Ensuring our children are financially literate increases the chances they could effectively manage an inheritance. However, I think there’s something to going out and making it on your own. The child that takes over the family business will never have the same appreciation as their parents that had to build that business from the ground up.
At some point, I will have a conversation with each of our kids. When we pass away, don’t expect a dime of inheritance from us. Now, this all goes completely out the window if we die earlier in life. That’s a different story. It also gives us space to change our minds. The key for us is ensuring that our kids don’t expect anything.
Instead of saving all of our money for later in life, our goal will be to do everything we can to ensure they are set up for a successful life. This will include sending them to good schools as children and young adults, paying for their college, and providing money to start their lives.
Unknown Health Expenses
Another reason for never promising an inheritance is due to the unknown costs associated with health care later in life. Assisted living facilities and nursing homes are incredibly expensive.
Eliminating the expectation of an inheritance can reduce fights among siblings. They may end up being mad at us but hopefully not at each other.
There are so many causes in the world more important than ensuring my kids get their second vacation home with the money we leave behind. An ideal situation would be when my kids are older they are involved with charitable causes that we can work together to give to after we pass.