You’ve worked hard to provide for your family and now, as you begin to evaluate your assets, you want to make sure that the inheritance you leave behind for your children will be put to good use, and not wasted. This is a common concern for many Tennessee families who have amassed financial assets for their loved ones. If you are worried about how your children will use their inheritance when you’re gone, here are a few things you can do.
#1. Talk about it.
Culturally, it was long taboo to talk about finances, even within the family. However, talking about the financial expectations a child may have upon your passing will save a lot of time and potential unanswered questions.
In addition to answering their questions, you can also set expectations on what the inheritance will be used for.
#2. Provide guidance while you still can.
There is nothing worse than finding our family secrets through a loved one’s will. But it doesn’t have to be this way. You take steps to plan for the future with estate planning like creating a will, trust, and more.
While you are making those plans, you should provide guidance to your children. You can discuss financial planning measures like meeting with a financial adviser, taking financial planning courses, or discussing ways you can invest.
You may also consider drafting a trust, where you can appoint a trustee to follow your directions on how assets will be managed, and how inheritance will be pooled out in the years to follow.
#3. Make stipulations that are legally binding.
Just like a trust can provide directions in writing to be followed out by a trustee, you can create other legal stipulations to ensure your children don’t waste their inheritance. Be warned, there may be some emotional repercussions if you leave harsh requirements, but sometimes that is needed.
Common stipulations include reaching a set age, earning a college degree, etc.
Inheritance Preparations With MHPS
Part of planning for your future and the future of your family is in determining how inheritance will be divided out. At MHPS, our estate planning attorneys will guide you through the process with the compassion needed. With years of experience in estate planning and administration, we know how to best protect your assets and prepare for the unknown.
If you’re ready to create a trust, set up a power of attorney, or write your will, we’re here to help. Contact us at MHPS now for more information.