It is often difficult and awkward to sit your children down and tell them what they will inherit upon your passing. As a recent article in the Wall Street Journal points out, however, it is important to communicate your estate plan with your children. Before revealing to your children the full extent of their inheritance, be sure that they are able to handle the information. Parents should determine what level of financial responsibility their children possess, and whether they are able to think about money in an adult way. One way to do this is to ask your heirs to imagine they were to receive the amount of money you anticipate them receiving. Then ask your heirs what they would do with that money. The way a child answers this questions should give his or her parents insight as to how mature he or she is when it comes to money. It is also important to tell your children how much money they will likely inherit without ruining their work ethic. Many wealthy parents want their children to know that there is enough money for them to be entrepreneurial, but do not want their children to feel as though they don’t need to work. One way to avoid this is to explain that wealth is constantly changing, so it is vital to have a career to fall back on. If you would like expert assistance in preparing a plan on how to pass your assets to your children, or for any other estate planning questions, please contact us at 818.956.9200.