The Baby Boomer generation, born between 1946 and 1964, has long been regarded as one of the largest and most influential generations in history. As they are now reaching retirement, the process of Baby Boomers passing down their wealth to Millennials/GenZ/GenX, has begun. Trillions of dollars will change hands over the coming years. The beneficiaries of this wealth transfer, primarily Generation X and Millennials, will have the opportunity to inherit assets such as real estate, financial investments, and family businesses. The 2008 recession decimated the younger generations, their earning potential, and their ability to reach certain milestones. The transfer of wealth may help correct that course, somewhat. The magnitude of this transfer also raises questions about how the younger generations will manage and utilize their inherited wealth, potentially shaping their financial futures and societal outcomes in the years to come. If you reside in the United States, you may find some of these options helpful when it comes to transferring your property.

When it comes to housing, however, there may be alternatives to look at, rather than simply passing it through a Will:

  1. Passing down that money in the form of a Trust ( a revocable living trust or an irrevocable trust)
  2. Gifting the house (this can include gifting property while you’re still alive)
  3. A life estate (Life estates can create a kind of joint partnership)
  4. A 1031 Exchange for Investment Properties (deferring capital gains)

You can read more about the options available, here.

Millennials and GenZ are poor; these two younger generations are both facing emotional and financial turmoil in their lives. It’s no secret that with the 2008 recession, the global pandemic, and the inflationary cost of everything, it is not secret that Millennials and GenZ have very little in the way of savings. Wealth is (supposedly) being hoarded by the Boomer generation and that money is going to be transferred to the younger generations. Millennials, particularly older Millennials, are running out of time to generate wealth, as many are approaching middle age. They’re no doubt looking forward to a wealth transfer to help them settle in their lives.  

Millennials and GenZ are facing an astronomical cost of everything and older Millennials are running out of time to have children (if they are having children). Will the wealth transfer help? 

The great wealth transfer of $68 trillion is on the horizon. Boomers (the generation born after World War 2) will pass on $68 trillion to the next generation. But there are new tax laws in place; some adult heirs may be expected to withdraw from their IRA’s within a decade of inheritance in order to pay taxes.  What does this mean for your inheritance?  What does the $68 trillion wealth transfer mean for you?

Prince Rogers Nelson

The musician known as Prince passed away in April of 2016, but the contentious battle over his estate and assets continues. Aside from numerous individuals  proclaiming their lineage with Prince, there are also squabbling relatives arguing over how much the late musician’s assets are worth. It’s been estimated that Prince’s estate is actually worth far less than initial $300 million dollar fortune than it was originally valued at, and to make matters worse, without a Will in place, the estate tax costs are set to rise higher than expected. 

Read on to find out why: 

The Taxes levied on Prince’s Estate.