You’ve worked hard to build your wealth, and you want to leave a financial legacy for your heirs. But you don’t want your wealth to disappear within a generation or two of your death. Yet that’s what happens in as much as 90% of affluent families1 — and one primary reason is heirs who lack the financial knowledge and skills to manage wealth.
How do you know if your heirs have what it takes to manage and preserve your family’s wealth? One way is to use a checklist to evaluate your heirs’ understanding of 12 fundamental financial skills. This may help you both identify existing strengths as well as opportunities for improvement — allowing time to develop essential money management abilities before any wealth changes hands.
Related reading: Get tips for how and when to have financial discussions with your family.
You may find it easier to go through this skills checklist gradually, rather than in one sitting. In addition, keep the age and maturity level of your family member in mind as you talk through each point.
It can also be useful to share examples from your own life, so your heirs can see how these skills translate to real life, and how they’ve helped you maintain your finances and build wealth. And remember, there is often no better way to learn than by doing. Encouraging your heirs to put these concepts into practice with their own money may help them build a solid foundation for the future — with or without an inheritance.
As you work through the checklist of financial skills, also consider taking actions to broaden the discussion and further help prepare your family members for their inheritance.
Related reading: Discover more ways to ease your inheritance worries and help wealth transfer go smoothly.
Your Hancock Whitney Banker can help you get the conversation started with your heirs and work with you to assist them in developing financial knowledge and skills that can help preserve your family wealth for multiple generations to come.
1 Yahoo.com, "5 Huge Lies About Generational Wealth," https://www.yahoo.com/video/5-huge-lies-generational-wealth-181719865.html
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This information is general in nature and is provided for educational purposes only. Information provided and statements made should not be relied on or interpreted as accounting, financial planning, investment, legal, or tax advice. Hancock Whitney Bank encourages you to consult a professional for advice applicable to your specific situation.
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