Login | July 26, 2025
Surprise––You’re a millionaire!
JULIE JASON
The Discerning Investor
Published: July 24, 2025
When I was speaking with a trusts and estates lawyer a few weeks ago, alongside a mutual client, the subject of "unexpected" inheritances came up. The lawyer mentioned that a client of hers unexpectedly inherited $35 million from a parent and found herself unprepared to prudently handle the financial decisions she would be called upon to make.
(Full disclosure: As investment counsel, my firm prepares client families for wealth transitions as a matter of course, while preserving confidentiality of the dollars involved.)
Wealth transfers of this size do occur, and more are likely as time goes on.
Cerulli, a research, consulting and analytics firm that focuses on the financial services industry, projects that through 2048, $105 trillion will flow to heirs, with another $18 trillion going to charity (tinyurl.com/4mfvxjtw).
About one-half of this figure is expected to come from only 2% of U.S. households (high-net-worth and ultra-high-net-worth individuals). The vast majority (81%) will transfer from baby boomers (born between 1946 and 1964) and older generations, as might be expected. Further, about one-half of the dollars flowing to heirs is expected to be passed on to spouses first before eventually transferring intergenerationally to heirs and to charities. Nearly $40 trillion of these spousal transfers will be going to widowed women in the baby boomer and older generations.
Let's return to my conversation with the lawyer. What about the element of surprise? Should parents involve their children in their estate plans, including sharing the size of their estates? From my perspective, the answer depends on family dynamics. The general rule that protects all interests is to share information strictly on a need-to-know basis. For most families, that rule translates into discussions without dollars.
What falls under need-to-know for most families? The minimum to share is the fact that an estate plan is in place, the location of the original will, and the contact information for the estate planning attorneys, financial advisers and accountants. If family members are named in any documents, including wills, trusts and, of course, health care proxies or powers of attorney, they would want you to talk about their roles.
What about the person receiving the inheritance? In most cases, parents leave inheritances to their children if widowed or divorced. If married, spouses leave money to their surviving spouses. In either case, ultimately, according to Kay Hope, research analyst at Bank of America Global Research, "women will receive most of it," according to an article on CNBC.com (tinyurl.com/5bh43j6u).
By Hope's calculations, women will inherit the majority (70%) of the $124 trillion wealth transfer over the next 25 years; some of it will transfer first to surviving spouses, then to their children.
According to the Bank of America Institute's recent Women and Wealth report, roughly $54 trillion will go to surviving spouses, most of the time (95%) to the wife.
As a result of the great wealth transfer, which is already underway, "women will soon control more money than ever before," according to Bank of America.
Does this trend raise the question of the need for targeted education? Should women be alert to educating themselves about wealth generally and wealth transfer in particular? Is gender relevant to the recipient? What if you were the surprised recipient of the lawyer's news that you inherited assets, perhaps even millions of dollars, from your parents? Would you be prepared to handle the newfound responsibility that a wealth transfer triggers? If these questions raise even more questions, let me know (readers@juliejason.com). I'll follow up with additional columns on the subject.
On another note, as part of my pro bono financial literacy efforts, I sponsor the national 401(k) Champion Award Competition (401kchampion.com), which honors 401(k) participants who not only use their 401(k)s wisely to save for retirement, but also encourage others to do the same. The essay competition launched on June 15, National 401(k) Champion Day, which was celebrated for the first time on June 15 of this year (tinyurl.com/58e78zjy). There are no costs to enter the competition. Three 401(k) Champions will be announced on National 401(k) Day, Sept. 5, 2025.
Seasoned investment counsel (tinyurl.com/52nus8hz) and award-winning columnist and author, Julie Jason, JD, LLM, promotes financial literacy and investor protection. Read her latest book, "The Discerning Investor: Personal Portfolio Management in Retirement for Lawyers (and Their Clients)" (tinyurl.com/4u7h9pjs), published by the American Bar Association. Write to Julie at readers@juliejason.com. While all questions cannot be answered, each email is read and reviewed and can lead to discussion in a future column.
COPYRIGHT 2025 Julie Jason, DISTRIBUTED BY ANDREWS MCMEEL SYNDICATION, 1130 Walnut St., Kansas City, MO 64106; 816-581-7500.