Beck, Lenox & Stolzer Estate Planning and Elder Law, LLC, brings you information in this article titled: Estate planning differences: Gen-Xers and Millennials vs. Baby Boomers. Estate planning is evolving—not just because of tax laws or financial trends, but because of shifting values between generations. Baby Boomers, who hold most of U.S. wealth, often view inheritance as a final gift to their loved ones. In contrast, many Gen-Xers and Millennials are increasingly interested in giving money now, during their lifetimes, when it can make an immediate impact.
This difference in approach reflects more profound changes in how families think about legacy, independence and intergenerational support. It also introduces new estate planning questions: Should you give now or later? How do you balance generosity with long-term security?
Understanding the pros and cons of each approach can help families create estate plans that reflect their values while avoiding financial missteps.
Boomers Focus on the Future
For many Boomers, the priority is ensuring that there’s something left to pass on. After working and saving for decades, they value financial stability, conservative investing and preserving assets for the next generation.
This mindset has been shaped by life experience. Boomers came of age during economic expansion and were encouraged to build wealth through homeownership and retirement accounts. As they plan their estates, many prioritize wills, trusts and tax strategies to preserve those assets.
This approach offers clarity and control. An inheritance delivered after death can be protected with trusts, distributed gradually, or earmarked for specific purposes like education or housing. It also avoids disrupting retirement income, which can be unpredictable due to health needs or market shifts.
Gen-X and Millennials Embrace “Give While You Live”
Younger generations often take a different view. With rising costs of living, housing, and education, many Gen-Xers and Millennials are more focused on supporting their families in the present. Parents and grandparents may find themselves helping adult children with down payments, student loans, or childcare expenses rather than waiting to transfer assets later.
This giving style has emotional appeal. It allows donors to see the impact of their generosity firsthand. It also gives recipients a financial boost when needed most, rather than decades later.
Lifetime giving can also offer tax benefits. The IRS allows annual gifts up to $19,000 per recipient (in 2025) without affecting your lifetime gift tax exemption. More significant gifts used for education or healthcare may also be exempt if paid directly to the institution.
However, giving too much too soon can have consequences. Reducing retirement reserves may limit donors’ long-term options or leave them vulnerable to unexpected expenses. That’s why planning and communication are essential.
Finding Balance Across Generations
The estate planning differences in gift giving between Gen Xers and Millennials vs Baby Boomers both show a strong interest in sharing what they have. That is a very good thing! However, these differing priorities can create tension. Heirs expecting a large inheritance may be disappointed if parents choose to give assets away during life, or vice versa. Open conversations about goals, expectations and financial realities help avoid conflict and support better planning.
Families should also know how giving strategies affect estate taxes, Medicaid eligibility and retirement income. A well-drafted estate plan can balance these issues by including provisions for lifetime gifts and posthumous transfers.
Our Estate Planning Law Firm Can Help
To preserve flexibility, you can use tools like revocable living trusts, family limited partnerships, or charitable giving vehicles. These options allow donors to provide gradually, set conditions on use, or shift strategies as circumstances change.
Ultimately, whether you prefer to preserve or share assets early, the key is to make those decisions intentionally and document them. Contact our estate planning firm to schedule a consultation to craft your legacy. Click here to schedule a complimentary phone consultation with one of our attorneys.
Key Takeaways
- Boomers tend to prioritize inheritance: Preserving wealth for future generations remains a core value for many older adults.
- Younger generations focus on immediate impact. Gen-Xers and Millennials are more likely to support family through strategic gifting throughout life.
- Lifetime giving has tax advantages: Annual exclusion gifts and direct payments for education or healthcare can reduce estate size without triggering gift taxes.
- Open communication prevents misunderstandings: Discussing goals and expectations reduces tension and supports thoughtful estate planning.
- Balance is possible with the right tools: Trusts, gifting strategies and estate documents can reflect both short-term generosity and long-term security.
Hope you found Estate Planning Differences: Gen Xers and Millennials vs Baby Boomers to be informative and thought-provoking.
Reference: Barron’s (Feb 21, 2025) “Why Gen Xers and Millennials Are Giving More Money to Their Kids Than Baby Boomers”
