Wealth inequality in the United States is not only among the highest in the developed world—it has been climbing for much of the past six decades. Now, as an unprecedented $84 trillion begins flowing from older generations to younger generations, based on projections from the Federal Reserve, new data offers a snapshot of who stands to benefit—and by how much. We reveal a consistent theme: the intention to leave something behind cuts across racial lines. But the capacity to do so does not.
Universal Intentions, Unequal Outcomes
Consider inheritances to children and grandchildren. Based on the latest 2022 Health and Retirement Study data and the author’s research to be released later this year, the author’s analysis finds that roughly the same share of white and Black respondents—65.5% and 65.8%, respectively—made transfers to their descendants. That near-identical rate of participation suggests that the desire to provide for the next generation is universal.
But the median value of those bequests tells a different story. White respondents left a median of $170,000 to their children or grandchildren. Black respondents left a median of just $22,500. That’s a difference of $147,500—enough to make a down payment on a home outright in many U.S. cities, erase a mountain of student debt, or launch a small business.
The pattern holds even in the most personal and common form of wealth transfer—bequests to spouses. Among respondents who had a surviving partner, 93.6% of white individuals and 94.7% of Black individuals left them some form of assets. Again, the similarity in participation underscores a shared commitment to caring for loved ones. Yet the median value of those transfers reveals a significant gap: Based on the author’s original analysis, white respondents left a median of $140,000 to their spouses, while Black respondents left a median of $57,500. This more than $80,000 difference underscores how accumulated lifetime wealth, rather than intent, shapes the economic security passed on to surviving partners.
Despite nearly identical rates of inheritance giving across racial groups, white families transfer vastly larger amounts than Black families—showing how the racial gap in intergenerational wealth stems not from differences in intent, but from decades of unequal access to asset-building opportunities.
Beyond the nuclear family, the data also show that Black respondents are more likely to include extended family in their estate plans. Black individuals were more than three times as likely as white individuals to leave assets to siblings—13.4% compared to 4.3%. Similarly, 9.8% of Black respondents left assets to other relatives, compared to 7.2% of white respondents. These higher rates of distribution to siblings and extended kin may reflect cultural norms, familial obligations or broader support networks. Yet, despite this wider distribution, the median amounts transferred remain substantially lower: $3,000 to siblings for Black respondents versus $18,500 for White respondents, and $6,000 to other relatives versus $21,000. The pattern suggests that while Black families may be allocating resources across a larger circle of dependents, the total pool of wealth available for transfer is considerably smaller.
This trend extends even to charitable giving — a category often viewed as a reflection of personal values rather than financial capacity. Here, too, the percentages are nearly identical: 10% of both white and Black respondents included charitable bequests in their estates. But the median amounts differ sharply. White donors left a median of $3,750 to charity, while Black donors left a median of $750. The consistency of this gap—across spouses, children, siblings, extended family and charitable causes—points to a structural difference in available assets rather than differences in generosity, planning, or intention.
A Persistent Pattern, Rooted in History
These differences in inheritance amounts are not new, nor are they isolated. Research suggests that intergenerational transfers account for 12% to 16% of the racial wealth gap. The imbalance in who receives inheritances has remained remarkably stable over time. Based on Urban Institute’s Nine Charts about Wealth Inequality in America, using data from the Survey of Consumer Finances as far back as 1989, white families were significantly more likely than families of color to receive an inheritance. By 2022, white families remained nearly four times more likely than Black families—and about five times more likely than Hispanic families—to receive one. While the exact ratios have varied over time, the overall pattern has remained consistent.
Structural Barriers—and Emerging Responses
Efforts to support intergenerational wealth transfer often focus less on creating new wealth and more on unlocking what already exists—but remains inaccessible due to legal complexity or institutional gaps. One prominent example is “heirs’ property,” a widespread issue in parts of the South and central Appalachia, where Black families have informally passed down land across generations without formal legal titles. Without clear ownership, these families often cannot secure mortgages, obtain loans for repairs, or protect their property from forced sales. Experts estimate that heirs’ property accounts for more than a third of Black-owned land in the South—collectively valued at more than $28 billion—yet much of it remains economically dormant due to unclear title status.
Some community initiatives are beginning to address these structural challenges. Programs like Invest STL’s pilot project connect residents with estate planning attorneys, financial counselors and targeted funding for debt relief and asset preservation. The goal is not to generate wealth from scratch, but to protect, clarify, and leverage what families already hold. Similar models could be adapted in other regions through partnerships between local governments, nonprofits and community organizations—focusing on legal education, simplified probate processes, and tools to formalize ownership and beneficiary designations.
As trillions of dollars move between generations in the coming decades, these quiet gaps in inherited wealth risk being amplified—unless met with equally intentional responses. The data make clear that the divide in inheritances is not about willingness. It’s about access, history and structure.
Mingli Zhong, PhD, is senior research associate in Family and Financial Well-Being Division at the Urban Institute in Washington, DC, and a visiting scholar at the Wharton School of the University of Pennsylvania.
Photo credit: Shutterstock/Hyejin Kang
