Gen Z and millennials could inherit $124 trillion, but may receive less than expected

Generation Z and millennials in the United States who are counting on an inheritance to buy a home or finance retirement could receive less than they anticipate. Cerulli Associates projects that approximately $124 trillion in wealth will be transferred in the country through 2048, but not all of that money will reach younger generations.

A report published by Fortune on October 22 warns that some of the wealth may be spent by its current owners before it can be passed down. Much of the money is also expected to go first to spouses, potentially reducing the amount eventually inherited by children and other heirs.

Financial experts caution that an expected inheritance should not be treated as guaranteed income when making personal financial decisions. Families should discuss retirement plans, financial priorities and potential care expenses before younger relatives take on debt or reduce their own savings.

The $124 trillion will not go exclusively to two generations

Cerulli published its projection in December 2024, estimating that $124 trillion would be transferred by 2048. The figure represents a long-term forecast, not money that has already been inherited.

The firm estimates that approximately $105 trillion will go to heirs across different generations, while another $18 trillion will be directed to charitable organizations. Millennials alone are projected to inherit approximately $46 trillion over the period.

“Over time, the majority of wealth held by older generations in the United States will be gifted or transferred to heirs in Generation X or the millennial generation,” said Chayce Horton, a senior analyst at Cerulli.

A large share of the wealth is concentrated among a small percentage of households

Cerulli estimates that approximately $62 trillion will come from high-net-worth and ultra-high-net-worth households, which represent around 2% of U.S. households. This concentration means the national total does not indicate how much any individual family is likely to pass on.

The firm also projects that $54 trillion will first be transferred to spouses before potentially passing to other generations or charitable organizations.

As a result, wealth may remain within a family without necessarily being available to children or other relatives.

Travel and long-term care could reduce inheritances

Fortune describes a trend known as “SKI-ing,” an acronym for “Spending the Kids’ Inheritance,” referring to retirees who spend their money on experiences and other priorities rather than preserving it for their heirs.

The report cites British data on travel and retirement preferences, but those findings cannot establish how much less American heirs will ultimately receive.

Long-term care is another potential expense. Medicare generally does not cover long-term custodial care, such as ongoing assistance with bathing or dressing. Certain skilled medical services may be covered under specific conditions, but families should not assume that all care expenses will be paid by the program.

When families must pay for extended care themselves, less money may remain to pass on to heirs. Medicaid may provide assistance to eligible individuals, depending on applicable state requirements.

Younger Americans’ expectations are changing

The Fortune report references Northwestern Mutual research from 2024. The company’s 2025 study offered an updated picture: 30% of Gen Z respondents and 26% of millennials expected to receive an inheritance, compared with 38% and 32%, respectively, in 2024.

Among those who expected to inherit, 63% of Gen Z respondents and 69% of millennials considered the money crucial or very important to their long-term financial security. These figures apply only to respondents who expected an inheritance, not to all members of those generations.

The study also found that 30% of baby boomers and older generations expected to leave an inheritance or make a charitable gift or donation.

What should families consider?

An inheritance can help with major financial goals, but its timing and value depend on individual circumstances. Families may wish to discuss retirement expenses, potential long-term care needs and estate plans before making financial commitments based on money that has not yet been received.

Northwestern Mutual’s 2025 research found that 60% of people who expected to leave an inheritance or charitable gift had discussed those plans with their families.

The broader message is that the projected $124 trillion wealth transfer represents a significant shift in U.S. wealth, but it does not guarantee an inheritance for every young adult. Individual outcomes will depend on family weal