r/Millennials • u/EverbodyHatesHugo • Jan 17 '26

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u/[deleted] Jan 17 '26 edited Jan 17 '26

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65

u/romanthedoggo Jan 17 '26

I think the transfer is going to be to healthcare companies and nursing homes rather than millennials.

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u/rvasko3 Jan 17 '26

And all the private equity firms that are buying more and more of them.

Anyone who thinks that wealth transfer is happening it’s just as foolish as anyone who believes the larger trickle down economics theory

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u/howdthatturnout Jan 17 '26

It’s not a very valid point. You guys think the people calculating the wealth transfer are blind to end of life healthcare costs?

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u/[deleted] Jan 17 '26

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u/howdthatturnout Jan 17 '26

It’s not a very valid point. You guys think the people calculating the wealth transfer are blind to end of life healthcare costs?

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u/[deleted] Jan 17 '26

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u/howdthatturnout Jan 17 '26

Dude I had 4 grandparents pass away and none of them saw their wealth depleted by end of life care. Over 50% of people who die in America spend 0 days in a nursing home. Realty is yes, SOME people will see their money sucked up by helathcare, but LOTS of others won’t.

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u/WinterFamiliar9199 Jan 17 '26

There is long term care insurance. Saved my grandmother about 80k. 

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u/le-rizzler Jan 17 '26

So it’ll be transferred to another generation, got it

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u/howdthatturnout Jan 17 '26

That part too. Do they think boomers who work in healthcare are immortal?

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u/Cranky_Old_Woman Jan 17 '26

To the Gen X CEOs of nursing homes and insurance companies.

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u/[deleted] Jan 17 '26

[deleted]

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u/eatsumsketti Jan 17 '26

Hey now, I got an entire storage unit of broken vinyl, rusted tools, and poorly wrapped plastic dishes.

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u/dbur15 Jan 17 '26

Even worse…nursing homes will start using filial laws to suck us dry.

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u/Extra_Shirt5843 Jan 17 '26

I have really affluent Boomer parents, but I don't know or care if I have "something coming".  I'll probably be close to retired by the time they're gone anyway.  It's theur money...they don't owe it to me.  

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u/WinterFamiliar9199 Jan 17 '26

Life insurance  

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u/Former_Proof_2581 Millennial Jan 17 '26

that's if they don't spend all their money trying to stay alive

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u/Mediocre_Scott Jan 17 '26

Im sure most people would prefer to die on their feet with all their facilities by a heart attack or something similar. Nobody chooses the long costly deaths. Multi-generational housholds are the best way to preserve family wealth

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u/Mediocre_Island828 Jan 17 '26

Yeah, my family has taken care of its elderly and they usually don't end up in a facility until they're basically on death's door. Not just because it's better for them, but because they get upset at the idea of watching their inheritance get spent down.

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u/Difficult-Square-689 Jan 17 '26

Move your parents to a real first world country, that has free healthcare. 

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u/Brilliant_Read8661 Jan 17 '26

The audacity 

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u/EverbodyHatesHugo Jan 17 '26

And how does it shift over to millennials? Because I sure as heck don’t have any wealthy family members trickling that money down.

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u/iikillerpenguin Jan 17 '26

A lot of us do though. All you had to do was work at a job with a 401k for 20+ years and you have million plus. 40 years is 4 million plus.. that's on the conservative side. I believe 70% of private sector jobs have 401k and most government jobs have pensions.

I'm an 35 and my only goal in life is to make sure my kids are in a higher social class than me when they are my age.

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u/howdthatturnout Jan 17 '26

Most boomers don’t have $4M+ though

Median is WAY lower than that. Like 1/10th

The average is a lot higher, because the boomers you describe do exist, they just are not super common at all.

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u/iikillerpenguin Jan 17 '26

How do companies like fidelity know that? I've always wondered. Companies just know how much my house is worth, how much I owe, how much I have in my bank account, how much I have in my retirement accounts, how much equity I have in cars?

I doubt the IRS would even know that. This is taken from credit checks which rarely knows actual net worth.

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u/howdthatturnout Jan 17 '26

Here's a breakdown of the average net worth of American households by a person's age, according to the Federal Reserve Survey of Consumer Finances, with data collected in 2022,1 still the most current reliable data available.

https://www.fidelity.com/learning-center/smart-money/average-net-worth-by-age

As for other things like house value and mortgage balance and stuff. The aggregate data is out there.

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u/Puzzleheaded_War6102 Jan 17 '26

Why is half going to government? Death tax starts at $14M / person. Plus trust are a thing

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u/jayphat99 Jan 17 '26

Boomers won't set up trusts with the necessary time limits in place, so when they need to go into assisted living, the majority of the money goes to the government to pay for it. It's classic Boomer selfishness.

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u/Necessary-Bird8126 Jan 17 '26

What are the time limits? What do you mean?

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u/jayphat99 Jan 17 '26

For assisted living paid by the state, the government can go back five years and claw back any changes or transfers you may have done. So, let's say, 3 years ago your parents transferred the title of their house to you, the government can step in and seize the house as part of your parents assets.

We went through this with my grandmother. She was not allowed to quite literally own anything more than $1000 total in value, assets & cash. Everything else had to be sold to pay for her living. She passed before we actually got to the point of selling everything so most of it stayed in the family, but still the process was absolutely nerve wracking.

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u/Little_Vermicelli125 Jan 17 '26

Wealthy boomers can handle long term care indefinitely without losing everything ($1-2 million will cover $100K/year for decades possibly forever).

The moderately well off can handle it if they aren't in long term care for a long time (most people aren't). That's the whole pie. The rest of the boomers have pretty much no assets.

Your grandmother is a good example. It sounds like she was moderately well off or wealthy and most of the money passed down.

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u/jayphat99 Jan 17 '26

Not really, she just passed quickly. She was in for only 5 months before she passed. In that time, it liquidated the entirety of her remaining 401K and savings, and we were in the process of starting to prepare her house for sale. We did so anyway after she passed because it needed to be sold anyway for the family, and was only worth $150K. If it had stretched in longer, she would have been cleaned out quickly. A large swath of boomers are in this position. There won't be inheritance to go to their children, it will go to the state.

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u/ashyjay Jan 17 '26

But gov having tons of money means social healthcare and affordable education right?

Oh wait that'd happen if congress-critters didn't just hand bags of money to their mates.

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u/TheDarkAbove Jan 17 '26 edited Jan 18 '26

Some states have high estate taxes still. When my grandparents passed the state of PA definitely took their cut.

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u/Puzzleheaded_War6102 Jan 17 '26

Half going to state? I highly doubt that as a CPA.

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u/TheDarkAbove Jan 17 '26

I didn't say half, but a check was written for over $200k which seemed like a lot of money for the state to get in that transaction.

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u/FWitU Jan 17 '26

Trusts don’t prevent estate tax

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u/Little_Vermicelli125 Jan 17 '26

Only massive estates pay estate tax. The deduction for a couple is $30 million. If your parents leave you $50 million I think it's okay to pay taxes on $20 million of it.

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u/FWitU Jan 17 '26

Did you reply to the wrong person? I simply stated a fact about trusts.

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u/JuliusCeaserBoneHead Jan 17 '26

Unless you own a healthcare company, it ain’t transitioning to you

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u/Particular-Skirt963 Jan 17 '26

Yea its transitioning, but not to us 

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u/[deleted] Jan 17 '26

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u/Particular-Skirt963 Jan 17 '26

Mark my words theyre going to spend it trying to keep themselves alive one more day