Leaving an Inheritance? Is It Better to Give to Kids Now or Later?

Retirees should secure themselves first, and if you’re all set there, then consider a few other things, such as the impact on the kids and tax issues.

A happy family including grandparents, parents and children gathers around a table outside for a meal.
(Image credit: Getty Images)

Flying off on a recent family vacation, I was sitting next to my 4-year-old and had my 8-month-old on my lap. Thank goodness it was a short flight! Before takeoff, as always, the flight attendant told us, “In the event of emergency, secure your own oxygen mask before helping your kids.” It’s a statement that we have become almost numb to, but my guess is, it would be hard to follow through on. When it comes to giving your kids their inheritance now or after you die, my advice is the same as the flight attendant’s: Make sure you secure yourself first. That is: Do you have enough money that you can afford to give it to your kids or anyone else?

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Evan T. Beach, CFP®, AWMA®
President, Exit 59 Advisory

After graduating from the University of Delaware and Georgetown University, I pursued a career in financial planning. At age 26, I earned my CERTIFIED FINANCIAL PLANNER™ certification.  I also hold the IRS Enrolled Agent license, which allows for a unique approach to planning that can be beneficial to retirees and those selling their businesses, who are eager to minimize lifetime taxes and maximize income.