Teach your children well – Education is the key to an estate plan that leaves your desired legacy
Abstract: When it comes to teaching children about money management, even a well-designed estate plan is no substitute for education and experience. An incentive trust can be an effective estate planning tool, but a beneficiary’s good personal behavior doesn’t automatically translate to “money smarts.” A plan that suddenly releases an entire estate to a child who can’t handle money can result in the estate being rapidly dissipated. Conversely, a trust that’s too restrictive may incite rebellion or invite lawsuits. But there are a number of practical steps parents can take to teach their children about money management principles.