As the Baby Boomers reach retirement age at an alarming rate, many are wondering if this will lead to a transfer of wealth to their children and grandchildren. Unfortunately, recent studies suggest that the Wealth Transfer from Boomers to their Heirs is going to be much smaller than expected. An estimated $26 trillion is expected to pass from one generation to the next over the next 25-30 years. However, many experts are speculating that the Wealth Transfer could be much lower. This is partly due to the fact that Boomers are spending their money faster than expected and are not leaving much wealth behind for their heirs. In addition, the cost of living is rising faster than incomes. This means that Boomers are having to use their money to cover their basic needs such as housing, food, and healthcare. This leaves less money for saving, which results in less money for passing on to young generations. As the cost of living continues to rise, this problem will only become worse. Many Boomers are also living longer than expected. This means that the money that could have been used to pass wealth down to their heirs is instead being used to pay for their own long-term care. Furthermore, a recent survey found that a substantial portion of Boomers’ wealth is tied up in illiquid assets such as homes and businesses. This makes it difficult for Boomers to pass down these intangible assets to their heirs. Finally, taxes present a major problem for Boomers who are looking to pass down their wealth. The recent implementation of the 2017 Tax Cuts and Jobs Act has resulted in higher taxes on inherited wealth. This limitation makes it more difficult for Boomers to pass down their wealth to their heirs. The bottom line is that the Wealth Transfer from Boomers to their Heirs is going to be much smaller than expected. Boomers are living longer, spending more, and are already heavily burdened by taxes. As a result, much of the wealth that could have been passed down is now being used to cover basic expenses.