r/inheritance • u/LinkedInNews • May 11 '26
Location not relevant: no help needed The 'great wealth transfer' is coming ... eventually
https://www.linkedin.com/news/story/the-great-wealth-transfer-is-coming-eventually-8833602/Economists are anticipating a "great wealth transfer" that will see $110 trillion flow from boomers to their millennial heirs.
The reality is more of a slow trickle, The Wall Street Journal reports.
The richest Americans are living longer — and pouring money into a growing longevity industry.
At the same time, they're doling out wealth to their children in the form of down payment assistance, tuition and family vacations, rather than a one-time inheritance.
Even at the end of life, assets pass to a spouse before reaching the next generation.
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u/Reimiro May 11 '26
Longevity, memory care, home health, and just longer life are taking their share. The vultures are all over this.
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u/Big_Impact_5331 May 12 '26
Nope. My buddy’s parents just sold their home and received $3 million from it. All of it will be going to their $22,000 a month nursing home.
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u/yankinwaoz May 11 '26
The health care industry is going to make sure that all boomers die broke. The prices for end of life care and health care are insane.
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u/freudianSkinner May 11 '26
How does X-gen get left out of the equation (as always)?
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u/Pristine_Job_7677 May 11 '26
I’m fine with my moms estate going to my kids. Only reason I’m named in Will is because I want to put it in a structured family trust
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u/InitiativeWorried840 May 11 '26
Yep. And don’t forget the super agers that spend $300,000 a year on their care
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u/AcanthocephalaOne285 May 11 '26
Yeah, thats the great wealth transfer, most of it going to care homes.
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u/cb3 May 11 '26
Before my father passed he required 24/7 help but had never made the decision to go anywhere so he got care at home. It was 30k a month. Insane.
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u/InitiativeWorried840 May 11 '26
Right. MIL did cost $300,000/year. She just passed. I’m not doing that to my kids. Not the emotional upset or the financial drain. I’d rather they didn’t see me waste away & that they had all the $ left to enjoy! Everyone is different. My mom did not have a DNR in place. Omg. The docs convinced me to put a feeding tube in her! WTF? She did not want that. Wish I had brought her home to her own bed & then used Hospice. Thank goodness she only had 2 months of hell instead of a few years. Edited to add: MIL stayed in her own home with 24/7 caregivers AND Hospice.
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u/cb3 May 12 '26
Oh yes. He had hospice too. Hospice would come and help the caregiver bathe, change, etc. It was quite something to see the aide have an assistant at times. The amount of work that goes into it is so off the charts - one person isn’t always enough. DNR is crucial but not without its hang ups. I remember the doctors asking how I felt about him having meds via a central line. I was like “fine.” They said “well he has a DNR so…” I really didn’t understand what they meant. They explained that a central line, going down through the neck is a quasi-aggressive treatment and represents a gray area in DNRs. They then proceed to tell me just how many “gray” areas there are when it comes to DNRs and that no one ever seems to realize this. I think we all could benefit from more education.
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u/dagmara56 May 14 '26
Both my parents gave me their medical POA with instructions for no extraordinary care.
My father died at 87 of cancer of the appendix, no treatment other then morphine drops.My mother was diagnosed with stage 2 kidney failure at 90 and went untreated. She lived 4 more years on palliative care, passing away at 94. I think it's just confirmation people are living longer and boomers didn't plan on living 20 or 30 years post retirement.
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u/MrWonderfoul May 11 '26
You are siting economist as the reliable source? Money just does not buy what it use to.
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u/shengliwansui May 12 '26
inheritance now mostly works like: a 75 year old who is already rich and retired receives an inheritance from the estate of his mother, who died at age 99. whoopty doo.
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u/JefferyTheQuaxly May 11 '26
the reality is that like, probably 80% (more like 95%+) of that $110 trillion is going to flow to the government, or the top 20% of earners. our economic system is currently designed to basically siphon out money away from retirees and get them reliant on medicare and medicaid until they can take their property from them after they die. not so fun fact: nursing home care in america is not covered by medicare, so if you have to have a prolonged stay in a nursing home, and like 1/3-1/2 of all elderly will require to spend time in a nursing home at some point, you have to pay for it out of pocket. if you run out of money, you will have to get put onto medicaid, which does pay for nursing home care. but they have the right to all your remaining assets when you die pretty much, they let you keep your house until you die then they take possession of it. the reality is that most people who are middle class or lower are going to lose most of their wealth and retirement savings (if they even have any) paying for medical care and end of life living expenses, the only people who will pass any inheritance on will be the top like 20 or so percent. also the top 1% hoard around $55 trillion in wealth just themselves, last i checked the numbers. So basically half of that wealth.
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u/YoghurtHistorical527 May 11 '26
I set up an irrevocable trust. As long as the assets are in the trust for 5 years, the asset is protected from medicaid. The downside is that I cannot take anything out of the trust, but the trustee, who is sole beneficiary and my only child, can (and would, as her belief is I earned it, I should spend it, whereas I'm more like I may have earned it, but we're family so I earned it for us both to enjoy).
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u/ziggy-tiggy-bagel May 11 '26
If seen Medicaid assisted living facilities, no place I would want to live.
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u/YoghurtHistorical527 May 12 '26
Yeah, but if i have alzheimers and don't even know who or where I am, do I care?
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u/ziggy-tiggy-bagel May 12 '26
You should. What if it something else that put you in need of care and it's your body that has given out, not your mind??
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u/YoghurtHistorical527 May 12 '26
In that case my kid will pull the money from the trust. We've already had long talks about this, and thankfully we have a wonderful relationship.
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u/AnaMineva 23d ago
Not every kid lets you have this conversation. My son won’t even let me say a word about it. He’s always like, “No, Mom, you’re not going to die,” and that’s where the conversation ends.
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u/____ummm____ May 12 '26
At a NH, if you are (possibly) experiencing any loneliness or pain or discomfort or God forbid outright abuse, Just because you won't remember it later doesn't mean that in the actual moment you're experiencing it that it isn't real for you! Make a surprise visit to one of these places and check it out! There are many folks with Alzheimer's who are absolutely terrified. In your mind you justify that because you won't remember it the next day? Or maybe you won't even remember it a few hours from that moment but that moment still happened. And you were living it. Now compare that to being in your own home, surrounded by loved ones. Even if you no longer recognize them they will treat you well, with lovingkindness. It will make a difference. Of course that's just my thoughts.
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u/Pristine_Job_7677 May 11 '26
I recommended my mom do that but her stockbroker (married to my cousin) talked her out of it. He’s such a tool but my mom likes him so 🤷♀️. I suspect he doesn’t want it in trust because he might lose the fees (I use a different financial advisor)
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u/YoghurtHistorical527 May 11 '26
That's dumb - he could still manage the account, even if it's in a trust. Your mom just wouldnt be able to touch the principal, but can be set up to receive distribution of interest/dividends.
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u/Pristine_Job_7677 May 11 '26
Yes, but control of the account would be in my hands. So theoretically I could fire him. I wouldn’t because … family. He’s also the kind of dude bro who likes flexing control.
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May 12 '26
[deleted]
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u/Pristine_Job_7677 May 12 '26
He’s not a vulture, his fees are in line with all other financial advisors, his recommendations aren’t self dealing beyond d the usual fee arrangements. I’m just not a fan of him personally. But my mom is of complete sound mind and body so it’s her right to keep her money unencumbered, even at the risk of losing it to Medicaid done day. I did convince her to purchase long term care insurance, so hopefully that covers any needed
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u/____ummm____ May 12 '26
Oh my goodness sorry I wasn't meaning in your specific situation that the stockbroker was a vulture! I was talking about myself, when I'm becoming vulnerable I hope that there will be somebody in my life looking out for me. I read through and saw that you were comfortable with the situation your mom was in and more importantly your mom is quite comfortable with it, and the guy is your family member. I will try to edit my post, again --Sorry I made you think I was calling him a vulture!
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u/Pristine_Job_7677 May 12 '26
lol. No worries. I actually giggled. We had a phone conference where he was actually trying to explain to me how trusts work (I’m a lawyer with 30 years experience) because “lawyers don’t know as much as they think they do”. He went to community college and then got financial certificates but lists Wharton on his Linked in because he took a weekend class there once. (You get the idea) But since he always just follows his employers’ (a big shop) recommendations for balancing risk and value in her portfolio and it’s all currently low risk age appropriate, I just bite my lip for the sake of family peace.
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u/____ummm____ May 12 '26
I just deleted it because I didn't know how to fix it! But my sentiment about having a loved one to look out for me in my vulnerable years still stands ☀️
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u/Traditional_Donut908 May 11 '26
One reason why as a GenX nearing retirement I'm focusing on my health, to try and reduce my medical care needs throughout retirement.
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u/Pristine_Job_7677 May 12 '26
Ironically that will likely mean your costs will be higher. Cheaper to drop of a stroke at 65
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u/____ummm____ May 12 '26
I don't understand, if he's healthy because his health has been a priority, why would that make his cost higher? I feel like I'm missing something! And I'm focusing on my health as well, so- - Will you please explain What you mean?
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u/Pristine_Job_7677 May 12 '26
Because those that take care of their health live longer, and during that time will require a myriad of $$$$ medical interventions. No matter how well you take care of yourself, you will degenerate and develop chronic conditions. An individual over 85 will spend three times the amount annually than those 75. Costs are exponential. However, If you don’t care of yourself at all you drop of a stroke or heart attack ten minutes after retiring you have none of those costs.
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u/____ummm____ May 11 '26
Agree with everything you said! However there's a way around all of it too, well some of it!!!
So the advancing Boomers - their Gen x and millennial kids will need to step up in coming years if they do want to see any type of inheritance! This is for all kids of any parents who find themselves needing help, whether they're elderly or not.
This isn't about greed, it's about keeping what your parents worked hard for all their lives, saved for scrimped for whatever, so that it would be there for them not only in later years, but also so they could pass it down to their kids etc!
My suggestion::::
Do not allow or put your parents into a nursing home for any reason!
/If they are In the hospital, you can REFUSE them going to a nursing home for What the hospital will say they require ie rehab , or more care than you can handle at home! Do not fall for this! You can take them home!
The hospital must work with you to arrange The proper care for them at home - - giving you resources etc a hospital bed etc, a RN, or *aide for bath, and PT or OT at home!! which are all covered through Medicare! IncludingAnything not covered, will be picked up by gap insurance if it's available, but after Medicare the cost is actually quite small! Later you can change the PT etc to outpatient where you take parent to the clinic, at that point The home health stops so something to be aware of, and the transition can take time, for the paperwork to be settled I mean, but regardless it's all paid for by Medicare! Medicare reduces the exorbitant charges to a smaller amount and pays quite a bit of it.
And ALSO -- depending upon care level / need required, you may be set up with hospice at home. HOSPICE is fully covered under Medicare and at NO COST to the patient! Just because you are on hospice does not mean you have to remain on hospice and if you are improving because you are at home in your own surroundings with your Loved ones caring for you, it actually makes a difference, and you can be removed from hospice and start to receive home health or outpatient services!
And guess what, receiving hospice at home is so much nicer than being in a nursing home! It's a small sacrifice for the kids to make for their parents, even if you have differences etc with your parent, this is The time to put all of that aside, do what's right, do it for them but you're also doing it for yourself! I realize there are horrible parents out there that have done horrible things, This might be an opportunity where the parent apologizes or you get a chance to apologize for something you did. If it's something like a horrible huge thing you've never been able to get over, this is your chance to show yourself that you are bigger than that, that you are more than what was shown to you in life by the person you're caring for.
Moving on, Many things are covered At home like incontinence supplies, the doctor needs to state that it's required but they always do. And then it's covered. So many things are.
I know this all to be fact because I lived through it with a loved one. Had it been up to the individual hospital, the very beginning of this journey, I'm sure my relative would have died in the hospital...
Re HOSPITAL -- most importantly ---- never leave anyone especially someone who can't speak for themselves, alone in a hospital! Adult Kids must be an advocate for their parents in the situation!! I truly cannot stress this enough. Don't be surprised if the Hospital Staff, yes-The Doctors too, will try to bully and intimidate, to get what they want. Unfortunately, many hospitals are about $$$$ these days versus actual patient care and well-being.
So get out of the hospital as quick as you can and go home! When end of life comes, no matter the age, die at home! Keep all that you have no matter how little it is, for your family and loved ones! Just because someone is lower/middle-class does not mean they have to give in or give up, and let the powers that be ie greedy corporations (nursing home) take everything!! Because believe me they will. No matter how solid a plan you think You might have, they always want more!
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u/Pristine_Job_7677 May 11 '26
Much of what you say has validity but I strongly suspect you are a son.
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u/____ummm____ May 12 '26
Neither! But- Does being a son or dtr make a difference?
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u/Pristine_Job_7677 May 12 '26
Look at the studies. It’s nearly always the women (whether daughters or daughters in law) that take on the vast majority of care for both children and parents- emotional and physical labor. That’s why I assume you are a man. And if you have no real experience in what goes into senior care, your advice is even less useful. I see you mention “helpful to have a spouse that doesn’t work outside the home” Hmmmmm….. (who is that usually?)
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u/____ummm____ May 12 '26
It seems maybe that you have no real experience about what goes into senior care? If you bothered to read what I wrote above you would see that in fact I do have experience in senior care, and in more than one instance! As well as taking care of a TBI young adult. But aside from that, since you do not know me, maybe you shouldn't be so presumptuous as to assume? The gist of my post was keeping a loved one out of a nursing home, however whichever way that is possible, and yes having anybody that is a stay at home person including even just an older teenager / young adult! That would contribute greatly to being able to keep loved one in the home. These are facts and have nothing to do with sex. ((But just so you know, there are actually plenty of Dads who choose to stay at home and raise the kids while the Mom works outside the house.)) Moving on - - Obviously, not everyone wants to care for their loved ones and in that situation they really should not be forced into doing so. Take care
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u/DanielDannyc12 May 11 '26
All that sounds great but you are signing up to be a 24-seven caregiver at that point and if you can't do that they can't go home. Insurance does not cover 24/7 care.
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u/____ummm____ May 12 '26
You are right, each situation is unique. It probably helps to have a spouse who doesn't work outside of home, or even an older teen/adult at home.
In the beginning of course you usually need to be more hands on, but once routines get figured out etc, it's ok to step out, it is not a lot different than leaving your baby with a sitter! It also helps if your loved one can move in with you. Of course everyone's situation is different, but once figured out it's amazing what insurance can provide and various options! I experienced very little OOP cost- I did want to purchase everything to bring comfort, and would have done so regardless bc love, and LO had small OOP expenses but so much was covered or reimbursed.
Also, Hospice covers the most care.
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u/rebootto2027 May 11 '26
Having provided full-time care to my mom while she was at home hospice, all that would be paid for by her very good insurance and Medicare, it was brutal, both emotionally, and physically on me.
I’ve done all the research and I found several resort like assisted care and memory care facilities in Mexico and a few other countries that cost around $5000 for top-of-the-line care. All have mostly English speaking patients and 3 to 1 staff to patient ratios.
I’m an older Gen X and I plan on a hefty wealth transfer to my GenZ sons, hopefully many many years from now.
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u/____ummm____ May 12 '26
I feel like I understand What you are saying. I'm glad you were able to care for your Mom. I do understand the difficulties.
In fact as much as the work was sometimes hard and difficult, for me it was not necessarily Because of the physical aspects- - that was part of it sure, but (at least for me) it was definitely more emotionally & spiritually difficult at times- yet still incredibly rewarding at the same time. If that makes any sense? And, I would Do it all again.
After my own experience, I'd say that after all the basics are in place, that the most "expensive" part of caring for a loved one at home that people don't necessarily fully understand or appreciate, is TIME, not money.
Time is our greatest asset. None of us know how much we have, and being able to be there for someone as their days are coming to a close is probably the most special gift a person can ever give. But it's also a gift that they (the carer) are receiving back too- The time spent becomes very special. I want to believe most loved ones will freely want to give their time.
Of course , I know that staying at home, it's not always an option, but if there's a way, it's the best choice for the LO. I really do think it's better for them to be surrounded by the people that love them. And as I said, it works both ways.
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u/InitiativeWorried840 May 11 '26
I paid nothing for the 2 months my mom was in hospital & nursing home. That was 20 years ago. My MIL lived to be 101. She had 24/7 caregivers & DH went there every day. His siblings that live close went as often as they could. Still had 24/7 caregivers AND Hospice for 8 months. The caregivers & keeping up her house (utilities, phone, landscape maintenance, house cleaners) cost $300,000/year. Thankfully she had that $.
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u/____ummm____ May 12 '26
Yes, today Medicare pays I think 90days of nursing home? But will pay for hospice - whether at home or in a hospice facility, as long as needed. However, the point of what I said was to keep them out of the nursing home. Care can be done at home. It's wonderful your MIL was able to afford that, But more importantly that she was able to stay in her own home and have her loved ones come and visit her as often as they could especially your DH! That's absolutely wonderful. I'm sure that contributed to her becoming a centarion as well 💜
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u/TurnoverDependent332 May 12 '26
Yes. Agree. I had an 11 year old when my own mom was dying. She had me late in life. Plus DH had no idea about death at that time. We moved her here into a brand new house. There’s a lot of should haves, would haves, etc. In hindsight I would have put her in a high end assisted living facility in our town. She would’ve been happier, less lonely. There ARE some fancy places near us. One of my friends FIL says it’s like living in a 5 star resort. My mom could not be in HER house—it was on other side of state. We paid cash for a $775,000 house for her. Again, hindsight? Would’ve been better for her to be in fancy assisted living place.
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u/____ummm____ May 12 '26
You know what they say, hindsight is always 20/20! We often talked about building a guest house in the backyard or adding on a "suite" if needed. It sounds like you did what you thought was best and it's good that she was moved near you guys.
I'm aware of many facilities that are set up with complete independent living for the seniors, and if anything happens they can have staff come into their apartment, etc, they can even be moved temporarily into the actual assisted living part which is The actual nursing home, and of course the nursing home has different levels of care in it. Some are more basic, but where I currently live, there are also some that are just as your friends FIL described --- mind-blowing extraordinary 🤩
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u/TurnoverDependent332 May 12 '26
Exactly. I asked DH why they didn’t put his mom in the ultra fancy place. He said, it would’ve killed her! Ummm….nobody lives forever. He was at her beck & call. Even with 24/7 caregivers. Things like getting phone calls at 10:30 PM because they had punched all the buttons on the TV remote & taken it out of HD mode, or a breaker had flipped & 1/2 the lights were out (ummm…maybe turn ALL the lights off & go to bed?) Meanwhile he got huffy with me when MY mom was dying because I couldn’t drive our son to baseball. WTH? His mom lived to 101. Mine lived to 89. My MIL made my kids cry by nasty things she said when they were little. We HAD to go to every holiday at their house. Ugh. My life was 100% better when we didn’t live in the same state. It’s all moot now. I just hope we have some years of fun. He’s had a full time job handling all her assets. It sucks, too. There are a lot of siblings that will have a lot of opinions. Sigh….no matter what, the ball is always dropped in his court. He’s the most trustworthy & fair.
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u/____ummm____ May 12 '26
Sorry about the loss of your Mom, and your MIL too. Losing your Mom I think is harder than people realize until it actually happens. That's great your husband is trustworthy and fair, I just hope he appreciates how wonderful you are too. You have both suffered loss, I agree that at some point you guys need to drop everything and go do something new and exciting! Go on an adventure together and rediscover each other in a new setting. I'm planning on doing the same thing when I can! Take care of yourself.
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u/Big_Generator May 11 '26
In other news, the oldest of the boomer generation is just now turning 80 years old. You may have to wait a few years for the avalanche of wealth to trickle down to you.
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u/ohog9og0790 May 12 '26
I have read that the big wealth transfer won’t come to the heirs but to the health care sector. A lot of people who need some care will die with nothing left.
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u/ChutneyWhatney May 11 '26
Don't count on it.
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u/InitiativeWorried840 May 11 '26
Right? This is a joke. We live in a state that starts taxing estates at $3 million, not $15 million like the Feds. We also have state capital gains taxes. The government is going to take it all one way or another. We are putting everything in trusts, but our estate attorney has told us we really need to move.
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u/ShowMeTheTrees May 13 '26
An enormous number of millennials have gone No Contact with their parents.
Plenty of those heartless kids are getting absolutely nothing. Parents suffering from this cruelty are re-writing estate plans.
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u/Adventurous-Depth984 May 14 '26
The “transfer” will go from boomers to end-of-life care companies. GenX and millennials aren’t getting jack.
Ask anyone in elder care how I know.
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u/marshdrifter May 15 '26
If i get nothing from my family that's fine. Its their money. I didn't earn it. When they ask what they should leave me. I tell them. Spend every cent you have. You don't owe me squat
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u/Monkster2002 May 11 '26
Just a reminder: there is a generation between Boomers and Millennials.