Wednesday, July 26, 2006

Giant Wealth Transfer Predicted

The Washington Post previews a study commissioned by Chevy Chase Trust: Wealth transfers in the Washington, D. C. area are expected to total $2.4 trillion from 2005 to 2055.

The study, by Boston College's Center on Wealth and Philanthropy, follows an earlier guesstimate of $41 trillion for wealth transfers nationally over the same period.

Meaningful estimates? Probably not, according to the AARP. (If you believe in long-range projections, take a look at forecasts for federal income and outgo made ten years ago.)

For sure, we can't guess how much of that $2.4 trillion would end up in the hands of heirs. Unknowns include Boomer longevity and spending habits, not to mention inevitable changes in the taxation of estates and capital gains.

1 comment:

Jim Gust said...

Note that the study suggests an astonishing 40% of the total--$1 billion--would go to taxes and estate management fees. Just $400 billion goes to charity.

I agree with JLM, I'll believe these numbers when I see them.