“Screw College! I’m 18 and rich!”

Happy Wednesday folks!

I read an article last night regarding the importance of your children’s age when leaving an inheritance.

When I speak to my clients, I often explain to them that although at 18 an individual is legally an adult, many 18 year olds are just entering college and aren’t thinking about long term financial stability.

They are aren’t thinking about life after retirement or even starting their own families. Very few 18 year olds are mature enough to handle thousands of dollars, or if they’re lucky, millions.

Clients are usually advised to allow the initial distribution at the age of 25, and continue the distributions until about 35. This allows children to go through college, establish their careers, start their families, save and begin thinking about retirement. At 35, the inheritance they receive won’t deter them from the hopes and dreams you have for them or the ones they have for themselves.

But, if you don’t have an estate plan, you don’t have control over this and whatever is left after probate fees, will go directly to your children at the age of 18. Yikes!

What age do you think a child is financially mature enough to receive an inheritance??