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.
I’m Gen X with an adult daughter.
I have never received a penny from a deceased family member and have watched too many people getting into nasty fights over the crumbs left by their recently departed loved ones.
It’s become a life priority to leave my daughter a clean estate, with no debt encumbrance, and no possibility for any other person to get at it.
At present, if I were to take my leave from this mortal coil today, she would net roughly $300k.
Part of my plan is to get everything out of my estate and into her hands before healthcare takes it all. Fuck them.
The irony here is that she won’t need it. She’s done well for herself. I anticipate that when it’s my turn to shake hands with the devil, she’ll more likely than not use the proceeds for some charitable pursuit.
The point is that I want her to make that choice rather than giving some doctor his semi-annual Ferrari that he’ll drive for six months then dispose of.
Kick ass. I’m gen x with 2 young kids and this is pretty much my plan.