Wealthy people should talk to their children about their wealth and what inheritances the children will receive. That conversation should happen when the children are ready to hear it.
Parents who plan on leaving large inheritances for their children are in a bind. If they do not talk to their children about their wealth and likely inheritances, then the children might not be ready to receive the wealth and be incapable of properly managing it.
On the other hand, talking to the children about what they are likely to receive can also demotivate the children to accomplish things on their own. They may wait for their inheritances, instead of making their own fortunes.
This is even tougher for parents who are the first generation in the family to have wealth. Why? These newly rich families typically do not have wealth distribution methods already setup. This is in contrast to their “old money” counterparts with multi-generational dynastic trusts.
The New York Times points this out in “How the Wealthy Talk to Their Children about Money.”
Wealthy parents need to work with estate planning attorneys to create a wealth transfer plan that works for their family’s unique circumstances. This gives parents something specific to talk to their children about.
The conversation with the children should occur, when the children are ready to receive the news without it changing their own goals in life.
When that time should be, will differ for every family. Most often, however, it will be when the children have already established their own careers and families.
The conversation does not need to happen all at once. Children can be told incrementally, as they are ready to receive more and more information.
Reference: New York Times (May 19, 2017) “How the Wealthy Talk to Their Children About Money.”
“On the threshold of retirement, we finally decided to quit thinking we could self-prepare the requisite documents. We had previously had only a very simple will. We needed the necessary legal (including updated will) & health care docs but didn’t want to deal with the time & complication of legalese. Cindy made the process relatively painless. She took the time to explain and answer questions without trying to upsell services. We were done in 2 meetings plus the reading of emailed drafts. In addition to preparing the documents, Nelson Eldercare will be there when our adult children need advice on executing the plans we’ve put in place.So glad it’s behind us and would recommend Cindy and her helpful staff.”
Cindy and her company treat their clients like family. Nelson’s offers clear, direct, and honest guidance in planning for your families security and future. No one wants to actively sit down and make these decisions, but Nelson’s makes this process seamless. I was so impressed with their willingness to answer all questions big or small. So glad I made the decision have them help my mom and dad and now me. You can’t go wrong with Nelson’s Elder Care Law.
The very best elder law attorney and staff anyone could ever ask for! I have referred a number of clients to Cindy and she never disappoints. She is kind, caring, and extremely thorough in making sure everything is completed as it should be. I highly recommend Cindy for anyone needing lawyer services; she truly goes above and beyond for every client she helps and has had a huge impact in so many peoples’ lives. Thank you, Cindy and staff, for everything that you do- I’m so glad to know you!
I heard Cindy’s presentation at a Senior Luncheon at my church, and was very impressed. She helped my daughter and me understand many aspects of elder law. Josh has also been very helpful in my planning to enter an independent living situation . I have told many friends about them.
Cindy and the Nelson Elder Care Law team are trustworthy and helpful. They are the experts in elder care law. At Leaf Cremation, we entrust our families to the care of the Nelson team when their services are needed.