1. What is your own situation?
While it is natural for parents to want to make their children’s lives easier by leaving behind Propertydon’t do it on Expense About your own medical comfort and standard of living. If you have worked hard to provide good education to the children and they are suitably employed, you should no longer feel responsible for their financial condition. First make sure you have enough money to protect yourself post retirement needs and increase the cost of medical care, so that you are not financially dependent on your children later. If you want to improve your lifestyle or fulfill long pending aspirations and dreams from the wealth you have accumulated, then make it a priority. If you want to buy a bigger car or a better home or take a vacation abroad, do so instead of buying property for your children.
2. Are there cordial relations between the children?
When you decide to leave an inheritance to your children, you may have their best interests at heart, consider their personalities and inter-personal relationships before doing so. If they have always quarreled over each other’s financial status or are plagued by the pain of jealousy and jealousy, an inheritance, especially if it is property, is more likely to be the result of disputes than comfort. If there is no love lost between the children, you would do well to transfer the property and money in equal proportion to them while you are still alive, rather than making them the beneficiary of the fixed assets after your demise.
3. Exception to the Rule
It goes without saying that if you have a physically or mentally disabled child who will need lifelong financial care after you pass away, you will need to leave an inheritance. However, you will need to ensure that it is left in the form of a trust with proper guardians, caregivers and documentation so that the inheritance benefits the child for whom it is intended.
4. How should you leave it?
If you are financially comfortable in retirement and still have enough money to give to children, be sure to leave it in a way that minimizes disputes. Establishing a trust or gifting property is a more efficient method of transferring money rather than assets that inevitably create friction. Also consider the tax implications of the assets you leave to your heirs. More importantly, take into account the needs and preferences of children. For example, if they have settled abroad and do not intend to return, the burden of their disposal or maintenance, except for the property, will fall on them. Also be sure to write a will that minimizes the risk of conflict between the heirs.
If you have money, write to us.
We all get into financial trouble when it comes to relationships. How do you say no to a friend who wants you to invest in his new business venture? Should you take a loan from your married brother? Are you worried about your wife’s impulsive purchases? If you have a concern that is difficult to resolve, write to us at etwealth@timesgroup.com with the subject ‘Wealth Vines’.
Disclaimer: The advice in this column is not from a licensed health care professional and should not be construed as psychological counseling, therapy or medical advice. ET Wealth and the author will not be responsible for the outcome of the suggestions given in the column.