If you’ve ever had to bail your child out financially, then keep reading.
I have a list that I call the “Dirty Dozen Mistakes of Estate Planning” and #7 on the list is: Thinking your child will start being good with money later if he or she is terrible with money right now.
Inheritances can disappear fast. This is true even when a child is pretty good with their money. But what if you KNOW the child is not wise financially? Maybe you have bailed them out more than once with credit cards, overspending, etc.? You keep telling them to budget and plan ahead, but they don’t.
What will happen when they inherit from you? Do you think they’ll wake up one morning and suddenly be good with money? Don’t kid yourself. People don’t often change how they spend. Your plan needs to take steps to protect the inheritance you leave. If not, it could be gone in a flash.