If you are a part of the baby boomer generation, chances are good that you have started to think about your estate planning options. As many people reach retirement age, they begin to plan for how their assets may be distributed after they are gone. Often, these plans include leaving an inheritance to children.
In fact, a recent report conducted by HSBC indicates that 56 percent of retirees in the U.S. are planning to leave an inheritance. And on average, these inheritances amount to about $175,000 per retiree. This statistic suggests that a number of people in and around Los Angeles have a significant amount of money they plan on distributing. But it is important to remember that there are other options in addition to an inheritance that California residents may want to consider.
People work for decades to gain financial stability and they generally want to pass this money on after they are gone. Setting aside money for children or other family members is just one way that parents can continue to provide financial support to loved ones. An inheritance is certainly an effective way of doing this, but it is not the only option.
The study that was conducted by HSBC notes that retirees in this country are also choosing to distribute assets or money while they are still alive. They do this by giving financial gifts or loaning money that may not necessarily be repaid. About 35 percent of people who are still working said that they have received this type of financial support from a loved one.
Knowing how best to handle assets after a person is gone can be very complicated. A solution that is effective for one person may not be right for someone else in a similar situation. And whether you plan to leave $175,000 behind or $1.7 million, it is important that your intentions and wishes for the distribution of assets be respected. People can explore their options with the help of an attorney and develop an estate plan that reflects their wishes.
Source: International Business Times, “US Retirees Expect To Leave $175,000 To Their Heirs, Says New HSBC Study,” Lisa Mahapatra, Dec. 6, 2013