It takes preparation.

You know the family or have heard the stories: the young
person who inherits a million dollars only to burn through
it with fast cars, drugs and partying. Or the quarreling
siblings who discover after their father dies that they are now
partners in his business, which, of course, they promptly
run into the ground by draining every dollar they can
squeeze from the operation.

What is it about inheritance? Why do so many children treat
their financial inheritances like a personal candy store? Most
importantly, what can you do to prevent the likelihood that
your own inheritance plans will end up hurting those you
most want to help?

Be prepared.
Studies show that six out of ten inheritances are completely
spent by the generation that receives them. By the end of
the next generation, that number increases to 90%. Why?
In most cases the answer is as simple as this: the inheritors
were not prepared.

We can receive two kinds of inheritances. The most obvious
is financial. That includes money, property, privately held
businesses and other ‘valuable’ assets. The other kind of
inheritance is an emotional one. It is made up of the sum
total of the values, character traits, relationships and family
events that we experience as we grow. There is universal
agreement among experts that of the two, the emotional
inheritance is more important in terms of how it helps
children to live fulfilling, meaningful lives.

What’s remarkable about the emotional inheritance is that
you pass it to your children and grandchildren every day. It’s
fair to say, in fact, that they have already received the most
important inheritance of all.