Rising Interest in Leaving Inheritances Amid Declining Expectations to Receive Them

As the anticipated Great Wealth Transfer of $90 trillion approaches, an intriguing trend has emerged among U.S. adults regarding inheritances and financial legacies. A recent study by Northwestern Mutual, dubbed the 2025 Planning & Progress Study, reveals that nearly one-third of Americans now plan to leave a financial gift or inheritance, a notable increase from one-fourth the previous year. Conversely, the number of individuals expecting to receive an inheritance has fallen to just 20%—down from 25% in 2024. This paradox raises important questions about shifting values and financial planning priorities in America today.

Critical Nature of Inheritance for Financial Security

The study also highlights the urgent perception of inheritance among those expecting to receive one; over half of participants consider it "critical" or "highly critical" for their long-term financial health. This sentiment is particularly strong among younger generations: 63% of Gen Z respondents and 69% of Millennials agree that an inheritance is crucial for their future security. This aligns with the rising trend of individuals preparing to leave financial legacies amid dwindling expectations of receiving one.

Family Conversations on Financial Planning

Interestingly, the study found that 60% of those planning to leave an inheritance have discussed their intentions with family members, indicating a willingness to engage in financial planning conversations across households. Despite this encouraging trend, there remains a significant gap in formal preparations: 39% of Baby Boomers and 61% of Gen X individuals lack a will, which underlines the ongoing need for comprehensive planning to secure intended legacies.

Generational Perspectives on Inheritance

The generational divide reveals that younger adults, particularly Gen Z, are more likely than any other cohort to express a desire to leave an inheritance, with 39% intending to do so. The trend shifts with age, as the expectation among older generations declines, highlighting a narrowing gap between what young individuals want in terms of inheritance versus what their parents and older generations are willing or able to leave behind.

The expectations of leaving versus receiving an inheritance present a compelling narrative of shifting dynamics in familial financial planning. Notably, the study demonstrates that younger generations are increasingly prioritizing the idea of financial gifting—68% of Gen Z and 74% of Millennials view these gifts as either their single most important financial goal or extremely important, compared to 66% of Gen X and only 47% of Boomers.

Trusts, Wills, and Legacy Planning

While the desire to create a financial legacy is clear, the actions taken to ensure this happen remain varied. The findings reveal a gap in preparedness: many individuals express the wish to leave something behind but lack the necessary tools and frameworks to do so. For example, the striking proportion of adults without a will—which includes 39% of Boomers and 61% of Gen X—is a significant concern when considering the preservation of one’s financial legacy.

Conversely, many respondents express a desire to involve their children in discussions about financial planning. In fact, 60% of inheritance planners have communicated their intentions to family members, suggesting an increasing desire for collaborative financial planning.

The Role of Financial Advisors

Financial advisors play a critical role in navigating these complex discussions. The findings indicate that many parents (77%) feel comfortable including their teenage or young adult children in meetings with their financial advisor, primarily to instill good financial habits and introduce key concepts of financial planning. This engagement is vital for ensuring that the next generation is equipped to manage any inherited wealth and understand the responsibilities that come with it.

Kamilah Williams-Kemp, chief product officer at Northwestern Mutual, emphasizes that creating a lasting financial legacy is not merely about transferring wealth—it is also an opportunity to foster long-term security and prosperity for future generations. As such, the importance of having the right tools—like wills, trusts, and life insurance—as well as comprehensive financial strategies, cannot be overstated.

In conclusion, the 2025 Planning & Progress Study from Northwestern Mutual underscores evolving trends in American financial planning. With many more individuals focusing on leaving inheritances, while expectations surrounding receiving them decline, the need for proactive financial planning is apparent. Planning for the future remains a work in progress; however, with ongoing dialogues around legacy and wealth transfer, individuals can better navigate the complexities of financial security for themselves and their families.