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Is Preparing Our Heirs About Control or Empowerment?

Is Preparing Our Heirs About Control or Empowerment?

June 28, 2018

I see it frequently in my office. Parents who have worked their entire life to ensure their children are well taken care of are now realizing the success of wealth transfer is not merely dependent on the allocation of funds.

Desperate to ensure the success of their children in all respects - financially, spiritually and emotionally, these parents are wise to understand the toll that wealth can take if it is not allocated and stewarded well. More than that, they see the significance of transferring more than just wealth. Tied up in what we give our children is our heart and wisdom that helped us achieve all we did. Passing those aspects of who we are is not a once and done transaction.

While preparation of heirs is not just financial, there are ways we can structure our financial inheritance so the transfer of wealth does not ruin them.

Sometimes the emphasis on heir preparation is focused on us and needs to be on the heirs themselves. Will they have the character needed to handle what they are given? Will they have the financial understanding, as well? 

In a recent article discussing Warren Buffet's advice on raising well-adjusted heirs, Mr. Buffet's counsel surprised his audience with an emphasis we would not expect. Rather than trying to control the heirs, Mr. Buffet suggested freedom in their life endeavors and choices but being wise in the amount left to descendants.

When our preparation leads to the empowerment of the next generation to make wise choices, they are not just carrying our bidding forward, but learning how to handle well what they have been given.

Below are some articles to aid you in your preparation. Don't split "hairs" or "heirs" on the inheritance you leave. Plan to live and leave well so the next generation is not just prepared to survive, but thrive with what you have entrusted to them.

Yours for Wise Stewardship,

Jeff Rogers

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Resources
 

  1. 5 Strategies to Keep Heirs From Blowing Their Inheritance.
  2. How to Prepare Heirs to Handle a Family Inheritance
  3. Estate Planning Includes Preparing Your Heirs
  4. How to Spare Your Heirs a Battle Over Your Estate
  5. Why the Super Rich Aren't Leaving much of Their Fortunes to Their Kids