A big change is coming to the way money is passed down in the United States. Over the next few decades, a massive $84 trillion will be transferred from older Americans to their families. But here’s the twist—before this wealth goes to children or grandchildren, most of it will first go to women.
This event is called the Great Wealth Transfer, and it could change how families and women handle money in the future.
What Is the Great Wealth Transfer?
Between 2024 and 2048, a huge amount of money—about $84 trillion—is expected to be passed down from older Americans. Most of this money will come from baby boomers and the silent generation. Their wealth comes from owning homes, retirement funds, and years of investments.
But instead of going straight to children, $54 trillion will first go from one spouse to another. This kind of transfer is called horizontal or inter-spousal transfer. It means the surviving partner, often the wife, gets the money first.
Why Women Will Receive Most of This Money
Studies show that over 95% of this spousal wealth will be inherited by women. Why? Because women tend to live longer than men. So, when a husband dies, the wife usually becomes the first person to receive their shared wealth.
This means that even though people talk about inheritance going to “the next generation,” in many cases, it really means the surviving wife gets the money—not the kids.
Children Might Have to Wait Longer for Inheritance
If you’re a young person hoping to get some of this money, you might have to wait longer than you think. Research from the Wharton School shows that most people get their inheritance between the ages of 56 and 65. That’s usually just before retirement.
Also, it’s important to know that not everyone gets an inheritance. In fact, many Americans don’t receive any inherited money at all.
Why This Matters for Women’s Financial Roles
In the past, men usually handled the money in marriages. But now, since women are going to receive most of the wealth, they need to be more involved in financial decisions.
A study by Allianz Life found that 43% of married women now see themselves as the main person in charge of family finances. That’s up from 34% in 2021. It’s a good sign that more women are taking control of their money.
Still, in 90% of the richest families, the man is seen as the financial expert. That shows there’s still room for change.
Financial Advisors Need to Talk to Wives Too
Many financial advisors only speak to husbands about money. But experts say this needs to stop. If the husband dies first, the wife must be ready to take over.
One advisor said, “If your financial advisor only talks to your husband, it’s time to get a new one.” That’s a strong reminder that both partners should be part of money discussions.
Tips for Couples to Prepare for the Future
To make sure everything goes smoothly, couples should plan ahead. Here are some simple tips:
Work Together on an Estate Plan
Create a will or trust that clearly says who will get your money and property. Also, choose someone who can make decisions for you in emergencies.
Choose Beneficiaries
For things like insurance or investment accounts, decide who will get the money after you pass away. This helps avoid confusion later.
Share Household Information
Keep a list of account numbers, passwords, and monthly bills. This way, the surviving spouse won’t have trouble managing things alone.
Put Both Names on Accounts
Make sure both of your names are on important accounts like electricity, streaming services, and bank accounts. This avoids legal issues later.
Plan for Long-Term Care
Talk about what to do if one of you needs special care in old age. Since women live longer, they are more likely to need help in the future.
Conclusion
The Great Wealth Transfer is going to change a lot of things in America. Instead of money going straight to the next generation, it will first pass from one spouse to another—mostly to women. This means women need to be ready to take care of family finances. Couples should work together, make a clear financial plan, and share important information.
With smart planning, families can make sure their wealth is handled well and passed down smoothly. This moment is more than just about money—it’s a chance to build stronger, smarter, and more prepared families.
FAQ’S
Q: What is the Great Wealth Transfer?
It’s the $84 trillion that older Americans will pass down to their families between 2024 and 2048.
Q: Why are women getting most of the wealth first?
Because women usually live longer, they often inherit from their husbands before the kids get anything.
Q: When do most people get an inheritance?
Most people inherit between the ages of 56 and 65.
Q: What can couples do to prepare?
They should make a will, name beneficiaries, share financial info, and plan for long-term care.
Q: Why should financial advisors talk to both partners?
Because if one partner dies, the other needs to know how to handle the money.