"The
Center on Wealth and Philanthropy at Boston College estimates that baby boomers
and their offspring could inherit as much as $27 trillion over the next four
decades, with the progeny of the wealthiest pocketing much of the
windfall," The Wall Street Journal reports.
A sudden inheritance can be
tough for some people, particularly those feared too young to be heirs. After
all, a young person might not know what to do with an inheritance. But there
are other generations that can encounter a sudden bequest with no prior
inheritance experience too – baby boomers.
The baby boomer generation is
set to receive unprecedented inheritances in the coming years. Do baby boomers
and retirees know what to do with their inheritances? Not always, but there is
time to learn.
The subject of inheritance in
retirement was considered in a recent MarketWatch
article titled “When retirees inherit; tips for newfound
wealth.”
The article provides some basic pointers to get you started.
For the most part, this issue is
simply a case of social reversal. Historically, retirees and inheritors have
historically held very separate roles. Retirees planned inheritances for their
inheritors, but they were not themselves inheritors!
With age and population groups
moving through time as they are today, baby boomers are about to receive the
greatest generational wealth transfer in recent history. The essential nugget
of wisdom to glean from the original article, however, is to force yourself to
a calm moment and some further planning.
Retirees have less time to make
the best of an inheritance. Nevertheless, many retirees are facing some very
difficult financial decisions themselves. Long-term care and future health care
costs are good for starters. Using the inheritance correctly and wisely is the
key.
So, if you are only holding the
inheritance for a short time yourself, what does that mean for your existing
estate plans? This unprecedented wealth transfer has the potential to be a
blessing or a curse. Are you ready?
For more information and articles on
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Reference: MarketWatch
(July 16, 2013) “When retirees inherit; tips for newfound
wealth”