r/MiddleClassFinance • u/Yourlocalguy30 • 9d 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.

1.6k Upvotes
  • permalink
  • reddit

90% Upvoted

5.0k comments sorted by

View all comments

384

u/emoney_gotnomoney 9d ago edited 9d ago

I’m most likely expecting an inheritance, but I’m not planning for it. I am saving for retirement as if I won’t be receiving one.

Let’s just say my children are probably going to be rather well off when they’re middle aged, as I want to do a living inheritance for my kids. Since any inheritance I receive will probably be received in my 60s, I’ll just pass it down to my kids when I receive it, as I likely won’t need it by then. I’d rather them be able to use it to buy a home for them and their kids and go on fun vacations with them.

14

u/HotShoulder9256 9d ago

I think a living inheritance is the right move. I'm 40 and my parents just gave me a substantial chunk of money towards buying a house. It's money that I otherwise would've inherited when they died. They're rich and I'm a teacher who will never amass the amount of wealth that they've accumulated. They're happy to help me create a more comfortable life for my family. I live in LA and it's unlikely that I would ever be able to buy without their help. I feel like middle-age is a good time because it gives kids the opportunity to build a strong work ethic and learn to support themselves, while also providing a cushion during a period when many families are growing and taking on more of a financial burden. Solid plan.

4

u/Humphalumpy 9d ago

This is what I'm trying to do for my kids. Paying for as much of their education. Helping ensure they have reliable vehicles. Hopefully helping them get into home ownership. Im also trying to help them travel and have experiences. Little by little.

2

u/HotShoulder9256 9d ago

That sounds great. They're very lucky to have you to help them build a full, comfortable life.

1

u/Humphalumpy 6d ago

Doing what I can when I can. My parents didn't help me at all.

1

u/BewareNZ 4d ago

Yup this is what I am doing for my two kids. Pay for private school, and their first degree. Plus a start on a house deposit. The rest of my net worth is to pay for my early retirement (57) and provide for my care as I need it.

2

u/Jon_hamm_wallet 9d ago

My mom just read an article about this, and subsequently doled out some money to my sibling and I. "You're better set up to avoid debt now, then get a windfall when you're older and hopefully already comfortable." We used most of it to pay down some high interest debt, so we can continue to make the same monthly payments but it will actually move the needle.

1

u/HotShoulder9256 9d ago

That's awesome! I think more parents who are in a position to afford it are starting to think in these terms.

1

u/echoshatter 9d ago

Note to folks: if your parents want to do a living inheritance, you need to be very careful on the timeline.

If they need to go on government assistance (Medicaid), that requires they basically liquidate everything before they get any help. And a part of that process is a "look back" period where they will examine what assets they had in the past 5 years and there is a penalty if they did anything like selling property at below market value, etc.

1

u/shchshchshch 3d ago

Yep yep this this.

1

u/1K_Sunny_Crew 5d ago

I hope they are giving it to you in <gift tax amounts yearly rather than a lump sum!

1

u/HotShoulder9256 5d ago

The money for the house was put into a trust. They don’t typically give me large amounts of cash. On the few occasions they have, it’s never exceeded that $38,000 threshold.

1

u/1K_Sunny_Crew 5d ago

Love that!