Major Wealth Transition Expected to Occur in Next Few Decades
An inter-generational transfer of wealth can be extremely complicated and it can be risky for everyone involved. Without proper planning, passing on a large amount of wealth could generate tax and other financial consequences for those receiving the benefits and those passing them on.
It is expected that in the next forty years, nearly $32 trillion in non-financial and financial assets are expected to pass from the baby boomer generation to their heirs. This transition will be complicated and quite large. Many boomers have numerous and very important decisions to make as it relates to their estate planning.
If they intend to pass on wealth, it might be important to consider long term care insurance. Even just long term care event can be significant and it could dramatically reduce the value of their assets and their estate without proper planning. Long term care insurance and discussing the opportunities for estate planning and passing on assets while they are still alive may help to minimize the value of an estate.
Long-term planning is very beneficial for anyone who expects to pass on wealth in the coming years and decades. Having a long range vision can help you maximize the outcome for all.
With longevity increasing, more individuals may have to worry about long term care events later in life, should they be unable to live independently. Consulting with an experienced estate planning attorney is strongly recommended.