Your Inheritance May be Larger than You Expect
NEW YORK (MainStreet) -- You might not be expecting to receive an inheritance, but you may be in for a surprise. While only 27% of adults under 60 believe they will inherit something, nearly two-thirds (64%) of adults over 60 expect to leave an inheritance. And they plan on leaving more than recipients expect, according to a new Interest.com survey.
The poll says the median projected inheritance is likely to be between $50,000 and $100,000. Some 25% of respondents expect to receive between $10,000 and $50,000, while 22% think a $100,000 to $500,000 windfall is probable. Another 17% reported they are likely to gain $50,000 to $100,000.
The Bureau of Labor Statistics says inheritances historically account for between 20% and 50% of total household wealth accumulation in the U.S. and are an important source of both business and home ownership.
What will most people do with their inheritance? Jay Zagorsky, a research scientist at Ohio State University, conducted a study on wealth transfer and found that adults receiving an inheritance save only about half of what they receive, while spending, donating or losing the rest. But Interest.com poll replies were more prudent. Fully 42% said they would put the money aside for retirement, while another 18% expect to pay down debt.
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