Not everyone is getting an inheritance—why some boomers are saying no
According to research from UBS, nearly $105 trillion will change hands by 2045, yet many boomers are rethinking just how much of their wealth their kids should receive.
The Baby Boomer generation has long been seen as the foundation of generational wealth. However, recent trends indicate that many Boomers are reconsidering their legacy plans, opting not to pass down their fortunes as previously expected. This shift is driven by various factors, from financial concerns to changing family dynamics, and it’s reshaping the traditional approach to wealth transfer.
The way wealth is passed on, or not, is now a hot topic of discussion in households across the country. Understanding why Boomers are making this decision requires looking at the broader economic environment and evolving social attitudes. As the cost of living rises and retirement savings are stretched thin, many Boomers are prioritizing their own financial security.
Others are making deliberate choices to leave behind a different kind of legacy, one that isn’t solely tied to monetary inheritance. With the shifting landscape of family relationships and economic challenges, these decisions are financial and deeply personal.
Increasing Healthcare Costs
Healthcare costs have skyrocketed in recent years, and Boomers are feeling the pressure. As people age, medical bills become a major financial burden, and for many in this generation, it’s eating into their savings. With expenses often exceeding expectations, it’s no surprise that some Boomers are choosing to keep their wealth to cover their own healthcare needs rather than pass it down.
In addition to routine medical expenses, the rising costs of prescription medications, insurance premiums, and long-term care have led many Boomers to reconsider their wealth distribution. In fact, a Kaiser Family Foundation study found that one in five Boomers has spent more than expected on healthcare in retirement. These unexpected healthcare expenses can consume a large portion of a retirement fund.
This financial strain can make leaving behind a substantial inheritance feel less feasible, as many Boomers are unsure whether they will have enough funds left to cover ever-growing costs in their later years.
Rising Life Expectancy
With life expectancy rising, Boomers are facing longer retirements. This means their wealth needs to stretch further than initially planned. For some, this extends the need to allocate resources for unexpected long-term care, leading them to forgo passing down wealth to their children.
Longer life expectancies often mean that people will require more resources to maintain their standard of living well into their 80s or even 90s, especially when health problems or dementia set in. According to the National Institute on Aging, the average life expectancy in the U.S. has increased significantly in the past few decades.
As a result, Boomers are adjusting their financial plans to ensure they won’t outlive their savings. With this reality in mind, many Boomers are shifting their focus from legacy-building to long-term self-preservation, meaning that their wealth may no longer be considered an automatic inheritance to pass on.
Concerns Over Family Dynamics
For many Boomers, family dynamics have shifted, making them less inclined to pass down wealth. Whether due to divorce, remarriage, or complicated family structures, Boomers often face challenges in dividing wealth fairly among heirs. As a result, some are choosing to keep their wealth rather than risk causing familial strife. Blended families, different financial needs among children, and estranged relationships all contribute to the challenge of deciding how wealth should be distributed.
According to research for abrdn, about a third of Baby Boomers are reluctant to pass on their wealth to someone whose attitude toward money differs from their own, and other national surveys show that families without clear estate plans are much more likely to end up in disputes over inheritance.
Such concerns often lead to reconsideration of wealth distribution and, in some cases, to a decision not to leave any money. Instead, these Boomers might choose other forms of inheritance, like knowledge, wisdom, or life lessons, which they view as more valuable than financial assets.
Desire to Spend Their Wealth
Many Boomers want to enjoy their hard-earned money while they’re still around to experience it. After decades of working, they’re choosing to spend more on travel, luxury items, and experiences instead of saving it all for their children. This is in stark contrast to previous generations, who prioritized saving and wealth accumulation for future generations.
Rather than hoarding wealth for an uncertain future, many Boomers see their retirement years as an opportunity to indulge and live comfortably. A recent Charles Schwab survey of affluent Americans shows that about 45% of Baby Boomers say they would rather enjoy their money while they are still alive than preserve it primarily to leave as an inheritance.
From lavish vacations to personal indulgences such as art, vehicles, and home upgrades, Boomers are increasingly focused on enjoying their wealth. This shift in perspective is part of a broader trend toward valuing experiences over material possessions, resulting in fewer assets being left to future generations.
Fear of Enabling Dependency
Boomers also worry that giving their wealth to their children may foster a sense of dependency. Many fear that an inheritance could discourage their heirs from developing financial independence. As a result, some are choosing not to leave substantial wealth behind, preferring to give their children the tools to succeed on their own.
This stems from a desire to avoid creating a situation where their children become reliant on inherited wealth rather than earning it themselves. An earlier U.S. Trust survey found that about 25% of Baby Boomers worry that a large inheritance would make their children lazy, and about one‑fifth fear their kids would simply squander the money.
This fear of creating dependency is a key factor in the decision to forgo traditional wealth transfer, with some Boomers opting to provide financial support only through education or business opportunities, rather than handing over large sums of money.
Changes in Retirement Plans
Boomers are also rethinking their retirement strategies. With an uncertain economic future and low interest rates, many are finding that their retirement savings aren’t enough to maintain their desired lifestyle. Consequently, they’re opting to keep their wealth for their own retirement rather than pass it down to their children.
This change in mindset is due, in part, to the challenges of maintaining a stable income throughout retirement, as traditional pensions have largely been replaced by 401(k) and other self-funded retirement plans. Research by the ALI Retirement Income Institute shows that about 67% of ‘Peak Boomers’ turning 65 between 2024 and 2030 are not financially prepared for retirement.
Rather than leaving money for inheritance, many are putting their funds into securing their own future, ensuring they don’t run out of money before they pass. This pragmatic shift in financial planning is contributing to the decline in wealth passed down to heirs.
The Shift Toward Charitable Giving
Another reason Boomers are opting out of passing down wealth is a growing desire to leave a charitable legacy. Instead of providing wealth to family members, some are choosing to donate to causes that align with their values. This shift toward philanthropy is seen as a way to leave a lasting impact without contributing to wealth inequality.
Many Boomers are now focusing on giving to organizations or causes that resonate with their beliefs, creating a different type of legacy. Data from the Giving USA Foundation show that Baby Boomers remain the most generous generation, giving on average more than twice as much annually as younger donors and accounting for over 41% of total individual charitable contributions in some recent years.
Rather than leaving money to family members who may not need it, Boomers are channeling their resources into organizations that can help address critical social issues. This focus on philanthropy is a defining characteristic of the modern Boomer approach to wealth.
Lack of Financial Literacy Among Heirs
Boomers are increasingly concerned about their heirs’ financial literacy. Many worry that their children might squander an inheritance due to poor financial planning skills. To prevent this, some Boomers prefer to keep their wealth for their own well-being rather than risk it with heirs who may not know how to manage it.
This concern is particularly prevalent when heirs are young or have shown irresponsible spending habits in the past. According to U.S. Trust, 60% of wealthy parents believe their children are not ready to manage a large inheritance, largely due to concerns about financial discipline and investment experience.
As a result, Boomers may feel it’s more prudent to allocate resources for their own future needs rather than leave them to heirs who might not use them wisely. This growing concern about financial literacy is significantly influencing choices in wealth distribution.
A Different View of Legacy
Boomers are also rethinking what legacy means to them. For many, a legacy isn’t just about passing down financial wealth, but rather about imparting life lessons, values, and experiences. As a result, they may choose to spend their wealth on creating meaningful experiences rather than leaving money behind.
These Boomers value emotional connection and the opportunity to create memories with their families rather than simply transferring material assets. This shift reflects broader cultural changes, with Boomers placing greater value on emotional connections and personal fulfillment than on material wealth.
As the aging population moves away from traditional views of inheritance, this new perspective on legacy is becoming more common. The focus is now on creating a legacy of meaningful experiences rather than financial accumulation.
Estate Tax Concerns
The fear of high estate taxes is another reason Boomers are holding onto their wealth. With estate tax laws varying by state and significant wealth potentially taxed at high rates, many Boomers are finding it less advantageous to pass on large sums to their heirs. This leads them to reconsider leaving an inheritance altogether, as they may fear that much of the wealth will be lost to taxes.
Recent estate‑planning research shows that many baby boomers worry about the tax consequences of transferring wealth, and factor potential estate taxes into how they structure inheritances. Given the complexity of estate tax laws and the high rates that can apply to large estates, many Boomers are opting to forgo passing wealth down to avoid a significant tax burden.
Instead, they might choose to spend or donate their wealth during their lifetime to minimize the estate tax implications.
Economic Uncertainty
Economic instability is another driving force behind the shift in wealth transfer. With markets fluctuating and global economic conditions in constant flux, Boomers are uncertain about their financial futures. This uncertainty often leads them to prioritize safeguarding their wealth rather than passing it down to the next generation.
Whether due to inflation, political instability, or unpredictable financial markets, many Boomers feel they need to hold on to their wealth to weather these challenges. According to a 2024 Federal Reserve report, 37% of Boomers expressed concerns about their financial future due to market volatility and inflation, prompting them to rethink their inheritance plans.
This economic uncertainty complicates wealth transfer, as Boomers prioritize protecting their financial security above all else. The fear of not having enough to cover their needs in uncertain times is reshaping how wealth is passed on.
The Rise of Digital Assets
Lastly, the growing importance of digital assets such as cryptocurrency and online businesses is changing how Boomers view wealth. Many are opting to hold onto these assets for their own use, rather than passing them down, as the digital asset market remains volatile and uncertain. This change in asset management is part of a broader trend in which Boomers are reevaluating how they manage their wealth amid new technologies and financial tools.
While Baby Boomers remain the most cautious generation in crypto, surveys show their participation has roughly doubled in recent years, with ownership rising from about 4% in 2022 to nearly 9% by 2025. The rise of digital assets is creating new challenges for wealth transfer, as Boomers are often unsure how to pass them down to the next generation. Many are holding onto digital investments to secure their financial future.
Key Takeaway
Boomers are opting not to pass down their wealth for various reasons, ranging from financial insecurity to changing views on legacy. This trend highlights the changing nature of wealth transfer and the complex factors influencing inheritance decisions. For many families, that shift is forcing a more honest conversation about money, independence, and what parents believe they truly owe the next generation.
Disclaimer – This list is solely the author’s opinion based on research and publicly available information. It is not intended to be professional advice.
Like our content? Be sure to follow us
