The demographics of the American family have significantly changed since the 1960s, especially in the past 20 years. Age, lifespan, cross-cultural diversity, location, and differing models and definitions of family life present a very different snapshot of American families from the one we had less than a generation ago. These shifts create new assumptions for family life and may make it necessary to rethink how to achieve continuity for the future, including estate planning. The impact of these changes is particularly challenging for those families that share assets so that family life and economic life are inextricably tied together.
The implications of these shifts for families that share assets are unique because they’re an economic system along with an emotional one. By recognizing the changes, both families and advisors who serve them can be more thoughtful around planning that might be considered. Here are a few suggestions that we’ve learned in our work with family enterprises:
This is an adapted version of the author’s original article in the March issue of Trusts & Estates.