When people think about inheritances, they think about property. However, recent studies show that property is not the most popular or important inheritance. Rather, family traditions, values, and history, mean more to heirs than property or money as an inheritance.
The Most Important Inheritance
These results are from the 2012 Allianz Life American Legacies Pulse Study* which surveyed baby boomers (age 47 to 66) and “elders” (age 72 and older). Allianz Life conducted a similar study in 2005. Revealingly, the results from both these studies were very similar, even with the financial crisis that happened between these two studies. 86% of boomers and 74% of elders agreed that family traditions, stories, and values are the most important part of a family’s legacy.
Also, only about four percent of boomers believed that their parents “owed” them an inheritance. The number of elders who believed that they owed an inheritance to their children fell from 22% in 2005 to 14% in 2012. While we can only speculate , concerns about their own finances and long-term care could be powerful reasons for this change.
Estate Planning Preserves Your Inheritance
Even though the individuals surveyed did not believe that the size of their inheritance was important, they believed that planning was. More than eighty percent of people surveyed believed that leaving instructions in the event of incapacity, terminal illness, or permanent unconsciousness was important. They want to try to avoid family conflict as much as possible regarding their estate planning or legacy.
Elderly parents expressed a desire to continue to teach and parent, including teaching their children about personal responsibility. Perhaps that is why about three times more elders than boomers have done some form or estate planning. It could also be because boomers feel like they have more time to plan, or they do not feel the same urge to continue their parenting style after they are gone. However, elders’ priorities are clear, and that is that they want to plan and pass on their philosophy after they are gone.
No matter your situation in life, the best decision for you to make is to have conversations with your loved ones to discuss the elements of estate planning: incapacity, end of life, and what happens after someone passes away. Figure out what is important to each of you, and work with an estate planning attorney to develop the best strategy.
If you believe this type of planning may be right for you, contact The Rains Law Firm or schedule a complimentary initial meeting to begin your estate planning.
* 2012 Allianz Life American Legacies Pulse Study, sponsored by Allianz Life Insurance Co. of North American, surveyed 1,000 “boomers” (age 44-67) and 1,007 “elders” (age 72+). The online survey was conducted January 12-19, 2012.