Cohen & Cohen: How To Talk to Your Kids About Their Inheritance

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How To Talk to Your Kids About Their Inheritance

Having a conversation with your children about their future inheritance can be a delicate topic, but it's important for ensuring their financial security in the future. Below are some suggestions on how to approach the topic with your kids:

Start Early

Don't wait until it's too late to discuss inheritance with your children. The earlier you start, the more time they’ll have to grasp and plan for their financial future. Start by teaching them the basic financial concepts such as saving, spending, and budgeting and gradually introduce more complex topics as they mature.

Be Transparent

When discussing inheritance, honesty is key. Explain to your kids why you have chosen to leave an inheritance for them and what it signifies. This can help them appreciate the value of their inheritance and the efforts you've made to provide for them.

Use An Age-Appropriate Approach

The way you communicate with your kids about inheritance should be based on their age and maturity level. For younger kids, use simple language and visual aids to explain the concept, while for older kids, more detailed discussions are appropriate. You’ll want to foster open communication by encouraging your children to ask questions and express their thoughts and feelings around their inheritance. This can build trust and mutual understanding, and make sure everyone is on the same page.

Highlight Responsibility

Make it clear to your kids that their inheritance is a privilege that comes with responsibility. Emphasize the importance of being responsible with their money and encourage them to learn about personal finance and investments to make informed decisions about their inheritance.

Avoid Comparisons

Comparing your children when discussing inheritance can cause resentment and division within the family. Instead, focus on each child's unique qualities and strengths and how their inheritance can support their goals.

Get Professional Help

If you're unsure about how to talk to your kids about inheritance, consider seeking the assistance of a financial advisor or attorney. They can help guide the conversation and make sure your intentions are clearly communicated to your children.

Plan for the Future

While discussing inheritance, it's also crucial to have a plan for the future. A personal injury lawyer knows that an unexpected event like the death of a parent or family member can shake a family to its core. You’ll want to consider what will happen to their inheritance in the event the unspeakable occurs, both to give your kids peace of mind and prepare them for the future.

Our friends at Cohen & Cohen will tell you, talking to your children about their inheritance can be a challenging but critical step in securing their financial future. By starting early, being transparent, and highlighting responsibility, you’ll help your kids prepare for what will happen after you’re gone. Remember to seek professional advice if needed and foster open communication to ensure that your wishes are understood, respected, and followed.