a child’s allowance. Some individuals advocate giving allowances in part cash and part deposit into a savings account to prepare children for long term planning for purchases. Some also support larger allowances less often, rather than small allowances once a week so that their children can learn to budget at an early age. Wealth education does not stop at handling money responsibly, it carries into the cultivation of family values and ethics that can contribute to smart planning for the future and foster motivation to succeed.
Even if your children are financially responsible, it does not mean your children are prepared to handle an inherited wealth. Sometimes it is easy to spend frivolously on luxury items or waste in other ways and forget to make your money work for your future success. It is partially your responsibility to ensure that your heir will retain their wealth into their retirement and perpetuate a family wealth for their heirs. If your children are not ready to handle the family wealth responsibly, you can talk to your estate advisor about setting up trusts that can be allocated for tuition or saved until a later date.
As always, the attorneys at Walters & Ward never charge to speak to an attorney, so if you have any questions please don't hestitate to contact us.