Generation Z kids in Texas and across the nation often expect that their parents will leave them money after they die. This comes despite the fact that many of the parents of those same kids ages 13-22 expect that their beneficiaries will not inherit great wealth. This may be due to the fact that many parents are now more concerned than ever about their finances and the need to expend larger amounts of money as they age.
As many in Texas know, the recent recession has left some people unsure about when they will be able to retire and how much they will have when they do. This has also changed what many people believe that they will actually be able to leave their beneficiaries. Now people are more concerned that they have money to pay for retirement and medical expenses as they age, rather than working to provide an inheritance for the next generation.
Because of this new reality, some authorities believe that it is important for parents to have financial conversations with their kids sooner rather than later. Though a surprising number of Generation Z kids already are saving for immediate needs such as college and living expenses, few are considering retirement savings. This, some say, may need to change as parents are no longer able to leave large sums in their estate planning for the kids after their death.
For members of every generation in Texas, proper estate planning can benefit beneficiaries. This planning can help everyone understand just how much a family can expect to have to pay for the aging process of parents while also planning for inheritances for kids. A review of all available estate planning tools may help a family in their planning efforts.
Source: Boston.com, “The folly of youth: The inheritance myth,” Christine Dunn, Oct. 12, 2012