If you polled parents about the conversation they least want to have with their children, most would probably tell you divorce or “the birds and the bees.” CNBC reports that for wealthy people, though, the answer is a little different: inheritance.
Like anyone else, rich parents want to leave their kids in as strong a position as possible for their futures, but that usually means balancing assets and attitude. Money can be a big help to children as they grow into adulthood, but so can a strong work ethic and a sense of personal responsibility.
Wealthy families wonder how much to let their children know about their financial situations, when to tell them, and whether they ought to leave their beneficiaries a lump sum or a tightly controlled trust.
“For many, broaching the subject with their children is what keeps them up at night,” a U.S. Trust representative told CNBC.
Having “the talk” can be scary — understandably so — but experts say that honest communication is generally preferable to secrecy or delay. Every family is unique, but most children are able to handle more information than their parents might anticipate.
There is undoubtedly a right time to have a conversation with your children about estate planning and inheritance. Maybe today isn’t that day, but it should be soon. After all, you never know when life might change in the blink of an eye.
Truly, even if your estate is of a more modest size, estate planning is something every family should make a point of sitting down and discussing. If you’d like help with talking points or some sound legal advice, our office can answer your questions.
Give our Pennington estate planning attorneys a call. We’ll be glad to help.