The $84 Trillion Inheritance: Who Wins, Who Loses, and What to Do About It

Over the next 20 years, the biggest intergenerational transfer of wealth in human history will unfold. It’s been dubbed “The Great Wealth Transfer”- but what does it mean for you?

Apr 11, 2025

Over the next 20 years, trillions in wealth will quietly pass from dying Boomers to their children.

It will change who owns what, who gets ahead, and who gets left behind. This isn't just money - it’s power, privilege, and politics wrapped in a cheque from your parents.

On paper, it’s staggering.

An estimated $84 trillion in the US and £7 trillion in the UK will be passed from Baby Boomers and the Silent Generation to their Gen X, Millennial and Gen Z children.

That’s houses, pensions, ISAs, family businesses, life insurance payouts - even the occasional rare coin collection.

Wealth managers are licking their lips. Companies are popping up to help you “optimise your inheritance.” Governments are quietly drawing up new tax rules.

But it won’t be fair.

Not even close.

Roughly half of that $84 trillion will go to just 1.5% of American households. In the UK, the pattern is similar. Most people will inherit little or nothing. The median inheritance for the bottom 90% is, quite literally, £0.

Think of Jess. Jess inherits a semi in Watford. Uses it to buy two flats. Her net worth triples before 40. Tom, her uni friend, keeps renting a damp two-bed and dreams of a deposit he'll never save. Same degree. Same job. Different parents.

And worse: many are counting on money that may never come.

Surveys show nearly one-third of Millennials are banking on an inheritance as part of their future financial plan. Yet less than a quarter of Boomer parents say they plan to leave one. Many intend to spend their wealth on themselves, or see it eaten up by rising care costs.

The mismatch could get messy. How will you react when your mate is suddenly minted and you are left slogging away at that same job day after day to pay rent to some obscure landlord.

So if we’re wise, we can approach this wealth transfer not as a windfall, but as a moment to reflect—and reset.

Whether you expect to inherit a little, a lot, or nothing at all, this shift is going to shape everything from housing markets to career choices, from inequality to politics.

Here's what to expect - and how to prepare.

Let’s take a deeper look at what’s coming and what we can do about it.

1. It’s not just a transfer of wealth. It’s a transfer of power.

Think of it this way: Boomers built up wealth during a time of rising house prices, free education, generous pensions, and (relative) job stability.

Now that capital is about to move - but not to everyone.

In fact, we’re on the verge of a new divide: not between rich and poor, but between the inheriting and the not.

Inheriting a house, even a modest one, is like starting the Monopoly board already on Park Lane. You can take bigger risks, start a business, go part-time, or just breathe more easily.

For those without? The game keeps getting harder.

In a society where inherited wealth trumps earned income, the old rules - work hard, save smart, climb the ladder - start to feel outdated. And that erodes something deeper: the belief in fairness.

2. Expect housing to change massively

This is already happening.

Many first-time buyers today are leaning on “the Bank of Mum and Dad”. This is a quiet but powerful engine behind the housing market.

Soon, we’ll see a wave of inherited homes and inheritance-funded deposits. On the upside, this might finally help some Millennials buy. On the downside, it could push prices even further out of reach for those still trying to catch up.

And in places like Japan, we’ve already seen the strange effect of late-life inheritance money passing to 60-year-old children from 90-year-old parents. It’s too late to use the wealth to build.

It becomes a buffer, not a springboard.

Lesson: timing matters. And so does policy.

If we want housing to remain vaguely accessible, we may need to look at things like:

Gift tax exemptions for early transfers
Better housing supply in key areas
Smarter estate tax rules

Left unchecked, we risk turning property into a family heirloom passed between dynasties.

3. It’s a huge opportunity but only for some. And a minefield for others.

A big inheritance can feel like freedom. But it can also be paralyzing.

You might feel guilty. Overwhelmed. Or unsure what to do with it. (Ask any financial advisor—they’ll tell you horror stories.)

Or worse: you blow through it in 18 months and wonder where it went.

Let’s be blunt: 70% of wealth is gone by the second generation. 90% by the third. It’s astonishing how fast money disappears when no one’s ready for it.

So if you do receive something, treat it like a foundation, not a shopping spree. Give it six months before you make any big moves.

Learn. Ask questions. Get advice.

And if you don’t receive anything? Know that you’re not alone—and that you’re still building something valuable. Most of us will still have to chart our own course. But we can do it with eyes open.

So what should you do?

Let’s finish with a few practical steps that will help whatever your situation.

If you expect to inherit:

Have the awkward conversation. Don’t wait for your parents to bring it up. They won’t. Estate planning is a mess of guilt, secrets, and fear. Talk anyway.
Get financially literate. Learn about taxes, investment, trusts, capital gains. Knowledge means peace of mind.
Plan your own life anyway. Don’t bank on inheritance. Let it be a bonus, not the plan.

If you don’t expect to inherit:

Keep saving and investing. The best time to start was yesterday. The second best is now.
Advocate for policy change. Support fair tax systems, housing reform, and better access to opportunity. In fact, do that anyway.

And if you’re unsure:

Get clarity. Many families avoid money talk. But understanding where things stand, however uncomfortable, can help you make better choices now.

So what can we do?

We often think of inheritance as an individual event: something that happens to you when they pass on.

But really, this is a social moment.

A chance to ask: what kind of world are we creating when wealth flows unevenly, invisibly, and overwhelmingly based on birth?

We can use this wealth transfer to deepen inequality - or to rebalance opportunity.

To entrench dynasties - or to plant new seeds.

To look after ourselves - or to lift others too.

We won’t get another moment like this in our lifetimes.

We’ve been told to work hard, save smart, and wait our turn.
But what if your “turn” never comes?
What if someone else gets theirs first - just because of who their parents were?
This is our chance to make the system fairer.
Or to watch it get worse.
Your move.

Never Stop Learning

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