Beyond sentimental family stories and cherished heirlooms, older generations in the United States are preparing to pass along an extraordinary amount of financial wealth in what experts are calling the largest intergenerational transfer of wealth in history.
Americans born before 1964—specifically baby boomers and the silent generation that preceded them—currently control a vast portion of the nation’s total wealth. According to data from the Federal Reserve, these generations together hold 64% of the country’s $190 trillion in wealth. Over the next 20 years, they are projected to pass on $84 trillion to their heirs, as estimated by financial research firm Cerulli Associates.
A significant share of this wealth is tied up in financial markets. Boomers have benefited from decades of substantial growth in the stock and bond markets. The Dow Jones Industrial Average, for example, has surged nearly thirtyfold since 1985. As a result, many boomers have built substantial retirement portfolios. Fidelity reports that the average baby boomer has approximately $242,200 saved in a 401(k) retirement account.
In addition to their investments, boomers have accumulated considerable wealth through real estate. They bought homes decades ago when prices were far lower, in some cases spending what today might only buy a high-end television. Over time, those homes have appreciated significantly in value.
Today, baby boomers own 37% of all residential properties in the United States, despite representing just over 20% of the population, according to the U.S. Census Bureau. Their dominance in the real estate market extends beyond primary residences. The National Association of Realtors reports that boomers possess 57% of all vacation homes and 58% of rental properties that generate income.
For many younger Americans, especially millennials, inheriting a home may be their best shot at owning one. Among people born between 1981 and 1996, about 45% do not own their own home. This generation faces steep housing prices, high interest rates, and tight inventory, making it increasingly difficult to enter the housing market without a financial boost—often in the form of inheritance.
The assets boomers are expected to pass on go well beyond homes and investment portfolios. They also include small businesses and private companies. Collectively, boomers own businesses worth nearly $8 trillion. These include 41% of small businesses in the United States, according to government figures. But unlike the storyline of the HBO series Succession, many retiring business owners are not handing over control of their companies to their children. Instead, they are selling these operations—often to ambitious millennials looking to strike out on their own.
“We’re seeing more and more of these entrepreneurs deciding to sell their mom-and-pop shops rather than keep them in the family,” one analyst observed, highlighting the shifting dynamics in small business ownership and succession planning.
Importantly, the massive wealth handoff isn’t waiting for funerals to take place. Many members of the older generations are already distributing portions of their wealth while they’re still alive. These living transfers are helping children and grandchildren navigate major life expenses—everything from home down payments and private school tuition to student loan debt.
For those giving while living, there are financial advantages beyond simply helping loved ones. The federal tax code allows individuals to gift up to $18,000 per year, or $36,000 per couple, without triggering any gift taxes. This strategy allows wealth to be passed along gradually and tax-efficiently.
“Some generous members of the older generations are already using their nest eggs to help their kids and grandkids handle house down payments, private school tuition, and student loans,” the article notes. In doing so, they not only provide timely financial relief but also potentially reduce the size of their taxable estate.
This immense transfer of wealth is poised to reshape the American financial landscape, as younger generations inherit and manage assets accumulated over decades of economic growth. Whether they use the funds to purchase homes, launch businesses, or invest for the future, millennials and Generation X stand to gain significantly from the boomers’ financial legacy.
Yet questions remain about how prepared younger generations are to manage these windfalls responsibly. Financial planners warn that inheritance does not automatically translate into long-term financial security. Poor financial planning or mismanagement can quickly deplete even the most generous inheritance.
Moreover, with longer life expectancies and rising healthcare costs, some experts suggest the actual wealth transferred could be smaller than projected if more of it is spent during retirement. Still, the general consensus is that a seismic shift in financial ownership is underway.
The $84 trillion figure underscores the magnitude of what’s coming. This is not just a private family matter—it has wide implications for the economy, housing market, business landscape, and even social mobility.
While baby boomers have long been seen as the generation that benefited most from post-war economic expansion, their children and grandchildren may now inherit not just wealth but also the responsibility of sustaining and building upon it.
The coming decades will see a wave of financial transition unlike anything in modern history. As older Americans pass on their financial legacies, younger generations are set to experience the profound effects—both challenges and opportunities—of this unprecedented wealth transfer.
