Millennials, Estate Planning, and the Great Wealth Transfer: What You Need to Know
If you’re a millennial, the phrase “The Great Wealth Transfer” is more than financial news—it’s your future. Over the next 20 years, Baby Boomers will pass down an estimated $84 trillion to their children and grandchildren, with millennials and Gen Z set to inherit the lion’s share.[1] This massive transition will shape family trees, communities, and the very structure of generational wealth in America.
But before you start shopping for yachts or booking luxury getaways, it’s important to get real about what this inheritance means, why it matters so much, and why basic estate planning is a must.
[TABLE OF CONTENTS]- What Is the Great Wealth Transfer?
- Why You Can’t Wing It: The Risks of No Plan
- Estate Planning: Millennials, It’s Your Turn
- What Happens Without Planning?
- What to Watch for as the Wealth Transfer Picks Up
- Protect Your Legacy (and Your Future)
- Footnotes
What Is the Great Wealth Transfer?
The “Great Wealth Transfer” describes what’s already unfolding: Baby Boomers—America’s wealthiest-ever generation—are transferring their lifetime’s accumulation of money, real estate, investments, and businesses to the generations below them, mainly millennials (born 1981-1996) and Gen Z.[1]
- Total projected value: $84 trillion by 2045[1]
- Majority will go to family, but a slice will support charities, too
- Another significant portion of this wealth will simply disappear
This is no ordinary inheritance. It’s a game-changer for family finances, the housing market, entrepreneurship, and financial planning for younger Americans.
What Millennials Expect to Inherit (and The Reality)
If you’re a millennial, you’re probably hoping for (or counting on) a big windfall. Here’s what credible research says about those expectations:
- 84% of millennials and Gen Z expect to inherit over $100,000[2]
- Average expected inheritance among young Americans: $320,000[3]
- 15% anticipate getting at least $500,000; 6% think they’ll get over $1 million[4]
- Yet, only about one-third of boomers are “very confident” they’ll leave a significant inheritance[5]
- Top 1.5% of families will pass along 42% of all generational wealth—most will not inherit a fortune![7]
In short: Hopes are high, but reality is often less glamorous. Planning is crucial.
What Will Millennials Actually Inherit?
The coming transfer is about more than cash. Here are the major assets predicted to change hands:
- Cash/savings accounts
- Real estate: primary homes, investment or vacation properties[5]
- Vehicles: from daily drivers to classics and exotics
- Investments/businesses: stocks, retirement accounts, business stakes
- Valuables: art, collectibles, family heirlooms, jewelry[6]
For many, the inheritance will be a house or retirement account, not a briefcase full of cash.
Why You Can’t Wing It: The Risks of No Plan
So, everyone gets a payoff, right? Not quite. Here’s the uncomfortable truth:
- Only 1 in 3 Baby Boomers have a complete estate plan[8]
- Only 43% of millennials have a will or any estate plan in place[9]
- Inheritances might be split between multiple siblings
- Family disputes, legal confusion, and missed tax deadlines are common
- Probate can eat up to 10% of the estate’s value if not handled properly
There’s also the awkward fact that life happens: people live longer, encounter health expenses, or donate a portion to charity. Also, we haven’t even mentioned the possibility of having to pay Uncle Sam’s estate tax. The “big check” may shrink by the time it lands in your hands.
Why Not Just Wait?
Waiting means you might lose out. Without a plan:
- Assets could go to the wrong people (thanks to intestacy laws)
- Probate court costs, taxes, and legal fees increase
- Important wishes (pets, guardians, charities) may be ignored
Estate Planning: Millennials, It’s Your Turn
With more than two-thirds of millennials saying expected inheritance is “critical” to their financial security, the stakes are sky-high[8]. But proper estate planning isn’t just for your parents or grandparents. Here’s why:
- Even if you don’t expect to inherit soon, life is unpredictable (think: marriage, kids, health struggles, or accidents)
- Student loan balances, side gigs, crypto wallets, and online businesses all need to be protected
- Wills, trusts, and powers of attorney give you control over what happens to your assets, minor children, and even your digital legacy
The Minimalist Millennial Estate Plan
Too busy for paperwork? Here’s the quick-start list:
- Write a Will: Even if you don’t own much . . . yet
- Name Beneficiaries: Bank accounts, retirement plans, and life insurance should have up-to-date beneficiary forms
- Health Care Directive: Choose who makes medical calls if you can’t
- Power of Attorney: Appoint someone to handle your finances if you’re unable
- Have “The Talk”: Open up with parents or grandparents about what (if anything) you might inherit and what their wishes are. It’s also a good idea to encourage them to make a plan.
Pro tip: Talk to a pro. Estate planning lawyers make it way easier, and often spot things you’d never notice.
What Happens Without Planning?
Let’s be real: No plan = problems (for everyone). Potential pitfalls include:
- Family friction and inheritance disputes
- Massive tax bills for inheritors
- Delays—the average probate case can last 9-12 months (or more!)
- Heirs who aren’t ready to handle large sums of money may squander their windfall
A good estate plan means less stress, lower costs, and more of the legacy going where it belongs.
What to Watch for as the Wealth Transfer Picks Up
Estate planning isn’t just about paperwork—it’s about protecting dreams and avoiding drama.
- Don’t count your inheritance before it’s in your bank
- Consider generational family meetings about wealth and wishes
- If there’s a family business or shared property, talk strategy now (don’t wait for a crisis)
- Ask about professional trustees, succession planning, and trusts—especially if the estate is complex
Real Talk: The Top 1.5% Get Most of the Money
It’s inspiring to read headlines about “trillions,” but statistics show that the wealthiest 1.5% of families transfer almost half of all inherited wealth. For everyone else, the inheritance may be more modest and split between siblings or other relatives[7]. Don’t let expectations get ahead of reality.
Protect Your Legacy (and Your Future)
Estate planning is for everyone—not just for Boomers, billionaires, or property owners. Millennials are set to inherit the future—but also need to protect what they’ll one day leave behind. The best time to start is now.
Ready to get your estate plan started, or have questions about how to minimize stress, taxes, and confusion? Yolofsky Law can help. Our team specializes in guiding families through every step of the process, from basic wills to complex trusts and business legacy planning.
Let’s talk about protecting your future and your family’s legacy. Contact Yolofsky Law today.