Before your children receive an inheritance from you, some information might be helpful.
Without the right knowledge or plans, many children who inherit money make some big mistakes. That means that you need to make sure your children have some necessary information, as Nasdaq discusses in "5 Things Your Kids Should Know Before They Inherit Your Money."
Overcoming the general discomfort of talking about death and money handling in the same conversation is not easy. For your children though, this knowledge will affect decades of their lives for better.
Much of what your children will need to know depends on how they are receiving your wealth. If you are leaving them the money in your IRA by designating them as beneficiaries, they will need to know the best way to handle that IRA, when they have to make withdrawals and what they are not allowed to do without facing severe tax consequences.
If the money is being left to them through a will or a trust, they will need to be informed about what to do with that.
The best thing to do is to sit down with your children and talk to them about what they might receive and how they should handle it. It is also a good idea to let them know who to trust for financial advice, should they have questions after receiving their inheritances. Reference: Nasdaq (Jan. 29, 2018) "5 Things Your Kids Should Know Before They Inherit Your Money."