Only 21% of those who plan to leave inheritances to their children actually tell them how much money they will receive. Additionally, when the children do find out the size of their inheritance, it is often less than they expected. These unrealistic expectations can lead to high emotions and family tension. Grief mixed with family conflict can create even more turmoil upon finding out the terms of a loved one’s will. One way to minimize these conflicts is by creating an “ethical” will, which is a document explaining to your children why you divided up the assets in the way that you did. It can also be helpful to talk with your children while your still alive and give them an estimation of their future inheritance.
See Suzanne Woolley, Hoping for an Inheritance? You May Not Get as Much as You Expect, Financial Advisor, March 15, 2017.
Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.
