Gen Z: Don’t Expect an Inheritance

[image error]Do you anticipate receiving an inheritance someday? A recent USA Today report highlights a TD Ameritrade study that finds many young adults expect an inheritance from their parents that - more than likely - won’t be there when the time comes. According to the report, while 40% of those ages 13 to 22 think their parents will leave something behind, only 16% of parents plan on it. Moreover, 58% of parents said it’s not a primary concern. From the article:

“There is a little bit of the halo effect of youth vs. the reality of what the situation will be like,” says Carrie Braxdale, managing director of investor services at TD Ameritrade. In fact, the odds are slim that young adults will inherit wealth because their parents face a less secure retirement world, with stock market turmoil and mounting health care costs.

Only 37% of baby boomers have fully disclosed the details of their finances, according to a recent survey from U.S. Trust. With those numbers, the cause of the disconnect is clear.

READ MORE: RETIRING WITH A FULL HOUSE

The takeaway? Discuss family family finances early and often. Adult children don’t need to know everything but they should have an idea of whether or not parents may be leaving an inheritance so they can plan accordingly. More than anything, they should be looped in on plans for retirement, long-term care and how to handle a parent’s estate when the time comes. Discussing this will help to avoid costly mistakes and lots of confusion.

Photo Courtesy, Tax Credits