A significant percentage of beneficiaries have reported experiencing guilt. It’s a psychological response that arises when someone receives wealth stemming from the loss of a loved one. While guilt is part of grief, it can prevent a beneficiary from benefiting from their inheritance.
Here is how inheritor’s guilt happens:
Unearned money
In today’s society, many people often link personal achievement to earned income. It even becomes a sense of self-worth and identity. Consequently, it can be difficult for someone who receives money from a loved one’s estate to spend it. They may feel they didn’t earn it.
Fear of not honoring the deceased
A sense of obligation to spend inherited money in a way that honors the deceased is commonly reported among beneficiaries. One may take time thinking about how to spend their inheritance wisely, especially if the deceased lived a frugal life. Or they may want to spend it in a way that justifies their gain. This can lead to decision paralysis, with some people letting inherited money sit in a safe deposit box or bank account for a long time.
Intergenerational trauma
Inherited wealth can result in intergenerational trauma. Beneficiaries who inherit wealth created by parents or grandparents who went through struggles to achieve it may feel responsible for those past struggles or unhealed wounds. They may feel guilty having it “easier” when the previous generations endured hardship.
This is one of the reasons some heirs waste their inheritance through excessive generosity or living lavishly. Intergenerational trauma can also lead to mental health issues.
To prevent inheritor’s guilt, a testator (the person who creates a will) should minimize surprises, openly communicate with beneficiaries and perhaps connect them with professionals who can help them set clear goals for the money they will receive. Learn more about other ways to ensure that beneficiaries benefit from your estate as you wish.