Considering Leaving Your Child an Early Inheritance? Why That May Be a Good Idea

May 16, 2017

You’ve worked hard to provide your family and ensure that they’re taken care of, both now and after you’re gone. It’s only natural to want the best for your family — whether that’s your children, grandchildren, nieces, nephews…whomever! And when you think of ways to take care of and want the best for your children, leaving an early inheritance is a natural step to consider.

Traditionally, some people have shied away from leaving an early inheritance; however, that preconceived notion may be worth reconsidering. Here’s why and how more people are opting to leave their children an early inheritance:

• Consider going beyond dollars and cents. There are other ways to share an early inheritance besides cutting a check. While a child or grandchild could certainly benefit from an increase in funds, there is tremendous opportunity to use your money and give a tremendous gift to your family at the same time (more, closer time with you!). Increasingly, many grandparents are opting to take their families on large family vacations they may not otherwise be able to afford.
• You can alleviate current financial burdens that your kids are facing. College graduates today are leaving school with an average student loan debt of close to $30,000. Your children may not want to burden you with their own stresses, but by choosing to leave an early inheritance, you could help alleviate stresses for them now, when they actually need the money rather than later, when they may be able to provide for themselves.
• Planning is essential. While you may want to leave an early inheritance, take a trip or otherwise share your hard-earned resources with your family, planning is key. It’s important to take into account your full estate plan in order to determine how much you can afford to leave now. Working with an estate planning attorney is important at every juncture to ensure you’re making the best decisions within your estate plan, both for now and for you and your family’s future.
• You can leave funds now that also pay off in the future. Your children or grandchildren may not be ready yet for family trips or be old enough to need, want or accept large checks. Front loading 529 accounts can be a strong way to help fund your children’s or grandchildren’s college educations down the road (without incurring tax consequences in the future).
• Give to them (and to you). Perhaps the biggest benefit to leaving an early inheritance is that you’ll also be giving yourself a gift. Acting now means you’ll get to see and appreciate how your gift impacted your family, rather than waiting until you’re gone. And knowing that your gift has helped ease a burden or has made a positive impact means giving a bit back to yourself as well as your family.

There are many steps and decisions that go into planning for inheritances. Choosing the right estate planning attorney is essential. Call our office at 235-5885 with any questions you might have about the estate planning process. We are happy to help!

Related Topics: Estate Planning, Retirement Planning

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