What Will Your Kids Do with Their Inheritance?

LouAnn Schulfer, AWMA®, AIF® Accredited Wealth Management Advisor® Accredited Investment Fiduciary |

Over the past couple of decades, we have sadly had many clients pass away and numerous clients inherit the wealth of their parents.  Have you ever wondered what your kids will do with the money you leave them?

Interestingly but to no real surprise, your kids are watching what you do with your money.  They see how you spend and hear what you tell them about how you invest, even if it doesn’t seem like it at the time.   Often, kids continue much of what their parents began.

I am working with adult daughters and their husbands who inherited the wealth of their parents, who were clients of mine.  Their father was a wise businessman who successfully invested, transferred his financial risks to insurance companies, was charitable, and organized his finances so that he could enjoy his money while strategically leaving a financial legacy for his family.  The wishes of his daughters are to essentially follow his path.  They have used some of the money to pay down debts, donated to charity, are continuing the tax-efficient investing that he began with the greater part of the estate, and are transferring financial risk through long-term care and life insurance policies.  Early in our conversations, they expressed deep appreciation and admiration for what their parents did for them, and the importance that our planning include legacy to their children as well.  Their father would be proud.

I have another client who recently inherited an all-stock account that dates back to his great-grandfather!  My client will continue the strategy of taking the dividend payments in cash for his personal use, while keeping the account invested in stocks for potential growth.  

Other financially successful clients of mine recognize the importance of educating the next generation with smart money management strategies.  The adult children of those financially successful clients who are receptive to learning how their parents grew wealth are already putting into practice some of the same accounts and methods their parents are using.  While doing so, we are focused on financial education.  The intent is for a multi-generational legacy that benefits the children by growing their ability to handle financial responsibilities, by not financially wrecking them with money, but benefitting their lifestyles in practical ways.

These are just a few examples of what we’ve seen for years.  Pay attention to your own financial practices and communications to your children.  By doing so, chances are that what you are doing is also what your kids will do with their inheritance.  



LouAnn Schulfer is co-owner of Schulfer & Associates, LLC Wealth Management and can be reached at (715) 343-9600 or louann.schulfer@lpl.com.  www.SchulferAndAssociates.com 

Securities and advisory services offered through LPL Financial, a Registered Investment Advisor.  Member FINRA/SIPC.