Don’t Give Your Money to your Kids

26 May 2023 · 1 min

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In this brief monologue, financial advisor Jerry Taylor argues that the foremost rule for protecting family wealth is to avoid giving money directly to one’s children. He explains that adult children are exposed to numerous risks—car accidents, lawsuits, bankruptcy, and divorce—that can jeopardize any inheritance they receive. To safeguard assets across generations, Taylor recommends placing money into an irrevocable trust. Unlike individuals, a trust cannot drive, be sued, or go bankrupt, ensuring the inheritance remains intact for the children’s and grandchildren’s lifetimes.

Chapters

The most important rule of money protection is don't give your money to your kids. I know you're all saying right now, Jerry Taylor, you're out of your mind. Why would you not give your money to your kids? Because your kids lose their inheritance. Your kids, and they may be adults, drive cars, they have accidents, they get in lawsuits, they go bankrupt, they get divorced. All of those situations are ripe for losing their inheritance. Don't give your money to your kids. Give your money to a trust. An irrevocable trust provides protection in each of those situations. A trust is not going to go out, drive a car and get get into a lawsuit. Trust is not going to go bankrupt. A trust will protect an inheritance so that it'll be there through your kid's lifetime, your grandchildren's lifetime.