There are many possible scenarios that could lead to a wasted inheritance, and fears that this will happen appear to be on the rise. In the next few decades, the largest transfer of wealth from one generation to another will occur as Baby Boomers pass away. However, there are a few things that can be done to prevent waste, according to the Wills, Trusts & Estates Prof Blog in "Will the Next Generation Squander the Largest Wealth Transfer in History?" These things include (but are not limited to):
- Talk to your potential heirs about the inheritances they will receive, and let them know how you would like them to manage it and spend it. Tell them why it is important to you that they handle their inheritances in a certain way.
- Do not focus on how much you will be leaving to your heirs. Instead, focus on values and how handling the money properly can create a benefit for society.
- Use estate planning techniques and devices to ensure the prevention of waste by limiting how and when an inheritance can be spent.
An experienced estate planning attorney can advise you on creating an estate plan that fits your unique circumstances, and that may include a plan to prevent your heirs from wasting an inheritance.
Reference: Wills, Trusts & Estates Prof Blog (May 29, 2018) "Will the Next Generation Squander the Largest Wealth Transfer in History?"