How estate planning can prepare adult children for inheritances

| Oct 28, 2020 | Estate Planning And Probate |

One of the biggest benefits of a properly established estate plan is that it allows the planner to do something beneficial for their adult children after their death. Statistics indicate that Oshkosh, Wisconsin, residents who are in a position to leave their loved ones anything after their deaths are among the wealthiest people in the world regardless of how much they can leave their children. However, preparing adult children for their upcoming inheritance is nearly as important as creating the estate plan itself.

How much will they inherit?

Sitting down and talking to adult children about how much they will inherit can be an uncomfortable conversation, but it’s a necessary one. To ensure that adult children aren’t anticipating a huge inheritance only to receive a modest one, letting them know a rough approximation of what they can expect is a responsible move. Discuss how much will be left to charities, how accounting and inflation will impact the total amount, and if there are any inheritance taxes that will have to be paid.

How will it impact them?

Depending on the financial status of the person preparing the plan in comparison to his or her children, an inheritance could have either a positive or negative impact. It could also have no real effect at all.

Receiving $100,000 would drastically change the lives of many people. It’s also worth noting that people who have a proven track record of poor financial decisions may find themselves in total ruin based on receiving a large inheritance. Having a discussion with adult children can help prepare them for how the money will affect them.

Every estate plan should begin with a conversation with an attorney who is well-versed in the estate planning laws in his or her state. A lawyer can review his or her client’s assets and even help present the finished estate plan to the client’s adult children if asked to do so.