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What is an average inheritance?

On Behalf of | Sep 2, 2022 | Estate Planning |

An important and often overlooked step necessary for planning your estate is to sufficiently fund your own retirement. While factors such as wealth and education contribute to the dollar value of your retirement, an average number establishes a baseline from which you can determine whether your financial forecast remains favorable.

What factors contribute most to building a retirement?

Education carries the greatest weight in terms of the amount individuals leave behind. According to the Federal Reserve, those with a college education leave approximately 20% more than those without. Increased assets have led to the creation of more trusts, in which an average inheritance rose above $4 million.

Statistically, averages can appear specious, especially when you consider age. A small number of wealthy individuals who inherit create a significant imbalance. The least wealthy families receive $6,100 for an inheritance; the wealthiest receive $2.7 million. The massive difference skews the average and present unrealistic expectations for many retirees.

What changes have occurred in California regarding inheritance?

Retirees in California can interpret numbers in context with recent changes made to the definition of a small estate. Under the California Probate Code, these values permit individuals with estate values below a certain amount to pass assets to their heirs without need for a will, trust or probate. Having completed an affidavit and a form attesting to such, you can reduce the stress and costs related to wealth transfer.

Regardless of whom you wish to provide for after your death, your financial security requires responsible behavior. Equally important, estate planning demands understanding how to plan for the long-term. Attorney familiar with your needs and goals can offer guidance.