If you’re a parent in Kentucky, you’ve probably thought about how your children should inherit your assets after you pass away. Most parents want to be able to leave their children a large sum of money. But in some situations, getting a large inheritance can harm your child’s life instead of improving it. Here’s what you should consider while you plan your children’s inheritance.
How can you prepare your children for their inheritance?
You don’t have to share every detail of your estate planning process with your children, but if they’re adults, they should have an idea of what to expect from their inheritance. You should also make sure that your children know how to use money responsibility. Talk to them about the importance of saving money, writing a budget, avoiding debt and more. If your children don’t know how to manage their money, they might burn through their inheritance in a few years.
Additionally, you should consider whether it’s in your child’s best interests to receive a large inheritance. If they suffer from drug addiction or alcoholism, they might use their inheritance to fuel their addiction. If they’re simply bad with money, they might spend it on extravagant purchases and find themselves drowning in debt a few years down the road. Before you leave everything to your kids, ask yourself if you’re looking after them or simply giving them what they want.
Where can you go for help with estate planning?
Planning your estate is one of the most important things you can do as a parent, particularly if you have a special needs child. An attorney may help you create a will or trust that allows you to provide for your children after your debt. Additionally, your attorney might help you figure out how to distribute other assets like properties and businesses.