For centuries, tradition and familial loyalty dictated that wealth was to remain in the family at all costs. The result was that even the family "black sheep" typically stood to inherit something when the family patriarch or matriarch died. There were practical as well as emotional reasons for passing down wealth. There were also a set of spoken, or unspoken, rules that potential heirs were expected to abide by in order to remain in line to inherit the bulk of the family fortune in most cases. Times have changed and along with them the likelihood of inheriting a substantial amount of wealth from elderly family members. There are a number of factors that may turn waiting on an inheritance into a wait for something that never comes.
- Families do not work together as much as they once did. For this reason, the family leader may not have as much incentive to pass down the wealth in an attempt to continue the "family business."
- Families are divided, blended and reconstructed. With the divorce rate hovering around 50 percent, and blended families a significant factor, dividing and bequeathing family wealth can be complicated. By the time it is funneled down to everyone involved, the amount a beneficiary receives may be significantly less than expected.
- Family feuds can drain the wealth. Families have feuded over money for centuries; however, a modern day family feud can end up costing sizable legal which can reduce the size of the estate to be distributed to the heirs and beneficiaries.
- People are living longer. Living longer means that large sums could be spent on living expenses before it can be passed down to family members.
- Depression era family members aren't pleased with the way future generations have handled money. As a result, some are choosing to live it up at the end of life instead of passing the money on to heirs who will simply blow it themselves.
- Beneficiaries may end up spending their inheritance before they even see a dime of it. Many of the elderly do not qualify for government programs that help pay the bills. As a result, children and grandchildren may be called upon to help, effectively spending any potential inheritance money before it even gets to them.
Each of these circumstances present potential problems in the ultimate distribution of a person's estate upon their passing. The good news is that there are many effective planning strategies that can eliminate, or at least minimize, these problems. The place to start is a consultation with an experienced and qualified estate planning attorney.
Experienced estate planning attorneys Sacramento CA of the Northern California Estate Planning Counselors, LLP offers estate planning and business planning resources to residents of Sacramento CA. To learn more about these free resources, please visit http://www.norcalplanners.com/ today.
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