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.
At least you don’t have to accept the succession if they’re worth less than the amount of debt they have.
Depending on the debt, they wont do much more than go after your parent’s estate for anything they can and write off the rest.
My mom died this year and the state sent me a form telling me how much she cost the state and that they were looking to take up to that much but I wasn’t responsible for the rest. Thankfully, having been estranged from her for years, they basically told me to pass on the last known info for her and dropped the issue.
I’m sorry for your loss. Thank you for the advice, I may have to utilize that with the eventual passing of my estranged (useless) mother.