This article is reprinted by permission from NerdWallet. The amount of wealth millennials and Gen Xers stand to inherit from their parents and grandparents almost defies comprehension: According to Cerulli Associates, a Boston-based research and consulting firm, $84.4 trillion in wealth will be transferred between 2021 and 2045, primarily from baby boomer households to younger generations.
Inheritances aren’t just for the rich: Less than half of the total volume of transfers is expected to come from high-net-worth households. “It’s a really unique point in history because of the amount of wealth,” says Chayce Horton, senior analyst on the wealth management team at Cerulli. “It’s something we haven’t seen before.” As a result of that magnitude, inheritance recipients might not know what to do with one, and whether to count on the windfall before it arrives. If you’re wondering whether to broach the topic of a potential inheritance with your own parents or grandparents, here are some guidelines financial experts recommend:Talk about inheritance early “If parents haven’t brought it up with you, you need to bring it up with them,” says Isabel Barrow, director, financial planning at Edelman Financial Engines, an independent financial advisory firm. “We know if you don’t talk about it ahead of time, there are going to be problems.” She says these can include fights between family members, confusion over what to do with the money or even uncertainty about where to find the most updated version of a family member’s will. Barrow suggests raising the topic while the entire family is together at holidays or birthdays when everyone is in a good mood. “That might be an opportunity for you just to mention, ‘Hey, I’m doing my financial planning and they suggested I talk to you about your plan,’” she says. Mitch Mitchell, products counsel with Trust & Will, an online estate planning company, says it can be helpful to tell your parents tha …
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