Stage 1: Awareness - "They're Not Ready - And That's Okay"

You’ve worked for decades to build a life you’re proud of. A home, a savings account that didn’t exist when you were starting out, and the hope that you’ll leave something behind for your children or grandchildren. It’s a natural instinct, you want to give them a better life. But here’s the uncomfortable truth: most heirs are not ready for a large inheritance.

According to research by the Williams Group, 70% of wealthy families lose their wealth by the second generation, and 90% by the third. Not because of fraud, theft, or bad luck — but because heirs weren’t financially prepared, didn’t communicate well, or had no plan for wealth transfer. It’s heartbreaking to watch what you spent a lifetime building disappear in just a few years.

And it’s not necessarily your children’s fault. They’re facing a world you didn’t grow up in. Financial literacy is shockingly low among Millennials and Gen Z. In 2022, the FINRA Investor Education Foundation found that only 34% of young adults could answer four out of five basic financial literacy questions correctly. Combine that with record student debt, high housing costs, inflation, and unstable job markets, and it’s clear: they’re stressed, and many are living paycheck to paycheck.

An old family home showing signs of wear and neglect.

Then there’s the rise of lifestyle pressures. Social media has changed the game. Keeping up isn’t just about neighbors anymore, it’s about influencers, curated lives, and status on display. Many younger adults face pressure to spend, not save. A sudden six-figure windfall may feel like a chance to “finally enjoy life” and it will get spent accordingly.

And let’s talk about mental health. Anxiety, depression, and burnout are more prevalent than ever. According to the CDC, nearly 1 in 4 young adults experienced mental health issues severe enough to need intervention in the past year. Money can amplify those struggles, not solve them. Sudden wealth often leads to impulsive decisions, strained relationships, and even drug addiction in some cases.

So here’s the hard question: Does handing them a lump-sum inheritance help them or hurt them?

We’re not saying you shouldn’t leave something. Of course you should. But how you leave it matters. Imagine giving them access to a $100,000 cheque or even higher, what’s the plan? Who guides them? What if it goes into a risky crypto venture or a lifestyle that’s unsustainable? What happens when the money’s gone?

It’s time to reframe legacy. Your wealth is not just money — it’s wisdom, values, and stewardship.

That’s where the idea of structure comes in. Imagine a way to pass on your legacy in a form that supports, protects, and teaches; not overwhelms. A way to ensure they’re not just handed wealth, but a system that gradually helps them grow into it.

The good news? That structure exists and it’s more accessible than you might think.

An empty piggy bank symbolizes financial preparation.

Life insurance isn’t just for death coverage anymore. With tools like whole life insurance, life annuities, and infinite banking, you can create a living legacy. One that grows tax-free, pays out in structured distributions, and bypasses the court system (no probate headaches). More importantly, you control how and when your heirs access it.

A tranquil natural landscape encouraging mindfulness and stress relief.

Preparing for a Brighter Future

Consider this: if you left $250,000 in cash to a 27-year-old who has no investment experience, what happens? Now imagine leaving a tax-free death benefit of $250,000 through a life insurance policy with instructions to pay it out in annual installments of $25,000 over ten years. Now you’ve given them runway — time to learn, grow, and make better choices.

This isn’t about distrust. It’s about knowing the world they live in and preparing them for it the best way you can.

You didn’t get where you are by luck. You had discipline, patience, and guidance. You earned everything. Now it’s time to pass on more than money; pass on your example. But do it in a way that stands the test of time.

Your children and grandchildren may not be ready yet. And that’s okay.

Because you are.

Contact a SaferWealth expert for your legacy strategy.