Recent research shows that boomers should be preparing themselves for a double whammy: less inheritance from longer-living parents and having to tap some of their own savings to help those parents make ends meet.
Many boomers who may have been counting on an inheritance to fund a good portion of their own retirement are instead faced with parents who are living longer and not only spending that inheritance, but also depending on their children for financial support in their old age. In fact, the 85-year-old and over age bracket is the fastest growing segment of the American population, and finding the funds that stretch that far is becoming increasingly difficult.
Financial experts advise families to begin talking about aging parents’ finances sooner rather than later. There are steps they can consider, including revising monthly expense budgets, downsizing to a smaller home, purchasing an annuity or longevity insurance to lock in lifetime income or taking out a reverse mortgage.
Boomers with adequate financial resources now may opt to pay a parent’s health insurance premiums, purchase a long-term care insurance policy or gift a set amount of cash every month to help ends meet.
However, before implementing any strategy, you should speak with an Irvine estate planning attorney for guidance.
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.