What’s to Happen to Boomer Kids and Their Children?

Baby Boomers, born 1946 to 1964, are a hardy lot. They’ve worked most of their lives. They probably have a home and may have saved up some money for retirement, which many are now entering. For the most part, they have been taking care of themselves. But what about their kids and their kids’ children? After death, what happens to any remaining Boomer assets? Boomers should be planning what they will leave, if anything, to their children and grandchildren, which are often called the X and Y generations, respectively. The difficulty is that many of the Boomer parents have not established estate plans and trust accounts to ensure their wishes will be carried out after their passing. Moreover, and importantly, their children are not part of the conversation in understanding the process of wealth transfer and protecting themselves financially now and in the future. Neither Boomers nor their Generation X children have planned ahead. In fact, surveys have shown that each generation’s parents aren’t prepared and many are unaware of what trusts can do to protect them and theirs. Trusts can protect wealth from such potential calamities as divorce, bankruptcy, lawsuits, heir disability, and others. Part of the difficulty seems to be that parents, generally, have a hard time discussing their mortality, including future financial matters, wishes and concerns with their children. Some mistakenly believe they don’t even have enough in assets to be bothered with setting up an estate. In California, if you don’t plan ahead, the state will intervene upon your death and make all of the decisions for you, plus burden your heirs will the cost of probate. This is where a professional estate planner comes in, providing necessary education and guidance on the entire process for both the parents and their children. Your advisor will walk you through everything, looking at available options, including how to use trusts as an essential part of an estate plan. It’s never too early to plan your estate to ensure your wishes are carried out, when it comes time, to take care of your children and theirs.  Ask about our Trustee training and workshops. If we can answer any questions, please call 805-201-2552 or e-mail thilliard@terrihilliard.com.

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