How to Leave an Inheritance to the Challenging Family Member

There could be one in every family.  That one family member that causes worry and angst for their siblings, parents, and grandparents. 

This challenging family member may be completely ignorant of the fact that they cause such emotional turmoil for others, especially when the worrier is wealthy and there is an inheritance on the line.   

Lump sums are terrible ideas for those that will be overwhelmed with the amount and may in fact inadvertently abuse the financial gift. 

Putting rules around how money will be received by the beneficiary, can be a simple, strategic decision that can reduce anxiety for the person planning their estate.   In fact, the decision on how wealth will be received can be reduced to answering two questions: how much and how long.   

You decide how much you want to give (percentages are ideal) and you decide how long you want that payment stream to last (2 to 25 years).  From that basis alone, you can structure a regular payment stream to transfer an inheritance to someone overtime as opposed to leaving a lump sum.   

You don’t need a Will to execute it, but you do need to work with a life insurance licensed Financial Advisor.  Please reach out if you have questions.