Family Values and History Are Still the Best Inheritance

According to a recent study, family values, traditions and
history still mean more than money as an inheritance.

 These results are from the 2012 Allianz Life American Legacies Pulse Study* which surveyed
baby boomers (age 47 to 66) and “elders” (age 72 and older). Allianz Life
conducted a similar study in 2005. Interestingly, despite the financial crises
that occurred between 2005 and 2012, the results were strikingly similar, with
a high percentage of both boomers (86%) and elders (74%) agreeing that family
stories, values and life lessons are the most important part of a family’s
legacy.

 In addition, in both studies, only four percent of boomers
said that an inheritance is “owed” to them. By contrast, the number of elders
who felt an inheritance is owed to their children dropped from 22% in 2005 to
14% in 2012; this may be a result of their concern about having to use more of
their savings for living expenses, compounded by loss of savings from lower
market values.

 While the size of the financial inheritance is not seen as
important, planning is. A high percentage of both groups (82-84%) emphasized
having instructions in place in the event a parent were to become terminally
ill or permanently unconscious. Both have strong desires to avoid family
conflicts when it comes to estate planning and legacy issues. Younger people
also believe that keeping family possessions is important.

 Elders also want to impress upon their children the
importance of personal responsibility. About three-fourths of elders surveyed
have obtained some professional assistance with estate planning and have
initiated discussions with their children about end-of-life and inheritance
issues. By contrast, only about a quarter of the boomers have planned their
estates and less than half have had discussions with their own children about
these issues. That may be due in part to boomers being less frugal in general
than their parents, or that they simply feel they have plenty of time left to
plan.

 The best course of action is to talk with parents or
children about end-of-life issues (incapacity and health care directives,
location of important financial documents, estate planning) and what is
important to them and to you. Do this now, before illness or aging interfere
and make it impossible.

If you have questions, talk our bay area estate planning attorneys. 

 * 2012 Allianz Life American Legacies Pulse Study, sponsored
by Allianz Life Insurance Co. of North American, surveyed 1,000 “boomers” (age
44-67) and 1,007 “elders” (age 72+). The online survey was conducted January
12-19, 2012. For more information about the survey, go to https://www.allianzlife.com/about/news_and_events/news_releases.aspx?articleID=106