If your child has plans to start or expand a promising business that could take them a step closer to prosperity, you might be tempted to alter your estate plan, giving them a significant financial gift while you’re alive to see it put to good use.
What to Consider Before Giving an Early Inheritance
Everyone can benefit from an early inheritance. Children can receive the resources they need to dream big, while parents are provided an opportunity to see a child succeed. However, early inheritance decisions can sometimes have negative consequences.
The Negative Results of Providing an Early Inheritance
- Reducing your retirement. While most Californians recognize the importance of saving for retirement, far too few adults have the resources they need to continue living comfortably after exiting the workforce. Before imparting an early inheritance, review your finances to ensure that a substantial gift won’t become a substantial risk.
- Alienating other heirs. If you have more than one child, you might want to have a conversation with everyone before gifting the money needed to jumpstart a son or daughter’s business. If the venture seems like a risk or eventually fails, a financial gift could cause rifts within the family.
Contact a California Attorney Today
Before approving an early inheritance, speak to an experienced attorney to ensure that your gift won’t have unintended consequences.
The Law Firm of Kavesh, Otis & Minor, Inc. has decades of experience helping Californians of all backgrounds plan their estates. Please send us a message online, or call us at 1-800-756-5596 to speak to a legal professional and schedule your free, no-obligation consultation.