Should Your Child Inherit Money While They Are Young?
Once your child reaches 18 years of age, they are legally considered to be an
adult. As an adult they could inherit large sums of money, but that does not
necessarily mean that they should.
In the event that you do not have a will, if something were to happen to you,
by law, your child could inherit all of the money in your bank accounts and
the money from your life insurance policy - and they will receive it all in one
large lump sum. When they inherit this money, they will have complete
control over it and can spend it in any way they choose, even if they were to
spend it in ways that you would not approve of.
In many cases, parents do not feel it is a good idea for their 18-year-old child
to have complete control over hundreds of thousands of dollars. If you can
remember when you were young, and some of the ways that you might have
spent a large sum of money, you may understand why this might not be the
best way for your child to receive their inheritance.
The decision of how to leave your child’s inheritance to them is a personal
one and is often based on that child’s individual personality. You should
think through this decision very carefully. Will he or she spend the money
on their education and the things they need in life, or will they blow it on
fancy cars and vacations to Mexico?
If you don’t feel that your child would be responsible enough to have control
over large sums of money when you are still around, you likely wouldn’t
want to hand it to them if something should happen to you while they are
still young. Although you can leave instructions in your will of how you
would like the money spent, it is important to remember that they will still
have control of that money and can spend it in any way that they choose.
Fortunately there is a way that you can have some control over the money
that you leave your child. If you leave that money to them through a trust,
the trustee can ensure that the money is spent in a responsible way, and your
child will not have to worry about facing the temptation to blow their
inheritance on things that will do them no good later in life.
Experienced estate planning attorneys Oklahoma City OK of the Parman and
Easterday offers estate planning and business planning resources to residents
of Oklahoma City OK. To learn more about these free resources, please visit