Get Ready, Millennials! Your Jackpot Awaits…
Are you a Millennial…between the ages of 25 and 40 or born between 1996 and 1981? Listen up. A sweet treat may be in your near future. Read on!
Are your parents Baby Boomers? Yep, that’s right. Those between the ages of 57 and 75. Well, guess what? The Baby Boomers are going to transfer over $68 trillion to their progeny…that’s you Millenials!
Are you ready? Have you discussed inheritance, trusts and estate planning with your people? Now is a good time to start thinking about starting this conversation whether you are a Baby Boomer or a Millennial.
Millennials are going to inherit
$68 billion from Baby Boomers.
Why you ask? Well, if a person dies without a will, without an estate plan, without a business succession plan…their property, including family stuff, goes to probate court (the government) to be distributed. This is not a good plan. In fact, it is the worst possible plan because it can get tied up in court. Since the deceased’s actual wishes are unknown, the judge is charged with choosing the heirs, selecting the guardians for minor children, addressing debt repayment, and making decisions that could have easily been outlined in a signed document. Furthermore, the probate process can be screechingly slow, causing the assets to remain frozen. Egads!
It is critical that this subject be broached for the sake of the entire family. No surprises are best. Because nearly 70% of Millennials are expecting an inheritance and only 40% of their parents plan to leave them one, this conversation is a must. Turns out Baby Boomers are living longer, are planning to spend their money before they no longer can enjoy it, and are paying for longevity expenses related to food, housing, insurance, and basic necessities. But, apparently 57% of Boomers don’t expect to have any money left to pass on. Uh oh! Check these three ideas to evaluate where you are in the process.
1. Be sure your family has a plan
2. Get all of the documents in order now
3. Don’t count on getting or giving even a penny
Given the uncertainty that swirls around this topic, coupled with the discomfort some people feel about having a conversation about death, it actually makes it more important to tackle now. Here are some of the documents that every adult needs to have in place:
Will
Power of attorney
Health care directives
Estate plan
An understanding of family values
Research predicts that only 22% of Americans will actually receive a wealth transfer. The most common amount is between $10,000 and $50,000. Think about how it could affect your life. Expect nothing. Prepare for the unexpected. Talk with your people. Call a family meeting. Share the details. Start the conversation.
Inheritance is a tricky thing
to talk about…a subject that
wraps up money, family
and death in one impossible
package.
My dad suffered cancer for 16 years. During that time, I had these conversations with him. He assured me that he had everything handled. A will on file. A business succession plan. His bank as executor. Regrettably, none of it was up to speed. Many questions were left unanswered. As a result, our melded family was torn apart.
Go back to those three steps and give it a try. If you want guidance use the search term “preparing for an inheritance” and read up. If you would like a helpful tool, consider buying Read This…® When I’m Dead. It is a workbook that captures family life and lore, stories about important stuff including heirlooms and document locations, and it sets out final wishes. It is a terrific way to get the conversations started. My friend and I wrote the book because my mom died way too young, and Christy’s mom has lived with a debilitating disease for most of her adult life. Our hope was to share our experiences to help others build a meaningful way to express the love of family and friends.
“Dear Annie-
I knew your book was needed.
When I found it filled out by my mom,
the tears of relief flowed. Thank you.”