Research shows that more adult children may inherit unexpected wealth over the next two decades. According to the Wealth Report, a publication by Knight, the silent generation is expected to be d Frank, a global real estate advisor in London.
Federal Reserve figures show that half of all inheritances are worth less than $50,000, but as baby boomers reach age 80 and older, their family members could begin to inherit more wealth. According to a survey by Alliant Credit Union in Chicago, more than half of millennials expecting an inheritance from their parents or another relative expect to receive at least $350,000. (Whether they actually receive that much is another question.)
An inheritance can feel like a gift, but it can also be stressful, especially for younger heirs. “Many Millennials lack the financial literacy to manage a large inheritance,” said Katherine Fox, founder and advisor at Sunnybranch Wealth in Portland, Oregon, and they typically don’t have a financial advisor to help them.
“I see very different levels of readiness, but the vast majority are completely unprepared for an inheritance and don’t know what to do when money actually comes,” said Ms. Fox, who works exclusively with heirs between the ages of 25 and 55 In these cases, Millennial heirs are essentially trading one set of stressors—not being able to save money, not being able to buy a home, and not being able to prepare for retirement—for a new set of stressors connection with the management of money.
“I have seen people paralyzed by the money they have inherited and the burden that comes with it because they want to make sure they manage it and grow it,” Ms Fox said. Inheriting a significant fortune at a relatively young age can give someone an incredible advantage that few people have – but many heirs are afraid of failure and losing something they didn’t deserve.
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2024-05-18 13:00:06
www.nytimes.com
