Tags: inheritance | baby boomers | millenials | wealth

Americans Pessimistic About Getting Inheritance

By    |   Monday, 07 October 2013 12:15 PM

Americans are not laying around waiting for a fat inheritance. Actually, many people are not expecting their elders to leave them a cent.

In a recent survey from Interest.com, about 75 percent of respondents, aged 18 to 59, said they are not expecting to inherit any money from their families, says CNBC.

Of those who expect some money, property or valuables, a quarter predict their inheritance will be valued between $10,000 and $50,000, and half say whatever they get will be worth less than $100,000.

“Younger people tend to be perhaps too conservative in estimating whether or not they'll get an inheritance because they don't want to think about it,” Mike Sante, managing editor of Interest.com, told CNBC.

However, some point to the conditions that younger generations have witnessed. Take Generation Y, commonly referred to as the millennials. This group consists of 80 million people in their 20s, says Time.com.

“Growing up, millennials have witnessed many boom and bust cycles, the dot-com bubble burst, mortgage crisis, two stock market crashes,” Alex Pigliucci, Global Managing Director of Accenture Wealth and Asset Management Services, told Time.

And they are currently living through the aftermath of the financial crisis. These young people are very familiar with wealth destruction and economic struggles, but what many have yet to witness is a flourishing inheritance system.

In 2000, the Planned Giving Design Center released a study forecasting that at least $25 trillion in wealth would be passed from one generation to its heirs between 1998 and 2052.

But so far, most of the money projected to flow down the pipeline to baby-boomers hasn't arrived.

“Reality happened” said Time. Incomes stopped rising, the plague of unemployment appeared and for 13 years, buy-and-hold stock investors have been sitting on “dead money.”

According to the 2012 Allianz Life American Legacies Pulse Study, many baby boomers are not highly optimistic about the outlook for their inheritances.

CNBC says the results show 15 percent of baby boomers in that study are not expecting to see any form of wealth handed down. About a quarter are expecting to inherit less than $50,000.

Despite the toll of the recession and the pessimism of younger generations, baby boomers still intend to pass along some wealth.

Six in 10 people, age 60 and above, in the Interest.com survey say they expect to leave behind an inheritance, and nearly a quarter of them expect it to be between $100,000 and $500,000.

Derek Gabrielsen, a wealth adviser with Strategic Wealth Partners, told CNBC the majority of people expecting nothing will receive something, especially if they are potential heirs of baby boomers.

"The baby boomer generation is, without question, going to be the largest wealth transfer in American history … from them to the next generation," Gabrielsen said.

Related Stories:

Allianz: Boomers Now Less Likely to Receive Inheritance From Parents

Study: Wealthy Less Likely to Leave Inheritance to Children

© 2020 Newsmax Finance. All rights reserved.

1Like our page
Americans are not laying around waiting for a fat inheritance. Actually, many people are not expecting their elders to leave them a cent.
inheritance,baby boomers,millenials,wealth
Monday, 07 October 2013 12:15 PM
Newsmax Media, Inc.
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved