Estate Planning for GenX’ers

For those of us born between the mid-1960s and the early-1980s, we are a generation coming of age for estate planning and securing financial wealth for our collective retirement years. Most of us who identify as Generation X’ers have a rebellious spirit and a sense of self that defines the generation as one who was left to take care of ourselves, and who ultimately became adults or had adult responsibilities long before adulthood. Our Boomer parents left us home alone, we were not chaperoned, did not have organized “play dates” and we ventured out on our own more than modern kids and teenagers. This makes us a self-sufficient generation who knows how to make a plan and stick to it.

Retirement

The retirement plan for most Gen X’ers is to collect social security from a social safety net that has been in place since 1932. The Committee on Economic Security, created by President Franklin D. Roosevelt in 1934, developed the plan for the initial Social Security Act. The first benefits were paid out in 1937 as a lump sum payment to workers only. Eventually the program was expanded to include survivors, spouses and children of workers. When we retire, most Gen X’ers (as many as 51%) plan to support ourselves primarily through social security benefits. However, recent studies predict that social security benefits in the United States are expected to be depleted in the next 15 to 20 years. According to a 2024 study performed by the Social Security Administration, the Social Security’s fund reserves are expected to be depleted by 2033. Therefore, Gen X’ers need to consider other alternatives for their financial security during retirement.

Plan Your Estate

The first step for securing assets is to have an active estate plan in place. While some Gen X’ers may not think they are “old enough” to start estate planning – we are at the ideal age to put our legal and financial affairs in order. We are sandwiched between our Boomer parents who are firmly in retirement age and lifestyle – who may also be experiencing health and/or long term care concerns and on the other side are our Gen Z children who are teenagers and/or young adults heading to college or entering the workforce. We need to stand strong to support the generations on both sides of us – and we start that journey by securing ourselves first.

Basic estate planning documents – or what we call our foundational estate planning documents – include powers of attorney, a living will, and a last will and testament and/or trust planning. Each individual has their own unique needs but these basic documents give most people the security that they need so that if something happens to them or if there is a sudden emergency, they have a plan in place to deal with it.

Powers of attorney for both legal and financial affairs as well as a medical power of attorney are paramount. These documents protect you when you are alive and in your most vulnerable condition, or can simply act as a tool to make it easier for you to handle your personal business. In these documents, you will designate an agent (and successor agents) to act on your behalf if/when you become incapacitated. Once your capacity is compromised, due to a health diagnosis, an accident or cognitive decline, it is too late for you to designate a legal agent. Your only option at that time is for your family members to petition the Court to become your legal guardian. A Living Will gives direction to your loved ones when you are in a terminal, incurable state from which you are not likely to recover. A Living Will expresses your wishes of how you want medical care to be provided – or not provided — to prolong your life if you are in a vegetative state. The Last Will and Testament is probably the most familiar document for most people thinking about estate planning. Your will controls the disposition of your assets after your death and is the guide through the probate process. Probate is the legal process through which title to your assets is cleared and transferred to your heirs and/or designees.

Once you have your baseline foundational estate planning documents in place, it’s time to start thinking about how to protect what you have and make it grow for your retirement and to pass along generational wealth to your children and grandchildren. This is where our estate planning attorneys work with your CPA, financial advisor, bankers and other wealth professionals to evaluate your portfolio and determine what strategies can be implemented to protect and preserve your assets. We often advise clients how to avoid probate – and how to keep their assets protected from creditors and other claims after they pass away. We also advise clients to use trusts and/or legal entities like LLCs and Corporations to protect their businesses and/or real estate holdings. Trust planning also offers asset protection and tax advantages. We also advise our clients to plan for the eventuality of long term care. The average cost of long term care in 2024 is around $5500/mo for assisted living and over $10,000/mo for nursing home care. We help our clients and their families not only plan for long term care, but we also help with qualification and retention of Long Term Care Medicaid benefits. We can help you structure your assets so that you qualify for this government benefit – without having to liquidate your entire estate.

Seeking Professional Guidance

Estate planning is the ultimate act of adulting, and as Gen X’ers we are in our adult era and it’s prime time to get our legal and financial affairs in order. So, for 2025 – we invite you to make a plan to give yourself the knowledge and power over your assets and wealth. The peace of mind that comes with having a proper estate plan in place is priceless.

If you’d like to learn more about planning your estate, schedule a free consultation with one of our experienced estate planning attorneys at McIntyre Elder Law. Start planning today!