The largest wealth shift in history is underway, and women are at its center. A projected $124 trillion could change hands by 2048 as part of the great wealth transfer — the greatest generational wealth transfer in U.S. history.3 Women are positioned to inherit most of it, yet 84% say they lack confidence in their abilities to manage an inheritance.4
This article bridges the gap between knowing you may inherit and knowing what to do about it.
What the great wealth transfer means for women
The great wealth transfer is not a single event. It is a multidecade shift in which baby boomers and older generations are passing assets to heirs and surviving spouses. Projections indicate that $124 trillion in wealth could move between households from 2024 through 2048, with $105 trillion flowing to heirs and $18 trillion to charity.1 Women are positioned to receive the largest share.
- Roughly $54 trillion could transfer between spouses first — a “horizontal wealth transfer” — and 95% of those surviving spouses are women.5
- $47 trillion is expected to pass down to women in younger generations.6
- $34 trillion in U.S. investable assets could be controlled by women by 2030, nearly double the $18 trillion they held in 2023.7
For women who have already built wealth of their own, an inheritance can be an opportunity to strengthen and diversify their financial foundation — if they are prepared.
Why women inherit first
Women outlive men by an average of five years, which means they are often the first to inherit responsibility for managing marital assets when a spouse dies.8 This spousal transfer can happen years before assets eventually pass to children, giving women a window to build financial confidence, assemble an advisor team, and make informed decisions about how to help manage and grow their new wealth.
The confidence gap
Despite the scale of wealth heading their way, many women feel unprepared. The 84% confidence gap identified above reflects a broader pattern: Nearly one-third of women who inherited from parents had no prior conversations about the transfer, and 80% faced challenges navigating the process; more than half uncovered a financial “surprise,” such as unexpected tax bills or delays in receiving assets.9 Preparation can help close this gap. Women who engage with a financial advisor before and after a transfer may feel more confident and better prepared for potential financial decisions.
Conversations to have before an inheritance
Preparation begins with communication. Talking to aging parents about their estate plan before a transfer can reduce surprises and give you time to understand what you may inherit. Starting these conversations now is one of the most important steps you can take.
Talking to aging parents about their estate plan
Start with practical questions that seek to understand and prepare: Do they have a will or trust? Where are their account statements and beneficiary designations? Who is their estate planning attorney or specialist? These conversations can feel uncomfortable, but they’re far easier to have before a crisis than during one. Among women who expect to inherit, 74% are not prepared to receive the assets without difficulty, and about one-third have no idea where their parents’ assets are located.10
Understanding what you may inherit
Inherited assets come in many forms, each with different tax treatment and timelines. Retirement accounts, real estate, business interests, and brokerage holdings all carry distinct rules. A traditional IRA, for example, has different distribution requirements than a taxable brokerage account. Understanding the mix before a transfer helps you plan for tax obligations, distribution requirements, and investment decisions that follow.
The first 90 days after an inheritance
The first 90 days after receiving an inheritance are often better viewed as a planning window rather than an investing window. The most frequent and costly mistakes often stem from moving too quickly — making large purchases, committing to significant gifts, or restructuring a portfolio without thoughtful planning around what to do after a major wealth event.
What to avoid
Resist the urge to act immediately. Holding additional cash in a savings account or money market fund can be a prudent temporary step while you move through a deliberate planning process. Avoid making major purchases, giving significant gifts, or placing assets into extended structures before you understand the full picture. You’ll want to assess tax obligations, distribution deadlines, and estate planning needs before making any irreversible decisions.
Building your advisor team
An inheritance often requires coordinated input from multiple professionals: a wealth advisor, a tax professional, and an estate planning specialist. Mercer Advisors brings these capabilities together in a unified team, so your financial planning, tax planning, investment management, and estate planning are coordinated rather than operating in silos. This integrated approach means one team understands your full financial picture and can help you make decisions that account for the tax, investment, and estate implications of your inheritance.
Inherited IRA rules and the 10-year distribution requirement
If you inherit an IRA from someone other than a spouse, the SECURE Act generally requires you to empty the account within 10 years. IRS final regulations issued in 2024 confirmed that if the original owner died on or after their required beginning date for distributions, you must also take annual required minimum distributions (RMDs) in years one through nine. Each distribution is generally taxable as ordinary income, so understanding these rules early helps you avoid penalties and plan for the tax impact of each withdrawal.
Step-up in cost basis: Understanding your tax advantage
Inherited assets such as stocks, real estate, and mutual funds generally receive a step-up in cost basis to their fair market value on the date of the owner’s death. This means the appreciation that occurred during the original owner’s lifetime is not subject to capital gains tax when you inherit. Only appreciation after the date of death is taxable when you sell. This is one of the most powerful tax provisions available to inheritors. Note that retirement accounts like IRAs and 401(k)s do not receive a step-up in basis, since they carry ordinary income tax treatment on distributions.
Integrating inherited wealth into your broader financial plan
An inheritance from the great wealth transfer is not just a windfall. It is a structural change to your financial picture that touches areas such as investment management, tax planning, estate planning, and insurance solutions. The goal is to integrate new wealth into your existing financial plan rather than treating it as a separate pool of money.
Aligning new wealth with your investment strategy
New assets should be integrated into your existing investment strategy, not managed in isolation. Consider diversification, risk tolerance, and your goals for guiding how inherited assets are invested. An inherited concentrated stock position, for example, may warrant a disciplined diversification strategy to help reduce risk over time. Your investment plan should reflect your full financial picture so that your allocation aligns with your goals.
Estate and legacy planning on both sides
Receiving an inheritance can make your own estate plan more important, not less. Your expanded net worth may warrant a review of your will, revocable trust, powers of attorney, and beneficiary designations. Trust structures such as spousal lifetime access trusts or irrevocable life insurance trusts may be appropriate depending on your situation. You are now both an inheritor and a future giver, which means your estate plan may need to account for wealth coming in and wealth eventually going out.
Charitable giving with inherited assets
For women who want to give, inherited assets offer tax-efficient giving opportunities. Donating appreciated stock that received a step-up in basis to a donor-advised fund can generate a charitable deduction at fair market value while eliminating capital gains tax on post inheritance appreciation. If you inherit an IRA and are over age 70 ½, qualified charitable distributions can redirect required distributions directly to charity, excluding them from your taxable income.
Mercer Advisors can help
The great wealth transfer represents a defining moment for women and wealth. With women composing nearly half of our client-facing team and a third of our senior leadership team, we’re distinctively positioned to help more women achieve financial success. We offer an integrated team that coordinates financial planning, investment management, estate planning, tax planning and preparation, insurance solutions, and more, to help you navigate inheritance with confidence and clarity.
FAQs
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The great wealth transfer is the largest generational wealth shift in U.S. history, with a projected $124 trillion expected to change hands by 2048.11 Women stand to inherit most of this wealth — roughly $54 trillion could transfer to surviving spouses (95% of whom are women), and another $47 trillion could pass to women in younger generations, and by 2030, women are projected to control $34 trillion in U.S. investable assets.12
12“Older Women Set To Inherit Most of $54 Trillion in ‘Great Wealth Transfer’ to Widowed Spouses.” CNBC, March 14, 2026.
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The first 90 days are often better viewed as a planning window than an investing window. Start by gathering documentation — the will or trust agreement, account statements, and beneficiary designations. Hold cash in a savings or money market fund temporarily, and avoid major purchases or significant gifts until you have a comprehensive plan. Building a team that includes a wealth advisor, tax professional, and estate attorney can help you make informed decisions.
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Under the SECURE Act, most nonspouse beneficiaries who inherited an IRA after 2019 must empty the account within 10 years. If the original owner died on or after their required beginning date for distributions, you must also take annual required minimum distributions in years one through nine. Each distribution is generally taxable as ordinary income, so planning the timing and amount of withdrawals can help manage your tax burden.
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Start with practical questions: Do they have a will or trust? Where are their account statements? Who is their estate attorney? These conversations can feel uncomfortable, but they are easier to have before a crisis. Among women who expect to inherit, 74% are not prepared to receive the assets without difficulty, and about one-third do not know where their parents’ assets are located.13 Starting the conversation now can help you avoid surprises later.
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Ask how they approach integrating an inheritance into your existing financial plan, what tax strategies they recommend for inherited IRAs and stepped-up assets, and how they coordinate with estate attorneys and tax professionals. Look for a fee-based or fee-only fiduciary who considers your full financial picture — investments, taxes, estate planning, and insurance — rather than focusing on a single area.
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A step-up in cost basis resets the value of an inherited asset to its fair market value on the date of the owner’s death. This means any appreciation during the original owner’s lifetime is not subject to capital gains tax when you inherit. Only appreciation after the date of death is taxable when you sell the asset. This provision applies to stocks, real estate, and mutual funds, but not to retirement accounts like IRAs or 401(k)s.
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Treat an inheritance as a structural change to your financial picture, not a separate pool of money. Start by reviewing your investment strategy to ensure new assets align with your diversification and risk tolerance goals. Update your estate plan to reflect your expanded net worth, and consider tax-efficient strategies such as donor-advised funds or qualified charitable distributions if giving is part of your goals. A coordinated team approach can help ensure all elements of your plan fit together.
1“Women Will Get Most of the $124 Trillion ‘Great Wealth Transfer,’ Studies Show. Here’s Why.” CNBC, March 13, 2025.
2“Majority of Women Confess Inheritance Anxiety. Are You Prepared for What’s Next?” Investopedia, Aug. 27, 2025.
3”Women Will Get Most of the $124 Trillion ‘Great Wealth Transfer,’ Studies Show. Here’s Why.” CNBC, March 13, 2025.
4“Majority of Women Confess Inheritance Anxiety. Are You Prepared for What’s Next?.” Investopedia, August 27, 2025.
5“Older Women Set To Inherit Most of $54 Trillion in ‘Great Wealth Transfer’ to Widowed Spouses.” CNBC, March 14, 2026.
6”Women Will Get Most of the $124 Trillion ‘Great Wealth Transfer,’ Studies Show. Here’s Why.” CNBC, March 13, 2025.
7“The New Face of Wealth: The Rise of the Female Investor.” McKinsey & Company, May 8, 2025.
8”Women Will Get Most of the $124 Trillion ‘Great Wealth Transfer,’ Studies Show. Here’s Why.” CNBC, March 13, 2025.
9“The Great Wealth Transfer Has a Power Problem.” Forbes, July 22, 2026.
10“The Great Wealth Transfer Has A Power Problem.” Forbes, July 22, 2026.
11“Women Will Get Most of the $124 Trillion ‘Great Wealth Transfer,’ Studies Show. Here’s Why.” CNBC, March 13, 2025.
12“Older Women Set To Inherit Most of $54 Trillion in ‘Great Wealth Transfer’ to Widowed Spouses.” CNBC, March 14, 2026.
13“Majority of Women Confess Inheritance Anxiety. Are You Prepared for What’s Next?” Investopedia, Aug. 27, 2025.
All expressions of opinion reflect the judgment of the author as of the date of publication and are subject to change. Some of the research and ratings shown in this presentation come from third parties that are not affiliated with Mercer Advisors. The information is believed to be accurate but is not guaranteed or warranted by Mercer Advisors. Content, research, tools and stock or option symbols are for educational and illustrative purposes only and do not imply a recommendation or solicitation to buy or sell a particular security or to engage in any particular investment strategy. All investing involves risk, including the possible loss of principal.
For financial planning advice specific to your circumstances, talk to a qualified professional at Mercer Advisors.
Mercer Advisors is not a law firm and does not provide legal advice to clients. All Estate planning document preparation and other legal advice are provided through select third parties, with which Mercer Advisors has a contractual relationship. Tax preparation and filing services are provided by Mercer Advisors Tax Services, LLC. Clients will sign a separate agreement when engaging Mercer Advisors Tax Services that defines the services provided and any additional fees that may apply.
