Wealth and Inheritance Across Generations: Why Timing Matters

If you’re a Baby Boomer sitting on a mountain of home equity, thinking, I’ll pass it on when I’m gone, you might want to reconsider. A recent survey by Charles Schwab shows a serious generational divide when it comes to inheritance, generational wealth, and homeownership.

Turns out, many of your kids aren’t thrilled about waiting until they’re 70 to receive a financial boost. They’d rather get a little help now—like a down payment on a home—so they can stop paying sky-high rent and start building their own financial future.

But here’s the kicker: If you don’t help them now, they may have no choice but to relocate out of state for affordability, leaving you in a big empty house with higher costs, more maintenance, and—let’s be real—a higher risk of loneliness when you need family the most.

Let’s talk about why downsizing, relocating, or using tools like a reverse mortgage could be your ticket to a win-win for both you and your kids.

Why Earlier Inheritance (AKA Generational Wealth in Action) Matters

Studies show that 40% of Americans will receive an inheritance, but the average age of recipients is 70. By that time, it’s more of a nice windfall than a life-changing opportunity.

Meanwhile, your adult kids are in their peak earning-but-struggling years—juggling careers, parenthood, rent, maybe even divorce or unexpected medical bills. If they can’t afford to buy a home now, they may never break out of the renting cycle.

Here’s the harsh truth: If you wait too long, you could unintentionally keep your kids trapped in the renter’s rat race instead of setting them up for long-term financial stability.

The Hidden Downsides of Delayed Inheritance

Yes, you want to be smart about your retirement savings, but keeping your assets locked up until the very end may backfire.

If your kids can’t afford a home where they live, they’ll relocate to states where housing is cheaper—often hundreds or thousands of miles away. Fast-forward a decade, and suddenly, they’re settled elsewhere, and you’re alone, in a too-big house, wondering why they never visit.

If you want to keep your family close while ensuring your own financial comfort, consider downsizing, gifting a portion of your wealth early, or even using a reverse mortgage to free up funds while keeping your home.

How Downsizing and Relocation Can Solve It All

Think about it:

• Downsizing means fewer rooms to clean, lower property taxes, and extra cash in your pocket.
• Relocating (yes, even you) could put you closer to family while lowering your cost of living.
• A reverse mortgage can allow you to stay in your home while tapping into its equity—without draining your savings.

This isn’t just about money. It’s about future-proofing your life. Smaller home, smarter finances, and a family that doesn’t have to move halfway across the country just to afford a home.

What the Data Says: The Charles Schwab Study

Schwab’s survey of 1,000 high-net-worth Americans (translation: folks with $1M+ in assets) found this clear divide:

• Boomers’ Mindset: “I’m holding onto my money until I die.”
• Heirs’ Mindset: “A little help now would change my life.”

Why? Because homeownership = wealth-building. Your kids know that, but many can’t even afford to get started.

Why You Should Consider Gifting Now

✔️ You get to see the impact. Watching your child buy a home because of your help? Priceless.
✔️ It stops the rent cycle. Helping them with a down payment gets them out of renting decades earlier.
✔️ You maintain control. Structured gifting, setting up a trust, or helping in small strategic ways ensures they use the money wisely.

And let’s be real: This is your legacy—wouldn’t you rather shape it now instead of hoping it plays out how you want after you're gone?

Keeping Your Family Close: The Ultimate Benefit

The hardest part of waiting to pass on wealth? Distance.

If your children relocate for affordability, they may be too far to help you when you need it most. Being proactive now—whether that’s downsizing, using a reverse mortgage, or helping them buy nearby—keeps your family physically and emotionally connected as you age.

If your house is too big, too much work, or too expensive, consider selling, relocating, or converting it into a financial asset for your future.

Downsizing: The Power Move Boomers Need to Consider

✔️ Save Money: Lower property taxes, maintenance, and utility bills.
✔️ Unlock Cash Flow: Sell your larger home and use the equity for smart financial moves.
✔️ Stay Connected: Move closer to family so you’re not left in an empty house while they live states away.

Don’t Let Your Future Be an Afterthought

Loneliness in retirement? No thanks. Stressing over a house that’s too big and too expensive? Hard pass. Watching your kids struggle while you sit on assets that could change their lives? Let’s do better.

Being proactive about downsizing, relocating, or leveraging a reverse mortgage doesn’t just benefit you—it strengthens your entire family’s future.

Time to act. Your wealth isn’t just about you—it’s about what you leave behind. Make sure it’s a legacy of smart decisions, not missed opportunities.

📍 Kelly Corsino is a Senior Real Estate Specialist  who lives with her fur baby GG the Wonderdog in Long Beach, CA
🏡 Helping Baby Boomers and Gen X downsize, relocate, and build generational wealth—without regrets.

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