Giving a teenager large sums of money often results in considerable waste and it often is no different when a teenager is given a large inheritance. Teenagers who inherit large sums of money frequently are in need of advice and help.
Lacking the experiences of life, teenagers who inherit large sums of money often make unwise decisions that can result in a waste of money or even the loss of a fortune. They truly cannot entirely grasp the concept that money is often difficult to obtain and keep. Thus, a teenager who inherits wealth often needs support and guidance from a responsible adult.
Recently, the Wills, Trusts & Estates Prof Blog offered a few tips for adults who are charged with helping teenagers who inherit wealth in "What To Do When A Teenager Inherits A Fortune."
The tips include:
- Create a spreadsheet – A spreadsheet of all of the inherited assets and the restrictions on them will help the teen and the adult keep track of everything.
- Stay in contact – Use regular contact with the teen to help guide them to make smart decisions. It can also be used to make sure that they have good financial management advisors in place when they become adults.
- Use Teachers and Coaches – Teens who inherit need a sense of purpose in life beyond just spending their wealth if they are going to be successful. Teachers and coaches can make excellent mentors and help guide the teens into meaningful pursuits and careers.
Reference: Wills, Trusts & Estates Prof Blog (Nov. 28, 2015) "What To Do When A Teenager Inherits A Fortune."