[Nalani]

inheritance, how much Americans actually receive.

The answer is generally not much. 2/3rds of households don’t inherit anything.

The median inheritance for the lucky 3rd is only about $10,000.

It surprised me how low the numbers are. I suppose it makes sense, we generally talk about the total saves up for retirement which sounds like it should be enough to pass on something, but then that money is lived off of and spent down for decades.

This reaffirms that you shouldn’t count on receiving any inheritance.

It will be interesting to see how this number (and nest egg size) changes now that financial planning information is so readily available online and investing is so easy.

[Frank]

In my view, if you are leaving a big inheritance, you are probably doing life wrong and should have given more away while you are alive.

Because the more startling statistic is that that the average age of the HEIRS is now about 60 — long after most heirs could really have used the money well.

Which then often ends up in the pockets of some annuity salesperson or just squandered.

Also, as the article notes in part, “averages” are completely irrelevant when it comes to anything to do with wealth in the US, because averages are always skewed by a tiny group of people with a lot of money.

The average wealth of someone in Nebraska is completely different from the median due to the Warren Buffett effect on the total.

Medians are the only useful statistic when it comes to amounts of wealth, inheritances, etc.

[Alicia]

Also, we’re living longer. Both of my grandfathers died at 88 and my grandmothers are 89 and 99.

My inheritance was being raised in a loving home and surrounded by family who’ve provided wisdom, guidance, support, and encouragement throughout my life.

One of the best gifts we can give to our parents is to be self sufficient so that they can use their retirement and savings to care for themselves and age with dignity.

If there are assets after they pass, that’s a blessing but it should not be an expectation.

[Jess]

My parents both received inheritance (mostly my mom) and it stopped there.

Divorce, self-employment, the rising cost of everything… those all do a number on ability to leave inheritance.

My children likely won’t receive (much of) one, I’m still building back from being a single parent in school, but they have always received beyond adequate housing, good schooling, not only financial, but logistical support and compassion in extracurriculars, work ethic, and the knowledge and support they need to be successful in life.

One of my children would blow an inheritance anyway (unless he matures before then) so providing these things now does more good for them than money down the road.

[Brittany]

Honestly, I want my parents to get to enjoy their retirement.

I’m hoping for nothing and hope they get to enjoy the money themselves.

[Diane]

my mom who was a single mom spent money on the important things throughout my life.

She never gave my kids birthday gifts but gave them money which went straight into their college funds which grew and grew.

She gave me $10,000 as a down payment for my first house.

She was super special. When she passed I think we ended up getting maybe $15,000.

We took 7000 of that and went to Europe with our family. We decided to make some memories with that money.

I sure do miss her.

[Lynne]

It’s because of the horrendous costs of healthcare and nursing homes in the US.

You save for a lifetime and then you’re bled dry during your last few years of life.

[Jamie]

My mom got an inheritance, but I’ll get nothing from her because she lives off SS.

My dad’s death was sudden and unexpected, so I got about 15k but would have much rather had even 1 more year with him and got nothing.

[Elizabeth]

It will be interesting to see how things might change over the next 10 years. There has been a large increase in sudden cardiac deaths in people under 55 (mostly men) since 2020.

It’s well established that Covid infections increase the risk of heart attack and strokes for months to years.

It’s affecting the life insurance industry because more large payouts are happening on term policies.

I wonder how it will affect the shift of wealth between generations.

[Maddy]

My dad died unexpectedly and I inherited several hundred thousand. He was 64 and had JUST retired and hadn’t yet withdrawn from his 401k.

I would have MUCH rather had 20 more years with my dad and inherited $0

[Sarah]

I would agree no one should expect an inheritance, but it’s nice when it happens.

I’ve seen that assisted living care costs often drain healthy estates.

So far I’ve provided cars and offered college educations to my kids.

I hope to do most of my giving while I’m living.

[Dave]

1. Most people assume millionaires inherited their wealth. We know studies show that isn’t true. 7/10 do not inherit their wealth.

2. The general idea that everyone is inheriting anything is also not true for most.

[Jessica]

My Dad remarried and has everything going to his wife. She threatened divorce if he didn’t. So pretty sure my sister and I nor his grandchild will be seeing any of it.

It will be going to her nephew since she doesn’t have any kids and is super jealous of us.

Gotta love those lovely step”mom”s. Perfect example on why prenups are encouraged!

[Shay]

My mom passed away before she could retire. Right at the age of 65.

I was blessed to inherit her assets which weren’t a lot but allowed me to pay for my daughter’s college and for me to go back to school.

It’s been close to a decade and her blessing continues to give to me and my family.

[Harrison]

Generational wealth is hard assets like real estate or business.

I am pretty sure my daughter will inherit 10 times more wealth than I inherit from my parents.

[Melanie]

I wonder if it’s because the silent generation had mostly pensions, which stop when you die (or go to spouse only till they die) but the boomers have a combo of pensions plus 401ks plus crazy appreciation on their homes so (the lucky ones anyway) might have more assets that are able to be transferred.

[Kevin]

I know the super ultra wealthy skew the numbers but according to cnbc there is some 87 trillion to be passed down in the next 30 years.

Someone is getting a lot of compounding.

[Katie]

We find that it may be more helpful to assist during large life expenses (college, home buying, raising children) than leave an inheritance when my children are also “older” and it could be detrimental to their end of life planning, but we had children young. However people choose to plan is their business though

[Valoree]

I’d much rather my mom live her life to the fullest, enjoy her retirement than save and worry about leaving me an inheritance.

She was on track to have decent retirement but unfortunately she is on disability now due to her MS and probably won’t get to really enjoy retirement at all.

I think it’s weird when people think and are concerned about inheritance when their parents are still alive.

[Schurpf]

My dad tells me I’m inheriting his electric bill and my brother the gas bill – we will be lucky if that’s all!

(I know we don’t actually assume his debts, but it’s a tongue-in-cheek statement about the status of his retirement.)

On the other hand, we did receive an unexpected inheritance from my in-laws because they died too early from an accident.

Had they actually lived through their retirement I wouldn’t have expected anything to remain to distribute to heirs.

[Murphy]

My kids are getting theirs early after reading “Die with Zero”. Hopefully they don’t put us in nursing homes and forget about us though. Lol

My father’s making it a point to leave a good chunk of change for each of my brother and I. It will be in the Top 1% according to that study.

My in-laws are doing the same for my wife and her brother which will also be in the top %.

They’ve also made sure all of their grandchildren are set.

Don’t forget to get account numbers and institution names.

We have all of the info from our parents locked up. Also how to access their safes.

[Matt]

It SHOULD be easy to save, invest, grow net worth and have “something” leftover (as impossible as it is to time death, for the die with 0), the average American doesn’t make savings a priority.

The statistics are terrible.

It’s all about financial literacy and “retraining” from over-consumption being normal.

[Ashley]

I hope my parents use what they’ve saved and leave us nothing (on what they want to use it on, not LTC or anything), but my dad is dead set on leaving us a large inheritance.

Hopefully it’s not even a topic for 30 more years or so.

[Author]

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