Farm Bureau Financial Services
February 3rd, 2023
The Inheritance Discussion: Why It Matters— Estate Planning with Adult Children 101
Some parents worry that discussing inheritance with their adult children will result in the children relying on that windfall rather than becoming financially stable on their own. Others think that communicating about assets could cause strife amongst siblings or other beneficiaries. But the benefits of clear communication and inheritance etiquette —even without sharing a full picture of your portfolio— typically far outweigh the risks.
Having transparency around finances is important in helping your kids make smart choices about money while they’re young and for setting them up to handle a large sum of money when they receive an inheritance.
Approximately one in three Americans who receive an inheritance blow through all of it within two years, but starting early can help ensure open, healthy communication that allows children to ask questions, provide input and express confusion so it can be addressed early on.
Each family’s situation is unique. Two important things to take into consideration are your own age and health, as well as where your children are in life. If you’re retired or you’re having medical issues, have the talk sooner rather than later.
