Baby Boomers Wealth Transfer Paradigm
Shift Into Family Trusts Booming
There's no doubt about it. We're an aging Nation much like the rest of the World. As of 2014 the US population has grown to 323,444,162. Baby Boomers represent 76.4 million of that total or roughly 26% of the US total population.
While it doesn't look like most Boomers will outlive their retirements. There is a growing movement towards establishing Family Trusts in order to protect what estates they have managed to accumulate and are attempting to pass on if they're lucky.
I often post on this subject as I for one at 69 definitely fit that profile. But more importantly I think it's important for the Real Estate World to know what the future trends seem to be heading to. It's safe to assume that many if not most of these folks won't be in the market for large homes. In fact quite the opposite is true. Trends show BB's downsizing dramatically across the board.
There selling their big home and looking for a more modest and easier to maintain dwelling i.e. condo, town home, apartment, manufactured home, an independent retirement community or perhaps even an assisted living arrangement.
There are also those who wish to keep their homes because of family or emotional ties but their home is too big to manage so, if room and zoning permits are adding granny flats on their property or converting garages into living quarters and renting out their homes for additional income or letting their family move in and share.
But the bottom line indications are that millions of BB's are opting for family trusts for a variety of reasons stemming from tax ramifications to protecting they and their families interests.
The Real Estate Industry must embrace this as an opportunity. Those who work with BB's must address the housing needs of our aging population. The unbelievable trends of upward mobility from the 50's through the 90's are history.
Baby Boomers rocked the Real Estate World during those times in their quest to continually reach for bigger and better housing. Disneyland is over folks. The rubber has finally met the road and it's a whole new World.
That's certainly not to say that their won't continue to be a market for bigger and better housing and there will RE Professionals out there that will reap the rewards therein.
But not everyone can sell high priced properties. In fact most RE Professionals don't sell expensive homes. So for the majority of those who don't perhaps you should start focusing on those millions of folks who are looking for more modest options.
Now's the time to learn about Family Trusts and how they work and how they can help create new markets for a very competitive real estate industry.
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