The Great Wealth Transfer: How Millennials Can Plan Ahead

The anticipated intergenerational wealth transfer in the United States is substantial, with estimates indicating that baby boomers and the silent generation will bequeath approximately $84.4 trillion through 2045. Of this, $72.6 trillion is expected to go directly to heirs, while the remaining $11.8 trillion is projected for charitable donations.

Breaking this down by generation: 

• Baby Boomers (born 1946–1964): Expected to transfer $53 trillion, accounting for 63% of the total projected wealth transfer.
• Silent Generation (born 1928–1945): Anticipated to transfer $15.8 trillion.

In terms of distribution among receiving generations, Generation X (born 1965–1980) is projected to inherit approximately $30 trillion, while Millennials (born 1981–1996) are expected to receive around $27 trillion.

For many Millennials, this shift will be life changing. It may offer new financial opportunities—but also new responsibilities. Questions to consider as part of this wealth transfer process may include:

1. What are the potential tax implications of receiving this wealth?
2. How should I structure my finances to accommodate this incoming wealth?
3. What are the legal considerations I need to be aware of?
4. How can I ensure this wealth transfer aligns with my long-term financial goals?

If you expect to receive a wealth transfer in the coming years, consider partnering with a team of financial planners in Washington, DC, like Brown|Miller Wealth Management.  They specialize in assisting intergenerational wealth transfer.

1. Have a Wealth Transfer Conversation with Your Family  

Conversing with your family about their wealth transfer strategy is one of the most important (and often overlooked) steps in preparing for a financial windfall. It’s a sensitive topic, but discussing the details before an inheritance comes your way can help you:

• Understand the intentions behind the wealth transfer
• Gain clarity on estate plans, wills, and trusts
• Minimize future family disputes
• Make informed decisions about your financial future

How to Approach the Conversation:

Start by asking your parents or grandparents about their financial wishes and any estate plans they have in place. Find out if they have worked with a financial advisor, estate attorney, or accountant to establish trusts or tax-efficient strategies. These discussions help ensure a smoother transition and allow you to plan accordingly.

2. Are You New to Managing and Preserving Wealth?  

Managing a significant inheritance and the complexities that come with it may be an entirely new experience for you. Without a plan, wealth can quickly dwindle due to poor investments, high taxes, or lack of proper financial guidance.

To avoid these pitfalls, take time to educate yourself on wealth management principles, including:

• Investment strategies – Learning about diversified portfolios, asset allocation, and long-term investing. 
• Risk management – Understanding how to protect wealth from market downturns and inflation. 
• Tax implications – Inheriting assets can come with complex tax rules. A professional can help you navigate estate and capital gains taxes.

A great way to get started is by partnering with a fiduciary financial advisor like Brown|Miller Wealth Management, which specializes in helping high-net-worth individuals manage and grow their wealth to align with their long-term goals.

3. Reevaluate Your Financial Goals with Your Inheritance 

A sudden increase in wealth can change your financial priorities. Instead of saving for short-term goals, you may now have the opportunity to think bigger and longer-term.

Examples of Short-Term Goals:

• Consider whether using part of your inheritance to pay down debts such as student loans, credit card balances, or a mortgage makes sense.
• Strengthen your emergency fund to cover at least six months of expenses.
• A larger down payment on a home can reduce monthly payments and loan interest.

Examples of Long-Term Goals: 

• A windfall is an opportunity to contribute more to tax-advantaged accounts like Roth IRAs or 401(k)s for long-term growth.
• Strategic investing can help your wealth grow beyond your lifetime.
• Consider setting up a Donor-Advised Fund (DAF) or charitable trust if philanthropy interests you.

Working with a CERTIFIED FINANCIAL PLANNER™ professional in Washington, DC can help you develop a goals-based financial plan that aligns with your new financial situation.

4. Plan for Your Own Wealth Transfer 

Once you’ve inherited wealth, it’s time to consider how you want to pass down assets to the next generation.

Consider These Wealth Transfer Strategies:

• Creating or updating your estate plan – A will alone may not be enough to protect your wealth. Many high-net-worth individuals establish a revocable living trust to bypass probate and ensure assets are distributed according to their wishes. 
• Setting up a trust for future generations – Trusts can provide financial security for your heirs while protecting assets from potential mismanagement.
• Tax-efficient gifting – You can gift up to $19,000 per year (as of 2025) to family members without triggering a gift tax, helping to gradually transfer wealth during your lifetime.

Estate laws and tax regulations change frequently, so working with an estate attorney and financial advisor is essential to ensuring your plan is up-to-date and optimized for  your goals.

5. Work with Professionals to Navigate the Complexity of Wealth Transfer 

Managing and preserving inherited wealth requires expertise in many areas, including  investing, taxes, and estate planning. The right team of Washington, DC, financial planners can help you avoid costly mistakes and make informed financial decisions. 

• Consider updating and/or creating a comprehensive financial plan that looks at all aspects of your financial situation. 
• Ensure your assets are being managed as tax-efficiently as possible.
• Create and/or update your estate plan to include proper legal coverage to protect your assets while accounting for charitable contributions.

How Brown|Miller Can Help

Here is a short checklist of items to consider as you prepare to be the recipient of a wealth transfer:

✔ Talk with your family about their estate plans

✔ Educate yourself on wealth management principles

✔ Reevaluate your financial goals to align with your new reality

✔ Create and/or update your estate plan to pass down wealth efficiently

✔ Partner with CFP® professionals in Washington, DC, for proper financial guidance

Consider the Brown|Miller Wealth Management team, which can help you navigate this transition with a personalized approach, ensuring your inheritance is managed, protected, and positioned for future growth. If you’re ready to start planning for your financial future, let’s talk.

Disclaimer: This article is intended for informational purposes only, and not to be a client specific suitability analysis or recommendation, an offer to participate in any investment, or a recommendation to buy, hold or sell securities. Do not use this report as the sole basis for investment decisions. Do not select an asset class or investment product based on performance alone. Consider all relevant information, including your existing portfolio, investment objectives, risk tolerance, liquidity needs, and investment time horizon. This report is for general informational purposes only and is not intended to predict or guarantee the future performance of any individual security, market sector, or the markets generally.

The information provided in this article represents the opinions of Brown Miller Wealth Management (“BMWM”) and is expressed as of the date hereof and is subject to change. BMWM assumes no obligation to update or otherwise revise our opinions or this article. The observations and views expressed herein may be changed by BMWM at any time without notice. The information may be based on third-party information, which is deemed reliable, but its accuracy and completeness cannot be guaranteed.

BMWM provides links for your convenience to websites produced by other providers or industry related material. Accessing websites through links directs you away from our website. BMWM is not responsible for errors or omissions in the material on third party websites and does not necessarily approve of or endorse the information provided. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from the use of those websites. BMWM will act solely in its capacity as a registered investment advisor and does not provide any legal, accounting or tax advice. Client should seek the counsel of a qualified accountant and/or attorney when necessary. BMWM may assist clients with tax harvesting and we will work with a client’s tax specialist to answer any questions related to the client’s portfolio account. Any tax advice contained herein is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding tax penalties that may be imposed on the taxpayer.