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Baby boomers will transfer $30 trillion if they plan well

New York residents may be aware that baby boomers are the wealthiest generation of Americans in U.S. history. Whenthey pass away, they could transfer an estimated total of $30 trillion in assets to their children and grandchildren. However, if they don't properly plan their estates, the wealth that they hold could be chipped away before it is transferred to the next generations.

One of the biggest expenses that seniors could face in their old age is the cost of long-term care. Without long-term care coverage, a person could end up paying out-of-pocket for an in-home health aide or a nursing home room. At a median cost of more than $7,600 per month, paying out of pocket for a private nursing home room can quickly eat away at a person's estate.

Even if people have long-term care insurance, the size of their estate could be reduced by federal estate tax and the cost of probate. If they want to transfer a larger portion of their estate to their family members, they may want to consider setting up a living trust. A living trust will pass assets directly to beneficiaries without having to go through an expensive and lengthy probate process.

An experienced attorney may be able to help an individual to write a will, set up trusts and create other key estate planning documents. If a person has an estate that will be subject to state or federal taxes, an attorney may help to minimize inheritance taxes with lifetime gifting strategies. An attorney may also help a client to update an existing estate plan when changes in family or financial circumstances so dictate.

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