Tips for Leaving an Inheritance for Your Kids
Wrongful Death Lawyer
If you have children, you naturally want to leave them something after you die. However, knowing what and how much to leave them can be tricky. You want to be fair and make sure that there aren’t any hurt feelings. Here are some tips for leaving your kids an inheritance.
Give Them a Sense of Where They Stand Financially
While you don’t have to give your kids exact details about your finances, you do want to give them some sense of what they should inspect to inherit. You don’t want them to grossly underestimate the value of your estate and be disappointed. It’s important to sit them down and give them some sense of where they stand financially. Make sure that they understand that their inheritances can change if you need to spend some of it on your own medical care.
Put All Your Children Down as Beneficiaries
If you want your children to inherit the same amount of assets, you should list them all as beneficiaries in your will. If you name just one child as the beneficiary and trust them to distribute the assets to everyone else, mistakes and arguments can occur.
Explain Why You’re Distributing Unequally
There are some situations where parents distribute more assets to one child than the others. For example, if one child is financially secure and the other child doesn’t have a lot of money, the parent may choose to give more to the child who doesn’t earn as much. If you plan to give more to one child than the other, you should explain this to them ahead of time. Tell your children that you love them all equally, but that you’re giving more to one child for a certain reason. If your children know ahead of time, they at least won’t be surprised later on and will be less likely to feel resentment.
Establish a Trust
If you’re worried that your children might not use the money you give them wisely, consider putting it in a trust. This way, you can choose when and how they receive the money. For example, you might not want to give them their full inheritance when they turn 18. Very few 18-year-olds are responsible with money and may spend it on the wrong things. Instead, distribute the assets in chunks. Your children could get one-third at 25, one-third at 30 and one-third at 35, for example. If they are a little older when they receive their inheritances, they will likely be more financially mature with money.
If you have further questions about leaving an inheritance for your kids, you should speak to an experienced estate planning attorney. Your attorney can ensure that your wishes are carried out in your estate plan and prevent you from making costly mistakes.
The majority of will lawyers in Folsom, CA offer free initial consultations, so there’s no risk to speaking to one.
Thanks to Yee Law Group for their insight into estate planning and leaving an inheritance for your kids.