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How much is enough?

Guidelines for finding the right balance for your family values

What is the right amount to leave your children and other loved ones? How much is too much? Rather than focusing on a specific amount, the answers lie in your vision for your wealth and your family’s ability to manage financial resources responsibly.

With a total of $124 trillion expected to be transferred through 2048 in the US—and $105 trillion of this going to heirs—many families wonder how to arrive at the right amount to leave to their children and others.*

Part of deciding how much is enough begins with acknowledging the impact it will have on the entire family. An inheritance can be a wonderful opportunity for children to pursue their dreams or take risks they might not have considered. This financial support can:

Provide a sense of security
Open doors to new possibilities
Lighten the burden of living expenses
Build influence within a community through philanthropy.

An inheritance can also carry unintended consequences that are equally important to consider. It might inadvertently:

Create dependency
Reduce motivation to achieve personal goals
Lead to conflicts amongst family members over the distribution of wealth.

Finding your wealth identity

How was money discussed in your home? Did children receive an allowance? Personal beliefs about money, and shared money values and messages within the family, play a crucial role in family culture and thinking through how much is enough for your children. For example:

A parent who believes self-worth is tied to financial success might require their children to earn their inheritance as a reward for hard work
A parent who believes in working hard or “paying your dues” may structure inheritances to encourage responsibility
A parent who worries that an inheritance can stifle ambition might leave a modest amount or tie the inheritance to educational or entrepreneurial achievements
A parent who views wealth as a means to ease life’s burdens may provide a substantial inheritance to ensure long-term security.

These beliefs, along with considerations of work ethic, values and philanthropy, guide how inheritances are planned and implemented.

Key questions to consider:

What beliefs and values about money do you and your loved ones live by?
What money messages do you want to pass on to your heirs?
How do you want to prepare your heirs for their future responsibilities and opportunities regarding wealth?
How will you know when someone is responsible enough to inherit? What are your key indicators?

Communicating effectively

When thinking through the potential impact of an inheritance, effective communication is key. It can serve as an antidote to conflict. When determining the amount to leave to the next generation, start conversations with your partner (if applicable), and then, with your children.

Keep in mind that this can be an iterative process. Successful communication around your intentions is two-way and multi-generational. These foundational conversations build family cohesion, which in turn strengthens the family culture.

Families need to be clear about their own money values, current financial situation and hopes for the future. Articulating values around money and wealth helps decide what to pass on to children and what no longer serves the family. Unless you tell your children to expect differently, your lifestyle choices—the cars you drive, the homes you live in, the places where you vacation—will shape their expectations.

From wisdom to action

We know families can flourish when each generation understands both the opportunity and responsibility that an inheritance can bring. Estate planning conversations tend to focus on the transactional nature of the plan: what financial instruments are being utilized and who is receiving distributions from the estate and how. These conversations should also serve as an opportunity to provide guidance and share your thoughts and values.

It's important to talk about your decisions and why you made them. Make sure you have a solid plan and share it with those who need to know, explaining your reasons clearly and being open to questions and feedback. It is important also to be willing to adjust the plan if needed down the road.

Key questions to consider:

What are the risks of distributing too little or too much, and what are the expectations of each beneficiary?
How does this align with the standard of living your children have become accustomed to?
What uses for the wealth would you support? What uses for the wealth would not be in line with the intended purpose of the wealth?
Will the gift be held in trust and if so, how, when and for what purpose(s) can it be accessed?

Dive deeper

For additional considerations and reflection questions around family wealth transitions, download our whitepaper, How much is enough? Guidelines for finding the right balance to reflect your family values. And speak with a UBS Financial Advisor about strategies to transfer wealth to others as part of your legacy.

Download the guide