Religion, sex, politics and money rank as taboo topics for polite conversation, perhaps avoided with our adult children, too. But money should be on the table for the simple reason that our financial situation often affects our kids as we age.
A U.S. Supreme Court ruling has just made estate planning a lot more cumbersome for some high-net-worth parents who want to leave tax-free money in a Roth IRA to a child.
I was recently interviewed for a New York Times article, The Talk You Didn't Have With Your Parents Could Cost You, about handling parents' financial and legal affairs after they die. The article is an important one - both for adult children who may be dealing with these issues, and for parents who may be reluctant to share personal and financial information with their kids.
Whither boomer's inheritances? Not coming, perhaps. "The post-war generation is living longer and increasingly using their savings to live out their retirement," the Wall Street Journal notes. Which could mean many boomers are in for an unpleasant wake-up call soon.
The estate tax has long enjoyed far more notoriety than its size merits, subject to ample political debate despite the relatively small number of American families it affects (for now, those who inherit more than $5 million). With $7 trillion in tax hikes and spending cuts set to take effect next year unless Congress acts to stop them, debate about this politically-charged tax--opponents have labeled it the "death tax"--could rev up again soon.
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