Over the next two decades, experts foresee Baby Boomer households transferring more than $84 trillion in generational wealth. Amid challenging economic times, it is more important than ever to protect your assets for yourself and your loved ones. Without a well-crafted estate plan in place, you may be putting your legacy at unnecessary risk.
In a survey published this past fall, more than 1,000 participants aged 18 to 99 shared insights on their estate plans – or lack thereof. In fact, more than half said they have not consulted an estate planner regarding a trust or will.
Many respondents reported that they did not feel adequately informed about how to get the most out of their estate plan. The results also showed that it may be time to revamp people’s understanding of what estate planning is and how it works.
Ideas about legacy planning, the survey findings suggest, are ripe for change.
For one, households with higher net worth were more likely to have an estate plan in place. Among households worth more than $1 million, 77 percent report having an estate plan, will, or trust in place. In contrast, just 36 percent of households with a net worth under $1 million have a legacy plan. Yet, as the report emphasizes, “everyone, regardless of wealth, needs to have a well-structured estate plan.”
In addition, the results highlight the common fallacy that creating an estate plan is a one-and-done undertaking.
In reality, any number of life changes should prompt you to create or revisit your estate plan. Significant life events can include remarrying, relocating to another state, welcoming a child or grandchild into the family, or losing a spouse. At the same time, note that estate planning documents can become out of date over time as laws change. So, it’s still good practice to revisit your plan with an attorney every few years.
The survey also asked respondents to list life events that would prompt them to seek out the help of an estate planner. Participants cited a change in personal health as the top reason they would work with an advisor to start or revamp their estate plan. However, it can prove harmful to wait until you are sick to create your estate plan. To protect yourself as well as your loved ones, It’s best to prepare your legacy plan ahead of any potential crises.
Participants answered various questions regarding estate planning issues. Survey questions and respondents’ answers included the following:
Three-quarters of survey participants whose parents had an estate planner said they had executed an estate plan, will, or trust for their own household.
As one may expect, people belonging to the Baby Boomer or older generations were the most likely to have completed an estate plan. However, having parents who had used an estate planner was even more likely than one’s age to correlate with putting a legacy plan in place.
Household wealth also seems to make a difference in this regard. For example, all survey participants worth more than $25 million said their parents had an estate planner. Among respondents in the Millennial generation, 87 percent of those with this level of ultra-high-net-worth estate said their parents had a financial advisor or estate planner. In contrast, 32 percent of Millennials with less than $1 million said their parents had one.
One of the implications here, the report suggests, is that estate planners should ensure they are making meaningful connections not just with their older clients, but also their heirs, particularly as the so-called “great wealth transfer” to the next generation gets underway.
Most respondents cited changes in tax policies (30 percent) or inflation rates (29 percent). Those who are part of the Baby Boomer or older generations were the most likely to say tax policy would prompt them to rework their estate plan.
Others said they believe that changes in federal interest rates, stock market fluctuations, and student loan forgiveness would serve as the top external factors driving them to create or revisit their estate plans.
Respondents were aware that bad estate management could be detrimental to their families and their legacies. Nearly a third of respondents stated that leaving their loved ones without sufficient assets would be the most damaging result of a poorly executed estate plan. Another 27 percent believed a bad estate plan would cause the most damage by sparking conflict among their heirs.
A major topic in the evolution of estate planning is ensuring that you protect your digital assets. This can include anything from your digital photo albums and social media accounts to your online account passwords.
When asked whether they had a plan for their digital assets, participants revealed the following points:
As the report indicates, traditional estate plans likely do not include a provision for such digital assets as airline miles, credit card reward points, cryptocurrency, and log-in credentials. Be sure to ask a qualified estate planning attorney about how best to protect these types of assets.
Perhaps one of the more striking findings of the survey is that the current estate planning system is not serving people with less money.
The survey found that, among participants, families with estates valued at less than $1 million tend to have less information about the estate planning process and a lower tendency to create an estate plan and keep it updated. In fact, of households with a total net worth under $1 million, 64 percent report not having an estate plan in place.
For the sake of your loved ones, take the time to prepare your legacy plan with a professional. A well-executed plan can help minimize family conflict as well as offer you peace of mind. It can also ensure that the individuals you love most receive your assets according to your wishes. Simply put, it may prove to be one of the most valuable gifts you leave behind for your heirs.
Most of us spend little time thinking about death or losing the capacity to manage our own affairs. These are unpleasant topics and banishing them from our minds is easier than entertaining them. Death, however, is inevitable and becoming...
Inheritance tax is a state-level tax that beneficiaries pay when they receive assets from an estate after somebody has passed away. The inheritance tax is distinct from estate taxes, but planning tools for avoiding or minimizing it, such as...
The Internal Revenue Service (IRS) has released its tax inflation adjustment figures for tax year 2025. Annual Gift Tax Exclusion Effective January 1, 2025, you will be able to make individual gifts of up to $19,000 in the calendar year (an...
Estate planning involves various legal instruments, such as wills, trusts, powers of attorney, and healthcare directives. We specialize in estate planning, ensuring that your documents comply with the ever-changing state and federal laws. We can help you navigate intricate legal requirements, minimizing the risk of costly errors and potential disputes.
Every person's financial situation and family dynamics are unique. We will take the time to understand your goals and circumstances, allowing for the creation an estate plan that suits your individual situation.
We can assist you in structuring your estate plan to protect your assets from potential creditors, lawsuits, and taxation. Our experience can also help you employ strategies to minimize tax liabilities.
Probate is the legal process through which a deceased person's assets are distributed. It can be time-consuming and costly. We can help you explore options to minimize or avoid the probate process, allowing your beneficiaries to receive their inheritances more quickly and efficiently.
When estate plans are unclear or disputed, it can lead to conflicts and legal battles. We can help you draft clear and legally sound documents that minimize the chances of disputes among heirs and beneficiaries. In the event that a dispute arises, we can also represent your interests and work toward an amicable resolution.
Estate plans need to be reviewed and updated periodically to reflect changes in your financial situation, family dynamics, and applicable laws. We can provide ongoing support and guidance, ensuring that your estate plan remains current and effective.
Engaging a law firm for estate planning provides peace of mind, knowing that your affairs are in capable hands. It allows you to focus on enjoying your life without the constant worry of what may happen to your assets and loved ones in the future.
Estate planning involves various legal instruments, such as wills, trusts, powers of attorney, and healthcare directives. We specialize in estate planning, ensuring that your documents comply with the ever-changing state and federal laws. We can help you navigate intricate legal requirements, minimizing the risk of costly errors and potential disputes.
Every person's financial situation and family dynamics are unique. We will take the time to understand your goals and circumstances, allowing for the creation an estate plan that suits your individual situation.
We can assist you in structuring your estate plan to protect your assets from potential creditors, lawsuits, and taxation. Our experience can also help you employ strategies to minimize tax liabilities.
Probate is the legal process through which a deceased person's assets are distributed. It can be time-consuming and costly. We can help you explore options to minimize or avoid the probate process, allowing your beneficiaries to receive their inheritances more quickly and efficiently.
When estate plans are unclear or disputed, it can lead to conflicts and legal battles. We can help you draft clear and legally sound documents that minimize the chances of disputes among heirs and beneficiaries. In the event that a dispute arises, we can also represent your interests and work toward an amicable resolution.
Estate plans need to be reviewed and updated periodically to reflect changes in your financial situation, family dynamics, and applicable laws. We can provide ongoing support and guidance, ensuring that your estate plan remains current and effective.
Engaging a law firm for estate planning provides peace of mind, knowing that your affairs are in capable hands. It allows you to focus on enjoying your life without the constant worry of what may happen to your assets and loved ones in the future.
Mon - Thurs: 9AM - 5PM
Friday: 9AM - 2PM
