This week’s theme is: What Do I Do With Inheritance Money?

Today, I’m talking about planning for your own wealth transfer. 

If you listened to all of the podcast episodes this week, then you know that the inheritance statistics are pretty grim. Many Americans waste their inheritance by making poor spending and investing decisions and the money is often gone 2,5, or 10 years down the road. 

With that in mind, I encourage you to be thoughtful about your own wealth transfer. If you manage your money well in this life, you’ll likely have something to pass along to your children. And that something may be a substantial amount. 

Many parents place no restrictions on wealth transfer to their children, and as a result, when children inherit money - even in their 40s, 50s and beyond it can have some really bad outcomes. 

Wealth transfer to children should only happen when addiction is not a concern, the child is a good steward of their own money, ideally you’ve tested them already with lifetime gifts and paid attention to how they use the money, their incentive to work isn’t compromised, and the inheritance won’t be squandered to fuel a few short years of a luxurious lifestyle. 

If I’m being honest, seeing how many people handle money, especially inherited money - responsible management of an inheritance is an exception, not the rule. 

So I encourage you to plan well for your own wealth transfer and make sure that your children are well-equipped to handle it. And if they’re not, then have the courage to explore alternative solutions via trusts, restrictions, or giving away most of your wealth to organizations and the causes you care about most. 

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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