We Want to Give, But Not If You Are Taking
Baby Boomers and the Silent Generation collectively hold about two-thirds of the nation’s wealth. Naturally, many of us want to pass some of it on to Millennials and Gen Z. And yes, we suspect you would love to receive it.
However, there’s a fine line between gifting and being exploited. That’s why we’re setting some guidelines for generational wealth transfer—mainly for your benefit. After all, you don’t want to face legal trouble for elder theft or fraud
Understanding Your Entitlement
You are not entitled to our assets. We can leave everything to a non-profit that funds prairie dog towns, and you have no say. Even if you’re named as a beneficiary in a will, you cannot collect your inheritance until after our passing—and we are not dead yet.
Pressure and Estate Planning
We do not respond well to pressure. Repeated requests and demands make us grumpy.
Our estate planning documents are or will soon be in place. Do not ask us to sign new documents or bring us to “your” attorney. Texas Adult Protective Services has flagged such behavior as a potential sign of abuse.
Documenting Gifts
If we intend to give you a gift, it should be clear and in writing. Sometimes what you think is a gift may actually be a loan or payment for services. Documenting these transactions protects both parties later.
Assessing Financial Reality
We might want to make an imprudent gift occasionally. Do not accept a gift blindly. Understand our financial situation first.
For example, if our net worth is $750,000—consisting of a $400,000 house and $350,000 in cash and investments—we cannot afford to give away $10,000 freely. Our savings must cover lifetime expenses, including:
- Food, clothing, and medicine
- Automobile costs
- Taxes and insurance
- Health care, assisted living, or nursing home costs
- Vacations and hobbies
One Gift Does Not Guarantee Another
Receiving one gift does not create a pattern or obligation. One gift may be all we ever give you.
Estate Tax and Gifting
Some people believe gifting is a way to avoid estate tax. This may have been true in the 1990s when the exemption was $650,000. Today, a married couple can exempt nearly $30 million, and Texas has no estate tax. For most of us, avoiding estate tax is not a reason to give away our money.
Powers of Attorney Are Not a Free Pass
Even if you hold our power of attorney, it does not give you the right to take our money. Agents owe a fiduciary duty, and using our money for personal gain—like buying a house, investing in a business, or transferring accounts—is considered theft.
Wise and Joyful Gifting
Ultimately, we want to make our gifts wisely and joyfully. Please respect these guidelines and allow us to give on our own terms.
How Hammerle Morris Can Help with Generational Wealth Transfer
At Hammerle Morris Law Firm, we understand that navigating generational wealth transfer and estate planning can be complex. Knowing the rules and best practices helps protect your assets, your loved ones, and your legacy.
Whether you’re planning gifts, managing an inheritance, or creating an estate plan, our team can guide you to ensure your decisions are thoughtful, legal, and aligned with your financial goals.
Schedule a consultation today with Hammerle Morris to review your estate plans and make sure your wealth is transferred wisely and joyfully.
Virginia Hammerle is an accredited estate planner and represents clients in estate planning, probate, guardianship, and contested litigation. She may be reached at legaltalktexas@hammerle.com. This blog contains general information only and does not constitute legal advice.
