Next Up for Inheritances: Millennials and Gen Xers
Almost $30 trillion in assets has already started to pass from one generation to the next, according to Delaware Online in “You've just inherited a million dollars. Now what?” Ten percent of this enormous transfer will take place within the next decade, and the passing of Boomers, who are considered the wealthiest generation ever, which will create a whole new class of millionaires.
Many are saying that the situation is tougher on the person receiving the money, than the one giving it away. I disagree with this!
It is hard to tell a younger person to think long-term today. However, the best thing a “suddenly rich” person can do is to hire a financial advisor, trust and estates attorney like DANIEL T FLEISCHER, and a CPA.
It’s best for children look to around, until they find a financial advisor who matches their needs. Studies show that about 66% of children fire their parents' financial advisor when they inherit their wealth. Millennials and Gen Xers may feel more comfortable with a person closer to their own age with contemporary ideas.
Get comfortable with that person and discuss their compensation. Make sure that you select a financial advisor who has your best interests at heart.
Children who inherit a large amount of money should pause and consider their short- and long-term goals. When you understand your goals, it’s easier to find an advisor who can execute that vision.
A financial advisor will monitor the inheritors’ financial goals and keep them on course. Sometimes, those who receive a sudden windfall don’t truly comprehend how much money they have. As a result, they burn through it like it was going out of style. Most inheritances are blown within 18 months.
Inheritors shouldn’t run out and make major lifestyle changes right away. Flaunting new found wealth, like buying a Porsche or adding a swimming pool to your house, could make you a target for scammers.
Boomers and their children should have meaningful discussions about what the inheritances will mean to the heirs and how to handle a sudden windfall. Perhaps the family wishes to establish a legacy, or maybe the kids want to start a business. Another consideration: talk with an estate planning attorney about the use of trusts to protect spendthrift kids. An estate planning attorney can guide parents and heirs. My office handles these issues all of the time. Please call me at 954-888-1747 and please mention this post.
Do you live in Miami-Dade, Broward, or Palm Beach counties in Florida? Laws are constantly changing-- has your estate plan been reviewed in the last 2-3 years? Call me (954-888-1747) right away for peace of mind. I can help! Please visit www.411probate.com for valuable information.
- My practice is exclusively estate planning and probate,
- I have prepared numerous estate plans in 16 years of practice,
- I have administered estates and trusts through Probate all over Florida,
- I am a Certified Financial Planner Professional™, and
- I am here for YOU today and there for your FAMILY tomorrow.
Reference: Delaware Online (June 23, 2017) “You've just inherited a million dollars. Now what?”