Everyone is aware that it is not a good idea to let minor children inherit a lot of wealth and leave them to manage it on their own. The money would likely be wasted, and the children might then lack any motivation to go to school and get a job.
This is so obvious to people, that the law does not even allow it. If minors are left a large inheritance, the court will appoint someone to manage it on their behalf. However, many people assume that once a person matures, they are ready to handle large inheritances on their own.
Adults, particularly those who do not already have wealth of their own, can run into the same problems as minors when they inherit money. This a particularly timely problem. In the next few years, many adults will receive large inheritances they are not ready to manage, as Financial Advisor discusses in "Inheritors Not Prepared to Inherit, FIS Says."
In the coming decades, it is expected that 30 trillion dollars will be passed down between generations. However, few of those who are set to receive this wealth, understand how to handle it. Almost half do not think they will need to get professional advice to handle it. If something does not change, much of that wealth could be squandered.
There are ways to fix this problem, by making sure your heirs understand how to handle their inheritances. You can also alleviate the problem, by using trusts managed by professional trustees as a tool in your Cincinnati estate plan.
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: Financial Advisor (May 16, 2018) "Inheritors Not Prepared to Inherit, FIS Says."