![]() After all, things always have the potential to change. Because of this uncertainty, generally managing the expectations of their children’s future inheritance is better than providing exact amounts. They want to maintain their quality of life while protecting their legacy. However, wealth is relative, and many parents also fear losing their ability to cover retirement, medical expenses, and long-term care. Most parents prefer their children learn to grow their success independent of their parent’s wealth. Many who currently have substantial wealth have concerns that if their children know the extent of their wealth, it will reduce their motivation for productivity and growing into responsible citizens. Are they prepared for responsible stewardship? Millennials will control five times as much wealth in 2030 as they do today. Much of the wealth is from high net-worth baby boomers. Baby boomers hold 70 percent of disposable income in the US and spend over $548 billion annually.įorbes cites research stating that as much as $84 trillion may change hands by 2045. The Great Wealth TransferĪccording to the Federal Reserve, the baby boomers are the wealthiest generation in US history. That way, you may provide a sense of magnitude without committing to exact amounts. You can withhold actual numbers by a range, such as enough for a home down payment. The solution is a mature discussion with your inheritors, sharing details of your estate plan relevant to your child. When children don’t understand your inheritance intentions, it can result in arguments and legal battles among siblings and other heirs after you’re gone. ![]() These are practical matters of allocating resources for things like housing, retirement, 529 plans, and more. Knowing their general inheritance situation can change their decision-making process and lead to better outcomes. Do what you can to manage expectations for adult children as they forge their financial plans. Not talking to your adult children about their inheritance comes at a cost. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |