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Boomers and their inheritances: Planning for the next generation

It is estimated that on a national level, baby boomers could inherit in excess of $30 trillion from parents in coming decades. Nevada residents who have children in this group may find that guidance is important for creating an estate plan. A sound strategy could be the difference between one's heirs losing or retaining assets. Experts note that the emotion associated with such transfer of wealth can be a challenge during the estate planning process. An effective financial advisor may be helpful in assisting with these issues and even continue a professional relationship with one's heirs, ensuring that the next generation down the road is taken care of too.

During the process of will planning, there are important steps financial advisors often take, beginning with asking questions to identify a client's goals. This allows for a discussion about issues such as the preparedness of children for being involved in any conversation about wealth. As a plan is generated, a financial advisor may move toward communicating with the children of the client with authorization. As the heirs are brought into the planning process and discussion, it is important to build trust.

Because there can be a generation gap between a financial advisor and the heirs of a client, time may be an important factor in developing a good relationship for the future. Social media and other contemporary means of communication may help in relating to this generation of heirs. Additionally, providing educational opportunities such as estate planning workshops may help in presenting the benefits of sound financial advisement.

A parent who has concerns about how an inheritance will be handled by one or more heirs may want to discuss additional strategies with a financial advisor or lawyer. Certain types of trusts might be effective for ensuring that an inheritance is not distributed all at once.

Source: Wealth Management, "Bridge the Gap With the Next Generation of Heirs", Jeff Lamb, December 24, 2014

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