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Make Sure Your Children Earn their Inheritance

Lucere Legal helps families create trusts for wealth creation
Categories: Gifting Strategies

What is $300 million divided six ways? That was likely a question on the mind of the children of British rock legend Sting–or at least until this last summer! A shocking interview in the Daily Mail revealed that the musician will not pass any of his fortune on to his six children, disparaging the idea as hanging “albatrosses ‘round their necks.”

Though among the wealthiest of England’s musicians, the rock star came from a solidly working-class background. His hard-fought struggle to reach the top of the charts imparted him with a sentiment that can just as easily be found in the average parent or grandparent, regardless of wealth. That is to say: Will their children or grandchildren truly benefit from an inheritance, or would they succumb to the decadence of unearned wealth?

“I told them there won’t be much money left because we are spending it! We have a lot of commitments. What comes in we spend, and there isn’t much left. I certainly don’t want to leave them trust funds that are albatrosses round their necks. They have to work. All my kids know that and they rarely ask me for anything, which I really respect and appreciate.”

But let it not be said that the legal profession lacks innovation – thanks to high demand for a solution to this pesky problem, one valuable tool is now available for all: a Wealth Creation Trust.

You want to pass along more than mere assets–the values that allowed you to achieve your wealth are priceless. A Wealth Creation Trust establishes certain provisions to incentivize your children and successive generations to pursue worthwhile goals. For instance, if you want to be sure your children and grandchildren are wise enough to make use of their inheritance, a Wealth Creation Trust can be set up to detail a set of criteria they must meet before the assets are distributed.

What’s more, different segments of the inheritance can be made available according to different circumstances. Should you wish to cultivate an entrepreneurial spirit in your child, a Wealth Creation Trust can set aside funding for a business startup. Make sure your children understand the benefit of hard work before you inundate them with cash.

The best way to ensure that your values are inherited along with your wealth is  by recording a Family Legacy Interview. Leave something behind for your children that will see them through the rest of their lives, not just until the account is emptied.

Call our office at (612) 206-3701 or fill out our contact form to schedule a time for us to sit down and talk about this in a family estate planning consultation, where we can identify the best ways for you to ensure your legacy of love and financial security for your family.

Image Courtesy of photostock / FreeDigitalPhotos.net

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