Do you want to spend all of your money or set it up for an inheritance?
Parents often face a quandary on leaving money to their children because it is not known what they will do with it but it may be comforting to know it is a common problem, according to a FOX Business report "Should You Leave Your Kids an Inheritance?"
FOX Business reported on a survey that found some 23% of retired Americans would prefer to spend all of their money and not leave their children an inheritance.
Dave Ramsey was asked for his opinion and what did he have to say on the subject? Ramsey suggested that if you have bad kids, then, leaving an inheritance for them just rewards their misbehavior. He went on to say that if you have good kids, then not leaving them an inheritance teaches them money is evil. It is understandable why a parent would not want to leave an inheritance to a child who has an unhealthy lifestyle. No parent wants to give a child money that would just fuel a drug habit, for example.
With good estate planning, however, a parent can actually leave an inheritance that encourages the misbehaving child to straighten up and does not give the child funds for bad behavior.
Another possibility is to skip the child with bad habits or behaviors and instead give the inheritance to grandchildren or other relatives.
There are several options for estate planning around a misbehaving adult child.
An estate planning attorney can advise you on setting up an estate plan that best fits your circumstances.
Reference: FOX Business (Oct. 12, 2016) "Should You Leave Your Kids an Inheritance?"