I’m NOT the parent in question. Just a FYI.
And by mental capacity, I mean like not just IQ, but also other mental conditions like depression, ADD/ADHD, etc…
Like the child(ren) has not done anything wrong like crime or misbehave, but simply the parent thinking that giving an inhertance to (in their view) a “mentally disabled” child is a waste and “would just end up in the hands of government”. And they justify it since they think that “the kid can just get disability income anyways”. (Location is USA, for reference)
I personally think this is just very ableist… what do you think? Is it okay for parents to do that?
Yes it’s ethical.
Family business : you want the steward to keep it going, maintain reputations, and support the family.
Large sums of money: look at lottery winners, many, many of them have really bad lives because they are not ready for the responsibility of managing it. If the child isn’t ready for it…
There are options for children who arnt ready to inherit. Trusts, disbursements over time, annuities