Average Inheritance in America: What the Data Shows

Inheritance plays a growing role in American wealth. Cerulli Associates projects $84.4 trillion in wealth transfers through 2045, so the “Great Wealth Transfer” is well underway. Here is what the Federal Reserve’s data shows about who inherits, how much, and when.

Average and Median Inheritance

This page doesn’t give a single average, because the Fed’s data shows why one number misleads. What the Federal Reserve’s Survey of Consumer Finances (SCF) does show is how skewed inheritances are: most are relatively small, with about half of all inheritances under $50,000. At the other end, transfers of $1,000,000 or more are only about 2% of the number of transfers at death, but about 40% of the total dollars transferred.

That skew is why an average misleads. A small number of very large inheritances pull it up, while the typical heir receives far less.

Who Inherits

The Fed’s 2019 SCF bulletin found that 27% of families with a college-educated parent had received an inheritance, trust or gift, compared with 22% of families without one. The Fed’s earlier research adds that recipients tend to be wealthier, higher-income and more educated than the average person, which makes inheritance a driver of the wealth gap as well as a result of it.

These are survey results for 2019 and earlier. Treat them as a guide to who tends to inherit, not as a current count.

When People Inherit

Inheritance receipt peaks at around age 60 for all income groups, consistent with generations about 20 years apart and lifespans around 80. That timing matters for planning: by the time many heirs inherit, their main wealth-building years are behind them, so the money often lands on top of an existing retirement plan rather than starting a new one.

The Great Wealth Transfer

Cerulli Associates projected in January 2022 that wealth transferred through 2045 will total $84.4 trillion: $72.6 trillion to heirs and $11.9 trillion to charities. More than $53 trillion of it is expected to come from Baby Boomer households. This is a projection, not a count, and it spreads over decades rather than arriving as a single event. Because Boomer wealth is itself very unevenly held, the transfer will be uneven too.

What a $50,000 Inheritance Can Grow To

The table is a worked example, not a forecast. It assumes $50,000 is invested once at a constant 7% annual return, with no withdrawals, fees or taxes.

Real returns vary year to year, and a 7% average is not guaranteed.

Estate & Inheritance Tax Thresholds

Very few Americans owe federal estate tax: it only applies to estates above $15 million in 2026, a very small share of deaths. A surviving spouse can elect to carry over the deceased spouse’s unused exemption (called portability), so a married couple can shield up to $30 million. Above the exclusion, the IRS’s unified rate schedule runs from 18% on the first $10,000 of taxable amount up to 40% on amounts over $1,000,000.

Some states add their own tax. Five states have an inheritance tax (Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania) — Iowa’s ended for deaths on or after January 1, 2025 — and the rate generally depends on the heir’s relationship to the deceased. Several states and DC also have a state estate tax with a much lower threshold than the federal one.

States with Estate or Inheritance Taxes

Exemptions change, so the figures below are for 2026 where a state publishes one and are otherwise left for you to check with the state.

How to Plan for an Inheritance

If You’re Expecting to Inherit

If You Receive an Inheritance

Key Takeaways

1. Most inheritances are modest, but a few large ones dominate — transfers of $1 million or more are about 2% of inheritances and about 40% of the dollars
2. Roughly one in four families has received an inheritance, trust or gift (22% to 27% in the Fed’s 2019 survey, depending on parental education) — and wealthier families receive more
3. Inheritance receipt peaks around age 60, consistent with generations about 20 years apart and lifespans around 80
4. About half of inheritances are under $50,000
5. About $84 trillion is projected to pass to heirs and charities through 2045 (Cerulli’s 2022 estimate)
6. Federal estate tax applies only above $15 million per person in 2026, and five states levy an inheritance tax
7. Don’t plan your finances around an expected inheritance — longevity, healthcare costs, and remarriage can change everything. At 65, the average American can expect about 19.7 more years of life (CDC, 2024), so a parent who retires then may spend close to 20 years in retirement — drawing down assets, paying for healthcare, and possibly paying for long-term care before they pass. Many well-off parents leave far less than their children expect, not because of mismanagement, but because a long retirement is expensive
8. Inherited property generally gets a stepped-up cost basis — a significant tax advantage for appreciated investments and property

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.