Estate Planning for Baby Boomers

Baby boomers are estimated to have a population of about 78.2 million and are expected to pay the largest amount of estate taxes on a cumulative basis. This mean that trillions of dollars will be paid out on the values of millions of estates, which will be the most ever seen in history.

An estate can include a number of assets such as cash, real property, personal property, IRA's, pensions, bank account balances, stocks, bonds, mutual funds, and vehicles. The value of all of these items can start to add up quickly and necessitates proper administration.

Preserving assets is an important aspect to estate planning. Knowing that your heirs will be able to receive your hard-earned assets is a comforting thought. However, estate taxes and inheritance taxes can potentially eat away at the value and size of your estate. This is why it is vital that baby boomers integrate estate planning techniques that will protect what they have accumulated over their lifetime.

The life expectancy of baby boomers is set to be lengthy and therefore it is essential to take into consideration living expenses during estate planning. For instance, a trust that can pay out a monthly or yearly stipend that helps take care of health care and elderly care costs. The remainder of the trust funds can then be disbursed to heirs upon an individual's death, so that they can stay out of any potential probate proceedings.

Senior citizens should also make it a priority to have a Power of Attorney for property and health care to ensure that their assets and needs are taken care of during a disability according to their outlined wishes. There is a significant threat to an individual's estate when matters are left in the wrong hands. While federal taxes can rapidly deplete the value of an estate, so can an ill-advised executor.

Many of the measures that individuals take to protect their wealth include tax-free gifts during one's lifetime, property title transfers, trusts and life insurance policies. With the right tactics, you can save your estate from thousands of dollars in taxes. By using the assistance of a professional, you will be able to take care of yourself and your family not only during your lifetime, but also after your death.

Sources

Internal Revenue Service

http://www.irs.gov

US Census Press Releases: Old Baby Boomers Turn 60!

http://www.census.gov/Press-Release/www/releases/archives/facts_for_features_special_editions/006105.html