Experts say baby boomers will give more than $50 trillion to their heirs. But for many, health care costs will claim the bulk of that wealth.

Experts say baby boomers will give more than $50 trillion to their heirs. But for many, health care costs will claim the bulk of that wealth.

The story goes that baby boomers are going to give tens of trillions of dollars to their heirs over the next few decades.

The “generational wealth transfer” has become a media fascination, both for its eye-popping size and because it might help younger generations as they face doubts about their financial security.

That shift is already in the works, and will continue for a couple of decades. According to wealth management firm Cerulli Associates, some $53 trillion will be passed down from boomers to their Gen X, millennial and Gen Z heirs, as well as to charities. That includes both gifts during their lifetimes and inheritances afterward.

But the overwhelming cost of health care for older people means most people in those later generations won’t inherit much, even if their elders seem well-off today.

  • ashok36@lemmy.world
    393·
    11 months ago

    Elder millenial here. I expect no inheritance from my mom or grandparents and no social security. I’m one of the lucky ones though. My dad died ten years ago and left me just enough to make a down payment on a house.

    The moral of the story is, give your parents cigarettes and hope the cancer kills them quick before the bills can pile up.

    • CrowAirbrush@lemmy.world
      84·
      11 months ago

      They summoned a new inheritance tax over here, they sold it to us in the shape of: to get more taxes from the rich.

      But those idiots don’t run around giving away money, they hand out businesses and stocks to their family or other assets.

      So who are once again ending up paying even more money? Hmm? Yeah that’s right, if my dad manages to have some money left the goddamn tax criminals will gobble that up even though i probably need it to pay for his funeral.

      • btaf45@lemmy.world
        141·
        11 months ago

        Only 1 in every 500 Americans is affected by the inheritance tax.

        Hmm? Yeah that’s right, if my dad manages to have some money left the goddamn tax criminals will gobble that up even though i probably need it to pay for his funeral.

        You need more than $5 million to pay for a funeral? Because there won’t be any taxes on the first 5 million.

      • Maggoty@lemmy.world
        10·
        11 months ago

        If that’s in the US there’s a very good chance there’s not enough money in the estate or inheritance to trigger it. We’re talking in the several millions.

      • mosiacmango@lemm.ee
        21·
        11 months ago

        In the US the threshold is 13 mil before inheritance taxes kick in, so basically never.

        The ultrarich still dont pay it here. The con they use is setting up a charity that they dump hundreds of millions into and then give their children outrageous lifetime salaries and full discretion to throw parties/events/travel/etc in the name of the “charity.” Since no one else actually donates, no one cares about how thr money is spent. They kids get the same ultra wealthy life style with none of the downsides, with media accolades and “Charitywashing” rarr rarrs to boot.