A recent study from Ohio State University has looked into what the average American does with inherited assets.
According to researcher Jay Zagorsky, on average beneficiaries save around half of their inheritance, and spend or donate the rest. The median inheritance received by participants in the study was $11,340.
The study also found that just over 40% of beneficiaries who received less than £1,000 spent the entire amount. This percentage fell to 18.7% for those who received an inheritance of $100,000 or more.
Zagorsky claims that what people do with their inheritance is important for the economy. Around $4 trillion is expected to transfer from the older generation to their heirs over the next ten years.
â If these findings are correct, this means about $2 trillion will be saved and $2 trillion spent,â Zagorsky said.
He recommended that Congress find ways of encouraging people to save more of their inheritance.
