That’s according to recent research.
I don’t see that number as just a financial statistic. It’s clearly a design problem.
We have two young kids. I think a lot about how we should structure our trust to ensure their futures are protected. Not just from probate and unscrupulous advisors. But also from themselves.
I think back to when I was 18 or 25. Would I have had the self control or even financial knowledge then to handle a sudden inheritance? Absolutely not.
It’s not just age though.
The worst time to transfer assets is upon death. Emotions are high. There may be negative associations with the sudden windfall. The urge to spend it to relieve those feelings is real.
What I’m personally including in our trust is what the researchers recommend.
Phased distributions. They’ll get their full inheritance, just not all at once.
The goal isn’t to protect the money from them. It’s to protect them from receiving it before they’re ready. There’s a difference.
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Research Source: Thompson, C. & James, R. N., III. (2026). Inheritance dissipation and the case for time-phased estate planning: An empirical assessment from HRS data. Financial Services Review, 34(1), 24-42.
For educational purposes only. Not investment, tax, or legal advice.