The assets you leave to your loved ones can either be a source of relief or, sometimes, a source of panic if they don’t know how to manage those assets. Unless properly prepared, your loved ones may not know how to deal with sudden wealth — even just fifty thousand dollars can either be squandered quickly or built into a true legacy of love. Your loved one’s may lack trusted advisors to help them, and they may not always share your values or your vision on how to put the money to good use or ensure it lasts for future generations.
Unfortunately, there are many stories of heirs who have spent their inheritances unwisely, or who have neglected to consult with knowledgeable attorneys or financial planners on the best ways to minimize taxes while maximizing the opportunity to grow that inheritance. I’m sure you can even think of a friend or family member who squandered what they were left quickly.
There are some things you can do to help prepare your loved ones for the inheritance they will receive some day. Consider these questions in evaluating their ability to handle an inheritance:
Are they capable of managing an inheritance alone or do they need help? If they need help, be sure your estate planning takes this into consideration.
Do they need some time to acclimate to their inheritance? If so, you can put their inheritance into a trust to stagger the distributions over time.
Are you leaving assets in the hands of trustees or executors they don’t know? Be sure your heirs know about your team of advisors and your wishes for retaining them to manage business, real estate or other important assets.
Are they aware of your wishes and values when it comes to managing their inheritance? If not, then consider taking advantage of our legacy planning process, where we help you pass on those valuable intangibles through a special recording that reveals who you are through your own history, insights, values and experience. It’s a gift your family will cherish forever, and we are honored to be able to provide it for our clients.
As a Personal Family Lawyer®, I can further advise you on all your options and make things as easy as possible for your family during a Family Wealth Planning Session. If you would like to have a talk about estate planning for your family, call our office today to schedule a time for us to sit down and talk.
To your family’s health, wealth and happiness!
David Feakes
P.S. Want to get started on the most important planning you’ll ever do for your family? Give our office a call at (978) 263-6900 to get started. You’ll be so glad you did.
David Feakes is the owner of The Parents Estate Planning Law Firm, PC – a law firm for families in the Acton, Massachusetts area. David helps parents protect the people they love the most. If you would like to receive David’s exclusive, free report, “Six Major Mistakes To Avoid When Choosing An Estate Planning Attorney,” you can get it right here.
The Parents Estate Planning Law Firm, PC
