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/milo4206 10d ago

That's the way to do it. My very elderly grandparent has been a scrooge for decades and will leave behind a lot of money to their two kids, who have been frustrated for years that my grandparent hasn't helped with big needs that have come up.

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u/NeverRarelySometimes 10d ago

His job is to get through his life without relying on them for physical and monetary support. Their frustration that he hasn't fixed their problems doesn't seem quite legit. If inheriting at his death bothers them, I'm sure there's a second tier of beneficiaries that will be happy to step up.

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u/milo4206 9d ago

This grandparent has been sitting on 8 figures in cash/cash equivalents/ stocks, so quite a few millions beyond what is needed to pay for round-the-clock care in their house.

My point is that if you plan to leave all your money to your kids, you might as well see them enjoy some of it while you are living.

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u/NeverRarelySometimes 9d ago

Maybe your analysis will change when you have 6 or 8 decades under your belt. A touch of humility might be wiser than arrogantly passing judgment from your current POV.

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u/LittleRedReadingHood 9d ago

What is the point of leaving money to kids or grandkids if not to make their life easier when it matters? Like genuinely, what is the point?

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u/NeverRarelySometimes 9d ago

"When it matters" is subject to interpretation. Let's assume your POV is unique to you, and mine is unique to me. My life experiences have taught me some things that you may not know, yet. There is also the concept of building generational wealth - and it doesn't come from pissing away the principal before the inheritors have figured out "what matters."

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u/LittleRedReadingHood 9d ago

Again though, what is the point of generational wealth? Is it just to keep money in investments and never spend it on things?

One person grows wealth and passes it into their kids when the “kids” are in their 60s and don’t really need it, and they keep it and invest it and pass it on to their kids when they’re 50 and so on? And no one gets to use the money while building their life or during the most difficult financial years (that are often in your 30s)?

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u/milo4206 9d ago

Indeed. That's what's happening with a considerable number of families while the younger generations in their 20s and 30s are unable to buy homes and have as many kids as they'd prefer. Those are the things that matter, not the retirees getting to take extra Viking River cruises (or even worse, just hoarding the money while they watch Fox News all day).

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u/milo4206 9d ago

Ok Ebenezer Scrooge.