It’s a moment of massive transition. Economists have long predicted the $84 trillion “Great Wealth Transfer,” as Baby Boomers pass on assets to younger generations over the next two decades. But a Northwestern Mutual survey reveals a surprising truth: just 26% of U.S. adults expect to leave an inheritance. That number is even lower for those who aren’t already working with a financial advisor or estate planner.
For many families, this expectation gap isn’t about intent; it’s about uncertainty. Longer lifespans, healthcare costs, and shifting economic priorities are making people wonder: Will there be anything left to pass down?
The Inheritance Expectation Gap
While headlines forecast trillions in inherited wealth, reality tells a different story for many Americans. The annual Planning & Progress Study by Northwestern Mutual found that only one in four adults plan to leave an inheritance.
“There's a gap between the perceived transfer of wealth and the actual readiness of families to make it happen,” says Northwestern Mutual’s chief strategy officer, Christian Mitchell
This is particularly striking in the context of rising home values and investment account balances. But for many people, wealth is being used to fund longer retirements, rising healthcare expenses, or to support children while still living.
Meanwhile, younger generations may be overly optimistic. A 2024 Fortune analysis notes that 38% of Gen Z expect to receive an inheritance, compared to just 22% of Gen X and Baby Boomers who plan to leave one.
What’s Behind the Gap: Longevity and Liquidity
One of the biggest factors influencing whether families leave an inheritance is longevity. Americans are living longer than ever, often into their 80s or 90s. This increased lifespan means more years of drawing down retirement savings, dealing with long-term care costs, or navigating inflation-driven expenses.
Many retirees are also prioritizing quality of life now over passing down assets later. According to an AARP report on retirement and financial security, more than 60% of retirees list personal spending and healthcare as their top two financial concerns in retirement. The pressure to maintain independence and dignity in later life can conflict with the goal of leaving a financial legacy.
In addition, not all wealth is liquid. A home may be valuable on paper, but not easily converted into an inheritance without downsizing or triggering tax implications. These are decisions many retirees don’t want to make while still living in their homes.
Steps to Build a Legacy Without Sacrificing Your Security
Even if you're not sure whether you'll leave behind a large inheritance, there are steps you can take to protect your loved ones and support your values:
- Create a comprehensive estate plan. Having a will or trust is the foundation for any legacy, regardless of asset size. According to Fidelity, only about 33% of U.S. adults have an estate plan in place.
- Start early, even with modest assets. Establishing clear beneficiaries, power of attorney designations, and healthcare directives ensures your wishes are known and respected.
- Discuss your intentions. One of the most common sources of family conflict is unmet or unspoken expectations. Open conversations about your plans can reduce confusion and prevent disputes later.
- Consider charitable giving or legacy accounts. Donor-advised funds and charitable remainder trusts can allow families to support causes they care about while also reducing estate tax exposure.
- Think beyond cash. Leaving behind wisdom, values, and guidance for your heirs can be just as meaningful as financial support. Some families write ethical wills or record messages to pass along family history.
Conclusion
The idea of inheritance is changing. While the “Great Wealth Transfer” remains a significant economic event, not every family will experience it the same way. For some, financial legacies will be modest or non-financial in nature. For others, planning and communication will make the difference between wealth lost and wealth preserved.
Estate planning is not just for the wealthy. It's a way to bring peace of mind and direction to uncertain times. Whether you expect to leave a lot, a little, or something entirely different, making a plan is still the most powerful thing you can do.
To begin crafting your own legacy, visit BascomLaw.com or call 770-285-5493 to schedule a consultation.
Sources
Northwestern Mutual Planning & Progress Study
AARP Retirement and Financial Security Survey
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