Young Americans Expect to Inherit $335,000 on Average

Economists project that over the next 25 years, baby boomers will pass more than $100 trillion of wealth to their heirs in what is being called the “Great Wealth Transfer,” according to Choice Mutual. 

On average, millennials and Gen Zers expect to inherit an average of $334,850, with the specific breakdown as follows: 

• 25% expecting to inherit under $50,000 
• 34% expecting to inherit $50,000-$200,000 
• 18% expecting to inherit $200,000-400,000 
• 15% expecting to inherit $400,000-$1 million 
• 8% expecting to inherit $1 million or more 

Of those surveyed by Choice Mutual, 61% said they’ve had a direct conversation with their parents about an expected inheritance or have seen a will or trust. Additionally, 74% said they’re confident their parents’ future medical and long-term care costs won’t significantly reduce their inheritance. 

The specifics of expected inheritances are as follows: 

• 73% expect to receive cash 
• 69% expect to inherit real estate 
• Nearly 2 in 5 say they’ll inherit investment positions 
• Nearly 1 in 5 expect to inherit other types of property 
• 1 in 6 plan to receive ownership stakes 

How will young Americans use their inheritances? The top plans are: 

1. Putting money into savings 
2. Investing 
3. Prioritizing housing or home improvements 
4. Paying off debt 
5. Saving money for their own children 

However, not everyone is expecting to benefit from generational wealth, and aging and end-of-life expenses can contribute to financial burdens. The survey found that 53% of people expect to be burdened by the financial responsibility of taking care of their aging parents, and 1 in 3 feel resentment toward their parents for not being in a better financial position.