Studies have shown that the most significant contributing factors to a generational loss of wealth are a lack of communication and trust among family members and the failure to prepare heirs.
Common Fears
Fear That Heirs Will Feel Entitled: Knowing that a substantial inheritance was on the way, they performed the bare minimum to ensure that they would receive it, but in the process, they passed up opportunities to get the most out of their education or acquire new skills because the future was already laid out in the child’s mind. Fortunately, consulting with an expert estate planning attorney may help you create an estate plan that prevents this from happening.
Fear That Heirs Will Fight Over Inheritance: To alleviate this concern, put provisions in your estate plan that specify how the money you leave your loved one can be spent. You can limit the usage of the cash to providing an education and seed money for your loved one’s first business if that is your intention.
Fear That Heirs Will Be Influenced: With almost half of all marriages ending in divorce, potential gold diggers may find your loved one much more appealing if a hefty divorce payment is possible. An skilled estate planning attorney can not only limit how much money you leave your loved one, but also protect it from creditors and predators.
Fear of Inciting Rivalry: Depending on your parenting philosophy, you will have to decide whether you want to treat your children or grandchildren equally or fairly in your estate plan.
Fear That Disclosing Now Might Limit Future Changes: While an initial conversation with your family about your financial wishes can be stressful enough, a second meeting with them because you changed your mind could be even more so. Regardless of the difficulties, the significance and advantages of being open and honest with your family cannot be overstated.
Fear of Running Out of Money: For many people, earning or acquiring money offers a sense of security. You may also worry that the money you have acquired during your lifetime will run out before your death, leaving you to rely on government assistance or family members.
Overcoming Your Fears
Creating a comprehensive financial and estate plan with the help of experienced advisors is the first step to overcoming the fears that arise about money and inheritance.
You can use the answers to these questions to express your fears and attitudes about your wealth and how you want to ultimately pass it on. Call us to schedule an appointment to discuss your options for protecting your wealth for generations to come.