Reality Check: Your Children Need Your Money Now, But So Do You
“Who cares? I’ll be dead” is a reasonable response to some questions about estate planning. It would be nice if your children could inherit some money from you after you die, but you care a lot more about enjoying your time with them while you are alive. It is naïve to think that money doesn’t matter; if you do not save to provide for yourself in your old age, then the burden of attending to your care and expenses will fall to your children. It is fun to daydream about preparing your children to be so financially independent that they do not even care whether they inherit any money from you. That dream now feels difficult to achieve, as families with a household income of $100,000 or slightly more live paycheck to paycheck. How do you build your estate plan when, through no fault of their own, your young adult children are struggling to make ends meet even with your help. A Tampa estate planning attorney can help you focus on essentials so that you do not impoverish yourself trying to help your children.
Tough Economic Circumstances Deplete Generational Wealth
If you are a parent in your 60s, there is a good chance that your children are in their 20s or 30s; they belong to a generation where stable, well-paid jobs are hard to find and prices are skyrocketing. Many parents approaching retirement age help their young adult children with expenses on a regular basis. Some withdraw from their savings or retirement accounts, while others refinance their home mortgages or take out personal loans to help support their young adult children.
If your children are using the money to live beyond their means, it is time to tell them that the party is over, but even the grumpiest Baby Boomers know that the financial struggles of today’s young adults are not a case of too much avocado toast. If commuting to work is not a complicating factor, having your children move in with you might be the best solution. Multigenerational households are more common than they were 20 years ago.
Disaster-Proofing Your Finances for the Whole Family
It is not possible to predict when everyday goods will become more affordable or worker protections will improve. You may need to borrow money or withdraw it from savings to help your children weather the storm. The most important thing you can do now is to ensure that you have long-term care insurance or hybrid life insurance, so that the cost of your care, whether in an assisted living facility or with home health aides, will not be disastrous for you and your children.
Contact David Toback With Questions About No Frills Estate Planning
A Central Florida estate planning lawyer can help you make a realistic estate plan that accounts for your long-term needs and your family’s current economic challenges. Contact David Toback in Tampa, Florida to set up a consultation.