Giving kids and grandkids a leg up in the world is often an important goal of legacy planning. But just how easier should an "easier" life really be? If your legacy plan provides your heirs with too comfortable of a cushion, they may not gain the resilience they'll need to overcome challenges that money alone can't fix.
Encourage your loved ones to push themselves in these three ways and they'll learn how to carry on your family's legacy while also improving their Return on Life.
1. Practice a New Skill.
Why do so many kids stop playing the piano or throw their golf clubs in the back of the garage?
Because learning new skills is hard, especially if there are other activities a child is naturally good at, or digital distractions that provide simpler gratification.
While sports and music aren't for everyone, the process of facing a challenge, solving a problem, improving, and moving forward is necessary in just about every walk of life. Support your young heirs as they go through that process. If it turns out they just don't like soccer, help them find another challenge, like drawing or learning a new language, that will give them a different set of challenges and, perhaps, rewards that will benefit them through the rest of their lives.
2. Raise the Bar.
And if your heir has a natural golf swing, or has zoomed to the head of her class?
Don't let them get complacent with early success. Talk to them about how they can set more challenging goals for themselves so that they can keep improving and, hopefully, run into a brick wall or two. It's those seemingly insurmountable moments where failure is the only immediate option where we learn to pick ourselves up and keep trying until we break through our plateaus.
Your heirs might also find high bars that they can only clear by leaning on family members, friends, teammates, teachers, coworkers, and mentors. A couple lessons in humility can help even high achievers appreciate the value of working well with others, admitting to limitations, and committing to continual growth and self-discovery.
3. Earn It.
No matter what size or shape your estate is or how responsible your heirs might be, it's possible that they might not be ready to handle an inheritance.
It can be tempting to treat large sums of money as a windfall rather than as an asset to be managed over time.
Caring for collectibles, vehicles, art, and real estate often requires very specific knowledge and skillsets.
Family businesses need high-level executive leadership, not recent graduates who think the CEO's chair is their birthright.
And, most precious of all, the family's legacy needs to be preserved by heirs who understand your values and are empowered to carry on your mission for the next generation.
Perhaps the easiest way to avoid giving too much too soon is to establish benchmarks that your heirs need to hit before they take over parts of your estate. Make your wannabe CEO work their way up from the ground floor so that they gain an intimate understanding of your company's culture, employees, customers, and best practices. Insist that your heirs finish school or whatever training you deem necessary to handle more sensitive assets. Talk to them about your long-term charitable goals. If necessary, use vehicles like trusts and family foundations to protect your assets and your wishes while your heirs grow into their responsibilities.
You can also bring your heirs into our office to discuss how an inheritance will affect their short-term and long-term financial planning, as well as your own legacy. Call us up to schedule a meeting and let's start extending your Life-Centered Financial Plan to the next generation.
