Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Tuesday, October 23, 2012

When Children Inherit Too Much, Too Soon

Images-3As I previously blogged about, Whitney's mother and Whitney's sister-in-law are trying to restrict Bobbi Kristina Brown's inheritance payments.  They are concerned that receiving such a large sum at once will make her a target for financial predators or lead her into a dangerous lifestyle.  The pair believes that the current schedule of distributions to Bobbi Kristina is not in line with Whitney's intent to provide long-term financial security for Bobbi Kristina.  

The concerns illustrated above are just another example of a common problem.  Many people struggle with the best way to leave an inheritance to kids, concerned that the money will impact a child's motivation and self-reliance.  

Hugh Magill, chief fiduciary officer of Northern Trust, often advises clients who face this problem.  He generally advises that such clients create a discretionary trust to hold assets for a beneficiary and allows the client to detail how those funds are managed and released.  He also advises that clients start to prepare their children for a large inheritance at a young age--lay the foundation before they turn 18. Lastly, he advises that all clients keep their estate plans up to date.  Estate planning should be a continuing process. 

See Robert Frank, When $20 Million is Too Much To Leave the Kids, CNBC.com, Oct. 19, 2012. 

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.


Current Events, Estate Planning - Generally | Permalink

TrackBack URL for this entry:


Listed below are links to weblogs that reference When Children Inherit Too Much, Too Soon:


Post a comment