Most people have heard about the mass transfer of wealth over the next couple of decades. That is not the only transfer that will be taking place. As Baby Boomers are entering their golden years they have spent a lifetime accumulating stuff. This stuff will eventually be passed onto their heirs. However, a recent study shows that many younger generations will likely not want to inherit their parents’ stuff. The main reason is that there has been a shift in values in the younger generation versus their parents.
As financial planners, we help clients define their financial objectives, provide guidance and assist in achieving goals such as saving for retirement and college. We also have meaningful discussions about estate planning or how financial assets will ultimately be passed down.
Your stuff could have a monetary value, but most likely a sentimental value which you cannot put a price tag. So, the only way to establish this type of value is to start a conversation. This is particularly important if you have a family-owned business. A person spends a lifetime accumulating all this stuff. Why not make a plan to ensure the person receiving it actually values it?
So where will all this stuff end up? As the study shows, Goodwill has been receiving a greater influx of this type of stuff over the last couple of years. It is anticipated that this trend will continue. We believe this is an important topic to be discussed so that both the parents’ and children’s point of view can be addressed.
A conversation will lessen the burden for both parties when the time comes. For any generation, it is always a good time to evaluate what you own and decide if you want to gift it to loved ones, sell it, donate it, or toss it in the trash.
Let us help you start a conversation and discover what you truly value.