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Monday, February 10, 2020

A seismic shift in wealth is coming.

Over the next two and a half decades, approximately $68 trillion in U.S. wealth is expected to change hands from the older generations and be in the hands of younger folks. As our older generation has a huge amount of investments and assets set to be moved on, it's interesting to see how some are preparing to hand over the inheritance.

It appears that many are not prepared at all. Research shows that 64 percent of wealthy individuals have not talked about how they plan to pass on their assets.

It isn’t just Boomers who should be thinking about the future. If you have assets or money set aside, it's imperative to make sure you have your affairs in order. If something awful or tragic were to occur and a will isn’t drawn up, there could be squabbling or worse among your family and loved ones.

If you don’t have a will, your property passes by what is called "intestate succession" to any heirs.

Essentially, if you don't have a will, the state will make one for you. Some wealthy celebrities like Ashton Kutcher and Mila Kunis say that they won’t leave massive inheritances to their children. Bill Gates has said similar things. Kutcher has said he will give most of his money to charity and won’t be setting up a trust for his kids. However, he also said that he would invest in his kid's ideas if they brought him a business plan. Bill Gates also won’t be leaving his entire fortune to his heirs but rather will be donating to causes he and his wife are passionate about. 

As we see the shift in wealth begin to happen, it's going to be interesting to see how things work out. If more wealthy older folks invest in their kid's business ideas, America could see enormous growth over the next 25 years.

Millennials are now the largest living generation, and they will stand to inherit unprecedented wealth. Baby Boomers are still the richest generation since they control 70 percent of all disposable income in the United States. Either way, the money will be pushed into the hands of heirs or will be diverted to great positive causes. No matter what, America will come out in front because the injection of $68 trillion offers up the potential for incredible positives in the future.

 

IMPORTANT DISCLOSURES

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC

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Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website: www.davidlerner.com

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Contact

Jake Mendlinger
Account Manager
Zimmerman/Edelson
516.829.8374 X 232
jmendlinger@zimmed.com

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