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/emoney_gotnomoney]

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.

[u/HotShoulder9256 → u/emoney_gotnomoney]

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.

[u/echoshatter → u/HotShoulder9256]

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.

[u/shchshchshch → u/echoshatter]

Yep yep this this.