David Handler, J.D and Howard Sharfman, of Kiplinger.com, have made available for download their article, “Don’t Want to Leave Money to Your Kids? You’ll Probably Change Your Mind,” published in The Kiplinger Washington Editors. The article begins as follows:
Some parents fear leaving their children too much money. They talk about their friend’s child, who ended up doing little with their lives and abusing drugs and alcohol. Or they have an image of “trust fund babies” who sleep all day and party all night.
The good news is that the vast majority of children with inherited wealth do lead productive lives and would not fall into any of the above descriptions. Their parents set expectations, provided guidance and encouragement, and set limits when the children were growing up. No surprise their children turned out just fine.
Parents also fear leaving their children a significant part of their wealth because it could ruin their drive to live a productive life, fearing they simply might not feel the need to work. Or that the children will feel that any financial success they achieve will not be meaningful compared to their inheritance. So, they choose to leave a relatively small inheritance, enough to help but not eliminate the need to work. But parents often greatly underestimate the amount their children may need simply as a safety net, let alone to enhance their lives. Further, parents may not be aware there are certain controls they can put on the money they leave to their children that can assuage fears about misuse.
To see the full article, click here: “Don’t Want to Leave Money to Your Kids? You’ll Probably Change Your Mind”
Posted by Anthony Tran, Associate Editor, Wealth Strategies Journal