Having to handle a large amount of money can be intimidating. Especially if you haven't had to manage money like that before. Adults, particularly those who do not have wealth of their own already, can run into some problems when receiving large inheritances they are not ready to manage, according to the Financial Advisor in "Inheritors Not Prepared to Inherit, FIS Says."
In the coming decades, it is expected that 30 trillion dollars will be passed down between generations. However, few of those who are set to receive this wealth understand how to handle it. Almost half do not think they will need to get professional advice to handle it. If something does not change, much of that wealth could be squandered.
There are ways to fix this problem, by making sure your heirs understand how to handle their inheritances. Make sure you tell your heirs what to expect, so it doesn't come as a surprise when they get a large inheritance. You can also alleviate the problem, by using trusts managed by professional trustees as a tool in your estate plan.
An estate planning attorney can work with you and advise you in creating an estate plan that fits your unique circumstances and may include some heirs without experience in handling large sums of money.
Reference: Financial Advisor (May 16, 2018) "Inheritors Not Prepared to Inherit, FIS Says."
