Retirement for baby boomers is nothing like their parent’s retirement, both financially and emotionally. Boomers today face a number of different issues, including:
Divorce – the fastest growing segment of the U.S. population filing for divorce is over the age of 50. Can new retirees actually afford a divorce? Since their earning years are mostly behind them, older couples who divorce must examine carefully if they can afford to live on half the assets they accumulated together or accumulate more debt to pay for an additional household. Late-life divorces can also have an impact on social lives as friends and family choose sides.
Children’s inheritance – once your children have grown, you have a true picture of their adult personalities and behavior. Leaving money to a child with substance abuse problems can be a concern. In addition, if one child has become a primary caregiver, they may have been named on a parent’s bank accounts or deeds, making them the sole beneficiary when the parent passes. This can cause family discord when it comes time to distribute the estate, so a carefully thought out estate plan is essential in these cases.
Spousal inheritance – although it is customary, you do not have to name your spouse as your primary beneficiary on retirement accounts and pension plans (although your spouse will have to sign a form acknowledging that they are aware they have not been named primary beneficiary). There are even tax-saving reasons for those with large estates to not name a spouse as primary beneficiary, which your Irvine estate planning attorney can discuss with you.
The Flanigan Law Group provides Southern California residents with personal attention for estate planning, administration and litigation legal services. When disputes between families, arise, they are very successful in resolving legal estate issues quickly and efficiently while preserving financial and emotional resources. Contact the Flanigan Law Group at 949-450-0042.