In a prior post, we highlighted how younger generations (specifically millennials) in Florida look at estate planning differently than baby boomers. They are not as enamored with passing down and receiving family heirlooms compared to older generations, and they are not as likely to contribute to charities.
According to a recent study highlighted on Forbes.com, baby boomers were found to be more likely to participate in charitable giving campaigns, which make them more likely to leave money through their estate plans to charitable organizations. Researchers found that baby boomers made up the largest percentage of donors, with 51 million people under this classification. Baby boomers also the most money compared to other age groups, with more than $60 billion contributed each year.
Naturally, there are several economic factors that contribute to the findings. Of course, millennials and Gen Y members commonly do not have the financial resources to contribute to charities, and they are less likely to have established wills where they can leave substantial amounts of money to organizations they care about. Conversely, baby boomers, many of whom are close to retirement, have long standing relationships with charities, which ostensibly leads to them making provisions in their estate plans to continue their support after they are gone.
As we have said before in our posts, it is never too early to create an estate plan. With that, Gen X’ers, Gen Y members and millennials can create avenues through estate plans to make sure that their favorite charities are supported even if something happens to them.
Source: Forbes.com, Charitable giving: Baby boomers donate more, study says, August 8, 2013