your children are:
- After your death, as per the conditions laid out in your will.
- As a trust, wherein funds are made available when your children reach a certain age (or life milestone)
- Right now, (early inheritance) where the money can be utilized for their financial betterment and fulfillment of their goals.
Pros and Cons of an early inheritance:
Your assets and wealth are your hard-earned rewards, and their fruits must be enjoyed by you too. It is equally important to safeguard these assets for the rightful heirs to your estate after your passing. An early inheritance is a fantastic option to experience firsthand how your financial legacy benefits your children and loved ones. Using a trustworthy inheritance planning platform would be greatly beneficial in your quest to financially empower your children. Let us explore some of the Pros and Cons of giving your children an early inheritance.
| Pros | Cons |
|---|---|
An early inheritance can help your children:
|
Human life expectancy has increased over the last several years. Passing on a huge inheritance without first planning for your needs might make you dependent on your children with time. |
Protect your privacy
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Some concerns are raised regarding how early access to large funds at their disposal might spoil children. |
| Division of assets always poses a challenge to the family’s tranquility. An early inheritance disbursed in your presence will reduce the risk of a feud between your children over your estate. | |
| Handling matters related to your assets yourself helps relieve the burden from your family or the executioners of your will. |
The choice of how and when you plan to pass your assets onto your children is your own. But it should not be done as a sacrifice, an obligation, or in an emotional state of mind. You must first plan for your well-being and financial requirements adequately.
- Consider your financial position, keeping in mind your overall savings, retirement plans, funds at your disposal, etc.
- Before sanctioning an early inheritance, ensure you have health insurance and enough funds for medical expenses.
If your children do not have the financial acumen or maturity to handle the funds, consider using a trust. A trust or a legal entity to oversee the flow of funds will provide your children with timely funds. A trust guarantees additional control and can ensure that your children do not misuse your gift to them. Engaging the services of an inheritance planning platform provides a broader perspective about inheritance distribution to your children. Ensuring that your children inherit your assets at the best time as per their needs is of prime importance.
Every family is different, and so are their needs, as are parents/guardians with their unique parenting styles. Whether you will give your assets to your children after your demise or give them early inheritance is completely your prerogative. You could also consider a middle way and set up a trust fund to serve their financial needs. Consider what suits you and your family best so that your hard-earned money is well utilized. For dynamic guidance in this matter, consult organizations like EasyInherit and plan the best inheritance plans for your children.
