Short Education Blogs
Date Published: 4/21/2022
In this post, I want to share one of the most important things you can leave your heirs. Can you see how your life would have been different if someone had set you down early and provided you with a family vision? Even if you sat down with your children today and explained what to do after you’re gone, how long would it be before they forget it (your guess is better than mine)? A verbal vision is not enough. It takes a written plan.
There’s a story in the bible about a prodigal son. In the story, Jesus shared how the young man demanded his inheritance while his father was still alive. However, the son did not take long to spend all his inheritance drinking, partying, and whatever please called his name. Ultimately, he ended up in a pig’s pen (Talking about going broke).
The fall happens when the prodigal son asks for the inheritance; today, we call it entitlement. It didn’t take him long to lose everything. I’m not sure of the extent of his financial training, but it’s obvious he didn’t understand how to manage money.
The story is no different today. Many inheritances are lost within one year of the first or second generation. Can you imagine working long hours for 25 to 30 years and having your heirs waste their estate within 18 months?
The prodigal son problem is no different from today. Many from today’s generation do not understand how the banking system works, how to save or prepare for retirement, or why using a credit card is profitable. It was R. Nelson Nash, in his book, Becoming Your Banker, that said, “Banking is a process-Not, a product.” So do you understand why promoting education to your heirs is crucial?
They will only value it if you let your kids work for something. So here’s a sobering thought. If your children can not balance a simple checkbook, what would happen if you left them a $250,000 tax-free insurance policy?
In the book, Entrusted, the writer David York and Andre Howell said, “Entrusted Planning differs from modern estate planning, first in its beneficiary-focus. Entrusted Planning is more about preparing future generations.” Education is the secret to training multi-generations, and it takes a vision to get everyone on board.