Bob Lambert, Valdosta Today Law Contributor
With millions of Americans woefully unprepared financially for retirement, many have come up with a workaround for not putting away a big enough nest egg. They plan on inheriting enough to pay the bills when they stop working. But what if the older generations don’t leave inheritances behind? Uh-oh.
A recent retirement survey included 1,000 Americans and revealed interesting results, which were published in a CNBC article titled “Retirement plan workaround: Inherit enough to live on.”
It turns out that nearly half of working Americans surveyed expect to receive an inheritance large enough to meet their living expenses in retirement.
One of the big problems with this is that the older generation, the one that is supposed to be leaving these inheritances, is increasingly preferring not to leave large inheritances to their families. They prefer to give money to family now to meet current needs so they can see the fruits of their gifts during their own lifetimes.
So, what does this mean? Perhaps the expected large inheritances will not exist at all.
Even if the inheritances do come to fruition, if the money is spent for retirement then there is unlikely to be much left for later generations to inherit.
If you have children who you suspect may not be saving for retirement and instead counting on receiving a large inheritance, it might be a good idea to talk with them about what to expect after you pass away.
Actually, I encourage my senior clients to use their money to FIRST enhance their own quality of life in their golden years with a comprehensive life care plan rather than try to leave a big inheritance to their children. Even though every client’s goals and desire about wealth transfer can be quite different, making their money last is one of my primary goals. With a well structure life care plan, it is possible to live an enhance life and leave something to your prosperity.
Contact my office today to learn how to structure an estate plan, with a life care plan, that ensures there will be assets for your grandchildren to inherit as well.
Reference: CNBC (May 4, 2015) “Retirement plan workaround: Inherit enough to live on.”
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Bob Lambert is an Elder Law and Estate Planning Attorney who has practiced law in Valdosta for 25 years. His practice is focused mostly toward those Seniors who are 50 years of age and older where there is a need for advanced long term care planning. He utilizes a holistic approach which brings financial planners, home health care, assisted living and nursing home professionals and other experts together for comprehensive life care planning with the goal Medicaid eligibility when needed, asset protection and reallocation combined with traditional estate planning wealth transfer strategies.
An Alabama native raised in Texas, he received his B.A. degree from the University of Texas at Austin with a degree in Government and English, and his Juris Doctorate degree from the University of Mississippi where he graduated 4th in his class. He is a member of both the Georgia Bar and the Texas Bar; a member of the Elder law section of the State Bar of Georgia; and a member of the National Academy of Elder Law Attorneys including the Trust and Medicaid planning sections.
He regularly and eagerly provides complimentary seminars to civic groups, churches and other organizations on long term care planning and Medicaid eligibility. His primary focus is to help all seniors 50 years of age and older understand the necessity and importance, and implement , advance planning to preserve assets for enhanced quality of life in advanced age. More information can be found at his website where you subscribe to his weekly blogs on Elder law and estate planning issues at www.legaladviceforseniors.com.
