KRMG In Depth: Americans will pass on an estimated $84.4 trillion to their heirs within 10 years

TULSA — Financial advisors call it the “Great Wealth Transfer,” defined as the passing down of a huge amount of generational wealth from the silent generation and baby boomers to their heirs.

The estimate is that Gen X, millenials, and Gen Z will inherit roughly $84.4 trillion over the next ten to twelve years.

[Hear the KRMG In Depth Report on the “Great Wealth Transfer” HERE]

And while nearly half of all Americans will be on the receiving end, the Edward Jones study indicates only about 27% of those heirs have discussed the situation with their families.

“It’s crucial to have ‘the talk’ before the transfer,” according to Lena Haas, Head of Wealth Management Advice and Solutions at Edward Jones. “‘The talk’ is just never urgent until it is.”

Which is why she urges people not to put it off, and to remember that the conversation may have to take place several times, as circumstances change.

The Edward Jones research showed that families are much less likely to feel stressed or confused if a professional financial consultant or other third party initiates, and guides, that conversation.

And it doesn’t have to be a time-consuming or expensive process, she added.

“There’s a little bit of a myth out there that it’s a very expensive thing, and it’s only for people who are ultra rich,” Haas told KRMG. “It’s truly not. It would benefit every single person to go transparently through their intent, through what matters, and have that shared understanding with their family members.”

She also mentioned a trend toward passing on part of that inheritance while the giver’s still able to enjoy sharing part of their legacy.

“So it’s not just the traditional ‘giver passes on, receiver inherits assets’ - it’s also people selecting to do ‘giving while living.’”

That could include booking a family trip, helping younger family members buy their first home, or helping pay for their grandchildren’s education, she said.