Parents may leave an inheritance for their children to ensure they are cared for if they are no longer present to support them. They may leave an inheritance behind if they wish to provide a solid financial foundation that their children can build on for their future. Whatever the reason, it is important to understand the appropriate age a child should receive an inheritance and the risks that may come from receiving an inheritance when they are not equipped to handle it.
Continue reading to answer any questions you might have about when a child should receive an inheritance. For assistance with this process, reach out to our experienced estate planning attorney who can walk you through each step of the way.
A Will with No Age Restrictions
If you have a will with no age restrictions, in most states, the child will receive their inheritance once they turn the age of 18. However, there may be complications from this default setting because many 18-year-olds are not mature enough to manage a large inheritance the responsible way. Many might fear that an 18-year-old receiving their entire inheritance could result in it being spent in a few quick years.
Stipulate Your Funds
When your will is created, you may think that your adult children will receive their inheritance outright. However, this is a common misconception. Instead, it is important to understand that parents can use a trust to hold funds back from their children in order for it to only be used for specific purposes.
For example, you may stipulate your funds to be used for college, medical care, or financial emergencies. It is also possible for parents to keep their inheritance from them until they reach a certain age.
When should my child receive an inheritance?
The appropriate age for a child to receive an inheritance depends on the beneficiary. Some factors to consider include how they have managed money in the past, if they have issues with gambling or substance abuse, and how they have managed other responsibilities in their life.
To begin the estate planning process, especially if you have young children, consider working with an estate planning lawyer who can plan for your family’s protection when you pass. This process is very important to ensure your children are taken care of the way you would like.
Contact our experienced Montgomery County, Maryland firm
The attorneys at JD Katz have years of experience compassionately guiding clients in Maryland through the estate planning and administration process. Our firm also has experience with matters of elder law, business law, tax law, and litigation. For a legal team that will put your needs first, contact JD Katz today.