Within the next couple of decades, trillions of dollars will be left to children by their parents. When you plan to leave a significant amount of money to your loved ones, it’s important to do it the right way. Here are several steps to remember if you plan to leave your children an inheritance.
Step #1 – Communicate
No one really enjoys talking about death, but it is important to communicate with your children when it comes to financial matters. While you don’t need to give your kids all the details about your financial life, it’s a good idea to give them an idea of where your estate stands. This can help put everyone’s mind at ease.
Step #2 – Try to Be Fair
You don’t want to leave your children fighting over your money, so it’s best to try to be fair when leaving an inheritance. Make sure you think about the feelings of your family.
Step #3 – Distribute Your Wealth on Your Own
It’s usually best to do all the distributing on your own. Name all your children on your life insurance policy and leave a list of who will get what from your estate. This makes it easier for those left behind and helps you prevent fighting.
Step #4 – Consider a Trust
Consider using a trust if you want to ensure that your children use their inheritance wisely. You can use a Palm Springs estate law attorney to help you set up a trust that has some strings attached.
It’s not only important to follow these steps, but you want to make sure that you take care of all the legal issues so your estate doesn’t end up tied up in court. If you’re leaving your children an inheritance, find a good attorney from a Palm Springs trust and estate law firm to help you make wise decisions.