Wealth Transfer Strategies for Baby Boomers

Baby boomers – an iconic slice of American history. Making up almost 20% of the United States population, baby boomers are reaching retirement age in large numbers. As they retire and eventually pass away, they stand to pass on more than a good name or a quirky family legend. In fact, baby boomers are expected to transfer up to $68 trillion in wealth to their heirs in the coming decades. In this article, we will explore some of wealth transfer strategies for baby boomers.

Securing Wealth Beyond the Next Generation

An unsettling number of wealth transfers fail by the second generation. Handling large estates can be overwhelming, especially when handed down in one lump sum.

Actions to Ease the Wealth Transfer

Transitioning money from one generation to the next doesn’t have to be difficult. Consider the following:

• Prepare an estate plan. If you die without leaving at least a valid Will, your property will pass according to Florida intestacy laws. Your assets will become probate assets unless you have made other arrangements, like beneficiary designations. A large estate trapped in probate court can result in substantial expenses to the estate and, even worse, cause valuable assets to deteriorate. Better yet, consider using a trust-based plan. Trusts offer benefits that Wills do not.
• Prepare your heirs. It is generally a good idea to talk to your family about your estate plan. Also, if appropriate to your situation, include family members in managing business interests and other real estate concerns.
• Protect your beneficiaries. Some trusts provide asset protection and spread out the transfer of wealth. For example, a dynasty trust offers benefits like asset protection, tax reduction, and preservation. In addition, wealth transfer strategies may protect your beneficiaries from creditors, civil judgments, and ex-spouses.

The important thing is to act now to preserve your wealth for future generations.

Baby Boomer or Not, Wealth Transfer Strategies May Help You and Your Heirs.

It’s probably never too early to get started to start preparing to hand your wealth on to your kids, grandkids, and even beyond.

Attorney John Mangan is board certified in Wills, Trusts & Estates by the Florida Bar. Please call us at 772-324-9050 or use our Contact Form to set up an appointment. We help clients throughout Florida, including Stuart, Palm City, Hobe Sound, Jupiter, and Port St. Lucie.