this post was submitted on 30 Dec 2023
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Experts say baby boomers will give more than $50 trillion to their heirs. But for many, health care costs will claim the bulk of that wealth.

The story goes that baby boomers are going to give tens of trillions of dollars to their heirs over the next few decades.

The “generational wealth transfer” has become a media fascination, both for its eye-popping size and because it might help younger generations as they face doubts about their financial security.

That shift is already in the works, and will continue for a couple of decades. According to wealth management firm Cerulli Associates, some $53 trillion will be passed down from boomers to their Gen X, millennial and Gen Z heirs, as well as to charities. That includes both gifts during their lifetimes and inheritances afterward.

But the overwhelming cost of health care for older people means most people in those later generations won’t inherit much, even if their elders seem well-off today.

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[–] MystikIncarnate@lemmy.ca 16 points 11 months ago

I want to sympathize with this since about the only asset worth anything from my boomer father when he died was what remained of good savings after selling his house.

The short version is that he got Alzheimer's, and we were forced to put him into a care facility. We sold off his house and dumped the money into a trust account so his power of attorney could use it for his needs (mainly paying for equipment and everything with regards to his failing health and the long term care facility). He was pretty smart with money but when the remainder of the funds from his house being sold were divided among his direct descendants, we were looking at 30-40k each.

My brother and I went in on a house together with the money and after the down payment, there wasn't much left, and now we each have about $2300 a month in mortgage payments instead of rent. Predictably, the house needs some pretty serious work, and we've been trying to tackle what we can on our own. The only real benefit we got from all this is that in 25 years or so, we won't have to pay the mortgage anymore, and the mortgage won't really increase over time; so we're kind of fixed in terms of rent increases.

We're considering this our "forever home" because we don't really want to move again and because we're going to do everything we can to make it ours. It has enough space to do that though some areas need a lot of work to get them where we want them.

It's just sad that his entire life of working and earning money and saving, being the penny pincher he was, only amounted to around $150k. Three siblings and lawyers fees later and we have to pool our inheritance to make enough cash to put a down payment on a house.

There's a lot of other contributing factors, which I won't get into here, but that's just so sad to me.