Palm Springs Law Blog

Wednesday, October 20, 2021

Overcoming Common Fears About Passing Down Wealth

When you have worked hard over the course of your lifetime to accumulate wealth, you may worry about what will happen to it if you choose to pass it down. You may even have questions about who you wish to pass it down to. These are not uncommon fears that many people have as a result of not having the necessary conversations. Here are some of the most common fears of “sharing the wealth,” and how you can overcome them.

You’re afraid that it will create a sense of entitlement among your children.

It’s understandable that you may be afraid of how a large inheritance could impact your children, grandchildren, or other beneficiaries. After all, when they know that they are coming into a large sum of money, it may not inspire them to work harder (to say the least).

Luckily, there is good news! You can actually put together an estate plan that can help to prevent this type of entitlement. You can do so by providing different incentives for the beneficiary involved. This may consist of things such as requiring that they maintain a certain GPA in order to qualify for the money. You may also choose to limit what the money can be spent on, which would completely eliminate the risk of them spending it on unimportant things. You can even choose to leave it up to a trustee to decide how much money your beneficiary should receive.

You’re afraid that others will take advantage of your heirs.

Unfortunately, a lot of “friends” come out of the woodwork when they learn that someone has money. Many people will try to take advantage of others with money, leaving you concerned that this could happen to your beneficiary. This could even occur in a situation where someone marries your beneficiary solely for their money only to later divorce them and profit.

For these reasons, it’s very important that you correctly establish a proper estate plan with the help of a qualified estate planning attorney. He or she can ensure that your loved one may only access the money for certain things, which can help to protect them from being preyed upon by others.

You’re afraid that passing down your wealth could come between family members.

It’s not uncommon for money to come in between people. This is especially true for family members when one receives money and the other does not. This is why it can be difficult to decide if you want to leave money in equal amounts to your loved ones or whether you wish to provide for one more than another.

You can choose to treat your beneficiaries equally, giving each of them the same amount of money, or to treat them fairly, giving each of them the amount of money that they need based upon their specific situation and needs. This is a decision that only you can make based on your own beliefs. However, one of the best things that you can do is to talk to your loved ones before you pass so that they know what to expect and can process your decision while you’re still here.

Heritage Legal, PC Helps Those in California to Establish a Comprehensive Estate Plan

At Heritage Legal, PC, we understand the importance of protecting your interests and the interests of those whom you care about most. We can help you to create a comprehensive estate plan that fills all of your needs and plans ahead for your loved ones. To learn more or to schedule a free consultation, contact us today!

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