From 1989 to 2016, the average age of inheritance recipients rose by a decade from age 41 to 51. And over 25% of inheritance bequests now go to adults aged 61 or older. Baby Boomers are inheriting unprecedented wealth from the previous generation. Over the next 30 years, experts expect and “inheritance boom” where US$36 trillion will pass from one generation to another – and many of the recipients will be Baby Boomers. Millennials are expected to eventually inherit that wealth from their Baby Boomer parents in the future. Today, Baby Boomers are typically still working but no longer have children living at home, resulting in more disposable income – and less time. After the loss of parents, when Baby Boomers inherit money they are often overwhelmed with the unexpected time required to settle their parent’s estate.
Baby Boomers and Inheritance
Today’s Baby Boomers have experienced life-changing societal norms including the ability to hire someone to handle unpleasant or necessary tasks that previous generations handled themselves. Baby Boomers invented the word “outsourcing” and thanks to their strong work ethic and overall wealth compared to earlier generations, they are now outsourcing the management and logistics of their parent’s death and the management of their subsequent inheritance.
1. Funeral Consultants
Many funeral homes are replacing funerals with memorial services. Families no longer typically live geographically close to each other, and children may live thousands of miles from their parents. Planning a memorial service can be as time-consuming and complicated as planning a wedding. Funeral consultants are often on staff to help plan a memorial event, including destination memorials, similar to destination weddings.
2. Financial Planners
An inheritance isn’t as carefree as it sounds – it requires considerable legal and financial documentation to manage inherited money, property and businesses, as well as time to oversee the necessary transfer of assets and accompanying documentation. Financial planners can help Baby Boomers manage the logistics of their inheritance so the Boomers can continue with their work and other responsibilities.
3. Estate Planners
When someone inherits money or property, it immediately impacts their own estate plan and their beneficiaries. A trusted estate planning attorney can advise Baby Boomers how to protect their new assets for their own use and for the future benefit of their beneficiaries, how to avoid probate and how to update their will or trust documents.
An experienced estate planning attorney can help Baby Boomers manage the logistics of inherited wealth.
An inheritance is a welcome, but complicated, gift. Contact the qualified attorneys at Estate & Probate Legal Group in Lombard Illinois today at 630-800-0112.