TIGER 21’s founder, Michael Sonnenfeldt, was recently featured on the Wall Street Journal’s “Managing Your Wealth” podcast, where he discussed the differences between treating children equally and equitably and how to avoid potential consequences when managing these practices. Key takeaways include:
- Parents must consider the ramifications when deciding how to split their inheritance among their children, as those who receive less may believe it is due to a lack of love.
- Children will be more receptive to their treatment in their parents’ will if they have a clear understanding of their family values, which should be carefully explained and consistently communicated over their lives.
- The equality rule is different when the parents are still alive because they have the ability to express their love to their children in ways that don’t involve leaving them money. One practice that parents often use is treating each kid according to their needs, providing financial support to the one who is struggling and a gift to the other who is successful.
Listen to the full podcast here.