With an unimaginable $124 trillion expected to pass across generations between now and 2048, Gen Xers and millennials may be inheriting a tremendous amount of wealth. For the boomers, this isn’t a headline; it’s a personal crossroad. Are you preparing for a legacy, a well-funded retirement, or wondering how to maintain your current lifestyle?
A recent article, “How your life philosophy shapes your estate planning strategy,” from MSN provides an interesting examination of how families feel about wealth and sharing it with descendants.
People have different mindsets around money. Some feel they are stewards of money for future generations and seek to grow and protect assets. Others believe they worked hard to earn their money and intend to enjoy it, with whatever is left over making up their children’s inheritance. Still others are determined to spend all their wealth, believing children need to forge their own paths. None of these is right or wrong.
Before preparing an estate plan, it’s helpful to understand some hard numbers. How much do you need to enjoy the healthy part of your retirement? How much will you need if both you and your spouse, or just one of you, need long-term care? What will a gift from you do for your children—give them a foundation to grow on or delay their becoming responsible adults?
Once you’ve decided how much of your assets are needed, then you can start thinking about how and when to distribute your wealth. Parents are more comfortable talking about wealth and inheritance plans when their children are responsible with money, working and contributing to the world around them. This, too, is part of the decision-making process.
Estate planning requires consideration of whether all offspring should receive the same inheritance. If one child is a successful anesthesiologist with a multimillion-dollar portfolio and the other is teaching elementary school in an inner-city school, their needs are different. A $500,000 inheritance is a nice bonus for the anesthesiologist, while for a schoolteacher, it could allow for a home purchase.
For some families, giving with warm hands is preferred. They may help an adult child with an annual $19,000 gift without using up their federal gift exemption ($38,000 for couples), help with a down payment on a home, or pay for family vacations to create memories. When there are grandchildren and sufficient funds, front-loading five years of 529 College Savings Accounts can remove a significant amount of taxable assets from the estate, while giving parents the gift of not having to worry about paying for college.
Whatever your philosophy about estate planning, the one thing that matters most is to have an estate plan. Meet with an estate planning attorney to discuss your wishes and allow their years of experience to inform how your estate is structured.
If your estate plan is more than five years old or if you have had changes in your life, a review of the estate plan is in order. Laws change, as do lives—and estate plans need to keep pace with those changes.
Dana Ware of Hudson Legacy Law is a premiere Hudson Valley Trust Attorney. If you’re ready to start planning your family’s future, book a consultation with Hudson Legacy Law today.
Reference: MSN (April 21, 2026) “How your life philosophy shapes your estate planning strategy”