How a Living Inheritance can help your kids out

It’s no secret that Millennials and Gen Z are in a financial quagmire. That’s old news: the cost of living, inflation, and a stagnant job market have all pushed younger generations to the brink of despair. Millennials (born between the early 80’s to the late 1990’s), and Generation Z (born in the late 90’s) have had it rough: many are struggling to keep afloat in an economy that has been less than kind to them. This goes all the way back to the 2008 great recession, which was the start of a chaotic, bumpy, economic ride that has affected elder Millennials several years later. Then came the pandemic, which upended the lives of many Millennials and Gen Z (economically speaking). There is, as of 2024, a looming recession on the horizon which is going to (further) diminish what little finances the younger generations have.

So, naturally, parents wants to help out. We think.

A broke millennial
The great wealth transfer between Boomer parents and their Millennial children is hopefully on its way

How are parents helping their kids out?

Housing is probably the most pressing issue for many younger people, as the astronomical cost of housing/rent has forced many young people (at a time when their parents were living on their own at the same age) to either move back in with their parents, buddy up with roommates, live off the grid in rural areas, or as a last resort, move out of North America altogether. Those who move often settle into cheaper countries, like Mexico, Portugal, or Thailand.

Usually, those who move have either a cushy job or remote job already lined up. If it’s a remote job, it’s through a North American company all lined up.

Living abroad can come with a set of unique challenges to deal with: cultural differences, infrastructure, climate, etc. It’s a whole new way of adapting to a new life.

The ability to up and leave may not be so easy: many have family, friends, and a network of people in Canada and the U.S. So moving to another country may not necessarily be the best option for younger people (or older ones, for that matter).

A young Gen Z leaves Canada for inexpensive places to live
Younger generations (literally) can’t survive in the West, not with the cost of living the way it is.

What is the solution for younger Generations?

For those who are choosing to stick it out, they continue to struggle, hopeful that the economy will improve, that the job market will bounce back, and that inflation will eventually ease. We’re seeing some of that take effect; the easing of inflation will no doubt help younger Canadians save, but it’s not a permanent solution to the whole mix of issues that Millennials/GenZ are facing.

What can parents do to help?

Millions of young people across America are expecting an inheritance from their parents. In fact, around a third of U.S. Millennials and 38% of Gen Zers are expecting a payday when mom and dad pass, according to Northwestern Mutual’s 2024 Planning & Progress Study.

Canadian Millennials and GenZ are following suit: more than HALF are banking (no pun intended) on an inheritance to help boost their income and their savings, according to an Edward Jones study.

Look, relying on the bank of mom and dad isn’t pleasant, but the reality is that while Millennials/GenZ are struggling, they need extra help: help that they’re parents didn’t need to the same extent (we’re generalizing here). A “living inheritance” – an inheritance from parents to help pay for the essentials while their (adult) children are in the prime of their lives – can go a long way to help members of the younger generation “launch.”

GenZ receiving money
A member of the younger generation receiving money for a living inheritance

This is all assuming, of course, that the younger generations will get anything at all – either in the prime of their lives – or when they retire. The way things are going right now, it’s kind of bleak: Millennials and GenZ will be lucky to ever retire.

While the younger generations are hopeful about their parents helping them out, their parents might be dashing their expectations: a study shows that Boomer parents are less amenable to forking over their inheritance, even to help out their children.

https://www.usatoday.com/story/money/2024/08/31/gen-z-boomers-inheritance/74908414007/

A study conducted by Northwestern Mutual shows a cavernous gap between the expectations of Boomers and that of their children:  while 38% of Gen Zers and 32% of Millennials are expecting (or hoping) for an inheritance, only 22% of boomers expect to leave an inheritance.  

Boomers, like everyone else, are feeling the financial pinch, too. The idea that Boomers will be living large on a sunny beach somewhere, during retirement, isn’t really the reality for a lot of Boomers: they, like everyone else, are worried about their finances.

Boomers are feeling the pinch and (mostly) spending less: they’re saving for their own retirement, which includes the healthcare facilities they might they wind up in after retirement.

So with everyone feeling squeezed, is there a way for Boomer parents to help themselves, their children, and save for retirement?

As it turns out: yes!

Is spending down all your assets really smart for you?

Well first, planning to either spend or squirrel away every cent of your retirement money may not make sense:  maintaining a safe withdrawal rate, on the other hand, leaves enough money in your retirement account without penny-pinching, and sacrificing your lifestyle after retirement.

What remains of your retirement portfolio when you pass away can be an inheritance for your kids. If you own a family home and want to stay in it until you die (as a Forbes survey revealed 92% of older adults do), this valuable asset could be passed down to your children. You could even joy being part of a multi-generational household.

Enjoy your future as a (maybe not-so-big) spender, while providing for your family.

Boomer saving for retirement
A Boomer saving for retirement – meanwhile, Millennials and GenZ don’t know when they’ll ever retire

One caveat: to maximize the benefit your kids get from you (financially speaking) you may want to think about providing a “living inheritance.” Many younger Millennials and GenZ are expecting something from their parents to help them along. Some inheritance can help younger people from the (admittedly) bleak financial future they are currently facing.

That inheritance, in the prime of your children’s careers and adulthood, could help them pay down their loans, and boost their savings.

See, Millennials and Gen Z aren’t really the stereotypical avocado-and-toast, latte-sipping, snowflakes that they’re portrayed to be (well, most of them aren’t, anyway). The younger generations are scraping by.

Baby Boomers Can Give their kids a Living Inheritance and prep for Retirement

As Baby Boomers edge closer to retirement, the topic of the transfer of wealth into the hands of the younger generations (for Gen Z in particular) has been brought up numerous times in the media. A generation, struggling to begin their adult lives, striving to keep afloat, would really benefit from a “living inheritance”— wherein parents would provide financial support while parents are still alive.

Hey, a “trickle down” concept that may actually work!

Understanding the Concept of a Living Inheritance

It’s basically as described – a “living inheritance” is supposed to help out the struggling members of Generation Y and Z. The money provided to these (adult) children is supposed to help pay for milestones: students debts, save for a house, etc.

The fun stuff, like trips, concerts, etc., can all be paid for by themselves when they have the money.

If parents really want to do this, they need to be able to balance their support with careful retirement planning. Parents need to ensure that they can both help their children, doling out money for their needs, while maintaining their own lifestyle in retirement.

Steps for Baby Boomers to Provide a Living Inheritance

If you’re a Boomer looking out for your own retirement, while trying to help your kids, you’ll want to follow these steps: 

1.Assess your healthcare needs: You may want to sit down with a financial planner on this one. Someone who can assess your potential healthcare needs and what you might need in the future: visits to the doctor, medicine, what type of healthcare facilities you may reside in, etc. All of this may take time, so discussing this with both your children and a financial advisor, could help. 

2.  Tax Considerations: Just as with your healthcare needs, you may want to discuss the implications of gifting money to your children with your financial advisor. There may be, depending on the area you live in, a way to gift a specific amount of money tax-free. Again, all of this should be discussed with your financial advisor. 

3. Trial-Run: One financial advisor recalled how one of his client’s had gifted his (adult) Millennial child with $200k as a “test-run.” Essentially, the parent wanted to see how well the child would spend his/her inheritance. Can you guess what happened? 

The child squandered it. This was an adult, by the way. So, the parent decided that instead of a “lump-sum” inheritance to their child in question, to instead dole everything out in Trust. You can find information about Trusts, here. 

One way to avoid this is to discuss what the money (the living inheritance) will be used for. If your children use it pay off their debts/put the money in savings, you’ll know the money is being used responsibly.

Boomer looking over payments
A Boomer looks to make payments towards his retirement, healthcare and wants to help his kids out

The Benefits of a Living Inheritance

So this is, like everything else in life, all about balance: your needs, desires, and whatnot with the need to help out your children.

There are drawbacks, of course: one drawback is the simple fact that for many who simply don’t have family to rely on, life will become tougher in the decades ahead, and we may see more “intergenerational unfairness” come into play. What that means is, according to a Think Tank called Generation Squeeze, is that people who succeed in life will be the ones with inherited wealth.

That is a discussion for another time, but in the meantime, if you want to help out your child(ren), a living inheritance may be your best bet, particularly when it comes to housing. This can strengthen the relationship between you and your children, and set them up for success.

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O.J. Simpson and the “Trial of the Century”
O.J. Simpson dramatically sitting in court room

The “Trial of the Century” ignited a media firestorm in 1994.

People are still enamored by the The “Trial of the Century” that took place over two decades ago, in 1994. The trial, centering around the (now infamous) football player, O.J. Simpson, brought him into the limelight, albeit away from the roaring crowds and cheering fans. His trial over the murders of his ex-wife, Nicole Brown Simpson, and her friend, Ron Goldman, a then 25-year-old waiter, would take eight months.

The trial captivated everyone’s attention.

No matter what the verdict, the trial sullied O.J.’s reputation and lifestyle: many were already convinced of his guilt even before the trial wrapped up. His subsequent arrests in the late 2010’s didn’t help.

The 1994 trial would be considered “viral” if it was taking place today: it captivated everyone’s attention, the media was obsessed with it, the trial was splashed across every news outlet, and everyone was fascinated by how the trial would play out.

O.J. Simpson was eventually acquitted of the murder charge. That, is an entirely other story on it’s own.

Undeterred by the “not guilty” verdict in the criminal court case, the Goldman family pressed for a civil case against the former footballer. In 1997, just a few years after his “not guilty” verdict from the criminal trial, a civil court handed down a guilty verdict. O.J. was ordered to pay the Goldman family $33.5 million in damages for the death of Ron Goldman.

The family hasn’t seen a penny of that money. The reason they haven’t been paid for decades? Perhaps it’s because that any payment to the Goldman family would be an admission of guilt, but, strangely enough, the NFL player who once lived an lavish lifestyle claimed that he couldn’t afford to pay the Goldmans.

Simpson died in April of 2024 of cancer, and the Goldman family has continued to fight his estate for the amount the civil court awarded them decades ago (although now with $100 million tacked on for interest!) O.J. Simpson’s death has reignited the media’s interest in the late football star’s estate.

Malcolm LaVergne, O.J.’s longtime lawyer and estate executor, boldly declared that the Goldman’s weren’t going to get “a penny of the (late) football star’s estate.” LaVergne had seemingly been publicly sparring with the Goldman family, shortly claiming after O.J’s death, that: “his hope was that the Goldmans get zero, nothing.”

The lawyer soon backtracked on his (rather harsh) words, claiming, “that the Goldman’s claim will be accepted.” LaVergne insisted that his initial damming words were not meant for the family, but rather for the attorneys representing the family. In other words, according to him, LaVergne wasn’t really battling it out with the Goldmans, he was duking it out with their attorneys.

Either way, it may not have been a good look, because LaVergne soon backtracked.

LaVergne agreed to the Goldman’s request for payment “in accordance with Nevada law.”

As for the rest of O.J.’s estate, it appears that it was put into Trust.

It looks like the “Trial of the Century” will come to an end, with the Goldman family finally finding peace.

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Family Feud
Two old siblings fight over money

Inheritance can be tricky; many of us dream about receiving a large inheritance from a long-lost dead relative (with no strings attached, of course). Inheritance becomes a contentious issue within families, conflicts arise, relationships become strained (or completely severed). When a family member passes away, the way in which their assets are distributed can lead to feelings of envy, anger, or disheartenment. Feelings of perceived favoritism may arise, anger over the “unfairness” of splitting assets, etc. Disputes are exacerbated by underlying family dynamics and unresolved tensions; all of this adds further fuel to the fire that is the grief and turmoil the family is already going through, having lost a loved one. Communication is key!

In reality, getting an inheritance in real life does come with strings attached: wars over inheritance can tear families apart. Celebrities like Michael Jackson, Prince, and many others, have left behind bawling, brawling, family members fighting countless battles in the courtroom.

But does the average joe, who doesn’t have as much money as say, Michael Jackson, really have to worry about what he or she is going to pass on to their kids?

As it turns out: yes.

Inheritance isn’t just about the money you’ll pass on to your family members. Receiving an inheritance is loaded with emotional significance: sentimental items, heirlooms, family paraphernalia – all have a connection to the past. This connection could either make or break the members of your family members when you pass away. This is more than just about money; inheritance can become a symbol of how loved a child feels.

Emotions can run high; especially when one sibling fears receiving nothing left behind by his/her parents, or when when one sibling learns that he or she is about to inherit less than a brother or sister.

Communication is the key to dealing with this problem: when tensions are running high among family members, having a calm discussion with your children before setting out your Will can really soothe over any hurt feelings. Your children should be able to understand the reasons as to why they are getting what they’re getting when you pass away. The reasons concerning their inheritance should be clearly outlined. Essentially, if you, as the father, or the mother, are writing up your Last Will, you’ll want to sit everyone down and have an open and honest conversation as to why your children are inheriting what they are, and the reasons behind it. Why is one sibling getting more? Why is one sibling getting less? Communicating with your loved ones about the reasons behind their inheritance before you pass away, before you get sick, and while you’re clear of mind, keeps the lines of communication open.

For some, communication with their parents is not so easy, particularly when one parent appears to be narcissistic. There are parents who will make decisions regarding their children’s inheritance and have the attitude of “It’s my money, and I can do whatever I want.” The lack of a need to justify their decisions as to why they’re doing what they’re doing can cause a rift among their children. That appears to be the case with one person who recently wrote to an online column (Dear Amy) asking for advice about how to deal with her estranged brother:

“Dear Amy: My brother and I are both in our 70s. We’ve only spoken once in the last three years. After our father passed, our mother sold their home. My father had previously told my brother that when they sold the house, he wanted to give a certain amount of money to each of us. Our mother did not honor our father’s wishes, but did give us each a smaller amount. Years later she deposited a good sum of money into his account but asked him not to tell me. (I wouldn’t have cared at all.) Mom later called the bank and asked for the money back. My brother was angry, but approved it, and then stopped speaking to her. My mother moved closer to me and I was her sole caretaker for seven years until she moved into assisted living. She spent the rest of her money paying for her care. My brother thinks I got more money from her than he did, which is not true.”

With the mother now gone, greed, as the author implies, is the problem:

“He [my brother] also expected me to give him money from the sale of my home because I had gotten more than the asking price. I had sent him $1,000. I also sent him over $5,000 when he needed emergency dental care. I wondered why he never returned my calls, until I found out from his estranged wife that he had expected to receive a lot more money from me from the sale of my house.”

There are certain details that appear to be omitted, but that is the gist of the letter. The author wonders what she can do to smooth things over with her brother.

The ball, as Amy replied, is now in the brother’s court.

You can read more about this story, here.

Although the author doesn’t mention it, things could have been smoothed out if their late mother had simply sat down with her two children and explained the reasons as to why she was spending their inheritance the way she was. A (difficult) conversation about the whole thing could have saved years of estrangement between the two siblings after she passed away.

It may have even kept the relationship between the two siblings intact.

Take this as a lesson when you’re planning our the inheritance for your children or loved ones: communicate!

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You Won’t Believe What Was in These 10 Shockingly Strange Legal Wills
Shocking Legal Will

In this list, we’ve compiled some of the weirdest legal Wills that defy belief: from ashes spread out into space to dogs being left shares in a company, these are some of the strangest, weirdest, most bizarre Last Wills that we’ve come across (so far). After reading this list, you might be inclined to start writing a will. You may also want to start thinking about what makes a will legal, and how the process works. Keep reading until the end for tips. 

History is peppered with individuals who took their last opportunity to make a statement, pull a prank, or simply leave other people feeling befuddled. Not only did these individuals leave a lasting mark on the world while they were alive, they certainly left a legacy when they died. 

Some names you may recognize; others not so much. They all have one thing in common: they all have left a lasting imprint on the world through their Wills.  Let’s go down the rabbit hole of the top 10 weirdest Wills: 

1. Space Will: The Final Frontier
Space Legal Will

Gene Roddenberry. You know the name: he created the iconic Star Trek series. His departure from this world left a black hole in the hearts of many of his fans. But his legacy continues through his work to this day: a touching final directive that his ashes be launched into the cosmos, symbolically returning to the celestial frontier that he so ardently explored in his imagination. His wishes were carried out in 1997, when his ashes were blown out by the Space Shuttle, Columbia. This unworldly journey mirrors the boundless spirit of exploration and discovery embodied in the Star Trek universe he crafted. Roddenberry boldly went where (most) have not gone before.



2. The Oil Heiress and her Ferrari

Legal Will - Car Fanatic

Egyptian pharaohs, kings, queens, and emperors were all buried in style. They were draped in gold and jewelry; they would be buried six feet under and adorned in their fanciest clothes.  Car lovers are continuing this tradition, with some of these fanatics being buried six feet under with or in their cars. Sandra Illene West was one such “queen.” The oil heiress died in 1977 and was buried in her sky-blue Ferrari. It’s not clear if she was buried alongside her beloved car or in it. It really gives meaning to the phrase “You can’t take it with you.” She’s buried next to her husband at the famous Alamo Masonic Cemetery in San Antonio. It’s become quite a tourist attraction.

We know people love their cars, but this is going a bit overboard.

3. Immortalized in Ink: The Superhero Will

Legal Will Superhero

Mark Gruenwald, beloved writer at Marvel Comics, loved his work. In his final act of literary fusion, the comic book writer wrote in his Last Will and Testament for his ashes to be mixed in with the colored ink of his beloved comics, Squadron Supreme. Marvel fulfilled his wish in 1997.

That’s one way to leave a legacy.

4. The Great “Stork” Derby Will

Great Stork Derby Will

Charles Vance Millar was a wealthy Canadian who loved babies! He was also a prankster. His death in the 1920’s spurred a contest to see which woman could have the most babies. Whether a prank or real, Millar stipulated in his legal Will that a large amount of money from his estate would go to the woman who gave birth to the most children within ten years of his passing. This kicked off what is now dubbed the “Great Stork Derby” contest. The winner would get a whopping $9 million-dollar fortune.

Four women were announced as the winners: they each gave birth to nine children. The money was equally split among the mothers and their nonuplets (let’s face it: they were going to need that money).

5. Back From the Dead

Dinner trust fund

John Bowman was a tanner from the 1880’s. He lived a rather mundane life until the death of his wife and two daughters. Yearning to be reunited with his family after his death, he set up a trust in his legal Will for $50,000. The amount was to arrange for nightly dinners after his death so that he and his family could enjoy a semblance of what life was like before they died. 

This nightly practice began in 1891 and stopped in 1950, when the money from his trust fund dried up.

Create a Legal WIll And Protect Your Legacy Now.

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6. The “Queen of Mean” Legal Will

Leona Helmsey Last Will

Imagine being disowned in favour of a dog. That’s exactly what happened to Craig and Meegan Panzirer. The siblings were famously disowned by their rich grandmother, Leona Helmsley, upon her death. When Helmsley passed away in 2007, the affluent widow purposely left out her two grandchildren “for reasons that are known to them.” Ouch! What did they do to be cut out? Did they not spend enough time with their grandmother? It’s not known to the public. 

They eventually sued the estate. A judge granted them $3 million each. 

Trouble’s inheritance dwindled down to $2 million. 

That should be enough to take care of a dog, right?

7. A Real-Life Leprechaun

Forrest Fenn Last will

A millionaire by the moniker of Forrest Fenn was something of a real-life leprechaun: his Last Will kicked off a treasure hunt for an actual 42-pound bronze chest in 2010. Filled to the brim with gold, gems, antique jewelry, and other valuables (worth $2 million dollars), a “gold rush” began out in the Rocky Mountains. This is the stuff of novels. The hunt began after his death at the age of 90. Many desperately explored the mountains; many gave up. One winner, through sheer persistence, did find the treasure in 2017. 

Not surprisingly, the winner, though verified, has had their identity kept secret from the public.

8. Houdini’s Legal Will

Houdini legal will

Harry Houdini. You know the name.  

The master illusionist, the great escape artist who could escape from any trap, had one final trick up his sleeve in his Last Will and Testament. 

His Will was revealed to the public after his death at the relatively young age of 52. Aside from the mundane stuff, like leaving $500 to each of his three assistants, or the $1,000 left to the Society of American Magicians (yes, this is a real thing), there was a twist in his legal Will that would beguile the public for decades. 

Houdini’s wife was instructed to conduct a séance regularly after his death. She was supposedly given a code – one that consisted of ten words chosen at random – to use as a way to contact him in the afterlife. Houdini was supposed to reach out to her with the exact same ten words during the séance.  Bess, Houdini’s wife, conducted annual séances on Halloween of all times, for a decade after his death.

No word on whether or not she actually made contact with her deceased husband or not.

9. Grizzly Remains

Legal Will Bear - Formalwill

This interesting tidbit doesn’t contain a specific, written Last Will and Testament. But it’s a wild story – a true story – about a man and his love for grizzly bears. Timothy Treadwell often spent time in the company of bears and even told his best friend that he wanted his body to be used as bear food upon his death.

Treadwell and his girlfriend were roughing it in Katmai National Park one fateful day in 2003. They had ignored previous warnings about getting too close to bear encampments in the area. The pair didn’t listen and were gruesomely mauled by a grizzly on the hunt for food. 

There are haunting recordings of their deaths caught on audio online.

10. Shewbridge. The Man Who Left Shares of His Company to His Dogs

Shewbridge legal will

Shewbridge. The name sounds like a piece of food. This is fitting, seeing as Thomas Shewbridge was a prune rancher in California. He loved his dogs. As in, he really loved his dogs. 29,000 shares of his company were left to his dogs upon his death in his Will. This wasn’t a joke. The dogs were supposed to (and did) attend shareholder meetings on a regular basis. 

What were his dogs supposed to do with the shares? 

Did he think the dogs would do a better job of managing the company? What would you do if you were sitting in a boardroom, with dogs present at a shareholder meeting?

There you have it: some of the weirdest legal Wills you’ll ever read about. 

These extraordinary Wills challenge our ideas of what it means to leave a legacy. Whether driven by affection, humor, or the desire for control, these last wishes remind us of the quirky, unpredictable nature of humanity. 

Your legacy as well, can be a reminder of your unique life.

Create Your Will Today With This Simple Legal Will Kit by Formalwill.

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