Skipping a Generation

My father-in-law, while certainly not a wealthy man, holds assets in the mid six-figure range. The subject of inheritance came up during a recent visit to his home in Spain, sparked by a conversation that my wife, Suzie, and I had just finalized updates to our own will due to the sale of my business.

I raised a specific suggestion for his estate planning: given that his three children are all financially secure and truly don't need the inheritance money, would it make sense to skip a generation?

The primary benefit of this "generation-skipping" strategy is maximizing impact over mere convenience. Since the children are financially comfortable, an inheritance would likely be absorbed into their existing wealth with little perceptible change. By contrast, a potential distribution of maybe $75,000 to each of the seven grandchildren—whose ages range from 4 to 28—creates a foundational, life-altering impact. This approach transforms the bequest from a simple transfer of assets into a powerful, lasting legacy, helping the younger ones with university costs or providing a down payment on a first home for the older ones.

After thinking about my suggestion for a few weeks, he's had conversations with my wife Suzie and his two other children, and they are all in agreement that it's a good idea and it seems likely that this is the pathway my father-in-law is going to follow.

While the family is fully on board, it's not a straight path forward. Because my father-in-law's assets are in Spain, we've learned there are some complications due to Spanish inheritance law, often called 'forced heirship.' Essentially, the law there limits how much of the estate he can freely bequeath, meaning we'll have to work closely with a local Spanish lawyer to ensure this generation-skipping plan can be legally executed.

Although it's maybe an unusual idea, and not suitable for most families, his goal is to turn this future inheritance into a foundational life boost for the grandchildren. I was wondering if anyone in the humble dollar community has thought about this generation-skipping strategy, or been a beneficiary of one, and what specific impact it had on your early financial stability or key life milestones.

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