by Ashlee Cabeal
The statistics are stunning: Americans between the ages of 55 and 74 currently control approximately $79 trillion in wealth, and that money is on the move. From 2022 to 2045, an estimated $84.4 trillion in assets will change hands in the U.S., with about $72.6 trillion in assets transferring to heirs and $11.9 trillion donated to charities. The numbers are so substantial that they have given rise to the term, “The Great Wealth Transfer.”
For owners of real estate who wish to transfer wealth to future generations, there are some important things to consider as part of your estate plan that will help ensure your loved ones inherit your financial legacy without complications.
Property Ownership: By the Generations
The question of how to best structure a real estate portfolio for beneficiaries is particularly consequential for Baby Boomers, whose oldest members are approaching 80. According to the Federal Reserve (the “Fed”), Baby Boomers have the largest concentration of real estate holdings, owning nearly $19 trillion worth of U.S. real estate assets as of Q3 2023. By contrast, members of Generation X own approximately $13.6 trillion, Millennials own approximately $8.3 trillion, and members of the Silent (and earlier) Generation own about $4.8 trillion.
Read Ashlee Cabeal’s article in the WealthManagement.com 2024 Midyear Outlook.