More financial bombshells for baby boomers: Don’t count on that inheritance

There is no duty to give anything to the next generation. The parents fed ‘em, clothed ‘em and sent them out into the world.

Their duty is done.

I concur! My father has passed, but Mom is still active and healthy. I encourage her to tap her savings to enjoy her time, and I've told her that I expect nothing but that if she wants to pass part of her estate along that she should skip a generation and leave it to her grandchildren.

Don’t resent us baby boomers...we put huge surpluses in the SS trust fund, only to have it robbed and handed to the welfare generation coming up behind us. And the many of us saw the handwriting on wall as we watched it being robbed year after year and started saving just in time. Plus we’re really not having the grand longevity that the hysterical liberals are trying to panick you with so you’ll give them more and more to steal. In my very small graduating class of 31, 11 are already dead and never collected a dime after contributing for almost 50 years. I lived the good life through my youth, saved what I could afford, inherited a couple of properties that helps, but no cash. And I found that downsizing from keeping up with the Jones and shedding the ‘status symbol’ psyche allows one to live in a frugal comfort zone. My advice to the young is live well and enjoy your children. Travel to ‘must see’ places if you can. But SAVE what you can and protect it. And don’t be afraid of downsizing when you get older. Your needs are going to be much less. I thought I couldn’t live without all my ‘stuff’, but handing all the diamonds, heirlooms, heavy antiques, fancy dinnerware to the children, was a huge relief. Now I just enjoy all my friends and piddle with a few projects...and life is good and the bills are paid..including DSL, TV, and cell. But whatever you do, know that SS is pro’bly not going to be there for you and look to a future without it...it’s gone, robbed, and we don’t know what the jobs market will be so contributors will be limited.

Of the many things I do not understand, giving one’s assets to one’s children is among them.

I have no children (a situation for which I give thanks every day), but if I had had them, I definitely would not give them even a 10th of my assets upon my death. Why should I? Hell, if I had had them I would have bestowed a considerable portion of my earnings upon their care, then they should owe me. No?

In any event, my wife and I have divided our estate into six portions, three for her and three for me. We then have chosen six charities, which will receive what earthly goods we leave.

But obviously, we are in a tiny minority. Most people think they should give their wealth to “the children.” Good. It’s their decision.

And yes, I know the rejoinder: well, if you had had children you would understand. Yeah, sure. My position is based on lack of experience. I just don’t buy it.

A bit of advice to those whose parents are still alive.

Prepare. Get with a tax advisor. Put together an inventory and a plan.
When one parent passes, their assets pass to the surving spouse. When the last one passes, their assets pass to the children. The children are then hit with capital gains taxes that will surprise you. The IRS places a value on everything and there will be assets that you never knew about. And the surviving offspring get hit with the bill.
My mother committed suicide when I was 30. My father died from lung cancer when I was 32. I was married with a couple of babies and trying to start up a new business. Then I got hit with the cap gains tax from my parents assets. It took me a very long time to dig out of that hole. My brothers and I never expected to bury our parents at such a young age and paid the price.
Convince your parents to work with you on this.
Uncle sugar shows no mercy at the funeral.

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