Core Insights - The great wealth transfer is currently happening, with young Americans expecting to inherit an average of $335,000, and 8% anticipating $1 million or more [1] Group 1: Inheritance Management - Individuals inheriting large sums, such as $4 million, need to manage their windfall carefully to ensure long-term financial stability [2] - Common plans for spending inheritances include savings and investments, housing improvements, and debt repayment [2] Group 2: Tax Considerations - Tax implications are crucial when receiving an inheritance; federal estate taxes apply only to inheritances exceeding $13.99 million in 2025, while some states impose their own taxes [3] - The step-up basis at death allows inherited assets to reset to fair market value, potentially reducing capital gains taxes owed upon sale [4] Group 3: Wealth Preservation - A significant statistic indicates that 70% of family wealth is lost by the second generation, increasing to 90% by the third generation, highlighting the importance of prudent financial planning [5] - It is advisable to pay off debts like mortgages to avoid interest costs, but individuals should avoid making large purchases that could deplete their inheritance [6]