Estate Planning – Including Your Younger Children
Many people first formulate an Estate Plan when their children are young. It is usually pretty straight forward and geared toward protecting their vulnerable children. Young children are rarely included in the planning, however, it is a good time to start establishing your family values about money and wealth with them. An appropriate time to start is when the children begin to recognize that money is used to obtain things.
When children are teenagers, they can understand some aspects of Estate Planning. However, this conversation with them can be tricky. Teenagers, who are dependent on their parents, will not want to think about their parents dying. Another problem you may run into is that they develop an unhealthy sense of entitlement about their inheritance. Sometimes parents begin “gifting” money to their children to avoid future taxes. This may confuse children, who are just learning that they need to work for their money. Much thought must be given to this talk about your family’s values, to avoid a child becoming too focused on possessions and image. Teenagers personal growth and commitment to their community should be what’s in their minds.
Probably one of the most difficult children to include in your Estate Planning are young adults. These children know about money, but many, in recent years, have chosen to postpone their responsibilities which come with adulthood. Parents worry about whether these children will be responsible with money. Will they continue along their personal paths to reach their goals or will they flounder and never truly establish their identity and themselves as adults? Parents need to educate their children about the responsibilities and opportunities of the wealth that their inheritance will bring. Surprising a children with wealth, without preparing them, can be disastrous.
Including younger children in your Estate Planning may not be prudent. However, during these formative years, it is your duty to instill in them your family’s values about money and wealth. By doing this, you are well on your way to preparing your children, when they mature, to carry out your wishes as you see fit.
We can help you with your Estate Plan.
Todd Courser 810-245-0813