Wills, Trusts & Estates Prof Blog

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

Saturday, November 28, 2015

What To Do When A Teenager Inherits A Fortune

Piggy BankThough rare, there are an increasing number of young people who inherit large sums of money, often times with little preparation or experience to cope with the sudden windfall. When faced with a client in this situation, the best first step is to create a simple spreadsheet that outlines the assets and restrictions that might accompany the wealth. Second, keep in regular contact with the teen and help guide them to experienced and trustworthy advisers that will make up the management team for their wealth going forward. For some, putting the beneficiary into contact with coaches and teachers that can assist the teen in pursuing goals, be they entrepreneurial or otherwise, is a growing trend; particularly since it helps create a sense of guidance and purpose to prevent poor financial decisions made due to boredom and lack of direction in life. In any event, always keep in mind that a large accession to wealth is a disorienting experience to anyone, especially when the anyone is a teenager.

See Cheryl Winokur Munk, Helping a Teenager Navigate a Giant Inheritance, Wall Street Journal, November 27, 2015.

http://lawprofessors.typepad.com/trusts_estates_prof/2015/11/what-to-do-when-a-teenager-inherits-a-fortune.html

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