November 11, 2013
4 Reasons Not to Expect a Windfall Inheritance From Your Parents
How are economic factors affecting how much money parents can leave their children when they die?
Many economic factors have taken a toll on seniors' financial security, often reducing the amount they can leave their families. Here's why you shouldn't expect a windfall when your parents die:
- Fearing a repeat of the Great Recession, many seniors are making safer investments that earn very low interest.
- As average life spans increase, retirement savings must last longer.
- Many help their children and grandchildren pay for high-ticket expenses like home down payments.
- Unless they've purchased long-term care insurance, your parents will likely burn through savings should they require assisted living, which is mostly not covered by Medicare.
Bottom line: With seniors facing increasing financial challenges, don't depend on an inheritance to provide your own financial security.
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