According to a recent article in Forbes, Millennials (young people now between the ages of 21 and 37) stand to inherit some $68 trillion (yes, trillion) from their Baby Boomer parents over the coming decade or so. That is an astounding figure, and will represent one of the greatest wealth transfers in modern times.
How will that transfer take place? We suspect that much of the wealth to be inherited by Millennials will not get to them solely through the wills of their parents and grandparents. While most high-net-worth households have valid wills in place, wills are limited as a way to transfer wealth, especially for people with sizable assets, family commitments and strong ties to organizations and causes — in other words, a full life. Contrary to popular opinion, a will is not the end-all or be-all of wealth transfer. Everyone should have a will, but in and of itself, a will is limited when it comes to these 6 key things:
***Extended control over assets
***Minimizing bureaucratic delays
***Providing for a Plan B
***Creating a legacy
What does offer these benefits? A trust can, assuming it is the right type of trust for your situation and is set up and managed properly and consistently over time. Read this recent article by LNWM’s Carla C. Wigen, managing director of fiduciary strategy, to find out why a trust is often necessary for making the most of inter-generational wealth.