The largest intergenerational wealth transfer in US history is unfolding, yet most Americans will inherit little, if anything. Over the next 25 years, an estimated $105 trillion will pass from older generations, driven by rising stock markets, surging home prices, and inflation, according to Cerulli Associates. This staggering sum equals the global GDP of 2023 and marks a 45% increase from Cerulli's earlier projections.
About $2.5 trillion in gifts and inheritances is expected to change hands in 2024 alone. "Roughly 80% of today's wealth will be in motion," said Chayce Horton, lead author of the Cerulli report. This unprecedented shift far surpasses previous decades, reshaping the distribution of wealth and power in the US.
Yet, the number of Americans benefitting from inheritances remains static. Bloomberg analysis shows only one in five US households has received a significant inheritance in recent decades. Wealth remains concentrated among affluent households, with more than half of future inheritances expected to come from families holding $5 million or more in investible assets—a group representing just 2% of US households.
Wealth concentration
"Inheritance is still the most important factor in terms of wealth concentration," said Kaushik Basu, an economist at Cornell University and former World Bank chief economist. Inherited assets accounted for 25% of recipients' net worth in 2022, compared to 10% in the late 1990s.
Chuck Collins, Director of the Program on Inequality and the Common Good at the Institute for Policy Studies, warns of a growing reliance on dynastic wealth. "We're becoming less of an economy that promotes entrepreneurship and production and more of an economy focused on inheritance," he said.
Family security
For many heirs, inherited funds shape financial planning and intergenerational support. Some, like Delaware retiree Alan Jewett, use their windfall to bolster family security. Others, like Lee Robin Gebhardt of New York, invest inheritance to ease future healthcare costs.
A trend toward "giving while living" is also emerging. "Many are choosing to provide for their family’s needs while alive, rather than waiting until death," said Jared Jones of Omega Wealth Management.
Financial control across genders
This shift in wealth also has implications for gender equity. Women, who often outlive men, are projected to inherit nearly half the $105 trillion, helping rebalance financial control across genders.
Despite the massive wealth transfer, inequality may deepen. Cerulli notes that inheritance is growing as a share of overall wealth, concentrating primarily among the richest households. Economists warn that this polarization could limit economic mobility for younger and lower-income Americans.
Millennials and Gen X stand to gain the most
As baby boomers pass on their estates, millennials and Gen X stand to gain the most. Millennials, born between 1981 and 1996, are projected to inherit $45 trillion by 2048, while Gen X will see their inheritance peak in 2038 at just under $2 trillion annually. However, without systemic changes, this wealth transfer may solidify existing divides rather than bridge them.
"Markets may flourish, but the polarization between the born-poor and born-rich will become more acute," Basu said, underscoring the growing dominance of inherited wealth over earned income in America’s economic landscape.
