At any age, the loss of a loved one can be a trying time. As grieving family members mourn, issues of probate, inheritances, and distributions to relatives can be overwhelming. If you’re part of the baby boomer generation—born between 1946 and 1964—you’ll face some unique situations as you deal with the passing of your parents.
According to a recent HSBC study, most U.S. retirees expect to leave an average of $175,000 to their heirs upon their death, but baby boomers may see much larger inheritances from their parents raised in the Depression. Depression-era individuals are generally more frugal, and boomers can expect to inherit more than $8 trillion in aggregate, based on estimates from the Center for Retirement Research at Boston College.
You may have no problem integrating newly acquired wealth into your current life, but often surviving family members can be overwhelmed with the emotions attached to their inheritances. Feelings of loss, guilt, relief, regret, and disputes with siblings or other surviving relatives can leave people in a quandary about what to do with their parents’ investments, properties, and other assets.
One way to prepare or help move on after the death of a loved one is to think about your own estate planning needs and desires.
Considerations for Baby Boomers
Estate planning is not just about passing family wealth on to the next generation. Common considerations include:
- Family keepsakes: You might be surprised to find that many family members care more about personal items than they do about financial inheritances. Personal keepsakes and family mementoes often mean more to family and close friends than assets of value. Talk to your children to figure out what means the most to them.
- Long-term health care needs: Increased longevity and rising health care costs should be major considerations when establishing your estate plan. Many individuals will need long-term care, the cost of which can quickly deplete a lifetime of savings. While federal aid can help, take care while setting up an estate plan so that entitlements to Medicaid benefits are not in jeopardy. Planning for nursing home expenses can help protect your hard-earned assets.
- Special needs: If you have a child or another relative 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 adequate care once you are no longer around.
- Other provisions: Providing for a favorite charity can also be accomplished through estate planning. And more Americans are providing for their pets through special provisions in wills and trusts. A recent article in The Wall Street Journal noted an increase over the past few years in the number of wills that provide for the financial care of family cats and dogs. The practice is not just for the rich and famous anymore. Usually, money is left to a caretaker to cover food and veterinarian bills.
Consult a Lawyer
No matter your age or financial situation, an estate plan can help smooth the way for your family once you are gone. If you do not have an estate plan or have not recently reviewed your plan with a professional, consult an experienced estate planning attorney. TuckerAllen attorneys are knowledgeable about estate planning, trust administration, and probate matters, and can help ensure that your wishes and desires are fulfilled.