Baby boomers – the first generation tasked with the responsibility of planning for and funding their golden years. This generation, which includes those born between 1946 and 1964, have entered and continue to enter into retirement. As they make this financial transition into retirement, many are learning that they have made some of the most typical baby boomer estate planning mistakes.
Your home is where you should feel the most comfortable. It’s where you and your loved ones have made the most memories, and where you likely envisioned spending the rest of your life. As we get older, however, it can become more difficult to live independently. Our senses, our minds and our bodies aren’t what they used to be — making even the simplest household tasks more strenuous and dangerous. Because we value our independence and want to continue living in the homes we’ve known for so long, it’s imperative for seniors to understand how to continue living safely on their own.
Most parents want to make sure their children are provided for in the event something happens to them while the children are still minors. Grandparents, aunts, uncles, and good friends sometimes want to leave gifts to beloved young children too. Unfortunately, good intentions and poor planning often have unintended results. Don’t make these common, expensive mistakes. Instead, here’s how to both protect and provide for the children you love.
When considering how to leave assets to adult children, the first step is to decide how much each one should receive. Most parents want to treat their children fairly, but this doesn’t necessarily mean they should receive equal shares of your estate. For example, it may be desirable to give more to a child who is a teacher than to one who has a successful business, or to “compensate” a child who has been a primary caregiver.
