• 26
  • August
    2010

Protect Your Heir's Inheritance Through Education

Earlier, we discussed the importance of shared values and open communication in preserving your estate for future generations. But once you have instilled the family values in your heirs identified in your estate plan, you also need to give them the tools to manage your estate down the road.

Educating your heirs to protect and build wealth is easiest if you start when they are young. Even small children can be taught the importance of solving problems without squandering money. As they grow older, your lessons will shape how their view financial matters and influence their ability the wealth you plan to leave them.

Information and Formal Education Are Both Important

Children, young adults and older members of the family each need to be educated differently regarding the family's wealth. You can teach your heirs to be wise with their inheritance in age appropriate ways. For example:

  • Young children are likely best educated by simply spending time with them and encouraging their self-esteem.
  • As your heirs become older, provide opportunities for higher education and formal financial classes.
  • Seek out friends or colleagues to act as mentors to your older heirs.

Most importantly, allow your heirs to discover for themselves the importance of working for what they have. Anyone who has simply been given everything in life will have a difficult time preserving the family's wealth when older generations are gone.

Preserving Your Wealth, Start to Finish

To recap, you can take many important steps today that will protect your estate in the future. The first is creating a thorough estate plan. Discuss your goals with an experienced attorney, and make sure that you have the documentation you need to accomplish those goals.

Next, encourage open communication within your family regarding financial matters. Secrecy can breed controversy, which can ultimately destroy the estate you have worked hard to build. Lastly, provide the education your heirs need to make good financial decisions on their own.

Source: Investor Guide, "5 Ways to Prepare Your Heir to Inherit Your Estate," 23 Aug 2010