You’ve been wrestling with a question for a little while. Should you leave your children an inheritance? You have the money to do it, but you want them to be successful in their own right. While you’re happy to leave them something extra to help them on their way, you don’t want to be the parent that gives your children so much money or so many assets that they never have to work a day in their lives.
Before you scratch an inheritance off your to-do list, remember that there are some good reasons to leave inheritances to your children. First, it leaves them with a positive feeling about you after you go. They’ll be dealing with your funeral and final wishes, so an inheritance can be a final nod of gratefulness for their support.
Another reason is because you can add the inheritance to a trust. That takes the money out of your name, which reduces the value of your estate. This is particularly helpful if you have a large estate that may be heavily taxed. By placing assets in the trusts you set up, you can reduce the risk of taxation and protect those assets for your children in the future.
Of course, there are some times when leaving an inheritance behind isn’t a great idea. If you’re estranged from a child or can’t support your own needs in retirement, then an inheritance might not be the right decision. In truth, there is no single right answer to whether or not you should leave behind an inheritance. It’s something to discuss with your financial advisors and attorney.