The baby boomer generation expects to leave approximately $30 trillion worth of inheritances to their millennial children over the course of the next three to four decades. If you're a baby boomer, you will no doubt be concerned that your small share of this wealth is appropriately transferred. In this respect, the following five estate planning strategies could assist you with your wealth transfer goals:
Countless Tennessee residents never take the time to create an estate plan, and it leaves their family in chaos after they're gone as potential heirs and relatives squabble over how the estate should be wrapped up and distributed. However, of the more responsible Tennessee residents who finalize their estate plans, it's surprising how many fail to take one vital step that can help ensure the peace and sanctity of their families after they're gone. This vital step involves being transparent with their plans.
Art is your passion. You've been collecting fine paintings for the last three decades, but now that you're coming closer to the end of your life, you're starting to worry about what could happen to your paintings when you're gone -- especially because they've appreciated in value so much since you originally purchased them.
A retired factory worker from the Milwaukee area died after developing advanced dementia at the age of 92. Before his health began to fail, however, the man went to a financial advisor in Mequon to get help with a very conservative retirement investment. During the last several years of his life, he ended up giving power of attorney for medical and health issues to his investment advisor -- who he also made the beneficiary of his two annuities and his estate valued at approximately $1.6 million.
The world is getting smaller, and the borders between countries are becoming more porous than ever. Many Tennessee residents have close family and friends living overseas, and what does that mean for estate planning? It means that you could potentially receive an inheritance from someone abroad, and that means that special taxes will apply.
The millennial generation will be inheriting approximately $30 trillion from their parents, the baby boomer generation. This is a great deal of money, but no millennial can be certain what he or she will be inheriting until his or her parents reveal their estate plan. If you are a millennial, and your parents haven't told you their plans, you might want to talk to them about it.
It's common that Tennessee residents do not begin thinking about estate planning until after they get married and start a family of their own. In the case of spouses, though, they will have the option of setting up a joint will or separate wills. This may cause you to wonder which route is better? Should you and your spouse combine your estate planning in a joint will, or should you keep your estates separated?
When it comes to your federal taxes, the IRS will not categorize your inheritance as income -- so you won't have to report it as such. However, some kinds of inheritances will generate income, and the IRS may consider this income to be taxable.
Estate battles regarding the fortune of late rock star Prince continue. A judge who has been presiding over the Prince estate recently named a new special administer to determine if anyone is liable for the estate's cancellation of a $31 million agreement with Universal Music Group.
If you're a parent, do you assume that you need to leave money and other assets to your kids as an inheritance? This means leaving more than just your home and other assets you naturally control, but actively saving up money to leave to the kids.