Estate planning for aging Baby Boomers

By Harry Margolis, a Boston-based elder law attorney and FreeWill Fellow

Baby Boomers now range in age from 57 (Obama is 59) to 75 (Bill Clinton, Trump and George W. Bush). If you’re a Baby Boomer, it’s time to get your estate plan in order. But how is planning for you different from planning for prior generations?

There are three main differences:

1. Estate taxes are probably not an issue.

Since the federal estate tax threshold is set at $11.7 million until 2025, you probably don’t need to worry about taxes. If you’re one the few Americans for whom this is an issue, you’ll need sophisticated planning. Also, be aware that some states have their own lower thresholds, the two lowest being Massachusetts and Oregon, both having a $1 million threshold.

2. You probably distrust lawyers.

Baby Boomers seem to have been born born wearing the “Question Authority” badge. Prior generations were more likely to accept the authority of lawyers and sign whatever papers they prepared. Baby Boomers are more likely to question why various documents are necessary and hope to understand how they work and what they do.

Through the internet, you have access to more information than prior generations through the Internet. Much of that is free — as is this site, FreeWill, for creating basic estate plans. That’s fine. Do your research. If you can’t find answers to your questions online, consult with an attorney. And don’t be afraid to ask him or her tough questions — you’re paying for the answers.

3. Life (and planning) is more complicated.

The complexity of many Boomers’ family lives can pose a unique challenge when estate planning. While the paradigm of a man and a woman married for life with 2+ children was never as universal as it was portrayed on television and elsewhere, it is even less prevalent today.

Baby Boomers are much more likely than prior generations to have gotten divorced and remarried, or to have been in successive relationships without getting married. This increases the need for planning. The state laws of “intestacy,” which are created as a default plan for people who don’t have wills, are written for the nuclear family model. They don’t anticipate more complicated family situations.

In addition, given that Baby Boomers’ children are even less likely to have traditional marriages, planning for grandchildren is more important than ever. In the United States, 40% of babies today are born to single mothers, compared to 28% in 1990. This means that most Baby Boomers were married when they had children, but this may well not be the case for their grandchildren.