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Details on Toby Keith’s $400 Million Estate Plan
July 25, 2024![Couple completing their Will](https://estate-planningcenter.com/wp-content/uploads/2024/08/Depositphotos_174274476_S-150x150.jpg)
August Is National Make a Will Month
August 10, 2024Most people recognize the ways wealth is often passed down from one generation to the next, but there’s another type of transfer that’s becoming very common. It’s called the horizontal wealth transfer, and it happens when a spouse or partner passes their wealth to the person they were married to or in a relationship with, instead of to their children or other younger generations.
It’s estimated that more than $84 trillion will be passed down to family members and to charities within the next 20 to 30 years, and younger generations will receive a lot of it eventually. Since women tend to outlive men, though, a lot of the money will first pass to surviving spouses and partners of men in the Baby Boomer category, and will make its way to the next generation after those women also pass away.
This horizontal transfer of wealth is also often called an intra-generational transfer and may reshape investing and wealth management for a large segment of the population. Traditionally, these areas were primarily dominated by men, as was luxury spending. When women receive a lot of that wealth, though, they may choose to handle it differently than their male partners would have.
The majority of the transfers will take place within the United States, as there are 43 million people over the age of 75 and approximately $50 trillion in transferrable wealth between them. Typically, a surviving spouse will be responsible for managing this wealth for an average of four years before they also pass away. At that time, their wealth will be transferred to their children, charities, or other designated beneficiaries.
There’s a growing shift toward a “feminization of wealth,” as more women are receiving wealth from husbands when they pass away. There are also many women earning a lot of money on their own, and approximately 11% of today’s millionaires are women. More luxury brands and financial advice companies are focusing on women’s needs and goals. They see the potential and the upcoming shift toward a different style of spending and management and want to be prepared.
A carefully prepared estate plan will ensure your health and financial wishes are known should you become incapacitated and that, after death, your wealth remains secure until it passes to your beneficiaries. A properly prepared plan saves money on court costs, taxes, and fees, and reduces the risk of familial strife.
We will work with you and your loved ones to build an effective and strong estate plan for you and your family to fit your unique needs. Our services alleviate wealth concerns and help you to enjoy life and focus on what really matters, your family. Contact us today to get started!