Receiving an inheritance can be a real game changer. 🤑 However, if you’re not ready, you could be in for a bumpy ride. Taking on the family wealth is a big responsibility with lots of steps involved to do it right. ✅
Just how prepared is the next generation to take on Boomer wealth? Some new data just dropped…let’s take a gander! 👀
Here’s Five Fast Facts on the Great Wealth Transfer:
- ⏩ Money Moves - Boomers have a ton of wealth under their mattresses and they’re beginning to pass the torch. By 2048, they’re expected to transfer an estimated $124 trillion to their heirs. The big question: are they ready?
- 🪙 Wishing Well - In one report, 99% of beneficiaries said honoring their family’s wealth transfer wishes was a top priority and being financially responsible is super important. However, only 54% said they feel prepared to receive their inheritance.
- 😵💫 Who’s On First? - When it comes to wealth transfers going wrong, there are a few core reasons. The biggest one? A lack of communication and trust within the family. Another reason: the heirs don’t do their financial homework and lack inheritance management skills.
- 🗣️ Talk It Out - In some families, talking about an inheritance before death can be taboo. Data shows that two-thirds of family wealth holders put off important money talks with heirs. In one survey, only 39% reported providing proper guidance and instructions.
- 📉 Biggest Loser - Even though talking through wealth transfers can be awkward, a lack of preparation comes with big consequences. According to a 20-year family study, around 70% of wealthy families lost their wealth by the second generation. Another 90% lost it by the third generation.
🔥Bottom line: How can heirs better prepare? Money knowledge is power, people. If you’re feeling overwhelmed or confused about the wealth transfer process, seek out a professional to guide you through! Looking for a financial advisor? Check out this article for some top tips.
Are you preparing to receive an inheritance?
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