Parents and their children have far different expectations about how much the children will inherit.
Adult children typically do not know the important details of their parents’ finances. They do not how many assets their parents’ have, or how much their parents’ have saved for their retirement, if at all.
Older generations tend to be more private and even refrain from talking about money with their closest family members. This holds true when discussing estate plan and how much parents plan to leave their children as inheritances.
Only 21% of parents have told their children what to expect as an inheritance, according toFinancial Advisor in "Hoping For An Inheritance? You May Not Get As Much As You Expect."
Studies have shown that children believe they will inherit more from their parents than they actually will. After the passing of their parents, adult children often fight with family members over the estate. This is especially true when loved ones pass away without proper estate plans in place.
It is rare to learn of estate litigation started by someone who gets more than they thought they would. Conversely, it is not at all rare to see estate litigation brought by someone who gets less.
Estate litigation is extremely expensive and emotionally taxing for all family members involved.
To avoid it in your own family, you should speak to an attorney about your wishes and execute a proper estate plan. With proper documents in place, children are less likely to dispute the distribution plan set by their parents.
Reference: Financial Advisor (March 15, 2017) "Hoping For An Inheritance? You May Not Get As Much As You Expect."