Sunday, June 22, 2008

Transfer WHAT wealth?

Eight Reasons You Should not Expect an Inheritance (New York Times, June 21, 2008)

For a LONG time now I've been raising questions about the impact that health care costs, retirement (or the lack there of), and living transfers of wealth will have on the much-touted Intergenerational Transfer of Wealth numbers. These predictions of trillion dollar transfers drive things from philanthropic planning to nonprofit growth to private bank activity to the marketing budgets for donor advised funds.

So...what happens if the transfer happens but the money goes to things like housing and education costs? Or if the transfer doesn't happen because it is really expensive to live forever as some baby boomers are planning? The NYT asks this question, and points to eight reasons why inheritance trends may not go the way of predictions.

1 comment:

Jason said...

Great point! I'm finding that families are spending a lot more time giving their money now in this life time. They want to see what the difference their money can make instead of just pass it on after they are gone.