From the Squared Away Blog of March 27, 2014 titled “Post Recession: Strugglers vs Thrivers the article used an analysis of data from the Survey of Consumer Finances, estimates that the recession has ended…but for only about one-quarter of the U.S.population. Thus, we have the thrivers, those who have recovered their financial position post recession; and the strugglers, those who are in a worse financial position following the recession.
Who are the other three quarter of Americans that the Recession is still impacting? Squared Away interviewed Ray Boshara, director of the Center for Household Financial Stability ; Bill Emmons, senior economic adviser; and Bryan Noeth, policy analyst. Squared Away wanted to know: Why most Americans’ net worth (their assets minus debts) have not recovered and who is affected?
From the interviews, two statements leaped from the page about family wealth in the United States.
The first statement: “net worth has recovered – except for those under 40”
The Second statement: …”holding constant the determinants of family wealth, including where you are in the life cycle, those born in the latter part of the 20th century are less wealthy than their parents were at a similar age. So, even when their wealth peaks, they’re probably going to peak at a potentially lower level than their parents or grandparents did.”
What this could mean for a generation of Americans is that they might never be as wealthy (in real terms) as their parents or grandparents.
My other thought is, for parents and grandparents, there will be an impetus to help their children and grandchildren to get back onto the ladder of full economic recovery.
What many people fail to realize is that mechanisms exist within Estate Planning to do exactly that – help future generations achieve financial and economic stability – during your lifetime. In former ages, the Will was the document to distribute assets to loved ones. It was virtually the only mechanism, and then, it was only for those wealthy enough to have considerable assets to bequest. The Will was the document through which a parent or grandparent distributed/redistributed existing family wealth/assets after their death.
Times have changed and now, within the field of Estate Planning, there are on offer a variety of Trusts that can be used to dedicate/distribute/redistribute family assets, and a Trust can do that – during your lifetime - with or without the existence of a Will.
This post has been brought to you by the Law Office of Barbara Ann Dalvano. This information is provided for educational purposes only and to generate ideas, provoke thought and facilitate conversation. It is not intended to create an attorney-client relationship. Each person’s situation is different and this information should not and cannot be relied upon as legal, tax, accounting or investment advice.
Barbara Ann Dalvano, Esq.
Phone and Text Message: (719) 963-2933
Email Address: [email protected]
Feel free to visit our website at www.attorneybarbaradalvano.weebly.com.