Making the necessary document arrangements while focusing on estate planning may be important. But for things to run smoothly, all parties need to be in this together, hand in hand and on the same page. Give this a thought: “How certain are you that your heirs will be readily prepared to accept your inheritance?” If this is an aspect you haven’t considered, read on to learn more.
Involve your heirs in the discussion of family finances.
Stay transparent on family finances and regularly update your children on your wealth and subsequent plans for them. It is common for heirs to feel at a loss when a large amount of money is in their hands all of a sudden. Ensure your children are constantly in the loop so they are well prepared if you unexpectedly meet your demise. Don’t take for granted that they will naturally gain knowledge on dealing with family finances on their own in the future.
Work on a mission statement.
It is crucial to settle on mutual goals so all family members are clear on the steps to achieving them as a whole. Look at the bigger picture – it is not just about money; teamwork is key. By looking towards the same mission statement, it is easier to earn trust and communicate ideas for plans to work.
Teach your heirs financial skills from a young age.
Budgeting isn’t only for young adults. In fact, such financial skills should begin from young. Encourage your little ones to use their allowances for their own expenses so they can learn from any budgeting mistakes and experience the consequences. Gradually, they will come to understand the importance of prioritising essential matters and managing them within a fixed budget. These lifelong skills will certainly aid them in handling their inherited assets more effectively later in the future.
Open their eyes to the world of investments.
Who knows? Your child may already be fit to make investment decisions. Allow them to practise receiving a portion of the returns after a period of time. The notable part here is, withdrawal from the account by the child is possible, but parents are restricted from adding to the principal amount. With this approach, investing and spending would be two useful skills to be adopted. The child will eventually gain a thorough understanding of the concept of compound growth through such hands-on exposure.
Supplement with a team of professionals.
Don’t leave your heirs without any guidance. It is good to ensure they have a team of supportive individuals to steer them in the right direction even when you are no longer around. They will definitely value and benefit from any advice they can receive.
Stay reassured that your heirs will safely manage their inheritance in the future. Speak to me to learn more, I will be happy to help you.
Disclaimer: Investment carries certain risks. You should not just rely on results as an indication of your financial needs. You should understand and familiarise yourself with any investment and the associated risks before investing. You are also recommended to seek professional advice before making any decision to buy, sell or hold any investment or insurance product. The views and thoughts expressed in the post belong solely to us, and not to Manulife Financial Advisers Pte Ltd, or any other group of individuals.
Exclusive Content
Be Part of Our Exclusive Community
Subscribe to our newsletter to get the latest updates of our news and events.