For many in Nevada and elsewhere, there has been a change of perspective on the amount of inheritance that they may be able to leave their heirs at the time of their death. This may be due, in part, to changing economic times and the longer lifespan that many can expect. The shift has also changed estate planning for many, as they consider how much money they will need to support themselves into their 80s and beyond.
Until recently, many Nevada residents created an estate plan that was intended to distribute wealth that they expected to leave behind at death. Now, people are finding that they are using most of their funds while still alive due to high medical costs and longer life spans. This has made the focus of estate plans shift, in some cases, to long-term care insurance, living wills and trusts. These types of estate planning tools can offer asset management during the lifetime of an individual, as well as post-death asset distribution.
Since the economic downturn, the average American family’s net worth has fallen to $77,000, about the same as it was 20 years ago. This change, and the fact that younger generations are less likely to have pensions, has made pre-retirement planning a growing aspect of the estate planning process. Now, some authorities report, financial plans extend to the age of 95 rather than the younger ages of the past.
Estate planning is important for people of every age. For many, this now includes drafting and executing documents that are intended to function both while a person is still living, as well as after their death. This type of planning can assist in making the golden years happier for everyone in a family.
Source: StarTribune.com, “Don’t take inheritance for granted,” Bill Ward, July 15, 2012