2023-6_What Kind of Inheritance Will You Leave to Your Children

By Scott Hamilton

When considering the legacy we want to leave for our children, it’s natural to focus on financial aspects like writing a will and distributing wealth. But a true legacy encompasses more than just money. It involves establishing long-term stability for your loved ones and avoiding a chaotic situation of assets, liabilities, and convoluted records that can take years to untangle. 

When it comes to transferring your wealth to the next generation, paving the way for a seamless transition is critical. During a time of grief and difficult decisions, your children shouldn’t have to bear the burden of a challenging inheritance process. By creating a well-thought-out strategy that includes legacy and estate planning, you can alleviate their stress and simplify the process. Let’s explore how a smooth transition and robust plan can provide your loved ones the peace and comfort they deserve.

The Importance of Estate Planning

Estate planning should be an integral part of your financial and retirement planning. Failing to have an estate plan may not have a significant impact on your own life, but it will undoubtedly affect the lives of your loved ones after you’re gone.

In the absence of an estate plan, your death will be considered intestate, which means there was no valid will in place at the time of your death. The state in which you lived will determine who inherits your property through a process called probate, which can take anywhere from 6-9 months or even several years without proper planning. 

In addition to this process lasting a long time, your inheritors may face expensive fees, predatory claimants, and loss of control over what happens to your estate. Probate can cost up to 3-7% of your total estate value. And because this process becomes public information, this means that greedy creditors or estranged relatives may attempt to claim portions of your wealth.

Good estate planning mitigates these risks and provides your family with a secure plan for how your wealth will be transferred. The professionals in your life, such as your estate planning attorney and financial advisor, can become trusted resources for your family to lean on during this difficult transition.

Create a Lasting Legacy

Additionally, good estate planning incorporates legacy planning, which can be even more beneficial to your inheritors. Legacy planning allows you to incorporate family or financial values into your wealth transfer. If your children aren’t as adept at money management or have made financial mistakes in the past, your legacy planning can help guide them through what to do with their new wealth. Finally, legacy planning may help to protect your grandchildren and encourage generational wealth-building for decades to come.

Plan Ahead for Your Loved Ones

Take a moment to reflect on the legacy you want to leave for your children. As recent events have shown, life can be unpredictable, revealing the importance of planning for the future. Though thinking about our mortality might be uncomfortable, it’s something we must face in order to create a plan that brings comfort and peace to our loved ones. Now is the time to consider the type of inheritance you want to provide as you pursue your family’s ideal future. 

Rather than burdening your family with uncertainty, take the opportunity to create an enduring legacy that can positively impact their lives for future generations. At Hamilton Financial Planning, we are committed to offering unwavering support, education, and objective guidance to each and every client. By partnering with us, you can experience a sense of confidence, knowing that a dedicated team is diligently looking out for your best interests. If you’re seeking a financial planner who understands your unique needs and empowers you to make informed financial choices, schedule a complimentary get-acquainted meeting online or reach out to us at 512-261-0808 or scott@hamiltonfinancialplanning.com. Let us be your trusted partner on the path to a prosperous future.

About Scott

Scott Hamilton is founder and chief financial officer at Hamilton Financial Planning, a wealth management firm that specializes in providing comprehensive financial planning for retirees. With over 20 years of experience in the financial industry, and having completed over 250 financial plans for retirees across all industries, but mostly the oil and gas industry, Scott is passionate about providing his clients with the tools and insight they need to achieve their financial goals. He has a Bachelor of Business Administration in finance from Texas State University and an MBA in international finance from Pepperdine University. Scott has also been happily married to his wife, Gayle, for over 25 years. To learn more about Scott, connect with him on LinkedIn.