Business & Finance
Financial Advisor Shares Three-Step Method to Prepare Children for Inheritance
Ken Polk, 53, founder of Arlington Family Offices in Birmingham, Alabama, says most families think about inheritance but rarely discuss it openly. According to Polk, whether children stand to inherit $100,000 or $100 million, the challenge remains the same: preparing them for the wealth that will eventually come their way.
Polk recommends a process that starts in childhood and develops as children mature. He has applied this approach with his own four children, now aged 27, 25, 23, and 21. He outlines three key steps for parents to follow.
The first step focuses on building character before discussing inheritance. Polk explains that preserving a family's legacy depends largely on a child's character and personal development. He suggests an exercise where children identify eight character traits they aspire to and then write a letter to their future selves, helping them work backward from the person they hope to become. Polk believes the most valuable gift parents can give is helping children discover their purpose in life before they receive any money.
The second step involves teaching children financial habits from an early age, starting around age 6. Polk recommends a simple system of dividing money into three categories: giving, saving, and living expenses, which he refers to as the