When creating your Estate Plan do consider whether an inheritance to your children is disincentivizing them from growing-up into a responsible adult. A lump-sum inheritance might leave them feeling “fat and happy” and therefore they’ll stop being a productive member of society. Another issue to consider is whether they might be one of the estimated 80% of people who squander an inheritance within 18 months of receiving it.
Other issues to consider include giving it to them in a manner that is not protected so that they might lose it as part of the 50% divorce rate or lose it if they become involved in a car wreck lawsuit.
You can incentivize your adult children to do good work as part of their inheritance. Also you can leave the inheritance to them in a protective way that keeps them from squandering their inheritance or losing their inheritance in a divorce or car wreck lawsuit.
At the Law Firm of Steven Andrew Jackson, Attorney and Counsellor at Law, we have helped hundreds of families protect themselves and their loved ones, avoid Estate Taxes and Probate Costs, and keep their Estate Plans current with the law through The Customized Protective Estate Planning Solution™.