Many Will Inherit Large Sums From Baby Boomer Family Members
Almost all parents want what is best for their children, and so parents try to lead their children down a path that will help the children achieve a happy and prosperous life. For many parents in Polk County, trying to ensure a happy life for their children means helping them financially and leaving their children with an inheritance.
The topic of inheritance has long been an interesting subject that brings out various viewpoints and ideas. Some people, for instance, strongly feel that America was built on people who made something out of nothing and that each generation should stand on its own without a huge windfall of financial resources from prior generations. On the other hand, many people disagree with that notion and work hard to earn and save as much as possible so that their children can enjoy a comfortable life.
Regardless of the many points of view on the topic, the fact of the matter is that the greatest wealth transfer in American history is under way. A recently released study shows that the baby boomer generation will pass roughly $30 trillion in assets to their heirs. The process has already begun and will continue for decades, as the baby boomers age and pass away.
As large sums of money and other assets get passed from one generation of family members to the next, one concern is about what the heirs will do with their inheritances. It is not uncommon for heirs to squander an inheritance. Whether it's because of wild spending or just poor money management, people who inherit substantial assets are not always able to hang on to the nest egg.
At our law firm we have experience helping people pass their assets from one generation to the next in a way that helps to minimize the chances that the heir will quickly blow through their inheritance. We can set up a variety of legal mechanisms to help achieve this goal. A spendthrift trust, for example, is one method of helping a person take care of their heirs while ensuring that the principal assets stay intact over time. Our firm attempts to work with each client to set up the legal framework that will help them address all of their needs when it comes to planning and passing down wealth to the next generation.
Rignanese & Associates is available to work with clients on their legal needs. Please reach out to us at 863.294.1114.
1. On behalf of J. Kelly Kennedy, Attorney/CPA, PLLC posted in Inheritances on Thursday, May 14, 2015. Tags: Inheritance, assets, children, family members, heir, money