Protect Inheritance from Being Wasted
What would happen if you were to give all of your money to your children today? What would they do with it?
A Key Private Bank study found that the average inheritance is fully consumed within 17 months; often times the money is spent on cars and expensive vacations. For whatever reason, an inheritance is viewed as a windfall, like winning the lottery. People don’t look at the long-term benefits of receiving an inheritance, which often leads to poor financial decisions.
This is even more significant when you have a child with a substance abuse problem or gambling issue. Disinheriting that child is not the answer. After all, you do want to provide for them, but leaving a lump sum inheritance would very likely have dire consequences.
You can provide for your children in a manner that distributes assets to them over time, rather than in a lump sum. If you think this means you are “controlling money from the grave”, there is a change of mindset that must occur. It’s not a control issue. It is a way for you to provide for your children when they need it most, therby providing them with long-term financial stability.
Leaving assets to your beneficiaries outright is #3 on our “3 AVOIDABLE Surprises That DERAIL Even The Best Estate Plans.
Find our more about protecting your children’s inheritance from being squandered and the other 4 surprises by downloading our free report: