How long do you want the inheritance you leave to your children to last? Ten Years? Twenty years? A lifetime?
Do you know how long the average inheritance lasts? According to a Wall Street Magazine Study, the average inheritance lasts a mere 17 months!
Many parents purchase life insurance so that if something tragic happens to them, their children have money to pay for college. Unfortunately, if the insurance beneficiary designation names the beneficiary directly (e.g., my son John Smith), once that person is 18, they have full control of their money. With full control at 18, is your beneficiary more likely to spend the money on college or a new car? Quoting our attorney David I. Karp, “I love my kids (Adina 16 and Corey 12), but if something happens to my wife and me, I don’t want them controlling the life insurance money when they’re 18.” Failing to plan appropriately to protect it from a beneficiary who is legally old enough but practically too young to receive it will guarantee it will be squandered quickly.
The average inheritance lasts a mere 17 months!