What is an "average" inheritance?

[hoffmann2828]

My FIL passed away last year (MIL is healthy thank God) and we just were told "their net worth". My husband thinks its a normal amount (whatever that is!) and I think it's high. Either that, or my own parents seems extremely low.

Now mind you just so I don't catch any flack - I am not in any way 1. Counting on this money 2. Expecting any/all. Just curious. In fact, I joke to my mom all the time and tell her to spend it, I don't want it.

I know when my grandparents were gone, they left next to nothing to my folks. Just thinking since disboards are so diverse I'd get a good idea.

Thanks,
Jenny

 

[jenseib]

I think now a days nothing for the most part. I know with grandparents, we just went through the house and took any furniture etc we wanted, but there was no money. I also know many others who have not gotten any actual money. Not the case for some, but I think for most, there isn't money left after all the expenses.

 

[Marionnette]

My FIL passed away last year (MIL is healthy thank God) and we just were told "their net worth". My husband thinks its a normal amount (whatever that is!) and I think it's high. Either that, or my own parents seems extremely low.

Now mind you just so I don't catch any flack - I am not in any way 1. Counting on this money 2. Expecting any/all. Just curious. In fact, I joke to my mom all the time and tell her to spend it, I don't want it.

I know when my grandparents were gone, they left next to nothing to my folks. Just thinking since disboards are so diverse I'd get a good idea.

Thanks,
Jenny

I know people with a net worth of $1M+. I also know people who don't have a pot to pee in, nor a window to throw it out of. In the long run, I don't see that it matters all that much.

My father's parents had very little to leave their kids. They never had much when they were alive. My mother's parents left a comfortable amount to her and her siblings. Nothing huge but certainly in the tens of thousands each for 5 siblings.

I'm the executor for my parents' wills. I won't disclose the amount they have. I just know that my siblings are in for a big surprise. It's not an amount that they might be expecting. My parents were never open about discussing finances with us.

 

[angierae]

I'm not sure there's a real way to figure out an average. My stepdad (my mother is deceased) is upside down on his house and doesn't even have enough life insurance to pay off the house. My MIL very well may leave seven figures, depending on how the next 15-20 years go. (We keep telling her to spend it, but once a saver...)

 

[Dizisfun]

I don't really think there is an "average". If the parents were "well off" than the inheritance is probably substantial. If they weren't well off than I'm sure the inheritance is little to none.

And if the parents go into a nursing home than a lot of times they have to sign all their assets over to the home. And they can't just up and put everything in the kids names to get around it. I think everything has to b transferred over at least 3 years before going into the nursing home. I know my MIL has already put her house in the kids names. This was done several years ago after my FIL passed away.

 

[RitaE]

Retiree Net Worth Statistics

http://money.usnews.com/money/retirement/articles/2012/07/23/retiree-net-worth-declines

 

[pocomom]

My parents worked very hard and were very successful, retired at 45. They were an example of the American Dream, having been born with nothing. They lived modestly for the most part despite their wealth. They had a house in SE Florida which took a huge hit in the real estate market, and one in NY that burned in the fire along with many irreplaceable antiques. My dad had cancer, and my mom had other health problems...life happened. At the time they retired interest rates were at 7% and higher- they figured they could live well and comfortably at a prolonged interest rate of 4% without touching the principal of their investments. This economy has been devasting to them. My brother and I are constantly telling them not to be worried about what they leave us, but I think they always dreamed of leaving us well off and it is hard for them to swallow. I grew up with a lot of kids who had ridiculous amounts of wealth, and my brother and I very much chose a middle class life (though I wouldn't mind a little more vacation money ) and are happy. I don't imagine now we will end up with a large inheritance and I can't imagine at the time that I'll be thinking about the money at all. I would much rather my folks leave this world MANY years from now spending their last penny on some awesome experience, then leave anything behind for us. They have done enough for us already.
Not sure if I answered the question asked after all of that , lol, but I guess the short answer is "a lot less than it would have been, but more than I ever want"

 

[BuzznBelle'smom]

I don't know that the "average" matters. Some people die wealthy, some die penniless. Often, the heirs have no clue, either way. I don't know if you're a fan of "Real Housewives of Orange County"--I used to watch. There was one family that lived real large and had teenaged daughters. The dad had a heart attack, out of the blue, and the girls were left with nothing--what he had went to his current wife, who had zero interest in giving the kids a dime. They'd been raised as children of privilege, and had no idea what to do.

I don't like to give specifics, but my mom left each of her four kids a 5-figure sum. It was totally unexpected. When my MIL dies, there will be 7-8 figures being passed down. DH will benefit from a few trusts, as will my children. I get nothing, of course, and I'm fine with that. I've been trying to prep my kids, making them understand that this is not a gift to be squandered, that's it's a legacy from their grandparents, and meant to improve their lives, mostly through education. DD17 is grateful that she'll be going to her dream college in the fall. DS16 knows, but doesn't fully grasp it. I'm just starting the conversations with DD10, and DS7 is completely in the dark.

 

[Ginny Favers]

I know that this will fluctuate. I don't expect anything from my parents and in-laws, but I know that they're both so vastly different.

My in-laws spend money like it's water and have debt up to their eyeballs. They have 5 kids, so when they pass away I expect that there will be nothing left.

My parents never made more than $40k a year, but they were very budget-minded. When they retired at 53, they went to a financial adviser who told them they never had to worry about money again. Even now, they live on my dad's pension and just keep socking away the extra money. I know they are right now worth a substantial amount of money, but I suppose you never know what life can deal you.

I'm not counting on anything-- if we do inherit, it won't impact me because I don't expect to go buck wild-- I will want to have something to pass on to my kids to ensure a better life for them and future generations.

 

[QVCshopper]

When my husband's grandma was getting older, she gave each of her four grandkids $5k and then another $10k as her health declined, but while she was still alive. Three used it for college, but since my husband was already finished and his company paid for his MBA, we used it to buy our house. His other grandma is still alive--92! Yay!--and in a home. She used her little bit of money to get into the home and now that it's run out, they just take her Medicare.

My husband's parents are rather wealthy, but I am not counting on anything. And my husband and I have much more saved that my parents--actually, they are in their mid 60s and don't have a will. (Don't get me started...) I'm hoping they all live long and use their resources, but I suppose if we do inherit anything, we will use it to pay for our kids' college.

 

[wiigirl]

Retiree Net Worth Statistics

http://money.usnews.com/money/retirement/articles/2012/07/23/retiree-net-worth-declines

Woah!

 

[eliza61]

Not sure if there is such a thing as "Average" especially since today's financial scenerio is much different than our parents.
As been reported we are now living longer, many people have lost net worth and retirement is being pushed back more and more. I think that if there were such a thing as average, most folks leave their children their house if it is paid off. for a lot of folks their house is the most valuable asset.

Due to some really ugly situations with inheritances in both dh and my family, we decided that we would not leave large cash payouts to our children.
We planned on gifting them throughout their lives. I will pay their college tuition throughout grad school and law school, I'll help fund any businesses they open and will purchase their first house or give a large down payment. but we have trust set up for our charaties and if my sons have children I'll set up trust for them also.

but who knows, one serious illness can change a families fortunes in a blink of an eye.

 

[hoffmann2828]

Thanks for everyone's responses. Again, I'm not counting on anything we may receive, I was just shocked to hear theirs is close to 7 figures while my parents are probably around $200k. My parents both worked and never squandered, but we did take more trips, lived in a nicer home and my mom was a constant redecorator. Lol.

I was just extremely surprised that my husband thought "near 7 figures" was "normal". Not according to the link!

 

[eliza61]

Thanks for everyone's responses. Again, I'm not counting on anything we may receive, I was just shocked to hear theirs is close to 7 figures while my parents are probably around $200k. My parents both worked and never squandered, but we did take more trips, lived in a nicer home and my mom was a constant redecorator. Lol.

I was just extremely surprised that my husband thought "near 7 figures" was "normal". Not according to the link!

It also depends on how the estate is calculated. If you live in NY/North Jersey and you include the value of your house, well then 1mil is very "normal". I have relatives in Manhattan where their apartments are worth a mil and let me tell you, they are not uber big apartments. So think about it, If you have an elderly aunt who dies, she lives on 79th and Park her apartment is paid for so the inheritance to her daughters could be a bit, especially if she has a couple of life insurance policies, pensions, etc etc.

 

[dizluvah]

DH inherited approx. $50,0000 from his grandfather. DH's father was already deceased and grandfather felt money should be split between his surviving son (DH's uncle) and DH himself. So the total estate as approx. 100K

 

[ssawka]

I have no idea what the average is, but in terms of my parents all i can say is that it is a good thing that debt cannot be inherited!

 

[Disneybuckeye]

My MIL died last summer. Six siblings received an inheritance of $2k. One received the house worth about $50k as her and her illegitimate child had no where to live and the others felt bad. I am assuming her $60k estate is way under the average.

We will probably receive a nice inheritance from my mother, but who knows what the future may bring. We paid for all three of our kids to go to college (once the youngest graduates next spring) and are funding our own retirement.

If we can leave money to our kids we will, but our two boys who are working are currently putting a substantial amount of their salaries into 401ks and other investments. Our college age daughter is a finance major and has been investing her own money for years and is doing quite well. We have taught them to be able to take care of themselves, unlike my SIL. I would never count on an inheritance for anything.

 

[100AcreWood]

I have no idea what the average is, but in terms of my parents all i can say is that it is a good thing that debt cannot be inherited!

Amen! My parents are retired now and my mom constantly complains about living on a fixed income. I tried to explain that we all live on a fixed income, called a budget. She spent money faster than they could make it.

 

[Darcy03231]

When my paternal grandmother died (grandfather died about 20 years prior) there was nothing. In fact, my dad paid for her funeral because there was no money and none of his siblings had the money to help out. Grandmother's house was sold when she went to live in an assisted living facility when she could no longer live on her own. She then went on to need a nursing home. This ate up all of her assets.

When my maternal grandmother died (my grandfather predeceased her) there was a house that was paid for, the contents which included some antiques, a parcel of land and about $20,000 in cash. She lived in her home until her death and had little to no health issues.

Both sets of grandparents lived in the same town and had roughly the same types of jobs and houses. Both sets of grandparents were savers and very careful with money and "making do." Nothing that could be used in some way was ever thrown out. Due to my paternal grandmother's health issues everything they saved was used for her care (as it should have been). Because my other grandparents had no major health issues and were able to live on their own home they didn't have the same expenses which left an estate to their children.

 

[Colleen27]

I think normal is nothing, but that might just be because of my experience/perceptions. My grandparents on both sides and most of their siblings burned through everything they had and then some in their last few years of life, and that was just as true for the one that retired with 7 figures in the bank as for the one that had only social security and a union pension. My grandmother had only her home and possessions left, no cash and only a small life insurance policy to cover her burial. My grandfather had enough to cover final expenses and leave a small sum for my father, but that came mainly from the proceeds of selling his home when he moved in with my aunt. My mother is on the same road - she has a comfortable retirement but if she lives as long as her parents did she'll likely exhaust her funds on medical expenses eventually; the only thing she hopes/plans to leave us is her home and our vacation property, which have a combined total worth of about 50-60K right now.