Talking with your Adult Children about Inheritance

Uninformed heirs often make poor financial decisions with the assets left to them, leading to unnecessary taxes, pointless attorney fees, overspending, family disputes and much, much more. Generational wealth planning can keep your hard earned money in your family where it belongs and keep your parental wishes intact.

Recommendations to prepare your children for financial responsibility:

1. Establish a well thought out financial plan.
2. Talk to your children about the financial responsibility that they might acquire.
3. Share with your children the things you would like them to accomplish with their inheritance.
4. Let your financial advisor at Wealthnest teach your children

Get your own ducks in a row

It’s going to be hard to educate your children and/or expect them to carry out your parental financial desires if you have not established a comprehensive financial plan. As a CERTIFIED FINANCIAL PLANNER™, I help my clients create and follow a financial blueprint that addresses tax planning, estate planning, retirement planning, insurance, and investments.

Share your wisdom

Contrary to what some children think, it’s important to remember that you have a lot of years of life experience and wisdom to bestow upon them. Over the course of your life, it’s likely that you have learned from both good and poor financial decisions. Perhaps you have already settled an estate of a loved one or dealt with an inheritance. Or maybe you have experienced the daunting responsibilities of assisting with an elderly parent’s needs. It’s never a good idea to assume that your children have it all figured out. Share your financial experiences with them.

What’s important to you?

There is great pride in leaving a legacy for your family. It’s an amazing accomplishment. Sit down with your children and share what you would like to see happen with your assets when you’re gone. This conversation can create a purposeful direction and a sense of sentimental responsibility for them. It is a shame when I see heirs blow through their inheritance prematurely, as I know the level of discipline it takes to accumulate those assets over a lifetime.

Sometimes it’s helpful to hear it from someone else

It’s my goal to not only educate my clients, but also their children. There is no reason for them to reinvent the wheel after you’re gone. An introduction to a CERTIFIED FINANCIAL PLANNER™ at Wealthnest can serve as a life-long wealth of knowledge for your children. Providing a trusted point of contact can also alleviate the stress that stems from starting a new relationship on the fly; or worse…falling into the wrong financial advisor’s hands. This relationship can also serve as a financial center point for your family in the event of a family emergency or loss. I take pride in the fact that I’m often one of the first people notified when families experience these hardships.

Don’t procrastinate…Wealthnest can help

Now is the time to address this important matter. I’ve found that when people do things for the first time, they often make a MISTAKE. My goal is to help my clients and their families avoid costly mistakes through preparation.

Give me a ring if you have any questions about leaving a Legacy and Estate Planning.

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. Investing in securities is subject to risk including risk of loss of principal. No strategy assures success or guarantees against loss.

Kevin Foster, CFP ®
Comprehensive Wealth Manager | Tax Advisor
Chandler, AZ 85226