Having the means to leave your kids an inheritance doesn’t mean that you need to. Sure, some may think it’s selfish, but it is ultimately your money.
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Not that you have to justify it to anyone, but you have legitimate reasons for your decision. In fact, here are five reasons why you shouldn’t.
1. You Want To Gift Your Kids Money Before You Die
Gifting money before you pass means that you’ll be able to see how your money could help your kids. Maybe you want to buy them a car after they get their first job, or set up a 529 for them when they start graduate school.
Being able to see how your money can make a real difference now could mean you get to enjoy your wealth before you pass.
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2. You Want To Avoid Family Strife
Family relationships are messy. If you’re worried about dividing up your assets, know that your concerns are more common than you may think.
For example, one child could feel they deserve more because they’re at a lower-paying job than the other. You believe that they could be mad if they found out you’ve distributed your assets equally between siblings. Or, you believe that one sibling could sue another and tie up your assets in probate until the legal matter is settled.
You can’t be responsible for how people will react. But if you truly believe that leaving an inheritance could spell trouble, it’s hard to blame you for avoiding it.
3. You Don’t Want to Sacrifice Your Well-Being
Not having to worry about leaving an inheritance means that you can solely focus on your well-being during your retirement years.
The truth is that no matter how well you’ve budgeted, surprises can crop up. You could face a medical emergency, or healthcare costs can skyrocket in your later years. And if you’re concerned about leaving money to your kids, you may hold back on spending on yourself even if you need to.
4. You’re Worried Your Kids Will Squander It
Another harsh truth: Your kids may not turn out to be adults who are responsible with money. You want to know that the money you give them would go towards something useful. Unfortunately, once you pass, the money they inherit is longer yours to control.
You could put the money in a trust and put some restrictions on how your kids can use your money. If you rather not go that route, maybe your money can be put towards other things you deem more worthy.
5. You Want To Help More People
Many folks want to be able to make a positive impact in their community, and donating money is one way to do it. Perhaps you feel like your children have enough money, and you rather put yours towards other causes.
You could choose to specify a percentage or an amount of money to go towards charities of your choice. That way, you can feel good knowing that someone can directly benefit from your goodwill.
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This article originally appeared on GOBankingRates.com: 5 Reasons You Just Shouldn’t Leave Your Kids an Inheritance
