Long-term care and out-of-pocket healthcare costs, combined with financial support for extended family have emerged as the new risk to family wealth, according to a recent survey of 711 high net worth adults in the U.S.
The 2013 Insights on Wealth and Worth survey by private bank U.S. Trust found that:
- Forty-seven percent of all respondents have created a financial plan to address long-term care needs that they and their spouse or partner might need, but only 18% have a financial plan that accounts for parents’ long-term care costs.
- Only one-quarter (27 %) of baby boomers and 16% of those who are over age 68 say they ever expected their parents might turn to them for financial assistance. Yet, one-third of Generation X and nearly half (46%) of Generation Y expect their parents or in-laws to rely on them for financial assistance at some point in their lives.
- Sixty-three percent of wealthy people feel responsible for financially supporting their parents or in-laws if needed, even if it jeopardises their own financial security, and 55% feel a responsibility to provide financial assistance for less financially fortunate siblings if they were to need it. Fifty-six percent of wealthy parents say they provide financial support to their adult children.
When it comes to estate planning, the survey found that, while the basics, such as a written will, are in place, comprehensive planning is incomplete. Survey respondents cited the top three goals of estate planning as:
(1) ensuring the needs of a spouse are met;
(2) minimising estate taxes; and
(3) minimising the administrative burden of settling one’s estate.
Contact our Family Lawyers
Contact our family law solicitors based in Edinburgh, Scotland, for advice on asset protection and planning for the future. Click here to contact us or telephone 0131 202 7516.
