Updated
Updated · Kiplinger's Personal Finance · Sep 8
US Households to Pass Down $124 Trillion as 2 in 5 Families Avoid Inheritance Talks
Updated
Updated · Kiplinger's Personal Finance · Sep 8

US Households to Pass Down $124 Trillion as 2 in 5 Families Avoid Inheritance Talks

3 articles · Updated · Kiplinger's Personal Finance · Sep 8

Summary

  • $124 trillion in financial assets is expected to move from U.S. households to heirs and other beneficiaries over roughly 20 years, including about $85 trillion to Gen X and millennial children.
  • Two in five families have never discussed inheritance plans, and many parents cite uncertainty over longevity, inflation and healthcare costs, leaving adult children unclear about what—if anything—they will receive.
  • The windfall will be uneven: more than half of the projected transfer is concentrated in the richest 2% of households, while about half of parents expecting to leave an inheritance estimate estates below $500,000.
  • Planning remains thin even as homes, insurance and retirement accounts make up much of the wealth: only 4 in 10 parents report having a will, and just 14% have written a letter of instruction.
  • The communication gap could shape housing, education and tax outcomes for millions of heirs, especially as non-spouse beneficiaries of traditional retirement accounts now generally must empty them within 10 years.

Insights

Why are adult children secretly changing their behavior to secure an inheritance that long-term care costs might completely erase?
Will hidden tax rules and healthcare expenses quietly destroy your family's financial legacy before it ever reaches the next generation?