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.
When my mother died in a hospice home, she had an unpaid hospital bill. They called me, as the next of kin, to ask if she was going to pay it before it went to collections. I said, good luck collecting from a dead woman. They apologized for my loss, and then said “Who is going to pay the bill?”
Note: She was diagnosed with a treatable disease, but due to mental issues refused treatment in order to commit suicide. They allowed her to refuse treatment, and put her in a hospice. Now, I have no problem with a person wanting to die, but don’t fucking come after me when your hospital pulled the trigger for her.