There has been a lot of hand-wringing in the media in recent years about what will become of the millennials, the generation of Americans now coming into their early twenties. Magazines, television newscasters and websites all want to know if these social media obsessed youths are prepared for the harsh realities of today’s economy. Now one research group has looked at how this generation handles inherited wealth.
The recent study looked at one aspect of the millennials’ story that has not received a lot of attention: the fact that, among millennials who have money, it’s more likely to be inherited money than it is for baby boomers of Generation Xers.
Researchers found that among Americans age 32 or younger who had up to $1 million to invest, a third of them inherited the money. Generally speaking, a person may inherit money through wills, trusts or other means. The fact that younger Americans inherit money may not be surprising because, generally, younger people have had less time to earn wealth on their own. What is notable is their attitude about money.
Studies show that Americans aged 32 and younger are more likely than older Americans to be cautious in their investments, careful to save money and worried about their retirement. Researchers note that these Americans came of age just as the big recession hit and they are concerned that the economy will never be as healthy as it once was.
Because of their concerns, many Minnesotan millennials may view their inheritances as financial necessities rather than as welcome windfalls. When money managers mishandle their funds, these millennials may face serious threats to their futures.
Minnesotans who fear that others are interfering with their inheritance should seek help understanding their legal options. With appropriate legal action, they can fight for their interests and help secure their family wealth for generations yet to come.
Source: CNBC, “Millennials Make Most of Massive Inheritance: Study,” Paul O’Donnell, May 31, 2013