There is a new tool available that helps heirs manage their inheritances. Many parents might find such an estate planning tool useful to ensure that their children make financially responsible decisions. For right now, however, the product is only available to the children of millionaires.

Citigroup, Inc. has created a website that allows children to manage their money and also provides alerts to parents and bankers when their spending habits get out of control. The site was developed by Tile Financial LLC.

The pilot product emerges as banks are attempting to build relationships with their clients' children to ensure that fortunes stay with the banks. The transfer of inter-generational wealth is a big issue for financial institutions, and this website aims to make certain that fortunes are not transferred to another institution when the parents die. The portal is called Spend Grow Give, and clients of Citigroup's private bank can have access for a subscription fee. The bank caters to individuals with more than $25 million.

The site allows children to have spending accounts linked to debit cards and make quick and easy donations to charities. Further, the heirs can consult their parents' private banker in order to build an investment portfolio.

The developer of the site said she created it to help parents talk to their children about money. She stated, "Young adults have no place to go to learn about money and learn about finance, particularly in a tone and a medium that they can relate to."

The website aims to create a culture of well-rounded heirs.

Source: Bloomberg "Citi Millionaires' Heirs Get Website for Allowances, Donations" 8/12/10