As a parent, you have critical decisions to make, sometimes even after your kids become adults. For example, you must decide how your estate should be distributed among your adult-aged children after you die.
It sounds simple on paper, but true success depends on your goals and what you hope to leave behind for your loved ones. For prosperous parents, it is often more about promoting self-sufficiency in their kids than leaving them wealthy.
Here are two more reasons people are leaving no assets to their children.
Children have their own wealth
Of course, all parents hope their kids will develop their own concept of a successful life and then work to make it happen. When their children succeed and live comfortably on their earnings, some parents take them out of the will and leave the bulk of their assets to charity.
Parents believe it’s unhealthy
Many famous couples like Ashton Kutcher and Mila Kunis plan to leave no assets behind for their kids. They say they want their children to be resourceful and capable of achieving what they need or want without help. Others, like Gordon Ramsey, believe a large inheritance might spoil his kids.
In most states, including New York, parents have no legal obligation to pass their fortunes on to their children. However, it is wiser to explore your options before you decide to disinherit.
With guidance, you can use one or more trusts to leave your kids a nice inheritance without compromising their self-sufficiency. For example, you can stipulate in the trust document when and how much your child can withdraw from the trust.