It can be difficult not to want to give financial assistance when our adult children are struggling. In fact, a recent survey found more than two-thirds of parents have financially aided their adult children during times of need.
Unfortunately, this generosity may negatively affect your long-term estate plan and ability to provide an inheritance down the line. The team at Adler Law looks at how giving financially to adult children now could impact leaving them a legacy in the future.
Inheritance and Your Estate Plan
Leaving behind a financial inheritance for your children may be essential to your estate plan. Those who choose to leave an inheritance can provide their heirs with financial security and stability, and it can also act as a legacy that will be passed down for years to come.
An inheritance can give your children the freedom to pursue their dreams without worrying about money and provide them with the resources to make their lives easier and more secure. Additionally, an inheritance can be used as an investment and provide your children with a source of income during retirement. A financial inheritance can allow your children to build a better future for themselves and their families.
Ultimately, it is crucial to plan for your financial inheritance properly should you have the opportunity to leave money for your children.
Considerations When Dipping Into Savings for Financial Support
As the study above shows, many parents are dipping into savings to help their children now, which could negatively impact any potential inheritance. Before dipping into personal savings for financial support, several important factors must be considered.
First, clearly understand why the funds are needed and how long they will be needed. Additionally, evaluate the impact of withdrawing savings and how it could impact an inheritance should the borrowed money not be returned. While utilizing savings may be necessary for certain circumstances, it's essential to approach the decision thoughtfully and clearly to understand the potential consequences.
Consider Options Before Dipping Into an Inheritance
If your adult child is in a bind and needs financial assistance now, reviewing your overall estate plan is wise. There may be penalties for withdrawing funds prematurely or other consequences, so consulting with your estate planning attorney is critical.
The Long Island estate planning attorneys at Adler Law are ready to answer any questions you have regarding your estate plan. Whether you are looking for reassurance about potential changes or are ready to begin the estate planning process, the team at Adler Law can provide crucial guidance throughout any process or decisions you are considering.
Contact Adler Law to discuss how we can help protect your assets while financially supporting your adult children.