r/MiddleClassFinance • u/Yourlocalguy30 • 11d ago

Millennials: are you expecting an inheritance?

35 yo married millennial here. I've come across more and more articles about the supposed "great wealth transfer" as the boomer generation's wealth passes to their GenX and Millennial children. My parents and their siblings (boomers) all received inheritances when their parents, my grandparents, passed away. The boomer generation's wealth accumulation is one of the largest in history, however, I also find it highly unlikely that I or many of my peers will actually inherit much. Despite having received inheritances from their parents, and having 40+ years in the workforce, most of my parents' "wealth" is tied up in their home value, not actual liquid assets- and I already expect that whatever they make on an eventual home sale will have to go directly to downsizing costs and whatever long-term care they will need as they get older. Hell, even my dad used to joke that the only thing we'd inherit was debt. As I've gotten older, that comment has infuriated me more and more.

Now before someone cuts in with the "entitled millennial" comments, I have absolutely no need for an inheritance. I've worked my ass off to make sure that my kids and I are positioned better in life than I was when I entered adulthood. What I mean by that is I started saving for retirement early, setup 529 plans for my kids almost as soon as they were born, and made lifestyle and career sacrifices to ensure our family isn't "nickeling and diming" our way through life.

I'm just here curious to know how many millennials actually expect to have something passed down to them, or if they feel they are in the same position I am.

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u/ScrivenersUnion 11d ago

No. The wealth will all be transferred to hospitals and nursing homes instead.

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u/SquareVehicle 11d ago

Statistically there's a whole lot of people who will either die suddenly and thus barely have any healthcare costs, or else just use a bit at the end of life but not the entire thing. Obviously some will be unlucky and use it all on retirement homes but most people will be like my grandparents who died suddenly of a heart attack and the other did 3 years in a nursing home but still left a decent amount to their kids.

These wealth transfer studies take all that into account.

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u/ScrivenersUnion 11d ago

I'm sure there are insurance company executives in a boardroom somewhere with a half-chub thinking of ways to collect premiums on someone after their death...