The amount of wealth in the United States can be fairly hard to comprehend. The numbers blur together and distinctions between even major amounts of money — a billion and a trillion, for instance — can be difficult to grasp with the proper sense of scale.
However, it is important to note that this wealth is unsurpassed in U.S. history. Baby Boomers in particular have roughly $68 trillion. They’re going to pass that down to the next generation in the next two decades or so. It’s already started, but it could continue for the coming 25 years.
This cumulative transfer is known as the greatest wealth transfer in history. It’s going to change lives. It’s going to generate an incredible amount in taxes. It’s going to be very complicated. And, whether you’re a member of this generation or the next, you’re a part of it.
What will this take?
The biggest thing to do here is to plan in advance. This is going to be complex, no matter how much of that $68 trillion you control, and you want to make sure things go smoothly. If you’re passing money down, you need to know that your heirs are really going to get what you intend.
Furthermore, you want to think about the tax implications. Is a significant amount of your money going to be lost to the government? What can you do to prevent this or lower the amount that your estate will owe? The sooner you get started on this, the better. There are often many steps you can take long before your personal wealth transfer takes place to ensure that your money stays in your family.
After all, isn’t that the goal? You’ve worked hard for what you have. You want it to benefit your family, and you need to know how to do so.
The steps you can take
As you prepare, make sure you carefully look into all of the legal steps you can take. There are options you can use to meet your goals, and you must know what they are.