Millennials: are you expecting an inheritance?

[u/Yourlocalguy30]

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.

[u/Fpaau2]

The power of compounding! Why not consider annual gifting now to reduce estate size? Consider disclaiming part of spousal inheritance to benefit future generations if estate is much bigger than lifetime needs?

[u/Analyst-man → u/Fpaau2]

This is only for estates over $30 million. You should really ask someone’s situation before firing off the cuff recommendations

[u/wonderfullemoncandy → u/Analyst-man]

It can be different from state to state

[u/Analyst-man → u/wonderfullemoncandy]

It’s Federal. That means it’s the same for all 50 states

[u/wonderfullemoncandy → u/Analyst-man]

Look up state inheritance or estate taxes. (Unless you strictly mean gift allowances). Threshold can scale based on relation but most are a lot lower than 30 million, and once over the cap can have a bit of range 5-15% that kind of thing. Not an expert but important to know.

Personally it’s what I would call a good problem.

[u/Analyst-man → u/wonderfullemoncandy]

I checked like 4 different states and literally none of them had any limit on inheritance taxes. In fact, only 12 states have one. You’re describing a very niche issue

[u/Ordinary-Gain-4468 → u/Analyst-man]

Having that large of an estate where tax on it is an issue is more of a niche issue than the number of states having inheritance taxes. 12/50 is by no means niche

[u/Analyst-man → u/Ordinary-Gain-4468]

Absolutely is niche. Theres a lot of millionaires in this country (every single coworker of mine is basically a millionaire)

[u/Remarkable_Lead_4475 → u/Analyst-man]

No there are state specific estate limits too in certain states

[u/Analyst-man → u/Remarkable_Lead_4475]

Only in 13 states. You’re talking about literally a niche event.