Shocking Statistics about Estate Planning and Generational Gaps
I think most people would agree that we are each a unique product of our life experiences. Those who are young are still developing and learning about who they are because they haven’t experienced as much as, say, someone who just turned 90. The way that a 90 year old person acts, thinks, and lives in this world can very much be attributed to an accumulation of everything that has happened during those 90 years.
In that same vein, a recent survey by U.S. Trust sheds interesting light on how the way that estate planning is perceived can very much be attributed to the “generation” to which a person belongs. In a very detailed article, Providing the Right Advice for All Ages, Mason Braswell broke down the numbers from the U.S. Trust survey and discussed how Generations X and Y (18-46 years), the Baby Boomers (47-66 years), and the Older Generation (67 years and older) feel about estate planning. I’d like to share just a few of the statistics that struck me as I read the article.
Forty percent (40%) of those surveyed in Generations X and Y have taken the time to create Elder Care plans for their parents. As medical technology continues to improve and new medications continue to emerge on the market, this is an area of estate planning that will continue to grow because, in general, we are living longer lives. If you belong to Generation X or Y, has the thought of taking care of your parents in their later years ever crossed your mind? Have you heard the staggering (and increasing daily) average costs for nursing and long term care facilities? Setting up a plan before it gets too “late” is a wise choice to finding peace of mind and financial security. I was surprised that 40% had already discovered this.
Sixty-one percent (61%) of wealthy parents surveyed are under the impression that their kids are unable to handle finances. Half of those wealthy parents fall within the Baby Boomers generation. Where do you fall in this category? If you’re the parent, do you feel this way about your children and their ability to manage the inheritance you are leaving for them? If you’re the child, do you feel that your parents trust you and that in fact you are able to handle what you will receive? Either way, the nice thing about this statistic is that it can be fixed with specific provisions within a Living Trust document. Parents are able to govern how and when their children receive control of their inheritance and children are able to rest assured that their inheritance won’t be lost to creditors or ex-spouses.
Fifty-one percent (51%) of those surveyed had created a Living Trust, forty-three percent (43%) believed that having a Will replaced the need to have a Trust, and thirty-one percent (31%) admitted to procrastinating getting any kind of estate plan. In which category do you fall? If you’re in the procrastinating group, I’d encourage you to come in and visit with us to see what type of estate plan is right for you. If you have a Will but not a Trust, the Will is certainly better than nothing but it is usually not as good as a Trust. Everyone’s situation is different, but a Trust generally allows you to pass more of your inheritance to exactly whom you want, when you want, and with the least amount of delay and grief.
No matter which generation you belong, we’d love to talk to you about your situation and tailor an estate plan that is just right for you. For more information or to schedule a free consultation, contact our office today at 888.222.1328.
Why Choose Morris Hall:
You have a number of options when it comes to estate planning, so why pick Morris Hall? 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, MH 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 MH. Contact us today at 888.222.1328 to schedule an appointment!
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.