Have you ever thought, “It’d be great if I was more involved in managing money,” or “My partner and I share household responsibilities, and he manages our finances?”
If so, you’re not alone.
Many women, especially moms juggling a million responsibilities, don’t always feel confident talking about investments, retirement accounts or estate planning. But here’s the thing – over the next decade, women like you are expected to inherit trillions of dollars as part of what's being called the Great Wealth Transfer.
This means it’s time to talk about a financial plan.
Whether you expect to inherit money from family or you’re not sure, this article is for you. We’ll unpack what wealth inheritance means for you, the obstacles you might face, and how to prepare.
Read more so when the time comes, you’re ready to protect and grow your inherited wealth with confidence.
What is the Great Wealth Transfer?
It’s a name coined to describe the massive shift of wealth – an estimated $84 trillion – that’s expected to pass from Baby Boomers to younger generations over the next 20 to 25 years. A big chunk of that wealth is expected to be inherited by women.
Why? Because women tend to live longer than men. According to the U.S. Centers for Disease Control and Prevention, women live on average 5.8 years longer than men. So here’s to planning ahead and being prepared.
But this also means you’ll probably outlive your spouse and inherit wealth from aging parents. Most women will. In fact, studies show that by 2030, American women will control more than half of the country’s wealth.
This isn’t just a financial shift. It’s a power shift. Women are positioned to make major financial decisions about their families, homes, retirement and charitable giving on an unprecedented scale. But with that opportunity comes a responsibility to be financially prepared. And the best time to prepare is now.
Why inheriting money can feel overwhelming
The truth is, getting a sudden lump sum of money isn’t always a celebration. For many women, especially those who haven’t been deeply involved in family finances, an inheritance can bring stress, confusion or even guilt. Plus, it usually coincides with a loss, like a family member’s passing.
If and when you inherit money, you may experience:
- Financial uncertainty: You may not know what to do with the money or how to manage it wisely.
- Emotional stress: You may be grieving a loved one, which can make it hard to think clearly.
- Family conflict: Depending on your family relationships, you may deal with conflicts over money or surprises in the will that can cause tension.
- Low confidence: You might feel ill-equipped to make big financial decisions, even though you are perfectly capable.
The good news? These challenges are normal, and they’re not permanent. With the right guidance, you can move from overwhelmed to empowered.
Preparing now: What to do before inheriting wealth
Whether an inheritance happens suddenly, or you’ve had time to anticipate the changes, it’s never too early to start planning. By being prepared, you can help reduce the stress you may feel at the loss of a loved one. Here are a few smart tips you can use now.
Start building financial literacy
Learning the basics of money management is a great start. Focus on understanding:
- Retirement accounts (like IRAs and 401(k)s).
- Life insurance policies and designated beneficiaries.
- Inheritance taxes and exemptions.
- Wills and trusts and their legal functions.
Read, take a class, or talk to a financial professional. You can even use it as an opportunity to learn alongside your kids. Bit by bit, your knowledge and confidence will grow.
Review your own estate plan
Even if you’re not the one leaving an inheritance, it’s a good time to make sure your ducks are in a row. Take some time to:
- Name or update beneficiaries on your life insurance and retirement accounts. These are the people who will receive death benefit and/or other applicable payments when you pass away.
- Create or review your own will. This legal document describes how you would like your assets to be managed after you die.
- Set up a legal power of attorney. This legal document gives a specific person the ability to make financial decisions on your behalf. This is especially important in case you were to become mentally incapacitated or otherwise unable to make decisions for yourself.
- Name a health-care proxy. If you have severe cognitive decline or are in a coma, a health-care proxy can make medical decisions on your behalf.
Think of this as financial self-care. It’s a way to protect your family and lower future stress for everyone involved.
Have honest family conversations
Talking about money can be uncomfortable, but if you have aging parents, ask them about their wishes and how their estate is set up. It might feel awkward at first, but clear communication can prevent misunderstandings and surprises down the line. We have more tips for talking with aging parents here.
For example, you may want to ask:
- Do you have a will or trust?
- Who is the executor of your estate?
- Where are important documents stored?
These conversations can also help you understand your parents’ values and wishes – so you make sure to honor them. Many parents wish to leave a legacy to support future generations.
You’ve inherited wealth. Now what?
If you receive an inheritance, try to hold back from making big decisions right away. After all, you’ll be experiencing grief and other emotions, and sudden inherited wealth can cloud judgment. Instead, consider these helpful tips.
Pause before you spend
You don’t need to figure everything out right away. Let the dust settle. Tend to your family and your emotional health first. We recommend avoiding major purchases or lifestyle upgrades until you have a plan in place.
Work with a financial representative
A good financial representative can be your biggest ally during this time. If your spouse or parents worked with a financial representative but this person doesn’t feel like a good fit for you, it’s OK to choose a new one. Whether your rep is tried and true or someone new, your financial representative should be someone who:
- Understands your values and goals.
- Acts with integrity and honesty.
- Has experience working with women or families.
- Communicates clearly and respectfully (no jargon or judgment).
A Modern Woodmen financial representative can help you:
- Understand tax implications of your inheritance.
- Create or revise a budget.
- Invest wisely for long-term growth.
- Plan for retirement, college savings or charitable giving.
Remember, this is your future. You deserve someone who respects and supports you. At Modern Woodmen, we offer a network of financial representatives. Take time to find someone who feels like the right fit. Find a representative today.
Make a plan based on your values and goals
What matters most to you? Whether it’s paying off debt, saving for your kids’ education, supporting a cause, or buying a vacation home your family will use for generations, aligning your money with your values will make you feel more confident and at peace with your decisions.
A Modern Woodmen representative can help you nail down your goals and make recommendations to organize your inherited wealth accordingly.
Rewrite the narrative: You can be in charge of inherited wealth
Maybe you’ve been left out of financial conversations in the past. But times are changing. As a woman, you’ll probably inherit wealth one day, so it’s critical for you to feel poised to manage it wisely.
By building your financial knowledge and enlisting a financial representative, you can become a confident, informed steward of your family’s financial future.