Older parents are often confronted with a dilemma over whether they should save money so that their adult children can have an inheritance or whether the money should be spent by the parents to make their own lives more enjoyable. The solution is not a simple one.
Recent surveys suggest a failure-to-communicate exists between elderly parents and their adult children over the issue of the adult children’s inheritances. More parents plan to leave inheritances for their children than there are adult children who expect to receive an inheritance.
This discovery prompted Ron Lieber to write an opinion piece in The New York Times titled “Parents, the Children Will Be Fine. Spend Their Inheritance Now.”
The title, of course, gives away Lieber’s opinion on the issue. He believes elderly parents should spend their money on themselves, even to the point of taking out “reverse mortgages” to tap the equity in their homes.
For many families, Lieber’s suggestion is a good one. If the children do not want or need an inheritance, then it is reasonable for elderly parents to use it for their own lifestyles, as long as they are not merely being wasteful. However, not every family is the same.
Some adult children might be counting on an inheritance to help advance their own lifestyles or to help grandchildren. Have you priced a college education lately? Some adult children have special needs that parents can support. And, some elderly parents might just want to leave an inheritance because that is what makes them happy.
The key for any family is to communicate. In the end, an estate planning attorney can develop a plan for whatever your family desires.
Please contact our office today at 239-225-7911 to schedule an appointment with Barbara M. Pizzolato if you are interested in protecting your legacy and need to create or update your estate plan. You may also wish to attend one of our free seminars.
Reference: The New York Times (September 19, 2014) “Parents, the Children Will Be Fine. Spend Their Inheritance Now“