Waiting on An Inheritance That May Never Arrive
Surprisingly, many Americans are still counting on a family inheritance to support them
during their golden years. This may be a seriously flawed estate plan. For centuries,
families passed down the family fortune from one generation to the next. This was often
done for pragmatic reasons. In many cases, the family wealth was the result of a family
business -- a business that the next generation was expected to continue managing. Part
of the unspoken (or spoken) deal from one generation to the next was that the family
wealth would be passed down as long as the next generation took on the responsibility
that came along with it. Close knit families that operated a family business also fostered a
sense of family loyalty when it came time to decide who received the fortune when the
patriarch or matriarch passed on. Things have changed in recent times. Anyone who is
waiting on an inheritance might want to stop waiting as there is an increasing likelihood
that the inheritance will never arrive. Consider the following reasons:
Families are divided, blended and reconstructed in the 21st century. With the divorce
rate at over 50 percent, and blended families the norm, dividing and bequeathing
family wealth can be complicated. By the time it is funneled down to everyone
involved, the amount a beneficiary received may be significantly less than expected.
Families do not work together as much as they once did. For this reason, the family
leader may not have as much incentive to pass down the wealth in an attempt to
continue the “family business.”
Family feuds can drain the wealth. Families have feuded over money for centuries;
however, a modern day family feud can end up costing so much in legal fees that
there is virtually nothing left to fight over at the end of the day.
Depression era family members aren’t pleased with the way future generations have
handled money. As a result, many are choosing to spend it at the end of life instead of
passing the money on to heirs who will simply blow it themselves.
Beneficiaries may end up spending their inheritance before they even see a dime of it.
Many of the elderly do not qualify for government programs that help pay the bills.
As a result, children and grandchildren may be called upon to help, effectively
spending any potential inheritance money before it even gets to them.
People are living longer. Living longer means that much of the wealth could be spent
on living expenses before it can be passed down to family members.
Experienced estate planning attorneys Atlanta GA of the Pyke & Associates P.C. offers
estate planning and business planning resources to residents of Atlanta GA. To learn
more about these free resources, please visit http://www.cpyke.com today.