Friday, August 23, 2013
Entrepreneurs strapped for cash may want to consider asking their parents for an early inheritance. Figuring the money would be coming to him eventually, Scott Harris decided to ask his mother for an early bequest in order to get DeliverLean going, a business delivering healthy meals.
Approaching the parent may be difficult; asking for a large sum of money is always a complicated conversation, but asking for an inheritance raises further financial hassles and emotional weight. Parents may find it rude to ask for a final legacy before they have even kicked the bucket while children may feel burdened by the bequest. However, making an early gift can give parents the chance to share in their child’s success. Mr. Harris’s mother says, “Why wait until I’m gone and not be able to get any pride in his accomplishments?”
Some parents may even decide to co-invest in their heir’s venture in order to closely mentor the next generation or earn some supplementary income.
See Neil Parmar, Cash-Strapped Entrepreneurs Seek Early Inheritances, The Wall Street Journal, Aug. 19, 2013.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.