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Yahoo
12 hours ago
- Business
- Yahoo
5 Things Boomers Should Tell Their Children About Their Inheritance
Death and money are never easy to discuss, particularly when they are tied closely in the same conversation. That being said, facts are facts, and we all have to prepare ourselves and our loved ones for what happens after we pass. Discover More: Find Out: Right now, the baby boomer generation is getting older and should be informing their children about what to expect when it comes to their inheritance. While each family might be different in the particulars, there are a few key topics to discuss regardless of circumstances. Here are five things boomers should tell their children about their inheritance: Communication is crucial during estate planning. Without it, there can be confusion as to what your wishes actually are and if they have been updated to meet your intended desires. 'Boomers need to talk to each other about having a will, a trust, or both — and if those documents accurately state their wishes,' commented William London, a partner at Kimura London & White LLP. 'The children should understand who the trustee, the executor, and power of attorney agents are,' London continued. 'Surprises down the line cause family strife and more costly litigation. Telling the truth now can mean calm later.' It's not just the who and the what that matters, but the why as well. Make sure that when it comes to what you leave behind, you inform your kids as to your reasoning behind your decisions. 'Yes, your heirs need to know what they will receive — IRA, Roth, brokerage, trust, real estate or business equity,' noted Jason Hester, a managing Partner at Balefire. 'But help them understand why you set things up this way and what will be required of them. Ensure they know where the assets are held, how the assets are held, who the advisors are, and what your intentions were behind any protections or restrictions.' Everyone might be under the assumption that they are going to get an equal share of what you leave behind. If this is not the case, bring that to light ahead of time to avoid conflict amongst your children later. 'If the inheritance is not to go equally among the children or is to have specific requests (such as the family home to a child), Boomers need to communicate the reasons both in writing and face to face,' London advocated, noting that this eliminates the potential for disagreement, bitterness and lawsuits are a parent's death. According to Hester, the greatest inheritance is not the assets — it's the ability to take the family to another level. 'By shifting the focus to living a life of significance with is given, provide your heirs a clear path for stewarding the family mission,' explain Hester, who described how his company emphasizes '…creating plans that clearly define how much is enough for lifestyle needs, fuel ambitions to thrive in growing assets, set a multigenerational vision for remaining healthy as a family, and maximize the influence and impact of your family in your community.' London stressed that inheritors need to understand that inheritance is not immediate. 'There are years, if not months, of probating, if there is no trust. If there is a trust, distributions may take time or may even be subject to contingencies,' London pointed out. 'Advance notice makes for proper expectations and prevents excessive worry,' shared London. 'It is often not easy to have frank discussions of inheritance-although they are among the best gifts Boomers can bestow upon their children.' More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 10 Cars That Outlast the Average Vehicle 7 Things You'll Be Happy You Downsized in Retirement This article originally appeared on 5 Things Boomers Should Tell Their Children About Their Inheritance
Yahoo
21-05-2025
- Business
- Yahoo
8 Tough Money Choices Tariffs Are Forcing on Americans in 2025
Living in a high-tariff economy is making everyday goods and services more expensive, yes, but it's also putting many Americans in tough spots. Many consumers are having to rethink their shopping, spending and budgeting habits. Find Out: Read Next: Experts explained some of the tough money choices tariffs are forcing on Americans this year. It's one thing to cut back on leisure items or dining out, but tariffs are putting Americans, particularly low- and middle-income families, in a tough spot by making even their necessities, such as personal care and groceries, more expensive, according to David Navazio, CEO of Gentell. 'These are purchases that cannot be deferred so they have no choice but to pay whatever the cost is.' More affluent families can absorb price increases more easily and defer purchases of nonessential items like cars, luxury goods and so on, he pointed out. But the rest of America is struggling. Check Out: Since the U.S. government is the largest purchaser of drugs, medical and healthcare products through its insurance programs (Medicare and Medicaid), Americans are going to be making tough choices about their health, Navazio said. 'Price increases on these goods will ultimately be borne by taxpayers in the form of higher taxes.' Whether this leads people to put off care or medications they need is yet to be seen but it doesn't bode well for the cost of care. Perhaps the most typical economic trade-off as a result of tariff-induced inflation 'is the compromise between affordability and quality,' according to William London, an international business lawyer and partner at Kimura London & White LLP. 'Most consumers have to opt for cheaper, lower-quality options or cut back on expenses entirely to fit their budgets,' he said. The categories most affected by these inflated prices include electronics, appliances, construction materials and everyday household goods like food and clothing, he said. People will have to turn to bulk purchases, generic store brands or secondhand markets to stretch their dollars. Another unfortunate result of higher prices, London said, is a greater consumer usage of credit cards and personal loans, 'which is risky financially in the long term.' Consumers are cutting discretionary spending, such as dining out, entertainment and travel, but they may still have to go into debt to afford some of their essentials like housing, utilities and food. Tariffs are also persuading individuals to delay making or reduce their payments toward retirement accounts, home down payments or schooling funds, London said. He recommended that people 'systematically prioritize basic needs first, eschew taking on high-interest debt whenever possible and have a modest level of long-term savings to safeguard future financial health.' Unfortunately, one of the not often discussed impacts of tariffs is how they 'gradually take away purchasing power over time,' he said. This can have a long-term ripple effect on households, forcing constraints on their financial mobility for years to come. Tariffs don't just affect products themselves, but the costs of shipping, thus who consumers are willing to buy from, according to Michael Podolsky, consumer advocate, CEO and co-founder of a consumer advocacy and review website. Consumers are noticing the trickle-down impact of tariffs on the costs of their delivery services like UPS and FedEx. 'Others are caught off guard by additional fees at the checkout with platforms like Amazon. Common consumer reactions include canceling orders, refusing deliveries or switching to different platforms,' Podolsky explained. These tariffs are placing an extra financial burden on consumers' budgets, Podolsky said. 'Middle- and low-income U.S. citizens living from paycheck to paycheck may be hit the hardest, often facing higher prices, late deliveries or out-of-stock items.' This is especially challenging for families with tight budgets, as the tariff-related costs make affordable retailers less accessible to their incomes, forcing them to prioritize essentials over other purchases, he explained. Since even companies that once could boast the cheapest prices of all are hit with tariff-related price hikes, people are changing where and how they shop, and redefining who is 'affordable.' Podolsky said that consumer reviews highlight these frustrations as they can no longer shop at places where they 'typically' spend money. 'Many consumers express a desire to cancel orders and stop shopping with retailers that apply tariff-related fees,' he said. He recommended choosing retailers that clearly disclose their tariff-related policies to help avoid misunderstandings and unexpected charges. 'Additionally, consumers should review their spending habits by prioritizing needs over wants. Finding local alternative products may also help navigate rising prices,' he said. In a high-tariff economy, every dollar counts. More From GOBankingRates 5 Cities You Need To Consider If You're Retiring in 2025 Sources David Navazio, Gentell William 'Bill' London, Kimura London & White LLP Michael Podolsky, This article originally appeared on 8 Tough Money Choices Tariffs Are Forcing on Americans in 2025 Sign in to access your portfolio
