The upcoming era of boomers passing on resources to their children is currently being talked about as the “great wealth transfer.” With boomers holding more wealth than any other generation, before or since, the total amount expected to trickle down to younger generations is above $68 trillion. But recent studies suggest the average millennial with boomer parents in Michigan or elsewhere in the United States may be over-calculating the funds their parents will leave them. Here are some of the most interesting statistics coming out of recent studies on this topic:
- 52% of millennials expect $350,000 or more in inheritance from their aging family members. However, the majority (55%) of boomers suggest the amount they will pass along is less than $250,000.
- Only 23% of adults feel very financially comfortable at present, with just 12% saying they “consider themselves wealthy.”
- Most parents (85%) value autonomy for their children, which may also impact the amount they choose to leave to children versus other causes.
Part of the disconnect is that boomers are calculating the cost of living for themselves as they age, including expenses like long-term care. They are also aware of the geopolitical and global financial situation and are often cautious to not overestimate the wealth that they have. Additionally, less than half (37%) of parents have a wealth transfer plan, so a significant proportion of people are not fully clear on what they are passing along or how they would like to do it. One way individuals and families can get on the same page about estate planning is by speaking with an experienced Michigan lawyer.