Most parents want their kids to be better off than they were, this should help that happen.
I feel no responsibility to leave my kids a bunch of money, but I have no doubt I will because I’m so damned frugal. It’s like Shania Twain says, shiny things don’t impress me much.
My kids will have a small chunk to help them get started, but nothing that will allow them to not be self sufficient.
Thing I fear is my kids stand to inherit Fuck You money from their grandfather. Guess the saving grace is that their mother is only 57, in good health, and doesn’t take risks. Their grandfather is an early investor in Berkshire.
(Most consider FU money to start with a B, I’d consider 10m to allow me to drop that term)
Yep, the secret is to have enough to do the things you want without running out. Me and my wife are figuring out what retirement will cost and are getting our ducks in a row.
They are also going to inherit the real estate. The issue that they may have is the real estate is not in the desirable area for the kids or maybe as the kids grow up they will better appreciate their parents decisions to live where they do.
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Sooner than later is my advice.
Ironically, Illinois isn’t a terrible state to retire in though I imagine Chicago is brutal.
Retirement income isn’t taxed, but property taxes are high. We like Florida and South Carolina but not sure if we want that year around. We might downsize to a house on a lake in Wisconsin and go somewhere warm for a few months every winter. A lot of decisions.
Don’t overlook TN, and GA is steadily reducing taxes on retirees but it’s not tax free yet.
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Not much info in the article, but I’m not clear why they think millennials will become the richest. Those dying today are boomers and older, meaning the Gen Xers will be inheriting. Of course, forgetting Gen X is common, so just skip us over. We’re used to it.
Good point, they do jump over Gen X.
It found that, over the next 20 years, the so-called silent generation — those typically born from 1928 to 1945 — and baby boomers — born between 1946 and 1964 — will “hand over the reins” to those born from 1981 to 1996 when they pass on their property- and equity-rich assets.
I would add North Carolina, but are kind of getting full.
$10M net worth would put one in the top 1-2%.
Thanks for the link. Pay special attention to the end of the link… an argument I’ve been making for years when it comes to “net”… They try to define it as “Gross Net”
Is household net worth gross or net?
It is best to assume this is gross net worth – it is near impossible to guess at after-tax net worth.
Consider this what a household (or PEU) controls today, but not necessarily what they’d be left with after taxes if they liquidated.
The estate tax exemption this year is $13.6 million (which would be net of estate liabilities), so if those above that level haven’t structured their estate to avoid or reduce tax, they’ll pay. That could change to $5M in two years if the 2017 tax bill is allowed to expire.
Decedent’s debts will have to be paid by the estate and, if the estate holds appreciated assets, capital gains tax may be owed by the estate. So, again, it depends on how the estate is structured. In our case, our estate will go to charity, so no taxes should be owed.
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I’ve said for years that we have moved from a manufacturing economy to a service economy to an investment economy and finally to an inheritance economy. Not sure why, but something doesn’t seem right about that. “To what do you credit your financial success with”? “Mom and dad’s death”.
If baby boomers have the money to make their children extremely wealthy when they die how come so many of them can’t afford their house when their husband dies, can’t afford long term care when they become too disabled to live on their own, and are desperate enough to get reverse mortgages?
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This is completely a guess but i think boomers will have accumulated the most money as a group followed by Gen X (what i am, barely). I rhink qe have a little more sense than millenials and gen z, and we got to fully take advantage of low cost debt and a strong stock market.
That doesnt mean all boomers are rich of course. My girlfriends parents recently died within 5 months of each other and she interited 1m through annuities. It should’ve been FAR more, he was terrified of stocks. Had he invested in S&P and leveraged debt it might have been 10m. Now my gf might make the same mistake, she plans to pay off her 2.5% mortgage instead of putting that money to work.
There have been a lot of youtube tutorials on how to “protect your assets” from Medicaid if the need long term care. So the kids benefit before mom and dad die, and the government is on the hook to pay for their nursing home care. IT’s not so much protecting their assets as protectiing their kids inheritance.
I dont shed a tear over that, the Greatest generation paid tons of taxes over their 80 years. With all the grift in DC i dont see how sheltering some assets is terrible.
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