The Great Wealth Transfer is the unofficial name given to the shifting of assets from one generation to the next. We are currently at the point in the United States where the biggest wealth transfer of all time is about to take place.
In the next two decades, $84 trillion dollars will move from Baby Boomers to their descendants. Most of their children are Millennials, but they may also leave assets to grandchildren who are in Gen Z or Gen Alpha.
What does this mean for estate planning?
There are many different areas to address with estate planning when it comes to the Great Wealth Transfer. First and foremost, it’s important to plan for future medical and healthcare needs. Much of the Great Wealth Transfer will likely be lost to end-of-life care, but advanced planning can ensure that more of your assets go to your family.
Another thing to remember is that transferring significant assets can lead to disputes. An estate plan is one of the best ways to avoid these disputes because it makes your intentions clear.
Additionally, you may be leaving significant assets to your heirs and feeling concerned about how they will use them. But with the proper estate plan, you can set up different systems to control how they spend the money. For instance, you could put the assets into a trust that will eventually pay for a young heir’s college education.
Getting your plan in place
It’s clear that the Great Wealth Transfer means it’s time to start doing your estate planning if you haven’t already. Be sure you know what legal steps to take to accomplish your goals.