There is an old saying that can be painfully true, “You are only as happy as your unhappiest child.” One of the most common laments I hear from parents of adult children is that, for whatever reasons, their offspring seem to (repeatedly) need financial assistance … not because of illness of hardship, but simply through poor decision-making.
It’s hard to talk-turkey with your adult children, and they seldom listen anyway. But, maybe they will listen to advice from a third-party, especially if that advice is delivered in a manner with which they are most comfortable – fresh, fun and online.
American Express has launched Currency (www.getcurrency.com) to provide just that type of advice. They offer online “courses,” and even a new iPhone app, Social Currency for social networking. A recent hot topic: Currency 101: What is “Spending”?
But if your adult children still keep on coming to you for “loans” there are two estate planning steps you can take that might discourage them for “freeloading” of you:
(a) Make provision in your trust that any loans will be deducted from their share of your estate on your deaths
(b) Set up a spendthrift trust which can limit their access to their share of your estate by providing for payout to be at the discretion of a third-party trustee.
And if neither of those deterrents are effective, well stop giving them loans or make them sign promissory notes for the loans. It’s called “tough love”!
For more information regarding spending advice and planning that can ensure your family is taken care of, while still responsible with their money, visit us here to set up a FREE consultation.