Prepare your family for what’s coming. The first time that your family finds out how much money they’re getting should not really be at the time that your will is read. It Should not be a surprise, you should be able to plan for this transition so that taxes are minimized and expenses associated with your state are well managed and maintained during the transition. Manage your estate and family money.
Give them some practice managing money
You may want to give them a little bit of practice managing money. If they have not already had this kind of situation to deal with. All children should have already savings set up for retirement. Your estate will just add to the retirement. In the event that they are not very good at managing money, you may want to give them a chance. Providing them with say $10,000 to give them a feel for what it’s like to have some money. Some will blow it spending the money on frivolous things, and then wonder what you’re going to do.
It can be a good lesson to find out what it’s like to have received some money. They may spend it and then realize that it’s gone. When you provide practice money for them you may want to also include some guidelines for how they should manage this money. Another approach is to help your children out when they most need it. For example if they need help paying off a loan, paying down the mortgage. Or paying for a car this might be a good time to provide them with these funds. You will get some of the benefit but seeing how much they appreciate the money that you’re helping them with.
Your estate and family money
Put your trust in a trustee
If you have a large estate, or feel that you need someone independently managing your estate, you may want to employ a trustee. Yes it will cost you some money which the estate will pay for. But you will have the satisfaction and confidence of knowing that your estate is well-managed> It will be managed along the guidelines that you provided.
Attach some guidelines with your estate
By all means provide some guidelines with your estate. Which either your children must follow or your trustees must implement. If your children are under 21 you may require an estate trustee to manage the estate. Provide the appropriate guidelines of how you want your estate managed. On the other hand if you may want to wait until your children are older and more mature. Let’s say 35 years, you can place your money in a trust. Arrange to have it managed by a trustee again according to the guidelines that you provide.