Financial Discipleship – the Bible on InheritanceУзорак

First, the Bible makes it clear that parents should leave an inheritance to their children and even their grandchildren. “A good man leaves an inheritance to his children’s children” (Proverbs 13:22).

Then, God’s Word issues a powerful warning: “An inheritance gained hurriedly at the beginning will not be blessed in the end” (Proverbs 20:21). This represents one of the biggest challenges for the affluent. Henry Ford said, “Fortunes tend to self-destruction by destroying those who inherit them.” Commodore Vanderbilt’s grandson, heir to $60 million in 1885, observed, “Inherited wealth is as certain death to ambition as cocaine is to morality.”

There is sobering evidence that inheritance often hurts the recipient. Studies show that the very expectation of an inheritance diminishes personal drive, saps motivation to work and erodes life purpose. In addition, having a reason to look forward to the death of a loved one can have a devastating spiritual impact on one’s soul.

An inheritance can be a blessing.

Consider these suggestions to help ensure that the inheritance you leave for your children and grandchildren will be a blessing.

Train your heirs.

Remember that the younger generation must develop financial wisdom before they can manage wealth. Unfortunately, some parents purposely make money mysterious or use it as a tool to control their children. You will actually have more influence over their behavior if you teach them how and why to handle money wisely. The worst thing you can do is to transfer wealth if you haven’t first transferred wisdom.

Design wealth transfer to develop your heirs’ character.

Some parents have designed incentives into their transfer of wealth to motivate their children to develop character, initiative and work habits...

Evaluate the impact on your heirs.

Outstanding financial author Ron Blue recommends asking yourself three questions as you consider transferring wealth.

1. What is the worst thing that can happen if I transfer wealth to ________?
2. How serious is it?
3. How likely is it to occur?

Then, repeat these questions from a positive perspective.

1. “What is the best thing that can happen if I transfer wealth to _______?”
2. How serious is it?
3. How likely is it to occur?

(excerpt taken from Charting Your Legacy, by Howard Dayton, 2020)