In the coming years, the U.S. is set to witness the largest transfer of wealth in history—what experts are calling the Great Wealth Transfer. Many young people are hoping for a share of this inheritance from their parents or grandparents. But there’s a twist.
Before the money reaches the next generation, trillions of dollars will first be transferred from one spouse to another—mostly from husbands to wives. This change means that younger adults may have to wait much longer than expected to receive any inheritance.
What Is the Great Wealth Transfer?
Between 2024 and 2048, around $84 trillion will move from older Americans (mostly baby boomers and the silent generation) to their heirs. This wealth comes from home ownership, retirement savings, and investment portfolios built over decades.
However, a large part of this money—about $54 trillion—will first pass from one spouse to another, not directly to children. This type of transfer is called a “horizontal” or inter-spousal transfer.
Why Will Women Receive Most of This Money?
According to Cerulli Associates, over 95% of this inter-spousal wealth will go to women. This is mainly because women usually live longer than men. As a result, when a husband passes away, the wife often becomes the first beneficiary of the family’s wealth.
Experts point out that when we say “next generation,” it doesn’t always mean young adults. In many cases, it simply means the surviving wife.
Inheritance for Children Will Come Later
For children waiting for their share, this means the inheritance may arrive much later in life. According to research from the Wharton School, most Americans inherit between the ages of 56 and 65—just before or during retirement.
Unfortunately, not everyone will receive an inheritance. In fact, most Americans never inherit anything at all.
Women and Financial Responsibility
Traditionally, men have handled the finances in many marriages, especially in older generations. But with this huge transfer of wealth to widows, women need to be more involved in financial planning.
A survey by Allianz Life found that 43% of married women now see themselves as the family’s Chief Financial Officer, compared to 34% in 2021. This is a positive change, as women are increasingly taking control of household finance.
Still, in many wealthy households, men are often considered the financial experts. A study found that in 90% of top 1% households, the husband is seen as more financially knowledgeable.
Financial Advisors Must Talk to Wives Too
Experts say that financial advisors should stop focusing only on husbands and start talking to both partners. If the person managing the money dies first, the surviving spouse must be prepared.
As one advisor put it, “If your financial adviser only talks to your husband, it’s time to find a new one.”
Tips for Couples to Prepare for the Future
To avoid problems when one spouse passes away, couples should plan ahead:
Work Together on an Estate Plan
Have a will or trust that clearly says how your assets should be shared. Also, decide who will handle your affairs in case of an emergency.
Choose Beneficiaries Now
For accounts like insurance and investments, name the people who will get the money after your death. This makes it easier for the surviving spouse.
Share Household Information
Create a file with account numbers, passwords, and monthly bills. Update it regularly. This makes it easier for the surviving partner to manage everything.
Put Both Names on Accounts
Make sure both spouses are listed on utility accounts, streaming services, and bank accounts. This avoids trouble later.
Plan for Long-Term Care
Most people will need some form of long-term care. Talk about how to pay for it while both partners are still healthy, especially since women live longer and are more likely to need care.
The Great Wealth Transfer is coming, but not in the way most young people expect. Before wealth reaches children or grandchildren, it will pass between spouses, and most of it will go to women. That’s why it’s important for couples to plan together, share financial responsibilities, and make sure the surviving spouse can handle everything. This shift in wealth is not just a transfer of money—it’s a chance to rethink how families handle their finances.
FAQs
What is the Great Wealth Transfer?
It refers to the $84 trillion expected to pass from older Americans to their heirs by 2048, starting with transfers between spouses.
Why is most of the wealth going to women first?
Because women usually outlive men, most wealth transfers between spouses will go from husbands to wives.
When do most people receive an inheritance?
Most Americans inherit between the ages of 56 and 65, if they receive any inheritance at all.
What should couples do to prepare for wealth transfer?
They should create an estate plan, name beneficiaries, share financial info, and plan for long-term care.
Why should financial advisors include both spouses?
Because if only one spouse manages money and passes away, the surviving spouse may struggle without guidance.