Baby Boomers are getting older by the day. Yes, I am a master of the obvious. That confessed, it seems Boomers are worried about running out of funds in retirement ... and other things.
Researchers are finding that, unlike their parents, Baby Boomers are more concerned with funding their retirements than with leaving financial inheritances to family and charities.
But not all Baby Boomers.
Money is not the only measurement of legacy, according to a recent US News article titled “How Boomers Are Redefining 'Legacy.'”
Yes, it seems Baby Boomers are realizing that their top priority is to have enough assets to support themselves.
[I mean, do you really want the only "inheritance" left to your children to be "you" and your long-term care needs?]
However, in addition to retirement funding, Boomers are redefining “legacy” itself.
For example, for some Boomers legacy means giving away some money now and for other Boomers it means repositioning some assets to leave a financial inheritance later.
For most, the process of aligning their assets with their priorities means the opportunity to create financial and non-financial legacies alike.
Who says you cannot have it all?
In fact, you may want to "rethink" how you are labeling the financial help you are giving to your children.
Did you or are you helping them out with their college education?
How about helping with the living expenses of a slow-to-launch millennial by having them stay at home or by covering some of their bills (e.g., are they still on your health insurance plan)?
Would you be surprised to learn that a recent study found that some 62% of Americans 50 and older are providing financial support to family members?
This same study found that such support averaged $15,000 over five years, but also increased with the givers’ resources (and the receiver's needs).
Did you know the "annual gift exclusion" is $14,000 per donee, per year? If you give more than that, then you have made a "taxable gift" and must file a Form 709 Gift Tax Return.
In turn, the gift tax is deducted from your lifetime cap on tax-free gifting and the amount you may leave estate tax-free at death.
What about grandchildren and your legacy for them?
Did you know 529 college saving plans are a popular means for grandparents to help with the college educations of grandchildren?
Along the way, the original article advises you to distinguish between "legacy planning" and "estate planning".
For instance, some families purchase and hold title to vacation property in a trust that ultimately will ensure that the property (and the memories made there) will remain intact for generations.
Listen up, Baby Boomers.
What your children really want from you are your stories and family values ... just as you want the same from your folks.
[Likely, Generation X and Millennials will want the same, too.]
Along with those family stories, do not forget about heirlooms that may have some market value but even greater sentimental attachment.
For example, that gold wedding band worn by your grandfather for over 50 years of marriage provides some great openings for conversations about stuff that really matters.
Finally, the original article suggests writing "legacy letters" to convey your own priorities, point of view, and life lessons for future generations.
Come to think about it, your legacy letter is an excellent medium to share your own definition of "legacy".
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
Reference: US News (June 18, 2015) “How Boomers Are Redefining 'Legacy'”
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