- Home
- Retirement
- Happy Retirement
If your kids are successful, do they need an inheritance? Ask yourself these four questions before passing down another dollar.
By
Donna Fuscaldo
published
5 February 2026
in Features
When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works.
(Image credit: Getty Images)
- Copy link
- X
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over.You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Signup +
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Signup +
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Signup +
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Signup +
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Signup +
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Signup +
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Signup +
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Signup +
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
Signup + An account already exists for this email address, please log in. Subscribe to our newsletterHey baby boomers, your kids are doing a good job saving for their own retirements and amassing their own wealth. Which may have you thinking: do they even need an inheritance?
Sure, they aren't going to turn it down, but you may be wondering whether it’s worthwhile to spread that wealth a little differently — maybe even back to yourself.
But should you? Here’s how to know, and what you can do with it instead.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
CLICK FOR FREE ISSUE
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Sign upFour questions to ask before scaling back
Many baby boomers are sitting on a small fortune thanks to a decade-plus bull market, massive home appreciation and a lifetime of strong wage growth. All that success adds up to a lot to pass on.
How much? About $53 trillion is expected to transfer from boomers to their heirs through 2045.
At the same time, millennials and Generation Xers overall are doing a good job of building their own wealth and securing their own retirements.
But even though the kids are doing fine, inheritance plans rarely change. The money they stand to inherit stays the same (or increases depending on where it's housed) — even if they’ve already reached a point where they need it less.
If that sounds familiar and you are on the fence about scaling back an inheritance, ask yourself these four questions:
1. Do your adult children actually need your help now, or are they truly relying on a future windfall to meet their goals?
Why this matters: If your kids are already self-sufficient, they’re going to be just fine without a massive inheritance later.
2. If you gave them a portion of their inheritance today, would it make a real difference, or would it just sit in an account earning interest?
Why this matters: If a windfall wouldn’t change their lives right now, it certainly won't be a game-changer when they are sixty.
3. Are you sacrificing your own retirement experience just to ensure they have a huge payout?
Why this matters: It’s natural to want to leave a legacy, but you have to live, too. You worked hard for the right to spend time and money on your loved ones—and that’s often more important than the number you leave behind.
4. Would you and your family get more joy out of putting that money to use while you’re still around to see it?
Why this matters: Life is about the memories you make. Whether it’s helping a grandchild with tuition, funding a new business or taking that big multi-generational trip, it’s usually better to spend the money while you’re alive to enjoy the impact.
We curate the most important retirement news, tips and lifestyle hacks so you don’t have to. Subscribe to our free, twice-weekly newsletter, Retirement Tips.
What you can do with the money instead
You've decided you can keep some of the inheritance and now you're wondering what you can do instead. That's where the fun comes in, says Cassandra Rupp, a senior wealth advisor at Vanguard.
But first, retirees have to get comfortable with spending more in retirement, something that is notoriously hard to do with the fear of outliving their money looming over their heads.
Once they are ok with that, Rupp says boomers can redirect those resources toward enhancing their own lives. That may mean boosting day-to-day spending, upgrading your travel experiences, investing in home improvements or prioritizing wellness.
If you are more charitably inclined, you can increase your giving or the financial support you provide to friends and family through vehicles like 529 plans.
"I’m seeing more people shift toward lifetime gifting rather than relying on traditional inheritances, allowing them to make a meaningful impact now while enjoying the lifestyle they’ve earned,” she said.
By shifting to a "giving while you’re living" mindset, you get to see the business they start, the home they buy or the education you funded, all the while enjoying the retirement you worked for. Giving in this way turns your legacy into a living story that you actually get to take part in.
Making it work for you
Ultimately, whether you pass down every cent or decide to scale back the inheritance for your successful kids comes down to the legacy you want to leave and the life you want to live right now.
Everyone's approach is different, but it all boils down to your view of wealth: do you want it to be a static number in a will, or a living story that you get to take part in while you’re still here?
Related Content
- The $3,000 Retirement Mistake Millions Make Each Year (And How to Avoid It)
- Retiring Without Heirs: Four Options For Your Estate
- 7 Questions to Help Kick Off an Estate Planning Talk With Your Parents
- Should You Skip the Wait and Prepay Your Retirement Dreams?
- 7 Ways to Splurge on Yourself, Because Your Kids Will Inherit Enough
Donna FuscaldoSocial Links NavigationRetirement Writer, Kiplinger.comDonna Fuscaldo is the retirement writer at Kiplinger.com. A writer and editor focused on retirement savings, planning, travel and lifestyle, Donna brings over two decades of experience working with publications including AARP, The Wall Street Journal, Forbes, Investopedia and HerMoney.
Latest-
Betting on Super Bowl 2026? New IRS Tax Changes Could Cost You
Taxable Income When Super Bowl LX hype fades, some fans may be surprised to learn that sports betting tax rules have shifted.
-
How Much It Costs to Host a Super Bowl Party in 2026
Hosting a Super Bowl party in 2026 could cost you. Here's a breakdown of food, drink and entertainment costs — plus ways to save.
-
3 Reasons to Use a 5-Year CD As You Approach Retirement
A five-year CD can help you reach other milestones as you approach retirement.
-
The 4 Estate Planning Documents Every High-Net-Worth Family Needs (Not Just a Will)
The key to successful estate planning for HNW families isn't just drafting these four documents, but ensuring they're current and immediately accessible.
-
Love and Legacy: What Couples Rarely Talk About (But Should)
Couples who talk openly about finances, including estate planning, are more likely to head into retirement joyfully. How can you get the conversation going?
-
We're 62 With $1.4 Million. I Want to Sell Our Beach House to Retire Now, But My Wife Wants to Keep It and Work Until 70.
I want to sell the $610K vacation home and retire now, but my wife envisions a beach retirement in 8 years. We asked financial advisers to weigh in.
-
How to Add a Pet Trust to Your Estate Plan: Don't Leave Your Best Friend to Chance
Adding a pet trust to your estate plan can ensure your pets are properly looked after when you're no longer able to care for them. This is how to go about it.
-
Want to Avoid Leaving Chaos in Your Wake? Don't Leave Behind an Outdated Estate Plan
An outdated or incomplete estate plan could cause confusion for those handling your affairs at a difficult time. This guide highlights what to update and when.
-
I'm a Financial Adviser: This Is Why I Became an Advocate for Fee-Only Financial Advice
Can financial advisers who earn commissions on product sales give clients the best advice? For one professional, changing track was the clear choice.
-
Quiz: Are You Ready for the 2026 401(k) Catch-Up Shakeup?
Quiz If you are 50 or older and a high earner, these new catch-up rules fundamentally change how your "extra" retirement savings are taxed and reported.
-
65 or Older? Cut Your Tax Bill Before the Clock Runs Out
Thanks to the OBBBA, you may be able to trim your tax bill by as much as $14,000. But you'll need to act soon, as not all of the provisions are permanent.
