For many young Latinos in the United States, the idea of a family inheritance feels like a safety net—a way to finally buy a home in a hot market or retire with dignity. But new research suggests that net may have more holes than expected.
Cerulli Associates, a financial research firm, released projections on December 5, 2024, estimating that $124 trillion will move across US households through 2048. That sounds like a windfall for Gen Z and millennials, but the reality is far more complicated. A significant chunk of that money will never reach the younger generation.
The great wealth transfer: who actually gets the money?
According to Cerulli, $54 trillion will first go to surviving spouses, not children. Charities are also poised to receive $18 trillion. And the top 2% of wealthy households—those with over $5 million in assets—will control $62 trillion of the total, meaning the average family's inheritance is much smaller than the headline number suggests.
Chayce Horton, a senior analyst at Cerulli, told Fortune that “over time, the majority of wealth from older generations in the United States will be donated or transmitted to Generation X or millennial heirs.” But that doesn't mean it will be easy to access. Many older adults are living longer, spending more on healthcare, and even adopting the “SKI-ing” trend—spending the kids' inheritance—on travel and experiences.
Mark Tanzer, chief executive of the British travel association ABTA, told The Times that older adults “have more disposable income and want to live experiences during their golden years.” That’s a nice way of saying your parents’ retirement cruise might be funded by your future down payment.
Why young Latinos are especially vulnerable
For Latino families, the stakes are even higher. Many first-generation and second-generation Latinos rely on family support to navigate a country where systemic barriers—like lower homeownership rates and wage gaps—make wealth accumulation harder. A 2023 report from the Urban Institute found that the median wealth of Latino households is just $48,000, compared to $187,000 for white households. An inheritance could be a lifeline, but it’s not guaranteed.
Northwestern Mutual’s 2024 survey found that 69% of millennials and 63% of Gen Z who expect an inheritance say it’s essential to their long-term financial security. Yet only 30% of Gen Z and 26% of millennials actually expect to receive one in 2025—down from 38% and 32% the year before. That gap between expectation and reality is a recipe for disappointment.
Healthcare costs and the silent drain
One of the biggest threats to family estates is healthcare. Medicare doesn’t cover long-term non-medical care, like nursing homes or daily assistance. Families often have to pay out of pocket, and those costs can wipe out decades of savings. Medicaid can help, but only if families meet strict state requirements—and even then, it’s a complex process that many don’t navigate until it’s too late.
“The reality is that many older adults will need significant care, and that care is expensive,” says financial planner María González, who works with Latino families in Los Angeles. “I’ve seen estates shrink by half in just a few years because of long-term care costs.”
Why open conversations matter
Despite the risks, most families don’t talk about money. Northwestern Mutual found that 60% of people who plan to leave an inheritance have discussed it with their family—but that means 40% haven’t. And even when they do, the conversation often focuses on the amount, not the conditions.
Financial advisors recommend that families discuss retirement priorities, healthcare plans, and charitable giving before assuming an inheritance will cover big purchases. “It’s better to know now than to be surprised later,” says González. “A little transparency can prevent a lot of resentment.”
For young Latinos, this is especially important. In many cultures, talking about money is taboo, but the cost of silence is high. If you’re expecting a windfall, ask your parents or grandparents about their plans. You might find that they intend to leave money to a church or a cousin, or that they plan to spend it all on a new RV.
Building your own financial foundation
The good news is that you don’t have to rely on an inheritance to build wealth. Financial experts emphasize that independent savings, disciplined investing, and realistic goal-setting are the most reliable paths to homeownership and retirement. Even small, consistent contributions to a retirement account can grow significantly over time.
For those who want to learn more, resources like Cerulli’s insights portal offer data on wealth trends. But the takeaway is simple: don’t count on money that hasn’t arrived yet. Instead, focus on what you can control—your income, your savings rate, and your financial education.
As the conversation about giving early gains traction, some families are choosing to pass on wealth while they’re still alive, helping younger members buy homes or start businesses. That can be a smarter move than waiting for a posthumous transfer that might never come.
In the end, the $124 trillion transfer is real, but it’s not a lottery ticket. It’s a reminder that financial security is built, not inherited. For young Latinos, that means taking control of your own future—one paycheck, one budget, and one investment at a time.
