Estate Planning Needs for Expanding Lifespans

Senescence, or biological aging, refers to the general deterioration of a person’s physiological functions, leading to increased susceptibility to diseases and ultimately death. According to a recent report from the National Center for Health Statistics, the average American can expect to live 78.6 years if spared from terminal illnesses and fatal accidents.

A study led by scientists from Imperial College London in collaboration with the World Health Organization analyzed long-term data on mortality and longevity trends to predict how life expectancy will change by 2030. Average life expectancy is set to increase by 2030 — and likely will exceed 90 years, according to this new research.

Without Proper Financial and Estate Planning in Place Many People Will Begin to Outlive Their Assets

Outliving one’s assets is a looming fear for many aging adults and in light of expanding lifespans is becoming more of a reality than ever before. To prevent this issue and gain control of the situation, every person over 55 should:

  • Take an inventory of current assets and liabilities.
  • Seek advice from an experienced financial planner and estate planning attorney.
  • Put together a comprehensive financial plan to pay down debts, make investments according to the appropriate risk tolerance, and look into investment vehicles that assist with cash flow.
  • Evaluate whether it makes sense to purchase long term care insurance.
  • Create an estate plan that takes into account financial goals.

With the right planning, you can preserve and protect your assets not only allowing you to outlive your assets, but also leaving an inheritance to your children and grandchildren.

Longer lifespans may adversely affect the wealthy by delaying expected inheritances. Adult children historically expected to inherit from their parents while in their 40s or 50s, yet now many must wait until their 70s or even 80s, as their parents live into their 90s or beyond. This situation can also be addressed with proper planning and gifting. For more information on estate planning in the Greater Baltimore area contact Stouffer Legal at 443-470-3599.