A recent study suggests that wealthy baby boomers are split about whether to leave their children with inheritances. It also shows that those who do not want to do so are not necessarily being selfish.
A recent study by Hearts & Wallets found that Baby Boomer parents are split about whether they should leave inheritances for their children. The study found that only 40 percent plan to do so and that 30 percent plan not to.
Another 30 percent of those in the study were not certain.
While some might be inclined to view those parents who do not want to leave an inheritance for their children to be selfish, the study found that not to be the case. Instead, people in that group tended to believe in giving the money to their children while the parents were still alive.
Next Avenue reported on this study in an article titled "How Boomer Parents Feel About Leaving Inheritances."
One other thing the study found was that baby boomers were scared they would run out of money during their own retirements. Those who planned to set aside money to ensure they could give their children an inheritance were even more scared.
The fear is not unjustified.
People are living longer and longer, which makes it difficult to plan how much money will be needed for retirement. However, by working with good financial planners and experienced estate planning attorneys, the chances of running out of money during retirement can be minimized.
It is possible that well-crafted estate and retirement plans can be created that leave enough money for both the parents and their children.
Reference: Next Avenue (Jan. 21, 2016) "How Boomer Parents Feel About Leaving Inheritances."