Experts say baby boomers will give more than $50 trillion to their heirs. But for many, health care costs will claim the bulk of that wealth.

Experts say baby boomers will give more than $50 trillion to their heirs. But for many, health care costs will claim the bulk of that wealth.

The story goes that baby boomers are going to give tens of trillions of dollars to their heirs over the next few decades.

The “generational wealth transfer” has become a media fascination, both for its eye-popping size and because it might help younger generations as they face doubts about their financial security.

That shift is already in the works, and will continue for a couple of decades. According to wealth management firm Cerulli Associates, some $53 trillion will be passed down from boomers to their Gen X, millennial and Gen Z heirs, as well as to charities. That includes both gifts during their lifetimes and inheritances afterward.

But the overwhelming cost of health care for older people means most people in those later generations won’t inherit much, even if their elders seem well-off today.

  • IHeartBadCode@kbin.social
    403·
    1 year ago

    GenX here as well. My mother died horribly of cancer when I was 13 and my father left about two weeks after her death and I was legally transferred to the State’s custody.

    I’ve been told I’m “lucky” in that I’ll never have to shoulder my parent’s debt. So, you other people don’t know how lucky it was to be an orphan! But no really, a finical planner literally indicated to me that, THAT was a positive. And somehow that’s really colored my opinion on where we are as a society.

    • BombOmOm@lemmy.worldEnglish
      193·
      1 year ago

      What do you mean by shoulder your parent’s debt? Do you live somewhere that debts can transfer to children?

      • IHeartBadCode@kbin.social
        332·
        1 year ago

        Yeah here in Tennessee we have filial laws that puts some of that debt that parents rack up on the backs of the children. TCA § 71-5-115.

          • EatATaco@lemm.eeEnglish
            2·
            1 year ago

            https://www.linkedin.com/pulse/when-can-adult-child-become-liable-parents-nursing-home-a-perry

            I’d be curious to hear more from the op. The gist of this, as I understand it, is that the law is meant to stop people from stiffing nursing homes by not paying and then when the person dies ignoring the debt.

            And according to the article, it’s only be enforced one time when a woman fled the country owing almost 100k.

            So claiming that one is “lucky” that their parents died so they avoid this almost non existent thing doesn’t make any sense.

            • tsonfeir@lemm.ee
              1·
              1 year ago

              When my mother died in a hospice home, she had an unpaid hospital bill. They called me, as the next of kin, to ask if she was going to pay it before it went to collections. I said, good luck collecting from a dead woman. They apologized for my loss, and then said “Who is going to pay the bill?”

              Note: She was diagnosed with a treatable disease, but due to mental issues refused treatment in order to commit suicide. They allowed her to refuse treatment, and put her in a hospice. Now, I have no problem with a person wanting to die, but don’t fucking come after me when your hospital pulled the trigger for her.