Most parents in Texas would probably love to leave behind a large inheritance that leaves their children well taken care of in the future, but many seniors have a set amount of money that they must prioritize what to do with. Many retirees must make difficult choices with their savings while others choose to use their money in different ways.
According to CNBC, here are a few reasons why adult children are inheriting less from their parents:
Some retirees may have lost money in the economic crisis a few years ago while others have realized they need more money than what they have saved. Because of financial difficulties, some seniors cannot leave large gifts behind for their kids as they deal with living expenses and healthcare costs.
Spoiling The Grandkids
If retirees have assets to share when they pass away, some are deciding to give inheritances to grandchildren instead of their children. With more people having children later in life, grandparents might not get to have a significant relationship with their grandchildren. This gives a grandparent a way to make an important contribution to a child’s life, and grandparents can even include a note with trusts to share their wisdom about finances.
A Good Cause
Others may decide to leave money to a charity instead of their children. This is a chance to support a worthy cause that needs financial assistance, and one might want to donate money so that children are motivated to work hard since they are not taken care of by an inheritance.
Regardless of how you divide your assets and belongings, estate planning allows you to ensure that your wishes are met when you are gone.
Contact us so that we can help you when establishing or editing documents like wills or trusts.