Forty percent of Gen-Xers and Gen-Yers, aged 18 to 46 versus 20 percent of Baby Boomers have established a financial plan for parents’ elder care needs.
Gen-Xers and Gen-Yers and the generation older than the Baby Boomers are closely aligned in the importance of intergenerational wealth transfer, with 76 percent of those aged 18 to 46 and 73 percent of those over the age of 67, saying it is important to leave a financial inheritance to their children. The primary reasons for leaving an inheritance are to preserve the continuity of family wealth and to influence their children’s lives after they are gone. By comparison, only about half (55 percent) of Baby Boomers think it is
With greater similarities in attitude to the generation before the Baby Boom, Gen-Xers and Gen-Yers are focused on the needs of the family and the continuity of family wealth, including leaving a financial inheritance to their children.
Eighty-five percent of respondents said they have talked with their spouse about long-term care plans, but more than half (56 percent) have never communicated their plans with their children, and four in 10 (43 percent) have never talked with parents and older relatives about what that generation’s plans and expectations are.Six in 10 (61 percent) of wealthy parents are not fully confident their children will be well-prepared to handle any financial inheritance left to them, with Baby Boomers having the least degree of confidence. Only 32 percent of Baby Boomers, compared to more than half (52 percent) of Gen-Xers and Gen-Yers and 54 percent of older respondents (age 67 and older), are confident their children will be prepared emotionally and financially to receive a financial legacy. I wonder if the Baby Boomers have little confidence because they themselves are the least likely to have saved wealth for their future.The vast majority of survey respondents have the basic elements of an estate plan including a will, a healthcare power of attorney/advance health care directive and a financial power of attorney. Yet, consistent with previous research, the wealthy – and particularly those who are younger – are underutilizing trusts. Only 51 percent have a revocable trust and only 22 percent have an irrevocable trust.