The popular conception of the average “trust-fund kid” is hardly without its basis. Without you there to raise them, their opportunity to learn the fundamentals of financial responsibility may be lacking for variety of reasons. You have likely already done your best to specify who would take care of them in the event of your passing, but what if you could have a more direct impact on the development of their skills?
You don’t need to be like rockstar Sting—who recently answered in an interview that he would not leave “an albatross around the neck of the children” in the form of inherited wealth—to do right by them. Often, the greatest family fortunes are built up by generation after generation of the same family—so long as the properly instill the value of respecting, protecting, and growing inherited wealth.
In Raised Healthy, Wealthy & Wise, author Covie Edwards-Pitt documented a set of four skills that can serve as the foundation for responsible caretaking over an inheritance. By speaking in-depth with dozens of successful inheritors, she identified those four foundations as follows:
Ability to make it on their own
If wealth is something they never have to work for, children risk having a life empty of the satisfaction and fulfillment that comes from hard-work and self reliance.
Ability to set and achieve their own goals
Instilling an appreciation for a work-ethic and the dedication it takes to succeed makes it more likely that they will find satisfaction in their work. They should learn to give their best at every job and take setbacks as learning opportunities.
Identity based on their own achievements
Children are happier and more successful when they develop their own identity and self-worth that is based on their achievements, and not on family wealth.
Perseverance in the face of adversity
You want to provide for their security and well-being, but you must also allow them the experience of setbacks and failures. The most successful inheritors know how to not only build off of what they already have, but to put themselves back on track when things go awry.
One of the main goals of our law practice is to help families like yours plan for the safe, successful transfer of wealth to the next generation. Call our office today at 612-206-3701 or reach out via our contact form to schedule a time for us to sit down and talk in an estate planning consultation session, where we can identify the best strategies for you and your family to ensure your legacy of love and financial security.
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