Imagine having $200,000 earmarked for your adult child someday and facing a surprisingly difficult question: When would that money actually help them the most? Giving an inheritance at 30 might help your child buy a first home, pay off student loans, or avoid years of expensive childcare debt, while an inheritance received at 60 could arrive after many of those financial pressures have already passed. On the other hand, parents who start giving an inheritance early risk surrendering money they may eventually need for healthcare, long-term care, or simply a longer-than-expected retirement. There are also tax differences between giving assets now and leaving them after death that can dramatically change the math. Before choosing between “enjoy it now” and “inherit it later,” families should consider what the money is supposed to accomplish.
