Q: Should I tell my beneficiaries about their inheritance?

A: Studies on wealth transfer show that many beneficiaries are not prepared. Wealthy families in particular can save a lot of heartache by teaching their kids about money in advance of their inheritance. Your kids are more likely to take their inheritance for granted unless they understand where the wealth came from and how it is managed, spent, and given back. A way to prevent this can be through creating a family wealth philosophy, which is a simple framework against which future spending decisions can be judged. I also recommend talking to your beneficiaries in advance and in your “What If” letter about their financial values and how you hope their inheritance will be used. Read: How To Prepare Kids to Inherit Wealth.