It can be difficult for Delaware residents to create and manage their estate plans. The most straightforward way is to leave behind some sort of inheritance – assets and money that will go directly to your children or family members.
But sometimes, the money that was meant to build generational wealth gets spent on impulse purchases or bad investments. If parents have even an inkling that their child might blow through the inheritance, they might be wondering if there’s a better way to manage it.
Figuring out if your child can handle their inheritance
It might seem like a silly question, but the reality is that many young adults don’t have the same financial smarts that you might possess. It’s worth questioning if your child has the proper judgment, resources and common sense to handle their full inheritance at once. Questions you might want to ask are:
- Has my child been responsible with money so far?
- Has my child had to make any big financial decisions?
- Is my child old enough for that kind of responsibility?
If the answer to all of the above questions is yes, you might not have anything to worry about. But if you answered no to even one of those questions, you might consider tightening the reins on your child’s inheritance.
Estate planning tools that can help
Thankfully, there are a few different ways that you can pass down your money without giving them full access to all of it. Things like irrevocable trusts allow you to set money aside with clear instructions that can’t be changed, ensuring your children can’t blow through it all at once.
It can be hard to ask yourself these questions. But talking out these questions now and working with a financial advisor can save your children a lot of struggle and heartache down the line.
