The "greatest wealth transfer in history" is projected to be significantly less than headline figures suggest. Baby boomers hold approximately $93 trillion in assets, but after accounting for liabilities, retirement spending, taxes, fees, and excluding the wealthiest 1 percent, research indicates $36 trillion will pass to Gen X and millennial heirs over the next 20 years.

This $36 trillion, or about $515,000 per inheriting household, is a fraction of the initial asset total. A significant portion of boomer wealth is tied up in mortgages and other debts, impacting their financial flexibility. Furthermore, affluent boomers are more likely to save or invest inheritances, while those with less wealth will need to draw down more of their assets for living expenses.

Despite the reduced amount, the estimated $8 trillion that will likely be spent still has implications for specific spending categories, particularly housing and travel. Support is already being seen through down-payment assistance and other wealth transfers occurring presently.