It can be hard to consider what will happen to our loved ones after we’re gone. Our children, in particular, can cause us worry and concern about how they will manage financially after we’re gone.
Whether your kids are still young children or adults with families of their own, the parental worry and concern never entirely goes away. This is why it is so important to make provisions for our kids in the form of an inheritance.
This article will explore the best ways to provide for your kids after you’re gone and ensure they have a stable financial future.
Discuss Their Inheritance With Them
You should discuss your will with your children in advance. If your kids are very young, ensure you use age-appropriate terms. Avoid using language that makes them worry that you are unwell.
For adult children, let them know how much you are leaving them, and explain why any of your beneficiaries may be getting more than another. Try to have an open and honest discussion and let them express their opinions.
Consider Their Individual Circumstances
While leaving the same inheritance to each of your children may seem to be the fairest and most logical way to divvy up your estate, it is essential to consider your kids’ individual circumstances. For instance, one of your children may have a successful, professional career, while another may be struggling to work due to a disability. In this case, it may be best to leave your child who needs the most financial support a greater share of your estate.
Have A Will Written
It is important to have a will written up by a professional legal firm, who will ensure that your wishes are clear and that you don’t pay more inheritance tax than necessary. This should be stored safely, and any alterations should be made as soon as they become relevant. Have a look at the services offered by E.L.M. Legal Services for an idea of the type of law firm you should be using.
Tie Distributions To A Particular Age
If you have a significant sum of money to bequeath to your kids, you could consider tying the distribution of funds to a certain age. The most common ages are 21 and 25, but in theory, you could choose any age. You could also consider staggered distributions at set intervals.
It may also help to consider tying some distributions of inheritance to certain life events. For instance, when they’re accepted into university, get married or have children.
Teach Your Kids About Money
One of the best ways to ensure your kids’ financial futures is by teaching them about money at an early age. Help them learn about how to save and give them practice at honing their skills with their pocket money.
Consider making it into a game or challenge to see who can save the most out of their pocket money over a period of time. This will give them experience in managing their money and learning to avoid unnecessary spending.