It is to be expected that older people, on average, have more money than younger people. A long life makes for more time to generate and grow wealth.
However, in the U.S., a couple of trends have combined to make the elderly rich have an ever greater share of wealth compared to the younger rich than might be expected.
The first of these trends is that, after years of increasing, American life expectancy is beginning to decrease for unknown reasons. The second is that wealthy people are still continuing to live longer. Their life expectancy is outpacing other Americans.
This has led to rich people over 80 having as much total wealth as rich people under 50, according to IRS data, as Bloomberg reports in "Octogenarians Rule the Rich."
The eventual implications of this could have a significant impact.
Wealthy elderly people will not live forever. In the next couple of decades, an astounding amount of wealth will be transferred from the oldest Americans to younger generations.
If those transfers are done poorly, then considerable wealth could be wasted.
While some might assume the wealthy have the wisdom to get good estate plans to facilitate the transfer of their wealth that is not always the case.
Many do not get those plans or they get plans that contribute to costly legal challenges to their plans by family members.
It is imperative, therefore, that wealthy older Cincinnatians get good estate planning advice form a Cincinnati estate planning attorney, if they do not want their wealth to be squandered by their heirs.
Remember: “An ounce of prevention is worth a pound of cure.” When making your estate plans or when probating an estate or administering a trust, do not go it alone. Be sure to engage a Cincinnati estate planning attorney.
For more information about estate planning, probate or trust administration in Cincinnati (and throughout the rest of Southwest Ohio) and to review free resources regarding estate planning, probate or trust administration, visit my website. If you have questions regarding this article or a particular legal matter, feel free to contact me at 513-399-PLAN (7526).
Reference: Bloomberg (Aug. 23, 2017) "Octogenarians Rule the Rich."