Sjoberg & Tebelius, P.A.
Serving Minnesota & Western Wisconsin
651-315-8856

How to Prepare your Kids to Receive a Large Inheritance

moneymoneymoneyMONey.jpgIf you are fortunate enough to be able to save money for your children's futures, money that will allow them to accomplish their goals and lead comfortable lives after you're gone, be mindful of the challenges that go along with that good fortune.

An inheritance can present challenges for many recipients, particularly when it is a sizable amount of money. Some people do well with receiving this type of gift; others struggle with their sudden windfall and wind up using it in ways a parent likely did not intend. If you plan to leave a large inheritance to your children or grandchildren in your estate plan, there are steps you can take to prepare them for the gift. 

Teach them about money management

Children who are unfamiliar with budgets, expenses, and long-term financial planning can struggle with coming into a large amount of money. They might spend it frivolously and ultimately regret their choices. Alternatively, they may feel too anxious to spend it at all.

To alleviate the stress and fear children might have, talk to them about spending money wisely. Consider introducing them to a financial planner. Encourage them to think about what they want and explore resources and articles that can provide some guidance, including this one from Investopedia.

Discuss your financial attitudes and goals

You might also consider sharing with them your own tactics and approach to money management to give them some perspective and guidance. When they understand how you look at money, your children might have an easier time reconciling their own decisions.

Consider placing restrictions on the payouts

If you are truly worried that your children will blow their inheritance, then you might think about placing some restrictions on it. For instance, consider putting money into a trust and then specifying when and how much a beneficiary will receive in a payout.

Protecting an inheritance with legal support

Whatever you decide to do in terms of leaving an inheritance, it is crucial that you discuss your plans with an attorney who can help you make them a reality. Proper estate planning can make the legal process go more smoothly and ensure your wishes, whatever they may be, are carried out.

No Comments

Leave a comment
Comment Information
Client Testimonials

Client Testimonials

  1. “Thank you for providing personalized professional services to us during a time of grief and loss when family relationships were not the best. With an attorney on board to help manage legal matters, everyone had confidence that the best was being done. ”

    Read More…
  2. “Our estate plan was handled well. We never felt rushed and all details were fully explained. Sam is very professional, easy to talk to and experienced in all aspects of estate planning. He gave examples and explored alternatives for us to consider. Well done and thanks.”

    Read More…
  3. “I was given the name of the law firm by a family friend after helplessly pilfering through endless names on websites. I am grateful I called. I was connected with Dave Meier immediately and from the go, was treated with dignity, care and respect. Every visit to the firm was pleasant and professional. ”

    Read More…
  4. “We were highly impressed upon the level and capability of Sjoberg & Tebelius. They gently showed us that there was much more to achieving the Will in the correct format that will protect our children than the quick attempts we had made on our own. Great people to work with - achieving our desired results!”

    Read More…

Over 30-years of experience Serving Minnesota & Western Wisconsin

Sjoberg & Tebelius, P.A.

Woodbury Office
2145 Woodlane Drive
Suite 101
Woodbury, MN 55125

Fax: 651-738-0020
Map & Directions

Minneapolis Office
900 IDS Center (By Appointment Only)
Minneapolis, MN 55402

Toll Free: 888-892-7044
Phone: 651-315-8856
Fax: 651-738-0020
Map & Directions

Map