It is traditional for parents to give any inheritances for their children in their estate plans for the children to receive after they pass away. However, some people prefer giving that money to their children before they pass away.
People who have more income than they need for their own expenses, normally do one or more things with their extra money. They invest it, give it to charity or spend it on luxury items they do not really need.
Any money they then have left after they pass away, is typically left to their children in their estate plans. That is what is traditionally done with wealth. It is transferred to the next generation.
However, The New York Times recently had an article by a man who has chosen to do something else with his extra money. The article is titled "Why I Am Giving My Children Their Inheritances Now."
The author and his wife are not wealthy, but they make enough to be comfortable and have money left over. They do not wish to spend their extra money on vacations or luxuries. Instead, they have decided to give their extra money to their adult children now.
As a result, their children can use their “inheritance” to meet their current needs or to invest it for their retirements, if they prefer to do that.
This is something that many people would not be interested in doing. On the other hand, anyone interested in doing this should go about it carefully.
There are possible gift tax implications, for those who do it, in Cincinnati and elsewhere that need to be considered.
Remember: “An ounce of prevention is worth a pound of cure.” When making your estate plans or when probating an estate or administering a trust, do not go it alone. Be sure to engage a Cincinnati estate planning attorney.
For more information about estate planning, probate or trust administration in Cincinnati (and throughout the rest of Southwest Ohio) and to review free resources regarding estate planning, probate or trust administration, visit my website. If you have questions regarding this article or a particular legal matter, feel free to contact me at 513-399-PLAN (7526).
Reference: New York Times (June 9, 2017) "Why I Am Giving My Children Their Inheritances Now."