Latest news with #wealthtransfer
National Post
a day ago
- Business
- National Post
New Study Finds America's Largest Wealth Transfer Faces Unexpected Obstacle: The Family Dinner Table
LegalShield study reveals core problem: Older generations are unprepared to leave an inheritance, and their children are unprepared to receive it The largest wealth transfer in history is underway, with an estimated $84 trillion on the line LegalShield Provider Attorney: 'The silence between generations jeopardizes far more than just financial assets.' Article content Article content ADA, Okla. — The largest private asset transfer in history is facing a significant hurdle, as a new LegalShield study reveals nearly half of Baby Boomers (41%) and Gen Xers (45%) do not have basic estate planning documents like a will. Article content Article content This lack of planning by older generations leaves their Millennial and Gen Z heirs with significant and possibly costly uncertainty as a historic $84 trillion wealth transfer builds momentum expected to carry beyond 2045. Article content This lack of planning also sets the stage for something most Millennials dread: family conflict. Article content 'The greatest risk to this $84 trillion wealth transfer isn't taxes – it's silence,' said Warren Schlichting, LegalShield CEO. 'An estate plan is essential, combined with open dialogue. Without planning and conversation, Americans risk trading family fortune for family feuds.' Article content The LegalShield survey of over 1,000 U.S. adults, conducted in June 2025, underscores the high stakes of this transfer, revealing that a clear majority of the next generation—including 63% of Millennials—is already counting on an inheritance. Article content The Single Biggest Issue? Silence Article content Even when estate plans exist, the study found a wall of silence can be just as damaging as having no plan at all. Article content Nearly one in five (19%) Boomers and Gen Xers admit their family doesn't even know if they have a will. The silence is mutual: 42% of Millennials and Gen Zers expecting an inheritance have not discussed it with the person leaving it to them. A key result is anxiety: The top inheritance-related fear for Millennials is emotional, not financial. 58% of Millennials fear family conflict more than financial fears such as taxes. Article content The Compounding Problem: Procrastination Article content The study reveals a critical failure to plan among the generations holding the most wealth. Article content 41% of Baby Boomers and 45% of Gen Xers—the two generations holding approximately 77% of U.S. private wealth according to the Federal Reserve —do not have a will. Among those with wills, many are dangerously out of date: 51% of Boomers and 46% of Gen Xers have not updated estate planning documents in more than three years. Article content Gen X: Caught in the Middle Article content The pressure is especially high for Gen Xers, who are caught in the unique position of expecting to inherit from their parents while also planning to leave wealth to their children. This 'sandwich generation' role fuels their financial anxiety. Article content One more dimension adds to the unease: 78% of Gen Xers report uncertainty about the economy, making them more concerned about protecting their assets. Article content Article content 'The silence between generations jeopardizes far more than just financial assets,' said Wayne Hassay, a LegalShield provider attorney. 'People think estate planning is only about who gets the house, but it's much more. It protects your kids, directs healthcare decisions, and handles digital assets. An attorney helps ensure no piece is missed, preventing a legal nightmare for your loved ones later on.' Article content Study Methodology: Article content The LegalShield survey was conducted in June 2025 among 1,018 U.S. adults. The data was segmented by generation (Gen Z, Millennials, Gen Xers, Baby Boomers) to analyze attitudes and behaviors toward estate planning and the generational wealth transfer. Article content About LegalShield: Article content For more than 50 years, LegalShield has provided everyday Americans with easy and affordable access to legal advice, counsel, protection, and representation. Serving millions, LegalShield is one of the world's largest platforms for legal, identity, and reputation management services protecting individuals and businesses across North America. Founded in 1972, LegalShield, and its privacy management product, IDShield, has provided individuals, families, businesses, and employers with tools and services needed to affordably live a just and secure life. Through technology and innovation, LegalShield is disrupting the traditional legal system and transforming how and where people receive legal guidance and services, with access to hundreds of qualified, trusted attorneys and law firms. LegalShield and IDShield are products of Pre-Paid Legal Services, Inc. To learn more about LegalShield and IDShield, visit and Article content Article content Article content Media Contact: Article content Article content
Yahoo
2 days ago
- Business
- Yahoo
With 11K Baby Boomers Retiring Daily And 401(k) Withdrawals Ramping Up, Are Millennials And Gen X About To Be The Ultimate Bag Holders?
Every day, about 11,000 baby boomers hit retirement age in the U.S., and the wave of 401(k) withdrawals is starting to gain momentum. That has many younger investors wondering: who's left holding the bag? Wealth Transfer Or Wealth Drain? On Reddit's r/stocks, one investor sparked a major debate with this post: 'With ~11k Boomers retiring daily, and the 401k spigot about to go on full blast, can't help but think how this transfer of wealth unfolds.' They raised a concern about whether there will be enough new investment inflows from younger generations to match the outflows from boomers selling off their assets. 'Ultimately, Millennials and Gen X ... could be the remaining bag holders,' the poster suggested. At least, as they say, 'those who were lucky enough to invest meaningfully in 401(k)s and taxable accounts.' Don't Miss: Be part of the breakthrough that could replace plastic as we know it— $100k+ in investable assets? – no cost, no obligation. But not everyone agrees with that framing. 'They've been retiring since 2011,' one person pointed out. 'The stock market has done just fine so far.' Another echoed that sentiment, saying, 'There will always be people retiring. The Baby Boomers started retiring 17 years ago... Why are you so convinced [the market crash] is going to happen now, when nearly all of the Boomers that were capable of retiring already did?' Wealth Inequality And Inheritance Several commenters emphasized that it's not boomers broadly driving the market, it's wealthy boomers. 'Most 401(k) holders ... are also the richest ones,' one person explained. 'The ones being forced to liquidate and sell don't have 401(k)s of a meaningful size. We're fine unless the rich people are screwed.' Trending: This AI-Powered Trading Platform Has 5,000+ Users, 27 Pending Patents, and a $43.97M Valuation — Then there's the question of where that money goes once boomers start drawing it down or pass it on. Some believe it simply recirculates. 'All money comes back to the market one way or another,' one commenter wrote. And inheritance is another piece of the puzzle. 'Who do you think is going to inherit all that wealth?' one investor asked. Others noted that wealthy boomers often advise their kids to stay invested: 'One even told his daughter, never sell this stock, just collect the dividends.' Healthcare, Housing, And The Real Risks But not all that wealth will be passed down. Nursing homes and healthcare costs are taking a bigger bite out of retirement savings than many expect. 'We spent $350K for my mom's nursing home in a 4.5-year period,' one person shared. Another added, 'Boomers are spending that money. You need to find out how to harness it.' The housing market is another looming issue. Some fear that when boomers pass away and their high-value homes hit the market, younger generations won't be able to afford them. 'Mark my words, one day there will be a massive crash in the housing market,' one investor many commenters argued that structural market shifts, not demographic trends, are the real drivers. 'Markets are not the same anymore,' one wrote, pointing to algorithmic trading, tech-driven investing, and persistent foreign inflows. Younger Generations Are Still Investing Despite these worries, younger Americans are investing more than ever. 'Millennials are saving for retirement earlier than any previous generation and Gen Z even earlier,' one person noted. For now, there's no clear consensus on whether millennials and Gen X will get stuck holding the bag. But one Redditor may have put it best: 'This has been a claim made every 10 years or so since 401(k)s have been a thing. I wouldn't worry about it.' Read Next: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die."UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article With 11K Baby Boomers Retiring Daily And 401(k) Withdrawals Ramping Up, Are Millennials And Gen X About To Be The Ultimate Bag Holders? originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
4 days ago
- Business
- Yahoo
9 Ways Your Estate Planning Strategy Should Change Under Trump
If you have lifetime gifts or assets to pass on — whether physical property, personal possessions or financial holdings like retirement accounts, CDs and savings — it's in your best interest to create a clear estate plan. Doing so ensures your wishes are honored and your loved ones are protected from unnecessary complications. Find Out: Read Next: Now, with President Donald Trump's administration proposing sweeping tax reforms under the newly passed 'One Big Beautiful Bill Act,' estate planning is once again in the spotlight. These changes could significantly impact how wealth is transferred, taxed, and preserved — especially if the estate tax exemption is made permanent or repealed altogether. To explore how estate planning may shift under a second Trump administration, GOBankingRates spoke with experts about what you need to know — and whether it's time to take action now. Watch for an Expiring Credit An important thing to know immediately, according to David Faust, partner at Gallet Dreyer & Berkey, is that the federal estate unitary credit is expiring at the end of 2025. For this year, that credit is $13.99 million for individuals, or $28 million for a married couple. 'The amount which estates will be subject to federal estate tax in 2026, and later years will automatically be reduced to approximately $7 million for individuals, or $14 million for married couples, unless Congress and the administration change the law.' Wait To See If the Estate Tax Is Permanent On the other hand, the Trump Administration could renew the current, rather high exemption amount and make it a permanent fixture, according to Cory Krueger, an estate-planning and probate attorney and partner at Hensley and Krueger. That would effectively reduce the need for sophisticated tax-free estate planning for 99% of U.S. citizens, though he stressed you still need a will. 'Everyone should still have a will — it will just make things simpler for those that are under the high tax exemption threshold,' he said. Unfortunately, nobody can predict with certainty when this, or any other provisions of the Internal Revenue Code, will change, Faust said. It's best to assume the credit will not be reapproved rather than to hope for the best. After all, sound estate planning depends on realistic decision-making and strategizing. Consider This: Consider These Other Tax Changes While not directly tied to the estate tax, a broad range of proposed tax changes could still impact estate planning by influencing projected federal revenue, which according to Faust, is a key factor in determining whether and how the estate tax might be revised. These include, Faust said, 'raising the limit on deductions of state and local taxes (SALT), reducing or eliminating the tax on tips and social security, lowering the corporate and capital gains tax rates, revising individual income tax rates.' Consider Reducing Taxable Estate In the meantime, Faust encourages people to consider what they can do to reduce their taxable estate and gift tax liability. This could include making strategic cash gifts or carefully timing the sale of a business or stocks to minimize capital gains taxes 'If you live in a state with a high estate tax of its own, be mindful of whether any action might affect your state estate tax,' Faust warned. Don't Expect Retroactive Changes It's also good to plan for the likelihood that any changes in the tax law affecting estate or income may not be retroactive, Faust said. 'Therefore, it is critical for you and your advisors to keep a careful watch over developments in Washington. Be prepared to act but wait until there is more clarity about impending changes.' Prepare To Lose the Step-up Basis If the estate tax is repealed, another negative tax implication could relate to how taxes are assessed for the beneficiary, Krueger said. For example, estate beneficiaries or heirs-at-law of a deceased individual currently receive a step-up in basis related to inherited assets and property. This means the value of inherited assets is assessed as of the date of death, which eliminates capital gains tax on any appreciation of the assets prior to the death of the deceased person. 'If this step-up in basis provision is abolished, the beneficiaries and/or heirs will be forced to pay capital gains taxes upon a sale of the inherited assets — which, in turn, could result in inherited assets remaining within the family for a longer period of time versus a sale on the open market.' Remember State Level Estate Taxes It's also important to remember that no matter what happens at the federal level, many states have their own estate or inheritance taxes with lower exemption thresholds, said Yan Lian Kuang-Maoga, partner at Pitta & Baione LLP. 'Ensure that your estate plan accounts for these state-level taxes, as they can substantially affect your heirs' inheritance,' she noted. Review and Update Your Estate Plan If you haven't revisited your estate plan since the Tax Cuts and Jobs Act was passed in 2017, now is the time, Kuang-Maoga said. 'Work with an estate planning attorney to ensure your plan takes full advantage of the current tax environment.' Don't Make Big Changes Otherwise, Faust suggested that now is not the time to make changes in estate planning, unless there are reasons to do so 'other than trying to anticipate what will happen in Washington.' For now, it is merely the right time to prepare and watch, he concluded. Caitlyn Moorhead contributed to the reporting for this article. Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on More From GOBankingRates Mark Cuban Says Trump's Executive Order To Lower Medication Costs Has a 'Real Shot' -- Here's Why This article originally appeared on 9 Ways Your Estate Planning Strategy Should Change Under Trump
Forbes
21-07-2025
- Business
- Forbes
The Living Legacy: The Shift From Death Planning To Living Planning
You can optimize your legacy through living estate planning techniques that provide both immediate benefits and long-term protection. Why Modern Estate Planning Happens During Your Lifetime Estate planning has evolved far beyond the traditional 'death planning' approach. Today's sophisticated strategies focus on creating and transferring wealth during your lifetime, allowing you to witness the impact of your legacy while maintaining control over your assets. At Key Financial, we help families optimize their legacy through living estate planning techniques that provide both immediate benefits and long-term protection. The Shift from Death Planning to Living Planning Traditional estate planning focused on what happens after death—writing wills, minimizing estate taxes, and transferring assets to heirs. Modern estate planning takes a different approach: Current Tax Opportunity Window The Tax Cuts and Jobs Act of 2017 created unprecedented opportunities for lifetime giving: Key Insight: Gifts made before the sunset date will be protected even if exemptions are reduced later. There are spousal provisions, and the recent signing of the President's Big, Beautiful Bill makes many aspects of the 2017 tax law permanent. Strategic Lifetime Transfer Techniques 1. Annual Gifting Programs Current Annual Exclusion: $19,000 per recipient (2025) Advanced Strategy: Combine annual exclusions with educational and medical expense payments (unlimited if paid directly to institutions).2. Grantor Retained Annuity Trusts (GRATs) GRATs allow you to transfer appreciating assets while retaining an annuity stream. 3. Sales to Intentionally Defective Grantor Trusts (IDGTs) 4. Charitable Lead Annuity Trusts (CLATs) For business owners, lifetime planning is crucial: Recapitalization Strategies Employee Stock Ownership Plans (ESOPs) Installment Sales Charitable Remainder Trusts (CRTs) Donor Advised Funds Private Foundations Domestic Asset Protection Trusts Limited Liability Companies (LLCs) Living estate planning must address: Benefits of Witnessing Your Legacy Gradual Wealth Transfer Phase 1: Foundation Building Phase 2: Advanced Strategies Phase 3: Legacy Management Coordinating with Professional Advisors Successful living estate planning requires a coordinated team: Start Now Modern estate planning is about creating a living legacy that begins today, not tomorrow. By implementing lifetime transfer strategies, you can: The key is to start now, while you have the opportunity to maximize the benefits of current tax laws and participate actively in your legacy creation.
Forbes
21-07-2025
- Business
- Forbes
Keep What Matters, Transfer What Counts: A New Approach To Estate Planning
Starting in 2026, the federal estate tax exemption is expected to jump to $15 million per person (that's estimated to be $30 million for couples). It's a big opportunity for high-net-worth families to get ahead with their planning; however, many hesitate. And if that sounds like you, you're not alone. One of the most common concerns I hear in conversations with clients is this: "I don't want to give up control. Or access. Or income." Totally fair, but here's the good news, modern estate planning isn't about giving everything away. When done right, it's about protecting what you've built, while keeping the flexibility and control you care about most. Don't Let the Tax Tail Wag the Dog Whether you're updating existing plans or starting from scratch, remember taxes shouldn't be the sole driver. Given enough time, the tax code offers multiple ways to address wealth transfer efficiently. Instead, begin with this question I learned from fellow board member Eleanor Johnson: 'What do you want to be known for?' It's a powerful shift in perspective. Once you clarify your legacy goals, your estate plan becomes a vehicle to achieve them. That might look like: I was recently speaking to a room of about 300 people and asked, 'How many of you know someone who's paid estate tax?' Maybe 15 hands went up. Then I asked about lawsuits. Around 40% raised their hands. Divorce? Nearly 80%. The point is, estate taxes get a lot of attention but in reality, things like divorce, lawsuits, poor succession planning, or bad business decisions are far more likely to chip away at your wealth. A sound estate plan guards against these risks, too. Liquidity Is Often Overlooked Most of my clients' own businesses making up 50% to 90% of their net worth, with limited liquid assets. In these cases, the biggest threat isn't just tax, it's the lack of cash flow and asset diversification. What happens if a key owner dies prematurely? The family may lose not only income, but the value of the business itself while also facing an estate tax bill. Another challenge arises when dividing assets among children. Often, one child is involved in the business while others are not involved in it. Without liquidity, it becomes difficult to equalize inheritance fairly, a common source of family tension. Permanent life insurance can help:Even if no crisis occurs, life insurance can offer long-term flexibility and tax-free leverage. Please consult with your own personal tax attorney for tax counsel. Strategies That Preserve Control and Income Modern planning tools can provide opportunities which allow you to transfer wealth without losing control or income. Here are three common tools used, typically in combination, to achieve this goal:These strategies aren't about losing control; they're about repositioning assets for long-term efficiency while keeping your financial independence intact. The best plans start with a clear vision and are backed by solid data. Work with an advisor who can walk you through different planning structures and model the impact of each option, including:The Window Is Open but Could Close Yes, the 2026 law makes the $15 million exemption 'permanent,' but nothing in tax policy is truly permanent. Future administrations can reverse course. My colleague Michael Amoia coined the term 'Political Life Expectancy' — your life expectancy divided by four. Why? Because every four years brings the possibility of a new administration, and with it, a new tax code. If you're 60 today, you could see seven to eight major policy shifts before your estate is settled. That's why flexibility is the most important feature of any estate plan built today. Waiting could cost a significant amount of its assets, taxes and worse, if your estate lacks liquidity, your family might be forced to: And don't forget: your assets are likely to grow over the next decade. Transferring them now, while they're still appreciating, creates the opportunity for major tax savings. What Should You Do Now? In today's climate, a smart estate plan should: You don't need to give it all away. You just need to act while you still have control, clarity, and leverage to choose how and when to use your resources.
