Posted on 10/11/2025 8:24:04 PM PDT by SeekAndFind
The greatest generational wealth shift in history has already begun.
Baby Boomers, the largest retirement generation to date, will finish shifting up to $105 trillion to heirs by 2048. And according to a recent LegalZoom survey*, 62% of what will be left behind is anticipated to be real estate or property.
But rising home maintenance costs could pose a problem for younger generations.
For instance, property values have increased “almost 27% faster than inflation since 2020,” per the Tax Foundation. And with higher home valuations, heftier property tax bills typically follow.
So will the inherited wealth be enough to support the higher costs of homeownership? Or will heirs need to sell priceless heirlooms to stay afloat?
Per the LegalZoom survey, 42% of Young Americans don’t feel “financially prepared to keep and maintain” an inherited home left to them today. Among their top concerns when inheriting a house include:
So, while 62% of the older generation(aged 45 and above) surveyed by LegalZoom expect to leave behind real estate to their loved ones, only 18.6% of younger Americans in the survey actually feel “very prepared” to maintain an inherited property.
Although inheriting a house may sound exciting, future generations may struggle to maintain a home left in the family will. And that’s not just because home costs are rising.
Other factors contributing to a “house-rich, cash-poor” mentality are generation-specific. For instance:
Thus, instead of using an inherited home as a priceless heirloom, future generations may use that real estate to help them pay off debt, which may be disappointing news for those hoping to pass down a family home to be used by future generations.
*Note: Deloitte surveyed 14,468 Gen Zs from 44 different countries.
While talking about wills and estates with your heirs may be uncomfortable, it’s important to take the time now to discuss what the future looks like for your family.
Here are a few tips to get the sensitive wealth transfer talk started in your household:
Overall, the most important component of family finance is ensuring that the plan works for everyone.
So if you haven’t had a conversation with future heirs about generational wealth, or are worried about taxes affecting your loved ones’ inheritance, make a plan to talk with your heirs and consult with a qualified estate planning or tax professional sooner rather than later.
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That's my point. It's a very small cohort, and not enough to warrant making the generalized claims that this article is making.
The children of Boomers are well into adulthood by the time their parents pass, so the stress of their inheritance should not be what the authors are suggesting.
This is a "tail wagging the dog" article.
-PJ
Yeah, it does seem to be another sad tale of riches, inheriting expensive property is something that a lot of people would think is real nice.
Every day is a holiday, and every meal is a feast.
Life is good.
Getting old sucks, but it beats the alternative.
We are late boomers (1962) with Gen Y children. And we have some other friends who are, also.
Gen Y is off to a rough start. For every young adult I know who is thriving, I know a couple of them who are struggling. Some lost their way a bit during COVID. But more had parents with divorce, debt, etc. Their parents were not and are not the responsible people you would hope.
Thank God there is a trend now of young people wanting faith and stable families of their own. They can be the men and women their parents were not. As long as they do not get too discouraged.
” . .We are late boomers (1962) with Gen Y children.”.
- - - - - - -
This set of late/end Boomers are sometimes- and more often lately- known as “Generation Jones”.
Possibly worth investigating.
1954-1965 is apparently the time period.
I have heard of Generation Jones, now that you mention it. I haven’t gotten comfortable with that term yet. I would definitely say, though, that my husband and I are not on the same page as my older siblings who were classic Boomers.
(We have 4 kids)
Man, I got 5 kids to feed!
Maybe 4...
Man I ain’t even got any kids
The democrat plan.
Yes, getting old definitely sucks, but every day the good Lord gives us is a blessing. Sounds like you're doing just fine. Here's to many more holidays and many more feasts!!
Maintaining a second home you don’t use is a black hole for money.
Why should I waste my inheritance paying for upkeep and taxes, for a place I don’t use, especially if it’s somewhere in FL when you live in NY for example.
It’s no reflection of the economy that people can’t afford an inherited home. Who needs the hassle and the risk of squatters, or renting it out?
GOD BLESS YOU for such thorough and thoughtful estate planning.
I’ve seen families destroyed over greed for getting the whole inheritance.
The wife and me made the
decision to sell our home to
our son (who is a veteran) on
a VA loan with the promise
and understanding that the
wife and I would have a place
to live until such time we’re
both in the old folks home.
Then he may do with the house
as he wishes. Keep it, or
sell it. At this point it
won’t matter much to us.
No capital gains. No wills
necessary.
He has no problem having his
parents living in his house.
I’m getting so sick of the labels being thrown around today in a bid to pit one generation against another by blaming each other for all the ills and woes of this world.
EVERY generation has it’s challenges and difficulties they need to work through. NOBODY ever had a cake walk. It’s a complete lie that *boomers* had it easy.
My parents didn’t and mr. mm and I certainly didn’t. And our kids don’t.
The biggest delusion and problem I see is younger people thinking they should be able to start where they see their parents ended up after 40-50 years of working and saving. That’s simply entitlement mentality and completely unrealistic.
Years before my mom passed, she sold her house to us 5 kids for $5, $1 each.
And she had legal documents drawn up that stated that we all had to allow her to live there the rest of her natural life unless two different doctors should deem her incapable of living independently.
She insisted that if she reach that point, we put her in a nursing home, no matter what she said at the time down the road. That’s why she made this clear to us and the lawyer when she was in good health and of sound mind. She didn’t want to be a burden to any of us.
However, my parents raised us right and after she passed, we split the estate completely evenly thanks to her meticulous record keeping and there was no fights about the property. There were a few things my one sister (who could be somewhat of an idiot) decided to garage sale for next to nothing that I wanted for my kids and myself, but nothing of any great value. I just filed it under *Do not trust _____ with anything valuable.*
Imho baby boomers (of which I am one) have as a group enjoyed the optimal quality of life in all history through the present. They have has the incredible good luck of inheriting the financial blessings of thr greatest generation which did much economic heavy lifting. All generations after baby boomers have suffered from a federal government which seriously lost its way after November 1963. Some boomers played safe and as a result have considerable equity to will to their children. Some within the X, y, and z generations will benefit from such windfall inheritances— leaving the remainder (probably the majority) with little, or property which is difficult to manage or sell off.
Children inheritance squabbles are another matter. Some greates generation parents wanted to stay in their homes until the time came to carry them out boots first to use the popular colloquial vernacular. Boomer children did not always succeed equally in life, and inequalities along with obtuse will provisions could and sometimes did lead to contested wills in which everyone hires “family law” (aka divorce) lawyers. Any truly contested will could in theory lead to a legal deadlock and arbitration enforced by a court appointed administrator (who often would be another “family law” lawyer). Thus hard earned small fortunes can quickly be scattered to the winds. Worse resolutions can be contemplated hopefully from a safe distance away…
I have heard it stated that this dissolution of inheritances is the natural consequence brought about by Darwinian competition between siblings… it seems fatalistic to me but so far I have not been able to come up with a good counter argument…
I did not have any particular great talent or drive. Therefore I watched my parents take care of our family very closely and asked for advice when I could. My parents were generally very good and my father had talent in his field. So the best inheritance that I got might have been not money or property but good example and good advice. Several crazy decades later, I am doing ok, probably thanks more to my parents’ advice and example than because of anything else.
Sometimes the example was simple such as work hard. But sometimes it was lass obvious such as avoid selling one’s home if you possibly can (build equity).
I think that part of the difficulty that younger generations have is due to the philosophy behind the 401k plans replacing pensions. I perceive (correctly or otherwise) that pensions are always better. My pension got converted to a 401k around 1994. Another difficulty was opening up the labor market to foreign competition which also started to happen thanks to nafta and gatt around 1994. I have pity for younger generations who are forced to seek new jobs every 3 or 4 years until most of them get aged out of the labor force in their 50s. It is difficult to blame a young job seeker from looking for government jobs for job stability reasons.
I hope trump and the republicans can bring back job stability in the private sector. Perhaps that will lead to healthier more prosperous families and families with more children, as nature and providence intended.
I own 5 acres, two houses, and a large workshop in Hawaii, all free and clear.
My only daughter lives in a shithole in WA state due to the choice of her husband(I built them a house here).
I’m very sure they will sell my home when the wife and I expire. And they will possibly buy a house in the shithole
her husband refuses to leave.
I won’t care, I’m dead and on to another world.
My main motivation is they get to waste what I have earned and not the government.
My daughter will be 51 this month.
My 5 cousins inherited their parents home in Rancho Palos Verdes (near Long Beach with a view of Los Angeles) and they sold it for $1.55 million in 2015.
They sold because they said they could not pay the property taxes even though they and their spouses were working. In 10 years the price is up $2 million more... I bet they wish they did as they would have made much more money.
Aunt & uncle’s home sold on 9-17-2025 for $3.5 million 😲
On 4-29-2025 it was listed for $4.3 million.
Over 40 photos. Quite a lot of changes from a bedroom gone and moved to another part of the home to floors are level (use to steps at entrance and hallway) to new kitchen and windows. Not the same home as in 2015.
https://www.realtor.com/realestateandhomes-detail/2840-Palos-Verdes-Dr-N_Rolling-Hills_CA_90274_M20229-58993
Renovation completed in 2024.
Price history: https://www.trulia.com/home/2840-palos-verdes-dr-n-rolling-hills-ca-90274-21356063
sold 4-16-2015 for $1.55 million
sold 7-6-2016 for $1.8 million
listed temp for rent 9-12-2022 $6,750 a month
sold 9-17-2025 for $ 3.5 million
on 4-30-2025 it was listed for $4.3 million
tax $24,806 a year 😵
Looks like prop 19 that passed in 2020 made it more difficult for heirs to keep the low property taxes. A heir now has to live in the home to keep the low taxes.
I think this article was aimed to drum up consultation business. The premises are outlandish. Keep it or sell it. Pretty simple & pretty obvious.
In 2026 Estate tax doesn’t kick in for the first $15 million per person, or $30 million for married couples. That will index with inflation.
The only people hit with federal estate tax are people inheriting from an estate valued higher than those limits.
There are some state estate taxes.
For 2026, 12 states and the District of Columbia will impose a state-level estate tax, which is applied to the estate of a deceased person before assets are distributed to heirs. There are also states that levy an inheritance tax, which is paid by the beneficiary.
Estate Tax
Connecticut > 5.8 million
Hawaii, Maine, Massachusetts, Minnesota,Rhode Island, Vermon, Washington & Washingtn DC all levy estate tax
Illinois > $8 million
Maryland: Imposes both an estate tax and an inheritance tax, which is unique among states.
New York Levies a state estate tax, and the exemption amount is subject to a “cliff,” meaning the entire exemption can be lost if the estate exceeds the threshold by more than 5%.
Oregon: The exemption is $1 million, and it uses a progressive tax rate system.
Inheritance tax
Kentucky: Has an inheritance tax that ranges from 4% to 16%
Nebraska, Pennsylvania have an inheritance tax
New Jersey: Levies an inheritance tax on beneficiaries who are not immediate relatives
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