In the next 50 years the United States will see the largest transfer of wealth in history. More than $20 trillion will be transferred from the Depression-era generation to their Baby-Boomer children. This creates an interesting dynamic in that the Depression-era generation valued frugality, whereas their Baby-Boomer children, at times, relish instant gratification.
There may be some Baby-Boomers out there who are expecting to inherit their parents golden nest egg, but the reality is that without proper planning in place their parents may have very little to pass on down to their children. The number of Americans age 65 and older has topped over 40 million. That is the most in U.S. history. By the year 2050 it is estimated that the 65 plus population will make up 1/5th of the U.S. population.
The good news is that advances in health care have increased our longevity, but the bad news is that half of those living over 85 years old will have Alzheimer’s. If you have Alzheimer’s Disease, you will need some form of long term care, which can be very expensive. The average cost of care today in Arizona and New Mexico is $6,500 a month. That cost is only going to increase in the years to come. The other issue is that most investments are not keeping pace with the increase in the cost of care. This means that it is highly likely that one will run out of funds very quickly just paying for their cost of care in the future.
There is a mistaken belief that Medicare will cover your long term needs. This is incorrect. Medicare will only cover a very short amount of time for your long term care needs and then you are left to your own devices to cover your cost of care.
There are things that can be done now to properly plan for the day when you may need long term care. There are instruments that can be used to ensure that your needs are being taken care of and that there is a legacy left to your loved ones when you pass away. The key is to have the plan in place before hand.
I always ask my clients, when is the best time to plan for a storm? Is it when you are in the middle of the storm? We all know the answer to this question. We know that the storm is coming, we all know that we are going to get older. We know that with advances in medicine we will be living longer. We know that there is no cure for Dementia or Alzheimer’s. We know that the cost of care is increasing every year. We have two options, either we prepare now and plan for the storm as best we can or we wait until it is upon us and hope for the best.
The attorneys at MHK are experts in planning for the worst, which allows our clients to have peace of mind and alleviates the unnecessary anxiety about what will happen when the storm of life is upon them. Our goal is to ensure that this massive transfer of wealth occurring in the next 40 years is passed to your loved ones and not used up on expensive long term care costs, probate fees, the IRS, lawyers, or anyone else that may feel they are entitled to your legacy. Please call our law firm today at 888.222.1328 for a free consultation to discuss how we can help you prepare for tomorrow’s storm.
Why Choose Morris, Hall & Kinghorn:
You have a number of options when it comes to estate planning, so why pick Morris, Hall & Kinghorn? First off, estate planning and asset protection are a very complicated endeavor and you should only trust someone who focuses exclusively on those matters. Also, MHK is a proud member of The American Academy of Estate Planning Attorneys (AAEPA) which provides us additional support, advanced training, tools and information that is not available to others – which means that we can better protect your assets and your loved ones. We are one of only two firms in Arizona that belong to the AAEPA and are the only firm in New Mexico that has been granted membership. If you have assets and loved ones that you want to protect, you are in good hands with MHK. Contact us today at 888.222.1328 to schedule an appointment!
Contributed by MHK attorney David T. Eastman
This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice, please contact an attorney in your community who can assess the specifics of your situation.
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