The baby boomers generation of people born in the first two decades after World War Two are the greatest earners of all time, but the majority are now retired or edging ever closer to retirement age and, inevitably, death.
While nobody wants to think about the latter situation, financial responsibilities need to be respected, not least because we are entering the most significant era of wealth transfers ever. As far as financial planning is concerned, families simply don’t have time to waste.
It is reported that the next 25 years will see a colossal $68 trillion handed down across 45 million U.S households. Due to this sheer volume of money, there will inevitably be a lot of administration to consider. Furthermore, in an era where families are spread out across the globe, international transfers are sure to play a role with funds and assets moving in both directions.
Even when medical care expenses throughout the retirement years are taken into account, large sums of money will be passed down to beneficiaries primarily from the Generation X and millennial demographics, although forecasts show that Gen Z will receive a lot of this money over the next quarter-century too.
While nobody wants to lose a loved one, the financial rewards set to be gained are huge. Unfortunately, without the right support and planning, those good intentions of the benefactor could merely show that money can create chaos in a family.
Due to the situation revolving around the baby boomers generation, we are about to witness the largest wealth transfer in history. It is going to be a complex one.
Many baby boomers have blended families, whose heirs and beneficiaries will have disagreements about how their parents’/spouse’s assets should be distributed. Many people from Gen X and millennials will spend years fighting with their siblings over an inheritance because their parents did not plan properly.
Money is the root of major disagreements and has the potential to rip families apart at the seams. Personal greed coupled with conflicting views about how the deceased would want their assets to be distributed – to charitable organizations as well as family beneficiaries – makes it almost impossible for surviving family members to reach a point of universal agreement.
So, while the deceased’s intentions are to please everyone, the transfer of wealth for many will cause more trouble than good.
To mitigate the problems that are created by the transfer of wealth, baby boomers need to take immediate and proactive action. Mile High Estate Planning Law Firm specializes in Wills and Trusts, Asset Protection, and Probate matters to help reduce ambiguity and ensure that your estate is distributed as you desire.
This is in the best interests of the beneficiaries too, not least because it gives them the best hope of receiving wealth and assets with reduced taxations. Frankly, it’s never a bad idea to take control of these issues, even if you’re still in great health.
To learn more about how to help plan for your family or administer an estate, please contact us today at 720-924-6171.