I'm a Wealth Manager: How To Prepare Your Future Heirs To Handle an Inheritance
Your parents spent decades building wealth. They hired fancy lawyers, optimized tax strategies and crafted the perfect estate plan. But all that prep work means nothing if the people inheriting it aren't actually ready.
Lisa McCurdy, founder and managing partner of The Wealth Counselor, LLC, said, “Prepare the heir, not just the plan. Most families spend years refining documents and very little time preparing the people who will receive the assets.”
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Whether you're looking to pass down serious wealth or just want your heirs to handle whatever they inherit without a financial meltdown, McCurdy has concrete strategies for actually preparing them — starting way earlier than you probably think.
Start the Conversation Now
Families don't need to announce inheritance amounts to kids, but they should start building money skills early.
“The conversation should grow with the child," said McCurdy. "Young children can learn about saving, sharing and giving. Teenagers can manage a budget and take part in charitable decisions. Young adults can learn how the family's planning is structured and why.”
Readiness matters more than age. “A 24-year-old who is managing a household may be more ready than a 35-year-old who has never handled money of their own," she added.
Share the Purpose Before the Numbers
Preparing heirs doesn’t necessarily mean telling them how much they will inherit right away. McCurdy recommended, “Share the values first, the structure second and the numbers last. Transparency works best when it is gradual.”
Not discussing the inheritance creates different problems. “When no one explains, heirs fill the gaps with guesses. Those unchecked assumptions often cause more harm.”
Build the Financial Foundations
Before someone is responsible for a substantial inheritance, they should ideally be comfortable managing everyday money and understand the fundamentals, such as budgeting, cash flow, credit, investing and taxes.
McCurdy said two additional skills are often overlooked: how to evaluate and work with advisors and knowing when to say no. “Heirs who receive wealth will be asked for loans, investments and favors. They need the confidence to decline without guilt.”
Give Them Practice Before They Inherit
Don't expect heirs to suddenly become wealth managers after the inheritance arrives. Give them experience while you're still around to guide them. That could involve gifts, charitable giving, investing or participation in family financial discussions.
McCurdy uses an interesting three-part annual gifting approach with some families: “One third is for investing. One third is for philanthropy. One third is uncommitted, for personal use or enjoyment.
"Each year, the beneficiary reports back to the family on how they managed each portion. The report is where the learning happens.”
Another good option is inviting adult children to participate in a donor-advised fund or family investment discussions. For business-owning families, McCurdy also recommended giving the next generation defined roles and responsibilities before transferring ownership.
Introduce Heirs to Your Financial Team
Future heirs may eventually need help from financial advisors, estate planning attorneys, accountants or other professionals.
However, McCurdy said the worst time for an heir to meet the family's advisors is at a funeral or in the middle of a crisis.
Instead, she advised holding a family meeting where the attorney and advisors walk the next generation through the plan. Let heirs ask questions directly and establish relationships while stakes are lower.
Use Trusts as Safeguards, Not Substitutes
Families worried about heirs receiving a large amount at once can use trusts or staggered distributions to create structure. But McCurdy explained that “trusts are guardrails, not handcuffs.” A staggered distribution schedule, such as distributions at ages 25, 30 and 35, gives heirs time to mature and learn from smaller amounts first.
“I encourage clients to include a letter of wishes that explains their intent," said McCurdy. "When heirs understand why the trust exists, they are far more likely to see it as care rather than control.”
Prepare Heirs for the Emotions, Too
Inheritance isn't just a financial transaction.
“Money often carries meaning about love, fairness and identity," said McCurdy. "If one child receives more than another, or a family business passes to one heir, parents should explain their reasoning while they are living."
Unspoken favoritism, whether real or perceived, is one of the fastest ways to divide siblings.
The Bottom Line
Transferring wealth means transferring more than assets. It's a handoff of values, responsibility and relationships. According to McCurdy, families who plan with intention give their heirs "a sense of who they are and what they are called to do." That foundation transforms an inheritance from a financial event into a legacy — and that's the real goal.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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