Baby boomers are switching up the way they are planning their estate and how they are dealing out the inheritance from their estate. In the past trusts were liquidated and distributed to children when they were 18, 21 or even 25. But that was the past. Those currently setting up their estate or figuring out when inheritance will be given are changing what has been done.
Many estate planning professionals are seeing the age of those receiving inheritance go up. Why is this? The biggest reasons for the increase in age among those receiving inheritance is because their parents feel like they still need to mature and because many of the life events that parents want the money to help for tend to happen later in life. What major life events are we talking about? Things like leaving the nest, getting married, having children, purchasing a home are a few of these life events.
The average age of a first marriage is 29 for men and 27 for women. On top of that, a third of young adults from 25-34 are living with their parents. This number used to be a measly 11 percent in the 80's.
Parents are feeling quite leery these days that their children will still not be mature enough to know what to do with the inheritance and would waste the inheritance. These are some of the main reasons for the increase in age. Along with the increasing age parents are also starting to set up their estate plans to minimize any mismanaged by their heirs. The way this is done is by naming third party trustees to manage the inheritance and in turn delaying the age their heirs receive their inheritance.
If you haven't spent the time to go over your estate and make sure that it is set up and optimized for your current situation then now is the time to spend some time going over your estate and its plan. Planning today will save you the stress when you actually need to do things with it or when loved ones need to do things with it.
For myself I am still trying to create my own retirement and make sure I have enough to live comfortably in retirement for me and my wife. Not only do I want to provide for a retirement but I also want to be able to leave something behind for my children. That is one reason that planning today and figuring out my own retirement is key along with making sure I have extra set away for any emergencies and for my children's future inheritance.
If you are trying to find ways to maximize your retirement and would really like to diversify as much as possible then a self directed IRA is a great option. The self directed IRA gives you the ability to invest in real estate, gold and private placements. The greatest benefit about a self directed IRA is that you can invest in things that you don't normally invest in with a regular IRA. Most regular IRAs are invested in stocks and bonds but with a self directed IRA you can switch it up and invest in real assets that make more sense for you. It is a great account and if you would like to know more information about self directed IRAs then please contact us today. Otherwise, do the best thing for your retirement and start preparing now or take a second to go back over your goals and make sure your still on the right track.
Author: Nick Barker