As the sun sets on your life the question of making a difference can arise. Usually our greatest influence is on our family and those close to us. Passing on family values, traditions, and faith should be a priority to all of our seniors.

In Anne Arundel County an increasing segment of the senior community is able to pass on wealth to the following generations. Much has been written about the uneven distribution of wealth and I am just an observer in the political debate. However, I serve a segment who has the responsibility of dealing with accumulation of financial blessings.

Some seniors have been successful entrepreneurs and business owners. Others have invested well in a rising stock market. Many seniors have lived within their means, saved and collect pensions that adjust for inflation. Inheritances from the greatest generation and now the older boomers are adding to the wealth of some of our residents. Accumulating wealth valued at $2.05 million is needed to reach the top 10% of households for 65 and older in the United States. This figure comes from a New York Times article dated August 19, 2019. In Anne Arundel County, this amount is often reached by the value of a home and retirement accounts. In addition to the above factors, seniors are working longer, health care is excellent in the area, and overall tax rates have dropped adding up to larger nest eggs. Wealthy families retire to this area because of the amenities. With smaller families, longer life expectancies and the high cost of assisted living we also have families who are holding on to assets just to make sure they are secure in retirement.

As an estate planning attorney my job is to guide families to pass on their wealth in an efficient matter. The Maryland Estate tax exemption is now at $5,000,000 which means that estate taxes affect only a small number of families. Maryland has favorable trust rules that allow trusts to run for generations protecting assets from unjustified claims, divorce, and changes in the estate tax exemption. Efficient charitable giving from retirement assets and the establishment of Donor Advised Funds allow for leaving a legacy while generating income tax savings now. Qualifying for medical assistance is not a viable option for those with substantial assets, but long-term care needs requires planning for everyone.

As you consider how to leave a lifetime of accumulating assets, you need to consider all the options available. Ensure that you and your family are taken care of while leaving something to those who follow should be a laudable goal. A good question to ask is: How do you want to remembered in fifty years?