Withholding Inheritances Until Well Past Age 21

Barron's discusses a recent trend among the wealthy: Out of fear that 21-year-olds, or young people even past that age, will squander inherited fortunes, parents are structuring their inheritances to pay out legacies over a longer period.  To encourage more responsible spending, various trust structures can be used to help a parent retain control of inheritance funds or to pre-determine parties to whom funds are available.  Intrafamily loans can be used to make money available to children.  And educating young people on funds conservation and management is important, too.

See Tatiana Serafin, "Holding Back the Inheritance," Barron's Penta (Dec. 3, 2011).

Posted by David Perry, Managing Associate Editor, Wealth Strategies Journal