Leaving behind or receiving an inheritance includes several planning points to ponder, including tax and legal questions. Something that is rarely considered at that same time are the emotional aspects of such a transfer.
The Baby Boomers are experiencing an unprecedented period of wealth transfer. Boomers are unique in terms of demographics and healthcare, not to mention their relationship to the very history and spirit of the country since their arrival. But did you know that Boomers are in the process of receiving the greatest inheritance windfall in the history of the country? Or that these inheritances are estimated at some $8.4 trillion spread across some 79 million Baby-Boomers?
Against this backdrop, it is important to consider what it means to inherit something. What do you do with an inheritance and how do you deal with having it? The New York Times recently approached the subject in an article titled “When Boomers Inherit, Complications May Follow.”
While it is easy to think of an inheritance as nothing more than money, it seems to mean something far more depending on the individual inheritor. Some may receive it as a gift to be honored, some sense spite in it, and others are quick to spend it away. The original article collects a number of voices from diverse viewpoints along the inheritance spectrum.
If you are inheriting, take some time to mull over what this means to you. This personal reflection can also guide you through your own estate planning. How are you leaving an inheritance for your heirs and why are you leaving it as you are?
Reference: The New York Times (February 10, 2014) “When Boomers Inherit, Complications May Follow”