leaving an inheritance

Is Leaving an Inheritance an Important Financial Goal?

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Most people have many financial goals during their lifetime, but what about after they are gone? The reality is that preparing for the future does not just mean thinking about what will happen while you are still here on earth. You may have loved ones depending on you, who you want to provide for even when you are no longer living. If that’s the case, you’re not alone, as leaving a strong legacy is an important goal for many Americans.leaving an inheritance

In fact, recent research shows that a number of adults list leaving an inheritance to be one of their most important financial objectives. Here are some details on why this is important to so many, as well as some tips on how to make sure you’re able to leave assets to provide for those who you love or for causes you care about.

How many people believe leaving an inheritance is important?

According to research from Northwestern Mutual , a total of 68% of people who are leaving an inheritance describe doing so as their “single most important financial goal” or, at a minimum, describe doing so as “very important.”

People of all age groups want to make sure their families are provided for, but the group most likely to be concerned about this may not be the one you’d think. In fact, 75% of Gen Z and 81% of millennials said that leaving an inheritance is their most important goal or a very important one, compared with 65% of Gen Xers and 46% of Boomers.

These younger generations may be more focused than their older peers on making sure to leave an inheritance because they want to spare their children some of the financial challenges they themselves have faced. Many young people find it harder now than their parents did to live the American dream by affording a home and children. Leaving behind an inheritance could spare their own kids from the burden they are experiencing and help those children start to build generational wealth that could shape the family for generations going forward.

Older people also have less time to accomplish goals and, if they are currently facing their own financial struggles, may be less concerned about making sure the next generation is provided for. Even among these groups, though, around half or more of the individuals within them still believe leaving an inheritance is extremely important or very important.

There’s good reason for people of all ages to prioritize leaving an inheritance. You work hard throughout your life, and you want something to show for it when you are gone that can help your family to carry on and thrive without you.

How can you make sure to leave the inheritance you desire

The good news is, there are tools that can help you to leave the inheritance you are hoping to provide for the people you care about. Here are some of the steps that you can take to make sure you accomplish the important goal of building a strong legacy.

  • Create an incapacity plan. If something happens to you, your assets are at risk. You need the right people to manage them. This means you need to find someone you trust who can take steps like paying required bills or maintaining the assets so they don’t see their value diminish if you become unable to manage them on your own. You can use tools like a living trust or a power of attorney to give the right person authority when you become unable to make decisions on your own behalf.
  • Create a nursing home plan. Many people lose the chance to leave their desired legacy because they end up spending most or all of the money they have worked hard for on nursing home care. Medicare and private insurance typically won’t pay for custodial care, which is basic routine tasks of daily living. That’s the kind of care most people require that prompts them to go to a nursing home in the first place because they can no longer meet their own needs. You don’t want to use all of the assets you’ve worked hard to build up on nursing home bills so work with an attorney to make a Medicaid plan that will pay for these costs for you without forcing you to spend down your wealth. Be sure to do this early, as there is a five-year lookback period and you will not be able to qualify for Medicaid right away if you transferred assets within the last five years.
  • Create a plan for the transfer of assets. Finally, you will need to use the right tools to arrange for the effective and efficient transfer of assets if something goes wrong. This plan could include making a last will and testament, which is a simple tool that allows you to provide instructions on important issues like guardianship of minor kids or who inherits. You could also decide you want a different arrangement, such as using a trust to arrange for the transfer of assets outside of probate. The right choice is going to depend on your specific needs and the needs of your heirs.

McGee Law Firm is here to help. If you are ready to speak with a compassionate and knowledgeable Southlake Texas estate planning lawyer who will work with you at every step of making your estate plan, reach out today at 817-899-3286 or contact our firm. You’ll be represented by an attorney who can help you to define and accomplish individual goals you have for providing security for the people who you love the most.

Brandon McGee
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