Saint Paul Pioneer Press

August 7, 2005

 

Generations' Views of Inheritance Differ

By Sheryl Jean

Baby boomers (ages 40-59) have different views from their parents' generation (ages 65-plus) on the inheritance of $41 trillion before taxes in U.S. wealth that will transfer in the next few decades, according to a new study commissioned by Allianz Life Insurance Co. in Golden Valley.

Even so, the study also found that more than three-fourths of both generations ranked passing along "values and life lessons" as the most important part of a legacy.

"An inheritance focuses primarily on the money, but a true legacy also includes memories, lessons and values you teach to your children over a lifetime," said Dr. Ken Dychtwald, president of Age Wave, a San Francisco market analysis firm that designed the study for Allianz Life.

Other findings included:

* More elders (22 percent) than baby boomers (3 percent) believe they owe their children an inheritance.

* Nearly 40 percent of the elder generation say it's important to pass financial assets or real estate to their children vs. 10 percent of baby boomers.

* One-third of elders said inheritance decisions are a key source of control over their children.

* More than two-thirds of both generations say they're confident discussing inheritance planning, yet less than one-third have done so with their families.

Harris Interactive conducted the national online and telephone survey of 2,627 Americans in April and May. The online poll focused on people with net worth of more than $250,000.