When you have a substantial nest egg, you will need to decide how much money you actually want to leave to your children. While some parents assume it is best to leave their full estate to their children, you need to consider the impact that an inheritance could have on the lives of your kids.
There is a big concern among wealthy parents about the possibility that a large inheritance will lead to their children losing motivation. As Long Island estate planning attorney Mark Eghrari explained in a Forbes article, Warren Buffett famously said he wanted to give his children enough money so that they could feel like they were able to do anything but not so much money that they would feel as if they were able to do nothing at all.
Fortunately, there are options that you can use to provide a generous inheritance to your children without causing them to lose interest in achieving their own goals and becoming independent. For example, as the Forbes article explains, you could potentially create an incentive trust. You could also provide asset protection for children who are at a higher risk of losing an inheritance, and could create a charitable trust that allows your kids to take part in philanthropic endeavors.
You can learn more about the different options you have for structuring an inheritance to your children by visiting the Forbes article. You can also give us a call at (631) 265-0599 or contact us online to find out more about how our estate planning attorneys can help you.