 Helpful Articles
from David Vollrath,
Union County Foundation Executive Director
The Foundation encourages you to work closely with your professional advisor(s)
as you develop your estate plan and consider your present and future charitable goals. |
What Makes for a “Good Inheritance”?
(Part of a series of articles on charitable giving and the Union County Foundation
by David Vollrath - Exec. Dir.)
"What is the right time, the right amount, and the right property?" If you were a contestant on Jeopardy
this would be the correct question for the statement "A good inheritance plan for your children always includes
these three considerations." Granted this hypothetical Jeopardy riddle isn’t as fascinating as those posed
by TV host Alex Trebeck but it is a statement that could be important to many of us.
Many experts agree that there is a big difference between simply leaving inheritance to your children and leaving
a "good inheritance." The difference is that a good inheritance always allows the recipients to receive
the "Twin I’s." Even if an inheritance plan successfully passes a large amount of wealth tax free to
your children if it’s not done with the "Twin I’s" then the plan has failed. The "Twin I’s"
are integrity and initiative. How does one make sure their children receive initiative and integrity with their
inheritance? By making sure the assets are distributed at the right time, in the right amounts, and with the right
property. Without proper attention to these three considerations your children likely will not use their inheritance
effectively.
When is the right time to transfer assets? Most experts feel the right time is when your children reach the age
of "financial accountability." As you might guess that age can be different for different people but
usually occurs in ones 30’s (for some much later in life). They need to have had time to "learn", especially
if the inheritance is large. Most people agree that the lessons they learned early in life were very important
in impacting the conservation and growth of their estate in the later years. Often times inheritance plans succeed
because property is distributed over time allowing for those basic management lessons to develop. This can be accomplished
by paying out income over a period of years through a trust, with the principal passing to your children a bit
later in their lives.
Giving proper thought to how you want to pass your inheritance to your children also will help you to give consideration
to what charitable causes might be included in that inheritance plan. Modeling charitable giving to our children
is a wonderful legacy and important responsibility.
Next time we will discuss the "right amounts" and the "right property" of a "good inheritance."
The Union County Foundation is equipped to help you achieve your charitable goals and to answer questions you may
have regarding planned giving. Please call us at 937-642-9618, email info@UnionCountyFoundation.org, reference our website at www.emarysville.com/unioncountyfoundation, or stop by our Marysville
office at 126 N. Main St. We are committed to helping you.... “preserve your footprint in time.” |
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