What Is the Great Wealth Transfer and How to Prepare
The Great Wealth Transfer is Coming, and Our Estate Lawyer Can Help You Prepare
Not many people have heard about “great wealth transfer,” but it is something that will impact generations of families very soon. According to research and financial planners, approximately$124 trillion in assets will change hands over the next 25 years. This massive movement of money from baby boomers to younger generations is known as the great wealth transfer. Millennials alone stand to inherit roughly $46 trillion, making them potentially the wealthiest generation in American history. For residents of El Segundo and the greater Los Angeles County area, our estate lawyer knows that this shift carries real implications for how families manage, protect, and pass on their wealth.
Here at Golden State Legacy Planning, our attorney works with Gen X, millennials, Gen Z adults, and young families who want to get ahead of this historic shift throughout California. Asan estates lawyer, Kylie Tsudama believes that estate planning is not just for retirees–but for everyone. It is particularly for anyone who wants to build and protect generational wealth, especially those with young children or significant assets that could be depreciated through court proceedings. Call us today at (855) 885-GSLP (4757) for a free 20 minute consultation and take the first step toward securing your financial future.
What Is the Great Wealth Transfer?
The great wealth transfer refers to the historic movement of assets from baby boomers and older Americans to their children and grandchildren. Baby boomers currently hold a significant share of the nation's total wealth, including real estate, retirement accounts, businesses, and investment portfolios. As this generation ages, that wealth will move to Gen X, millennials, and Gen Z through inheritance, gifts, and other transfers. Even though the upper estimates from financial planners suggest that $124 trillion in assets will be transferred, even the low estimates forecast roughly $80 trillion in assets, with the United States accounting for the largest portion of that transfer.
Why Millennials and Gen Z Need to Pay Attention
Many younger adults assume estate planning is something they can worry about later. But research reveals that about 72% of Americans do not feel confident managing a financial windfall. More than half of millennials surveyed said they expect to inherit money within the next five years. Without a plan in place, that inheritance could be lost to probate costs, taxes, estate recovery, or medical debt recovery.
The great wealth transfer is not just about receiving money. It is about maximizing that transfer by not paying probate costs and taxes on money that your family has already earned, as well as being prepared to manage it wisely and protect it for the next generation. That is where estate planning comes in with a lawyer like Kylie.
How Estate Planning Protects Your Inheritance
A solid estate plan can help you avoid probate, reduce tax exposure, and protect your assets. Here are some of the key tools that a lawyer may recommend:
Trusts that allow assets to pass outside of probate
Powers of attorney that give a trusted person control over your finances if you become incapacitated
Beneficiary designations on retirement accounts and life insurance policies
Health care directives that outline your medical wishes in a living will
Each of these tools plays a role in protecting the wealth you receive and the legacy you build. For California residents who are just starting to think about estate planning, a simple plan today can save thousands of dollars and months of stress down the road.
Talk to a Lawyer in California Today
The great wealth transfer is already underway, and the time to prepare is now. Golden State Legacy Planning and attorney Kylie Tsudama help Gen X, millennials, Gen Z adults, and young families in California create estate plans that protect their inheritance and build a lasting legacy. Kylie offers a friendly, judgment-free approach to a topic that many people find intimidating and even upsetting. Call us today at (855) 885-GSLP (4757) for a free 20 minute consultation and find out how simple it can be to get started. We can meet virtually, talk over the phone, or speak in-person about the great wealth transfer and how our estate planning services can maximize what you receive.
Disclaimer: The content in this blog does not constitute legal advice and does not create an attorney-client relationship. All legal information is provided for educational purposes only and is not a substitute for legal counsel. For specific legal issues, please call Golden State Legacy Planning at (855) 885-4757 and speak with an attorney.