When you make a choice to live like no one else, you have the ability to give like no one else. And chances are, the first people you’d like to bless with your hard-earned money legacy are members of your family—especially if you have kids.
But what do you do if you have a child who isn’t ready for the weight of responsibility that comes with any kind of inheritance?
Don’t give too early without some boundaries.
Children under the age of 18 are not ready for an inheritance. (But you probably already knew that.) Even with the best of intentions—money for college, weddings, starter homes and more—you need to set up a trust to protect your money and your kid. A nice crisp $20 for birthdays? Sure, knock yourself out. But use good sense and encourage smart money management at an early age.
Age doesn’t always equal maturity.
Grown kids can pose a more complicated situation—especially if they’re not stewarding money well in adulthood. Impulsive spending, debt tolerance, and financial apathy run rampant, even in families where the basics have been taught. Money can help, but money can also hurt when your family member isn’t prepared to use it well.
Seize a teachable moment.
Does this mean you should withhold your legacy from the generations? Absolutely not. In fact, an opportunity to get ahead financially might be just the nudge your loved one needs to get on the straight and narrow. Requiring a zero-based, balanced budget and proof of some financial responsibility for funds to be dispersed is not only smart, it’s sustainable.
Have a chunk of money you plan to give? We can help.
We can take a look at your entire financial situation and help you leave a legacy for your family, friends and community that lasts throughout the generations. Sound like something you need? Schedule a session with us today.