You have enough money and assets to set your children up for a long time. However, are you worried about the potential damage that inheritance could do? Would you actually limit conflict by reducing what you leave to them?
For instance, perhaps you have a home that is worth $2 million. You want to leave it to your three children. It’s an incredible gift. They could never buy a house like that on their own, at least not right now.
Unfortunately, decisions like that can come between heirs, and some experts warn that they may never speak again. What if they can’t agree on what to do with the house? One person wants to keep it, and the other two want to sell. They force the sale, and the other child, feeling insulted and lost, vows to cut ties with their siblings. Certainly, that’s not what you wanted that gift to accomplish.
There are ways around this. Some high-profile individuals, like Bill Gates, claim they won’t leave much to their children. You also can take steps to anticipate the conflicts and eliminate them before you pass away; for instance, instead of leaving them the house, you could sell the home and split the money into thirds.
These are just a few of the potential issues that arise in high-asset estate planning cases. You need to think about both complex assets and even more complex family dynamics. It’s not always easy, and it can feel overwhelming. When it does, the key is to make sure you really look into all of the options you have.