Tags: Billy Joel | children | estate planning | elderly

Billy Joel Expects 2nd Child, Highlighting Estate Planning for Older Parents

Billy Joel Expects 2nd Child, Highlighting Estate Planning for Older Parents
Billy Joel in concert (Dreamstime)

By    |   Thursday, 19 October 2017 01:31 PM

Billy Joel, the 68-year-old crooner who penned such hits as “It's Still Rock and Roll to Me," and his wife are expecting their second child next month, compelling CNBC to look at the special needs of older parents in financial and estate planning.

That’s especially true for people who aren’t rock stars like Joel and Mick Jagger, the Rolling Stones frontman who last year had his eighth kid at age 72.

"You're better off implementing a plan now based on your best guess, and you can always modify those things later," Martin M. Shenkman, an estate planning attorney at Shenkman Law, told CNBC.

Wealthy people like Joel and Jagger should establish a quiet trust in a state that permits it, like Delaware, Nevada or Alaska, Shenkman said. A quiet trust allows individuals to set aside assets and plan for how they will be divided without informing their beneficiaries.

Anyone with multiple children and former spouses should directly address all members of the family in their plan.

"Make sure you deal with each individual to the degree you want to or don't want to," Shenkman said. "And if you don't want to, make that clear too."

Parents who are nearing retirement age as they raise younger children also should plan ahead to help cover their financial needs until their mid-20s. That could mean planning to spend $400,000 to help with education costs – a pipe dream for the vast majority of Americans.

Median household income in the U.S. was about $59,000 in 2016, according to census data. That’s barely higher than the 1998 level of $58,700 a year.

Parents may need to forego retirement to muster the financial resources for a child.

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Billy Joel, the 68-year-old crooner who penned such hits as "It's Still Rock and Roll to Me," and his wife are expecting their second child next month, compelling CNBC to look at the special needs of older parents in financial and estate planning.
Billy Joel, children, estate planning, elderly
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2017-31-19
Thursday, 19 October 2017 01:31 PM
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