A generation that was significantly influenced by the Great Depression is currently enjoying record-breaking lifespans. However, all of us must pass on at some point. According to the New York Times, our nation’s oldest and thriftiest generations are set to gift their baby boomer heirs a total of $8.4 trillion in income and assets by roughly 2030. The ways in which each of these generations has approached money and property is likely to affect issues of estate administration and inheritance as these gifts are received.
When financially conservative parents leave money, property and other assets to their children and loved ones in their wills, the emotional reactions that heirs and beneficiaries may have when receiving these gifts may be significant. It is likely that baby boomer heirs have significant appreciation for the hardships suffered by their parents and will be reluctant to squander away anything that their parents have entrusted them with.
Baby boomers may be left wondering what kind of action is required on their part after receiving an inheritance. May they morally and ethically do whatever they please with what they have been left? Or should their inheritance be placed towards some greater goal or greater good?
If you are a baby boomer and you have questions about your inheritance, please do not hesitate to contact an experienced estate planning attorney. He or she will likely be able to explain the tax consequences of charitable giving and other options you may be considering in regards to your inheritance.
Source: New York Times, “When Boomers Inherit, Complications May Follow,” Fran Hawthorne, Feb. 10, 2014