Parents Shouldn’t Wait to Pass Down Their Wealth
You can help your children build financial security now.
Get building.
Photographer: William_Potter/iStockphotoIn the coming decades, a Great Wealth Transfer will be upon us. Gen Xers and Millennials are expected to inherit trillions of dollars. Some estimates say as much as $68 trillion will be passed down from Baby Boomers.
For parents (or other family members) who indeed plan on leaving behind a financial legacy, it can be far more effective to gift early instead of waiting for the triggering event of your death to transfer wealth. This idea tends to elicit a negative reaction. Afterall, the risk of passing on money too early, or at all, is it will lead to spoiled kids and little motivation for them to be successful. It’s a valid concern, but gifting early could also help someone flourish and build their own legacy, as access to capital creates more opportunities.