To learn more about important estate planning expectations and considerations for baby boomers, continue reading and give our skilled Butler County estate planning & probate attorneys.
What are inheritance expectations?
When looking at a recent HSBC study, the majority of U.S. retirees expect to leave an average of $175,000 to their heirs upon their death, but baby boomers may see much bigger inheritances from their parents raised during the Depression. Depression-era people are typically more economical, and boomers can expect to inherit more than $8 trillion in aggregate, based on calculations from the Center for Retirement Research at Boston College.
You may have no problem incorporating recently earned wealth into your current life, but often surviving family members can be overcome by emotions connected 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. One way to prepare or assist after the death of a loved one is to think about your own estate planning needs and wishes.
What are some considerations for baby boomers?
Estate planning is not just about passing family wealth on to the next generation. Common considerations include:
- Family keepsakes: You may be shocked to discover that many 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. Speak with your children to determine what is most important to them.
- Long-term health care needs: Increased longevity and growing health care costs should be primary considerations when establishing your estate plan. Many individuals will need long-term care, the cost of which can quickly drain 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 in danger. Planning for nursing home costs can help guard your hard-earned assets.
- Special needs: If you have a child or another relative with a disability or special needs, it is essential to include them in your estate plan. A special needs trust can provide that your family member has acceptable care once you pass away.
- Other provisions: Providing for a favored charity can also be achieved through estate planning. And more Americans are supplying their pets through certain provisions in wills and trusts. A recent article in The Wall Street Journal reported an increase over the past few years in the number of wills that provide for the financial care of family cats and dogs. This practice is not just for the wealthy. Typically, money is left to a caretaker to cover food and veterinarian bills.