Many in the next generation are pinning their hopes on a significant inheritance as part of the ongoing “Great Wealth Transfer” in the U.S. However, there’s a growing gap between what children expect to receive and what their parents actually plan to leave behind.
Unfortunately, you typically have no legal claim to be included in your parents’ estate plan and cannot challenge their will or trust simply because you believe it’s unfair. But if you suspect something suspicious is at play—like undue influence from others—you might want to investigate further.
The Great Wealth Transfer: Resetting Inheritance Expectations
Financial experts are predicting a staggering transfer of wealth, with estimates suggesting that $84 trillion in assets will change hands by 2045. Most of this wealth will flow to Gen Xers, millennials, and Gen Zers, totaling around $72 trillion. However, there’s a catch! Parents today are living longer, spending more during retirement, and facing high healthcare costs, which can significantly impact how much they pass on .
While more than half of millennials expect to inherit about $350,000 or more from their aging parents, many baby boomers plan to leave far less—and some even plan to leave nothing at all . This disconnect often stems from a lack of communication about inheritance expectations, as over a third of Americans avoid discussing wealth transfers with their families altogether.
So, you just found out you’re not included in your parents’ estate plan. What’s next?
Know Your Rights
Generally, adult children are not entitled to inherit from their parents’ estate plans. However, you may have the right to see your parents’ will if one exists. If a trust was established, it may be harder to obtain that information unless you are named as a beneficiary.
- Clear Disinheritance: If the will or trust explicitly disinherits you, contesting it might not be possible without additional evidence.
- Absence of Language: If there’s no explicit mention of disinheritance, the court might consider that you were inadvertently left out, potentially allowing for a contest.
You might also have grounds to dispute the will or trust if:
- You believe your parents weren’t of sound mind when making their estate plans.
- There was undue influence from someone else.
- A factual error led to your disinheritance, like a misunderstanding about your personal circumstances.
Ask Questions
Before diving into a potential contest—which can be lengthy and costly—consider asking yourself some key questions:
- Have they discussed their estate plan with you? If they indicated you’d receive something but you didn’t, that could be a significant issue. They might have viewed gifts given during their lifetime as part of your inheritance.
- Were they silent about inheritance matters? Some parents avoid these discussions altogether, making it harder to know their intentions.
- What was their financial situation? Increased longevity and lifestyle choices often deplete savings, leaving less for inheritance. Did they spend their wealth enjoying life, or did health issues drain their resources?
- Who else received money? Understanding who inherited and why can provide context for your situation. For instance, if a sibling with financial needs received more, it might clarify your omission.
Red Flags to Look For
If you can access your parents’ will or trust, look for any recent changes or unusual beneficiaries that might raise questions:
- Large gifts to charities or organizations they just became involved with.
- Significant assets left to a caregiver without a longstanding family connection.
- Sudden changes to the estate plan, especially if they coincide with declining health.
If the estate goes through probate, the will becomes a public document, allowing you to see the details of the estate and beneficiaries .
Discuss Your Disinheritance with an Estate Planning Attorney
Feeling left out can evoke shock, anger, or confusion, particularly if your parents never mentioned disinheriting you. While hurt feelings alone won’t suffice to challenge their estate plan, it’s essential to ask questions and investigate any red flags.
If you believe something isn’t right, consulting an estate planning attorney can provide clarity and guidance on your options moving forward. Don’t hesitate to take the next step in understanding your rights! Contact Williams Starbuck today.