Parents and their children not always of the same mind on the total amount of inheritance.
Research points out that children expecting an inheritance are unrealistic on the amount, according to The Independent in “The truth about your inheritance.”
The report reveals that the younger generation has a vision of their inheritance changing their lives by paying off bills, buying a new home, vacations and retirement. However, if you speak with the parents, those expectations are not only off the mark but almost always too high.
The article has some alarming statistics that are specific to the U.K., but the same general idea applies in the U.S. Older Americans do not expect to leave their children as much as the children think.
There are several reasons for this. The parents may not have as much money as the children think. They may prefer to spend the money on their own things rather than leave it for their children.
Another issue is that people are generally living longer, which means they have to spend more of their nest eggs for their own daily expenses.
Both parents and children should take note of this issue.
An estate planning attorney can guide you through the process of creating an estate plan that fits your unique situation and help in communicating the facts to the next generation.