Conscientious Estate Planning For Oregonians

Should you discuss inheritances with your children?

On Behalf of | Jan 20, 2025 | Estate Planning

Most children have an idea they will inherit from their parents. Yet their idea of what or how much they will inherit could be very far from reality.

A child whose parents have always lived frugally might assume they won’t inherit much. They might not know their parents always saved and invested carefully and have amassed a significant sum they will leave to them. Alternatively, someone who has grown up surrounded by wealth might be looking forward to a large inheritance. They might get a shock if it turns out their parents were paying for this with maxed-out loans and credit cards and there is little left once the debts are paid.

Happy surprises can be just as problematic as nasty surprises

A child who was expecting to inherit a significant sum may not have pursued their career with the vigor they could have. It could leave them struggling to make ends meet later in life. One who is unprepared to inherit a large sum might have no idea how to manage it, and may soon spend or lose it through poor choices. 

People are not born with good financial sense. Schools do not teach it either. Parents who intend to leave their children something have an opportunity to help them understand how best to manage that money. But this will be harder if the child does not know what they are due to receive.

Equally, parents who won’t leave much have a chance to ensure their child has realistic expectations and encourage them to have a sound plan in place to earn their own way.

Another important reason for a parent to inform their child of their estate plan is to help their children understand why they made particular decisions. People can fall out over anything from who is appointed medical power of attorney to who get’s Mom’s earrings.

Learning more about estate planning options can help you make informed decisions and then inform your children.