Inheritance & Family Passing: How to Be Prepared

When someone in a family passes away, what they leave behind - money, a home, keepsakes - is called an inheritance. Passing things down from one generation to the next has never been more important or more talked about in the U.S.

We’re seeing big shifts in how this happens.

What We Know Now
There’s something happening called the Great Wealth Transfer. Over the next two decades, older generations like Baby Boomers and the Silent Generation are expected to pass down about $84 trillion to younger people, mostly to the heirs.

For many households, inheritances are much smaller. According to data from the Federal Reserve, the average inheritance is about $46,200. Many people believe they will inherit more than they actually do. Younger generations often expect big amounts, but real numbers are more modest in most cases.

Also, a surprising number of people have no will or estate plan. For example, almost half of Baby Boomers and Gen Xers do not have basic documents like a will. That creates confusion or arguments later.

Why This Matters
Inheritance is not just about money or things. It’s about being ready for what happens, making sure wishes are followed, and helping families avoid hurt feelings or costly mistakes. When there’s no clear plan, important things get missed. Probate (the legal process after someone dies) can be long, expensive, and stressful.

Also, taxes, debts, and upkeep on inherited property can reduce how much someone really receives. A house might need repairs, or paying off debts could shrink the inheritance.

‍Advice People Say Works Best
‍From what families and experts are doing now, here’s what seems to help:

Start planning early. Even if you’re young, having a will or trust in place saves a lot of trouble later. Planning isn’t just for the very rich.

Talk with family. Be open about what you plan to leave and why. If everyone understands what was intended, there’s less chance of surprises or disagreements.

Keep your plans up to date. Life changes—marriage, children, selling or buying property, moving. Update wills or legal documents when things change.

Handle expectations well. People expecting large inheritances should know inflation, taxes, and debts can shrink what ultimately gets passed on. Avoid over-expecting or making major life decisions based only on an inheritance that might be smaller than hoped.

Use professional help if needed. Estate lawyers, financial planners, or trusted advisors can help with tax issues, legal documents, or property transfers. The cost up front often saves more later.

A Look Ahead
Over the coming years, inheritance will play a big role in many families’ finances. But how helpful it is will depend on how prepared people are.

Those who plan early, communicate clearly, and manage expectations will be in a stronger position. If you are expecting an inheritance or planning your own estate, the sooner you begin, the smoother things tend to go.