Estate planning is evolving—not just because of tax laws or financial trends, but because of shifting values between generations. Baby Boomers, who hold most of U.S. wealth, often view inheritance as a final gift to their loved ones. In contrast, many Gen-Xers and Millennials are increasingly interested in giving money now, during their lifetimes, when it can make an immediate impact.
This difference in approach reflects more profound changes in how families think about legacy, independence and intergenerational support. It also introduces new estate planning questions: Should you give now or later? How do you balance generosity with long-term security?
Understanding the pros and cons of each approach can help families create estate plans that reflect their values while avoiding financial missteps.
For many Boomers, the priority is ensuring that there’s something left to pass on. After working and saving for decades, they value financial stability, conservative investing and preserving assets for the next generation.
This mindset has been shaped by life experience. Boomers came of age during economic expansion and were encouraged to build wealth through homeownership and retirement accounts. As they plan their estates, many prioritize wills, trusts and tax strategies to preserve those assets.
This approach offers clarity and control. An inheritance delivered after death can be protected with trusts, distributed gradually, or earmarked for specific purposes like education or housing. It also avoids disrupting retirement income, which can be unpredictable due to health needs or market shifts.
Younger generations often take a different view. With rising costs of living, housing, and education, many Gen-Xers and Millennials are more focused on supporting their families in the present. Parents and grandparents may find themselves helping adult children with down payments, student loans, or childcare expenses rather than waiting to transfer assets later.
This giving style has emotional appeal. It allows donors to see the impact of their generosity firsthand. It also gives recipients a financial boost when needed most, rather than decades later.
Lifetime giving can also offer tax benefits. The IRS allows annual gifts up to $19,000 per recipient (in 2025) without affecting your lifetime gift tax exemption. More significant gifts used for education or healthcare may also be exempt if paid directly to the institution.
However, giving too much too soon can have consequences. Reducing retirement reserves may limit donors' long-term options or leave them vulnerable to unexpected expenses. That’s why planning and communication are essential.
If not addressed, these differing priorities can create tension. Heirs expecting a large inheritance may be disappointed if parents choose to give assets away during life, or vice versa. Open conversations about goals, expectations and financial realities help avoid conflict and support better planning.
Families should also know how giving strategies affect estate taxes, Medicaid eligibility and retirement income. A well-drafted estate plan can balance these issues by including provisions for lifetime gifts and posthumous transfers.
To preserve flexibility, you can use tools like revocable living trusts, family limited partnerships, or charitable giving vehicles. These options allow donors to provide gradually, set conditions on use, or shift strategies as circumstances change.
Ultimately, whether you prefer to preserve or share assets early, the key is to make those decisions intentionally and document them. Contact our estate planning law firm to schedule a consultation to craft your legacy.
Legacy One Law Firm, APLC is an estate planning and probate administration law firm in Los Angeles, California, serving families throughout the State. Schedule a quick and easy consultation with our estate planning attorney, Sedric E. Collins, Esq., or call 323-900-5450.
