"Only about 20% of Americans are expecting to receive any inheritance at all. This represents a decline compared to decades prior. However, among those who stand to inherit, there exists a bias labeled the "inheritance illusion", where people overestimate the likelihood or amount of inheritance, which can lead to under-saving. Still, Cerulli Associates (2024) estimates that $84 trillion will transfer between generations by 2045, with $16 trillion going to charities rather than heirs."
"What should you do if you are expecting a large inheritance? Is it wise or financially prudent to factor an inheritance into your financial plans? How much inheritance is typical? These used to be very common questions that are becoming increasingly rare these days. But if you find yourself with the potential of inheriting a vast sum of money, it can be a stressful and confusing time."
"If it feels like nobody is getting an inheritance these days, you're not wrong. According to repeated studies, the Boomer and Gen X generations are much less likely to leave money behind for family than any previous generation. They are more willing to spend all their money on anything (as long as it's for themselves) before they die. That is in stark contrast to the Millennial and Gen Y cohorts who have seen the impact of rampant inequality and greed"
Only about 20% of Americans expect to receive any inheritance, reflecting a decline versus past decades. The "inheritance illusion" describes prospective heirs overestimating inheritance likelihood or size, which can encourage under-saving. Cerulli Associates projects $84 trillion in intergenerational transfers by 2045, with $16 trillion directed to charities rather than heirs. Boomer and Gen X households are less likely to leave money to family and more willing to spend assets before death. Millennial and Gen Y cohorts, shaped by rising inequality, show greater willingness to share wealth before passing it on. Expecting a large inheritance can create stress and planning challenges.
Read at 24/7 Wall St.
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