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How Much Is Enough to Leave Your Children - The Apprenticeship Years

by Caldwell Trust

how_much_is_enough_collegeTaking care of your children when you’re gone is always at the top of any parent’s mind. In this post we’ll take a look at how to decide what to leave for your children during their "Apprenticeship Years": the years following their graduation from school or college programs, when they are searching for their first real employment opportunity or learning the practical applications of their trade or career.

By creating a financial plan for supporting your children between college graduation and their first career, you can feel confident that your inheritance will be there for them during this time. Consider these strategies and talk to your financial or trusted advisor for more ideas and advice.

Where Will They Live?

To support your children during their “apprenticeship years” you should factor in a number of different costs, such as the cost of living in a big city, the first time purchases of household items, travel expenses while conducting a job search and more. It is important to set reasonable expectations of expenses based on where your children decide to live. By providing detailed guidelines in your trust you can assure that your child’s cost of living expenses are taken care of so they can focus on beginning their career.

When Should You Disperse?

Many parents prefer to have funds distributed at age related milestones or accomplishments. For example some parents will trigger funds to be released after their children graduate or attain their first job, others when they get engaged or have children. You should spend some time thinking about how much you want to give and when these disbursement should be made, in order to support the best choices with their money. By structuring the inheritance to give your children the necessities during their early twenties and larger sums as they are older and more financially responsible; you can ensure that they will have just what they need, but not too much.

How Much is Too Much?

Some parents worry that giving children a very large sum of their inheritance at such a young age could tarnish their ambition and drive for a career. Parents must take this into consideration when structuring their children’s inheritance plans. One way parents can work to avoid this is by triggering incentives based on actual accomplishments. Some parents offer incentives based off of milestones achieved in a child's career, philanthropy and even personal goals.

By taking the proper time to thoughtfully consider how you want to support your children's efforts and when your children should receive their funds, you can rest comfortably knowing that you are empowering them to set and reach their goals successfully.

About Caldwell Trust Company

Caldwell Trust Company is an independent trust company with offices in Venice and Sarasota, Florida. Established in 1993, the firm currently manages over $800 million in assets for clients throughout the United States. The company offers a full range of fiduciary services to individuals, including services as trustee, custodian, investment adviser, financial manager and personal representative. Additionally, Caldwell manages 401(k) and 403(b) qualified retirement plans for employers.


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