Passing down inheritance too early can be risky. Illustration photo by Pexels
Children who inherit assets too early may squander them due to a lack of experience and financial responsibility.
The debate over when parents should pass down their wealth often focuses on individual cases, shaped by emotions and personal interests rather than a broader, more rational perspective.
In my view, inheritance should be transferred early rather than only after the parents’ passing. However, a critical but often overlooked factor is education, ensuring that heirs have the knowledge and skills to manage and grow their inheritance responsibly.
Why should inheritance happen early? The ideal time to inherit assets is during one’s prime working years. If inheritance occurs too late, when heirs are already old, it loses much of its value, as their ability to adapt and capitalize on opportunities may have diminished. Many older individuals struggle to keep pace with evolving industries and financial landscapes.
On the other hand, receiving assets too early, before developing the necessary expertise, can lead to poor decisions and financial ruin.
A fundamental principle is that children should not receive more assets than they can handle. Just as banks assess an applicant’s business plans and financial capability before approving loans, parents should evaluate their children’s competence before transferring wealth.
A staged approach, where assets are transferred gradually based on the heir’s demonstrated ability, can mitigate risks. Many long-standing family-run businesses follow structured succession plans, ensuring heirs are prepared to take over leadership. If their approach were flawed, these companies would not have survived for generations.
Beyond rigorous training, these families often test their heirs by entrusting them with partial assets before transferring full control. They also distribute wealth based on capability rather than dividing it equally among children.
This principle extends beyond business. Political and social systems also emphasize long-term training and testing before leadership succession.
Wealth should not be handed over suddenly to someone who has not yet proven their ability to manage and grow it.
*The opinions were translated into English with the assistance of AI. Readers’ views are personal and do not necessarily match VnExpress’ viewpoints.
