Inheritance…… There seems to be a serious disconnect between millennials and their parents when it comes to inheritances according to a recent survey from Vancity in BC. Most will have to come down to some realistic expectations where their futures are concerned.
A report done by Vancity in BC that looked at intergenerational wealth, states that more than 39% of Metro Vancouver children expect to receive over $300,000 while only 12% of parents expect to leave close to that amount. In fact, over 60 % of parents expect to leave $100,000 or less of an inheritance to their children.
Our parent’s generation – the Boomers – are still in spending mode and they are living longer. They are travelling and helping out their children *(pay off debts) while they are still alive. So while the money may be flowing a little earlier, there is less of it.
The survey also found out that 73% of millennials are confident their parent’s can financially survive their retirements. Of course there are others who will need the financial help of their children; the other 27%.
It can be difficult for most parents to talk their kids about their death, the state of their finances or any potential inheritances that might be coming but the only way to avoid any surprises is to open up that conversation.
Vancity’s report also stated that the median asset value of BC households over 64 years of age is $595,000 while the average inheritance was $137,800 in 2012 and the median was only $50,200. It seems many millennials have lofty expectations when it comes to their financial futures and their inheritances; expecting over $300,000 with a median inheritance of $50,200 is a definite disconnect. The question is, Who will make up the difference? And how?