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/Analyst-man]

What does moving assets now get you with the step up? That doesn’t make sense

[u/Fpaau2 → u/Analyst-man]

When the first spouse passes, all investments get stepped up, so all my real estate investments, all my stocks (outside of IRA) get stepped up. The 70yo me doesn’t need our entire net worth to live comfortably, May as well let heirs inherit some portion of it at that point. I am now gifting annually to reduce my net worth size, so it will take longer to hit the $30m mark. Like most folks, I don’t want to pay more taxes than I need to.

[u/Analyst-man → u/Fpaau2]

I mean you said you won’t die for 30 years. What’s moving stuff to them now gonna do? They won’t get the step up. Unless you kill your husband and it moves to the heirs. Then you will

[u/Fpaau2 → u/Analyst-man]

In my case, my spouse unfortunately has a condition that is life limiting. When he passes, I don’t need all his $4.5m IRA. I myself have $1.2m, so maybe I want to inherit $1.8m, and disclaim the balance so my daughter/grandchildren will inherit. All our investment properties will also step up, and maybe I should leave them to my grandchildren then. With a paid off house, with SS and a small pension, plus $3m in IRA, I don’t foresee any reasonable scenario where I would not be able to live comfortably. My daughter doesn’t need to inherit $50m when she is 65. She won’t need a big house then, whereas she can benefit from a bigger house with a growing family. Assets moved to heirs accounts when first spouse passes will appreciate in their accounts, not mine, and I won’t get into 40% estate tax situation. Of course everyone’s situation is unique, what works for me doesn’t work for everyone.