Sixty-eight percent of young people under the age of 35 believe that they'll be receiving an inheritance one day. However, just 40 percent of their mothers and fathers plan to leave an inheritance behind. This research, produced by Natixis U.S. Investor Survey, points to the fact that the millennial generation might want to reconsider whether their assumptions about inheritances are correct.
Millennials are also hopeful that they can retire by the age of 59 and that an inherited estate will assist their retirements. Interestingly, this 59-year-old retirement age is a full six years younger than when baby boomers plan to leave the workforce.
According to the Natixis survey, it seems that the great expectations of young people may not pan out. In fact, 44 percent of baby boomers have never drafted a will, and more than half don't think they'll have any money to leave behind. Then, over a third of baby boomers hope to spend all of their reserve assets on themselves.
There also seems to be the expectation among baby boomers that their children will help support their retirement. Twenty-four percent think that their kids will help support them when they're no longer working.
Chalk it up to failed communication and bad retirement planning -- it doesn't matter who is at fault. It's a serious estate planning and retirement planning problem. In fact, it could affect a millennial's quality of life later on down the road -- especially if he or she forgoes responsible savings and investment strategies in lieu of a bon vivant lifestyle of less work and more play.
Fortunately, with the assistance of an estate planning lawyer, Tennessee families can finalize their estate plans. They can also get clear with their children about the inheritances to expect if their parents die. Your lawyer can help you establish clear channels of communication so that you can diplomatically and intelligently describe the reasons for your estate plan with your family.
Source: CNBC, "68% of young people expect an inheritance, yet only 40% of their parents will leave one," Ester Bloom, June 20, 2017