ZINSURANCE |
A blog to help you prepare for life's unexpected
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ZINSURANCE |
A blog to help you prepare for life's unexpected
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![]() Forbes magazine reported in 2019 that the greatest wealth transfer in our history was underway due to Baby Boomers coming into the retirement years in droves equaling a staggering $30 trillion in wealth to younger generations. This massive amount of wealth being left to next generations is being called the “great wealth transfer.” In no prior time in the history of America has such a vast amount of wealth moved through the hands of generations. According to this article, Boomers’ wealth accounted for 70% of all disposable income in 2021. So, what does this mean for you if you are the next generation? It means you should be asking your Boomer parents or grandparents more about how their estate plans may impact you, should they unexpectedly pass away or if they have made accommodations for living a long life, if wealth transfer is important to them. A Taxing Situation Recently one of my relatives inherited an asset that was split among siblings. Fast forward to tax preparation, and she learned, much to her surprise, that she owed $20,000 from her portion of the asset. She had placed the full amount into investment for retirement, not realizing it would be taxable, and then she couldn’t touch the retirement account without penalty. Luckily, she had enough in savings to cover the taxes, however, in many cases a tax bill like this would cause due hardship if you are not prepared for it. 5 Things Wealth Transfer Should Consider
When it comes to wealth transfer, there are many things to consider beyond these five I have listed above. The more you know, and your parents or grandparents know, the more everyone can be prepared when the time for transfer of wealth and assets occurs. P.S. For more articles on charitable and financial planning insights, check out my Insights Library by CLICKING HERE.
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About the BlogHi, I’m Lori Capozza Zeind, Archives
April 2023
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