Wells Fargo study finds 61% of adult children report inheritance fallout

Sixty-one percent of adult children in affluent families say an inheritance has caused negative fallout in Wells Fargo Wealth & Investment Management's 2026 Wealth Transfer Study, reported by InvestmentNews on Oct. 22. Their Baby Boomer parents put the share at 29%.

The study surveyed more than 800 Baby Boomer parents and nearly 800 adult children in Gen X and Millennial generations, all from households with at least $1 million in investable assets; participating families averaged $3.7 million. Younger respondents cited hurt feelings, fairness disputes, estrangement and legal battles.

Only 21% of parents report having had detailed conversations about their estate plans with their children; nearly a third have had little or no meaningful discussion. Eighty-two percent of adult children say talks about inheritance would help them plan for the future, and 80% of parents say money discussions help younger generations make better financial decisions.

On disclosure, 93% of parents say they know how much wealth they intend to pass on and 79% have specified the amount in a written financial plan, while 54% of adult children say they have been told what they are likely to inherit. On documents, 81% of parents say all necessary estate planning documents are in place, versus 66% of adult children. Among parents who have completed their documentation, 44% acknowledge they do not fully understand what their own estate plan does.

Reluctance runs in both directions. Sixty-one percent of adult children say they worry that asking about an inheritance will make them look motivated by money, and 53% say they would feel uncomfortable raising the subject at all. Parents cite how much to disclose (32%), whether transparency will demotivate their children (25%), and whether it will cultivate a sense of entitlement (22%). Fifty-seven percent of adult children wish their families were more open about money, while 42% describe finances as a topic that is routinely avoided.

"Families find themselves in a stalemate," said Heather Hunt-Ruddy, Central Divisional leader at Wells Fargo Advisors. "The next generation doesn't want to appear greedy. Parents don't want to send the wrong message. The result is that important conversations get postponed indefinitely."

Cerulli Associates projects roughly $124 trillion will change hands through 2048, a figure the study cites as the backdrop for its findings.