The communication struggles that Baby Boomers and those in their parents’ generation thought they had overcome in the decades since the 1970s have resurfaced.
This time the gap is around the transfer of $25 trillion in wealth to be handed down by the elder generation to their heirs. ; A new landmark survey found evidence of a huge generational gap on views of inheritance and legacy. ; The missing communications between U.S. boomers (adults aged 40-59) and the elder generation (adults aged 65 and over) are among the key findings in The Allianz American Legacies Study, which reveals:
; ; ; ;* Nearly 40 percent of the elder generation says it is very important to pass financial assets or real estate to their children, but only 10 percent of Baby Boomers feel the same. ; Elders (22 percent) are seven times more likely than boomers (3 percent) to believe they owe their children an inheritance.
; ; * The majority of the nation’s Baby Boomers (68 percent) and those surveyed from their parents’ generation (71 percent) say they feel highly confident discussing key elements of inheritance and legacy planning issues, yet only around one third (29 percent) of Baby Boomers and elders (31 percent) have actually done so with their own families.
; * Passing along « values and life lessons » is overwhelmingly considered (by over 75 percent) the most important element of a legacy for both generations.
* Non-financial leave-behinds – like ethics, morality, faith and religion – are 10 times more important to both boomers and elders with children than the financial aspects of a legacy transfer.
; ; * Fulfilling last wishes and distributing personal possessions were five times more likely to be the greatest source of family conflict during a legacy transfer than the distribution of finances according to boomers whose parents are not alive.
The online survey was conducted in the United States between April 22 and 27, 2005 among an over-sample of 278 Baby Boomers (age 40 to 59) and 345 elders (age 65 and over) who both have a net worth of over $250,000.
Source : John Agno www.SoBabyBoomer.com
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