Top 10 Ways To Burn Your Kids Inheritance | Estate Plan Pros
Some of these methods are definitely enjoyable, for example owning a money-sucking vehicle can be a lot of fun.  Others methods are more serious, and not only can be, but should be avoided with care.

10. Leave a big mortgage for retirement

A mortgage is a large financial commitment, and trying to fit that expense into a fixed income can be tough.  It will certainly squeeze your disposable income, making it harder to meet other unexpected expenses.

9. Own a money-sucking vehicle

Some cars are investments, some are hobbies, some are status symbols, some are for transportation, and some just require a money tree to keep them parked in the driveway, and not at the mechanic’s shop.  My personal ambition is to own such a vehicle someday, if I could only decide between a classic Model A, the sleek ‘40s, the fin-tailed 50’s, or the muscle car ‘60s…

8. Take up expensive hobbies

The price of our toys certainly goes up as we get older.  Collecting hotels in monopoly as a kid is a lot different than collecting hotel receipts traveling!  Or you could just make a hobby of fixing the money-sucking vehicle…

7. Rack up credit card bills

It doesn’t matter what age you are, the siren song of “buy now, pay later” can lead to financial shipwreck.

6. Be the family ATM

Being able to give to your children and grandchildren gifts is a joy for everyone.  But lending large sums can lead to trouble between siblings and parents.  Better to make large gifts or loans strategically as part of an overall estate plan.  But the first priority should be maintaining your own financial solvency.

5. Live in between here and there

Destination retirements are as attractive as destination weddings these days.  In picking a destination for a retirement home, think about where you’ll be spending most of your time.  An awesome location can be a great vacation spot, but will you want to be where you can spend more time with grandkids?

4. Don’t plan for long term care expenses

Aging can be expensive, and there doesn’t appear to be any long term solution on the horizon for rising medical costs.  You should look at the options available to you, from long-term care insurance, to prudent investing to see what is going to provide the best protection for you.

3. Create, or fail to eliminate brewing family battles

Certain assets can create disagreement between siblings and other family members.  Are there particular heirlooms that everyone wants?  Is there a family business to pass on to the next generation?  Investments in land or other active investments?  If the next generation is unprepared to manage and step into the role you are playing now with these assets, their value could shrink dramatically.

2. Don't plan for retirement

Retirement planning involves a lot of decisions that are often irreversible.  Are you getting good advice going into those decisions?

1. Send your heirs to probate court

Probate in California is a slow and expensive process.  Without the right estate plan in place, you could be sending your heirs to probate court.  Use a living trust to avoid the probate process, and give your heirs unparalleled additional protection and direction.

Tags:Estate Planning Inheritance Probate

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Erik Hartstrom

Erik is the founder of Estate Plan Pros, a leading estate planning practice in Elk Grove.  Erik’s practice focuses on Estate Planning Law. In Estate Planning, Erik works with clients to make the process simple, so clients can focus on more important things. He is a local authority for specialized estate planning instruments, like Special Needs Trust, Irrevocable Trusts, or other focused documents. Erik has litigated, negotiated, and mediated the gamut of family law cases. With this unique perspective as a family law and estate attorney he can often spot issues otherwise overlooked. Prior to graduating he worked as a legislative analyst for a non-profit organization, and volunteered as a youth counselor. Erik currently participates in local politics and is an active member of his local church. Erik is very happily married and has two young sons. Together, his family loves to get outdoors and enjoy the varied activities the Sacramento region has to offer.


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