There have been conversations in the news about the Great Wealth Transfer occurring with the boomer generation.

Here are a few fun facts about this and the boomer generation.

• Baby boomers hold $17 trillion in home equity
• Boomers own 38% of American homes
• Boomers are the wealthiest generation at an average of $1.2M per person
• Boomers hold over half of all wealth
• 12,000 people turn 65 years of age each day

The baby boomers will be transferring their wealth in the next two decades until 2048. Over this time, there is an estimated $84 trillion in wealth that will be transferred. 

With such a large percentage of this wealth tied up in home ownership, second homes and rental properties, there are many real estate facets to consider. 

There is a movement for boomers to consider a planning conversation with loved ones about the intentions for their wealth transfer. For instance, some boomers want to sell assets and transfer a percentage of the proceeds to children. For most, it is important that loved ones have an idea of the intentions for inheritance and how it will occur.

Another consideration is the idea of “Giving while living.” Instead of placing all the details in a will, consider the option of moving assets while still alive.

There are so many ways that an experienced realtor can help advise and give input to families. Another important consideration is that, although Gen Xers and millennials are expected to receive a significant portion of this wealth transfer, the boomer’s spouse—most often the wife—will typically be the first and possibly the largest beneficiary.

Some questions and tips that are key to speak with realtors about are:

• Please do not get answers and advice simply from online or social media
• Boomers can get advice from both giving and receiving ends of the shift
• How can I maximize sale proceeds for potential wealth transfer to family?
• What are the tax implications of selling a property?
• For family buying property- can I co-sign or gift down payment funds?
• Should I buy an income generating property to gift later?

There are many excellent topics surrounding the great wealth transfer. Please consider letting a realtor be a part of this greater conversation. 

Lizzy Conroy is the principal at HBC Group, the #1 Team at Keller Williams McLean. Lizzy and her outstanding team are ready to help with the real estate portion of the Great Wealth Transfer. Let us know how we can help.

With all best wishes,

Lizzy Conroy

Email – Lizzy@hbcgroupkw.com
Ph – 202-441-3630
Website: www.hbcgroupkw.com

The Great Wealth Transfer Supporting news sources:

The great wealth transfer has started — but millennials, Gen Z may not inherit as much as they anticipate

What Is the Great Wealth Transfer? Big Inheritances Coming | Money