To learn more about important estate planning and inheritance considerations for baby boomers, read on, and give our skilled Pennsylvania estate planning attorneys a call today.
What are inheritance expectations?
A recent HSBC study shared that the majority of U.S. retirees anticipate leaving an average of $175,000 to their heirs upon their death, however, baby boomers may see much larger inheritances from their parents raised during the Depression. Depression-era people are generally more frugal, and boomers can anticipate inheriting more than $8 trillion in aggregate, based on analyses from the Center for Retirement Research at Boston College.
You may feel fine incorporating recently earned wealth into your everyday life, but usually, surviving family members can be overcome by emotions linked to their inheritances. Feelings of loss, guilt, relief, regret, and conflicts with siblings or other enduring relatives can leave people in a dilemma about what to do with their parents’ investments, properties, and other assets. The best way to prepare or help after the death of a loved one is to consider your own estate planning needs and desires.
What are some considerations for baby boomers?
It is important to recognize that estate planning is not just about passing family wealth on to the next generation. Common considerations include the following:
- Family keepsakes: You may be surprised to learn that multiple family members care more about personal items than they do about financial inheritances. Personal mementos and family keepsakes often mean more to family and close friends than assets of value. Because of this, you should have a discussion with your children to determine what is most important to them.
- Long-term health care needs: Improved longevity and rising health care costs should be immediate concerns when specifying your estate plan. Many people will need long-term care, the cost of which can quickly deplete a lifetime of savings. While federal aid can assist, take care while setting up an estate plan so that entitlements to Medicaid benefits are not at risk. Planning for nursing home costs can help protect your hard-earned assets.
- Special needs: If you have a child or another family member with a disability or special needs, it is important to include them in your estate plan. A special needs trust can ensure that your family member has the proper care once you pass away.
- Other provisions: Providing for a preferred charity can also be accomplished through estate planning. And more Americans are supplying their pets through certain provisions in wills and trusts. Recently, an article in The Wall Street Journal noted an increase over the past few years in the number of wills that supply the financial care of family cats and dogs. Generally, money is left to a caretaker to cover food and veterinarian bills.
If you have questions or concerns, give Friedman Schuman Layser a call today.
