When researchers talk to younger generations about how much of an inheritance they will receive, the responses often surprise them. Young people think the money they receive after their parents pass away, will be enough for them to pay off their bills, buy a home, take vacations and/or have enough for their own retirements.
This is true all over the world.
However, those same researchers find a different story when they talk to the parents of those children.
As you might imagine, the research reveals that the children's expectations are unrealistic, as The Independent points out in "The truth about your inheritance."
The article has some alarming statistics that are specific to the U.K., but the same general idea applies in the U.S. Older Americans do not expect to leave their children as much as the children think.
There are several reasons for this. The parents may not have as much money as the children think. They may prefer to spend the money on their own things rather than leave it for their children.
Another issue is that people, in Cincinnati and elsewhere, are generally living longer, which means they have to spend more of their nest eggs for their own daily expenses.
Both parents and children should take note of this issue.
Older Americans can get estate plans that help make sure their children get something. The children can also make sure that they save their own money for retirement, instead of relying on an inheritance.
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: The Independent (Jan. 25, 2017) "The truth about your inheritance."