What Type Of Inheritance Are You Giving To Your Children?
By Preston Rosamond
The last thing we want to think about is one day leaving our children. Forget the somber details; rather, focus on the positives—the legacy you’ll be leaving them. Have you thought about what that legacy will look like? Will the inheritance you leave for your kids be a gift that ensures their security for years to come, or a mess of assets, liabilities, and confusing records that will take years to sort out?
If you plan to pass your wealth to your children, it’s important to make the transition as smooth as possible. While likely overwhelmed with grief, your children shouldn’t have the added stress of struggling through a chaotic inheritance process. Incorporating comprehensive legacy and estate planning can make this process much easier.
The Importance Of Estate Planning
Estate planning should be an integral part of your financial and retirement planning. Failing to have an estate plan may not have a significant impact on your own life, but it will undoubtedly affect the lives of your loved ones after you’re gone.
In the absence of an estate plan, your death will be considered intestate, which means there was no valid will in place at the time of your death. The state in which you lived will determine who inherits your property through a process called probate, which can take anywhere from 6-9 months or even several years without proper planning.
In addition to this process lasting a long time, your inheritors may face expensive fees, predatory claimants, and loss of control over what happens to your estate. Probate can cost up to 3-7% of your total estate value. (1) And because this process becomes public information, this means that predatory creditors or estranged relatives may attempt to claim portions of your wealth.
Good estate planning mitigates these risks and provides your family with a secure plan for how your wealth will be transferred. The professionals in your life, such as your estate planning attorney and financial advisor, can become trusted resources for your family to lean on during this difficult transition.
Leave A Lasting Legacy
Additionally, good estate planning incorporates legacy planning, which can be even more beneficial to your inheritors. Legacy planning allows you to incorporate family or financial values into your wealth transfer. If your children aren’t as adept at money management, or have made financial mistakes in the past, your legacy planning can help guide them through what to do with their new wealth.
Your legacy planning can also ensure your children use the inherited wealth to continue providing security for all members of the family, and not to pay for unnecessary luxuries. Legacy planning may help to protect your grandchildren and encourage generational wealth-building for decades to come.
Leave An Inheritance You’re Proud Of
By now we’ve all learned through firsthand experience that we can never know what’s around the corner. As unpleasant as it is to think about our own death, the truth is that it could happen at any time. So if you’ve been putting off planning for your children’s inheritance, now is the time to do so. Don’t leave your family with a mess; give them a lasting legacy that will enrich their lives and future generations.
We understand this can be a difficult aspect of financial planning. The Rosamond Financial Group is dedicated to supporting, educating, and providing informed direction to each and every client. If you partner with us, we will use our knowledge and experience to help ensure your family is well taken care of so you can enjoy peace of mind knowing someone is watching out for you (and your family). Book a free introductory meeting online today!
About Preston
Preston Rosamond is a financial advisor and the founder of The Rosamond Financial Group Wealth Management, LLC with nearly two decades of industry experience. He provides comprehensive wealth management and financial services to individuals, professionals, and families who enjoy simplicity and seek a professional to help them pursue their goals. Preston personally serves his clients with an individual touch and a sincere heart, and his servant’s attitude is evident from the moment you meet him. Learn more about Preston or start the conversation about your finances with him by emailing smrosamond@rosamondfinancialgroup.com or schedule a call with our online calendar.
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