The convergence of two dynamic forces will have resounding personal and financial implications during the next several decades—the largest intergenerational wealth transfer in history and the unprecedented longevity of Americans. With a wealth transfer of over $25 trillion, complex family structures, and an expanding retiree segment, only one quarter of boomers have discussed legacy and inheritance transfer with their parents.
A landmark survey commissioned by Allianz Life Insurance Company of North America (Allianz Life®), in conjunction with Dr. Ken Dychtwald, president of AgeWave, found that there is a huge generational gap on views of inheritance and legacy. The lack of communication or the "Legacy Gap" between boomers and their parents are among the key findings in The Allianz American Legacies Study.
The key findings of the study include:
- There are significant gaps in what baby boomers and their parents expect from, and define as inheritance
- Non-financial items that parents leave behind—like ethics, morals, faith, and religion—are 10 times more important to both boomers and their parents than the financial aspects of inheritance
- Legacy Gaps exist because boomers and their parents are not having the in-depth conversations about legacy and inheritance in any truly productive and meaningful ways—even though they say they are having such conversations
- Thorough discussions about legacy planning include talking about the "four pillars" that are the core of a true legacy: values and life lessons, fulfilling final wishes and instructions, personal possessions of emotional value, and financial assets and real estate
For more in-depth information about this landmark study, visit the links below.
Los Angeles Times
You Take the Money, I Want the Boogie Board
Where there's a will, there's a tactful way
Estate Planning is About a Lot More Than Money
There's More to Legacy Than Money
Elders, Boomers and Their Inheritance
Research Finds Huge "Legacy Gaps" in Baby Boomers and Elders' Views of Inheritance; For Baby Boomers, the Bucks Stop Here, Allianz Study Finds