Generational Wealth Transfer – Update
Posted On July 27, 2012
At the turn of the century, economists estimated that about $41 trillion in wealth would change hands from one generation to another by the middle of the century. Now, a couple of new studies help clarify which generations will be inheriting how much.
For starters, according to a MetLife study, Baby Boomers still stand to inherit quite a bit from their Mature parents. They estimate that over the next couple of decades Boomers will inherit nearly $12 trillion. According to the study, roughly two-thirds of Boomers will receive inheritances and the median inheritance or transfer will be about $64,000.
That pales in comparison to what Accenture estimates that the Boomers will leave behind. According to their study, released in June of this year, Boomers will bequeath or transfer over $30 trillion to their heirs, mostly Millennials, over the next 30 to 40 years. The rate of transfer will start to peak in about 15 to 20 years. During that time, from about 2030 to 2045, it’s estimated that 10% of the total wealth in the United States will change hands every five years!Baby Boomers, Matures, Wealth