3 Reasons Retired Boomers Shouldn’t Give Their Kids a Living Inheritance
3 Reasons Retired Boomers Shouldn’t Give Their Kids a Living Inheritance (And 2 Reasons They Should)
May 22, 2025 By Sean Bryant
If you’ve generated a significant amount of wealth during your lifetime, you might be starting to think about what will happen to it once you are gone. You could donate it to a worthy cause or you could pass it down to your kids. But what if you want to go ahead and give them some of your wealth now, before you pass?
With the Great Wealth Transfer underway, it’s expected that by 2045, roughly $84 trillion will be passed down from the silent generation and baby boomers to their kids. And a lot of this will be done as a living inheritance.
This huge transfer of wealth has caused a lot of debate about whether or not leaving your kids a living inheritance is a good idea. Keep reading as we look into some reasons why retired boomers should not leave their kids a living inheritance and a couple of reasons why they should.
Why You Shouldn’t Leave Your Kids a Living Inheritance
Risking Your Own Financial Security
It’s common to want to see your kids succeed. This is true not only with their careers but also financially. Seeing them experience things like purchasing a home or traveling the world can give you self-gratification because you can witness and enjoy their success.
However, you also need to think about your own needs. If you plan to provide your kids with an inheritance while you’re still alive, it’s important to do so carefully. What happens if an unexpected expense pops up? Are you still going to have the funds available to continue living your current lifestyle?
Family Resentment
If you have multiple children that you’re planning to leave an early inheritance for, you need to do so carefully. It’s easy to leave cash assets and know the distribution is even. But what if you’re planning to leave someone with a business or real estate?
These types of assets can have fluctuating values, and if one dependent receives something that becomes more valuable, it could cause tension within the family — not just between siblings but also between you and them.
Potential for Financial Irresponsibility
Let’s be honest with each other. Sometimes people make bad decisions with money. Lifestyle inflation is a real thing and can have some severe outcomes. When people come into additional money, whether it’s a raise at work or an inheritance, they feel more freedom. They want to go out and treat themselves to something they’ve wanted but couldn’t afford. And while this is OK to a certain extent, there must be some restraint.