The changing nature of the modern family means that estate planning will have to evolve to meet some unexpected needs.
Among the more notable developments, according to a report by the BMO Retirement Institute, is that more baby boomers are caring for aging parents, relatives or friends but often not making provisions for their care in case they, themselves, are unable to provide it.
About 15% of Americans provide such care, with 58% providing both personal and financial support. Yet just 33% of caregivers have made a provision for this in their estate plan.
Of the minority who have made a provision, 55% thought of it themselves, and 24% said that they were advised to by a legal professional.
Meanwhile, according to the report, 61% of Americans own a pet, and 87% of them think of their pet as a family member. Accordingly, more than three-quarters said that they think that it is important to make arrangements for their care.
The survey also asked about social-media accounts, online financial accounts such as PayPal, and other intangible digital assets such as photos and music collections. The growth of the digital world has led to uncertainty about how to manage a person's digital wealth and footprint after they die, yet just 57% of people with digital assets and who have made formal estate plans have made provisions for this.
More than 2,000 Americans and Canadians over 45 were surveyed in February for the report, “Estate Planning in the 21st Century: New Considerations in a Changing Society.”
“When we think of estate planning, it's often focused around the more traditional aspects, such as leaving money for the children or to charities,” said Tina Di Vito, head of the BMO Retirement Institute. “However, we need to start incorporating emerging trends if we want to minimize the burden on loved ones.”
