If you have children, chances are you will pass along the bulk of your wealth to them. You’ll feel better if you know your children will be able to draw the maximum benefit from their inheritance. Unfortunately, there is reason to worry they might not.
Not everyone understands how to manage wealth. There are steps you can take to provide the information and knowledge your heirs will need to manage their inheritance wisely. By giving your children financial management knowledge, guidance and tools, you are helping future generations as well.
Knowledge is key
Your children should have the knowledge and support that will help them put your money to good use for themselves and their families. There is a wealth of books, workshops and websites that teach the basics of sound investment and money management.
Prudence and planning make it last
Many parents worry that their adult children will squander an inheritance by spending it away bit by bit, instead of using it to provide for their own futures. Share your insight. You know from your own experience that effective wealth management means focusing on making wealth grow over time. Talk to them about the importance of sound long-term investments, effective tax moves and other strategies that reinforce wealth accumulation.
Talk to a financial professional
Financial planners and investment specialists can help your adult children prepare for managing an inheritance. They can also offer guidance if needed.
The information contained in this article was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This article is provided as a general source of information and should not be considered personal advice.