One of my younger clients recently set up a living trust. They may not have many assets now, but over time, they can add possessions to this basket.
It’s rare for young people to plan ahead. But it’s even rarer for Americans to plan at all. According to official stats:
- Only 33% of Americans have a will or estate plan, which means…
- 67% of Americans have no estate plan, leaving their assets potentially unprotected.
Thinking about death and legacy is never fun. But it’s important to consider if we are to protect our wealth for future generations.
As I pointed out several weeks ago, a great transfer of wealth is coming. Baby Boomers are passing on, and billions of dollars are expected to change hands. Over the next 20 years:
- $72 trillion is expected to pass down to Gen X, Millennials, and Gen Z.
- $12 trillion is anticipated for charities, taxes, and estate costs.
What ramifications will this have for the economy? Will younger generations be prepared? And how can older generations ensure their money goes where they want it?
The Importance of Planning
These questions make me ponder the tragic passing of Gene Hackman and his wife, Betsy Arakawa Hackman. I’m sure you’ve heard about it in the news.
Overall, their case shows the vulnerability of isolation in old age. But it also shows the importance of crystal-clear estate planning.
Apparently, there’s some confusion around who gets the $80 million estate. Mr. Hackman created his will in the 1990s. But there’s no mention of his kids. It does, however, designate his wife, Betsy, as the sole beneficiary.
But here’s where it gets tricky: Betsy’s will reserves all her money to charity. However, since she died first, attorneys are asking: Does the money still go to charity? Or do Mr. Hackman’s kids get some of it?
It’s a tangled legal mess.
Get Your Plans in Order
The stress around the Hackman estate shows that we must be clear in our legacy planning.
If you don’t have anything established yet, ask God to show you where to begin.
Taking action now could spare your loved ones a massive headache.
