When to Tell Your Children About Their Inheritance

If you are currently planning an inheritance for your children, you may be wondering when will be the best time to clue them in on the money that will someday be theirs. According to Estate Planning, this can often be a delicate situation. You don’t want to talk about your death while the children are too young to comprehend the concept of an inheritance, and you don’t want to wait too long either. Parents don’t typically like to talk with their children about financial matters, because they are worried that the children will then spread these family secrets around. While it is not typically recommended to talk to children about money matters, you may need to sit them down and explain their inheritance to them in case of a tragic incident that would leave the money in their hands.

According to Estate Planning, the children of baby boomers will inherit more wealth than any men and women before them. In fact, estimates show that baby boomer children will inherit about $12 trillion from their parents and they will leave an additional $30 trilli to their own children, which means that the amount of inheritance money will continue to rise for future generations. For many parents, talking about an inheritance is also a sensitive issue because of encouraging the children to work. If a child knows that he or she will inherit millions someday, then that young one may never be motivated to pursue a career or work hard for money. Many moms and dads want their kids to grow up “normal” without any knowledge of how much money they will have one day so that they will be motivated to work hard in life.

Parents that are not necessarily wealthy may want to steer clear of talking about inheritance because of the fact that their children may not inherit much. As well, parents may be worried that they will need their money for retirement and medical bills. In some situations, at the end of a person’s life, he or she may not leave any money for his or her children. While parents have a variety of apprehensions concerning telling their children about their inheritances, it may be wise for them to discuss this topic with their children in a tactful way so as to prepare them for the money that they will be handling. Parents who don’t want to disclose specific figures to their children can speak in generalizations about how to handle large sums of money or how they should think about wealth.

Without some sort of training, children may squander their money or they may fail to adequately prepare for the future fortune that they will inherit. Most parents want to encourage their children to dream big and use the money towards a business venture, an investment, or a charity. Some parents may deem it wise to give each child a significant sum of money while they are still living at home and then teach them how to handle that money.

The most effective way to teach your children about your views on money is to be an example yourself. Show your children how they should spend their inheritance someday by being an example of a monetary steward now. What you spend your money on may largely determine what your children think is important in the future. With careful spending and clear communication you may be able to help your children secure a safe future for your finances. If you have more questions about inheritance or you need help with probate after the death of a loved one, then contact a probate attorney near you for more help!