It is not uncommon for parents to worry about the potential consequences of leaving a large inheritance to their children: will they lose all ambition and live off of the inheritance? Will they throw the money away on lavish purchases? Or will they use the money to further themselves and fulfill their aspirations? Robert Pagliarini from Certified Financial Planner (CFP), says that while some people seem to lose all ambition upon inheriting money, others use the money to create a meaningful life for themselves. For those who suspect that their children are not ready to handle sudden wealth, Pagliarini offers the following five helpful strategies to consider:
1. Give your kids a financial test.
2. Use incentive trusts.
3. Tie distributions to ages and events.
4. Get your kids involved in a personal foundation.
5. Give without giving cash.
To read more about each of these strategies, the article can be viewed in its entirety at letsmakeaplan.org