Millennials are set to receive trillions in inherited real estate over the next two decades.
In this article, we’ll see how inheritance trends vary wildly from state to state, influenced by factors such as estate laws, demographics, and property values.
Our insights come from top sources, including Fannie Mae, The Motley Fool, and USA Today.
Let’s dive in.
Top Inherited Property Statistics (Key Findings)
Here’s a list of the most important statistics on inherited real estate in the U.S. for 2024 and beyond:
- Millennials are expected to inherit about $27 trillion from Baby Boomers and Seniors by 2045, a significant portion of this being real estate.
- 54% of baby boomers with homes intend to live in them for the rest of their lives, and 37% don’t want their children to sell their house after their parents’ death.
- Only 12 states and D.C. charge estate taxes, while 6 states and D.C. charge an inheritance tax.
- As of 2025, estates under $13.61 million are exempt from federal estate tax. Federal estate taxes range from 18% to 40%.
- The states of Vermont and Maryland have the highest estate tax rate at a flat rate of 16%.
- The state of West Virginia has the highest rate of heirs’ properties at 10.09%.
The Great Wealth Transfer
In what some call the largest generational wealth transfer in history, it is estimated that $84 trillion in assets will shift hands by 2045.
That’s what’s about to happen as the older folks (the Silent Generation and Baby Boomers) pass down a fortune to Gen X and the millennials.
Of the $84 trillion, $12 trillion will go to charities and non-profit organizations, while $72.6 trillion is expected to be passed down as inheritance, with a significant portion of that being inherited real estate.
In fact, inherited property statistics suggest that real estate will play a major role in this wealth transfer.
For many of these older people, their home is their biggest asset. This is especially true for Black families, where their primary residence accounts for about 51% of their wealth.
For white families, a home represents 20% of their wealth (a fifth). What this shows is that real estate is more than just a roof over your head — it’s generational wealth.
While many inherit a house with a mortgage, lots of boomers own their homes free and clear, thanks to years of prices going up. When they hand over the keys to the kids, the house becomes a financial asset for the younger generation.
However, the downside is that someone who inherited a house may have to deal with costs like maintenance issues (creaky roofs, etc.) and property taxes that can make them think of selling an inherited house as is.
But according to research by Cerulli Associates, millennials are expected to receive around $27 trillion in wealth, while Gen X would get a hefty $30 trillion.
Right now, most millennials anticipate inheriting at least $350,000 from their family members. Talk about a financial leg up!
It’s also interesting that over half of baby boomers with homes (54%) intend to live in them for the rest of their lives — they’re not selling an inherited house, ever.
And 37% of boomers want those homes to stay in the family posthumously.
They want their kids to inherit their homes. This grip on their homes is doing more than stirring up family emotions; it’s squeezing the housing market dry.
But dealing with inheritance is tough and requires careful planning.
Cody Barbo, the founder of Trust & Will, said in a recent article, “For most Americans, the inheritance process is far from easy — and the lengthy and costly probate process can make it even more difficult, especially as people are grieving the loss of a loved one.”
“Amidst an aging population that isn’t fully prepared for end-of-life via estate planning, millions of Americans will be plunged into the long, expensive, and emotionally draining process of probate,” he said.
Whether you’re inheriting or leaving assets behind, smart financial planning is non-negotiable. Wills, trusts, and tax-efficient strategies help make sure the inheritance is more of a blessing than a burden.
For example, with wise estate planning, you may be able to sell an inherited property before probate or even sell a house without probate at all.
State-by-State Breakdown: Where Inheritance and Estate Taxes are High (and Low)
When someone passes away, their estate might owe taxes before heirs receive anything.
This “estate tax,” often called the death tax, is calculated based on the total assets (cash, investments, property, and other assets) minus any debts and liabilities.
The executor of the estate files the estate tax return and pays the tax out of the estate’s funds.
Also, if you inherit money or property, you might need to pay another tax — inheritance tax, based on what you receive.
This varies by state and your relationship to the deceased. Knowing these inherited property tax implications is crucial for heirs to make informed decisions about their inherited assets and especially when it’s time to report the sale of inherited home on their tax return.
Additionally, when selling inherited property at a profit, there is also a capital gains tax. Here is how much tax you pay when you sell an inherited house and how to avoid capital gains tax on inherited property.
While the federal government levies estate taxes, only 12 states and D.C. charge their own estate tax on top of it. Also, just six states and D.C. charge an inheritance tax.
They include Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. These taxes depend on where the deceased person lived and owned the property, not where the beneficiary lives.
As of 2024, estates under $13.61 million are safe from the federal estate tax, up from $12.92 million in 2024.
Spouses generally don’t have to worry about this tax at all, thanks to the unlimited marital deduction.
Federal estate taxes can range from 18% to 40%, depending on the portion of the estate’s value exceeding the exemption threshold.
Check out the table below to compare inheritance and estate tax rates across different states.
| State | Average home value (in $) | Tax Type | Tax Rate (Range) | Exemption Amount/Tax Exemptions | Percentage of Baby Boomer Homeowners |
| Alabama | 227,873 | None | 0 | None | 38.9% |
| Alaska | 364,674 | None | 0 | None | 35.6% |
| Arizona | 430,658 | None | 0 | None | 39.2% |
| Arkansas | 207,627 | None | 0 | None | 38.3% |
| California | 773,239 | None | 0 | None | 38.3% |
| Colorado | 543,500 | None | 0 | None | 35.5% |
| Connecticut | 408,201 | Estate | Flat 12% | $13.61 million | 38.2% |
| Delaware | 387,158 | None | 0 | None | 42.7% |
| Florida | 393,698 | None | 0 | None | 41.3% |
| Georgia | 328,526 | None | 0 | None | 36.3% |
| Hawaii | 855,259 | Estate | 10% to 20% | $5.5 million | 42.1% |
| Idaho | 452,787 | None | 0 | None | 37.2% |
| Illinois | 265,991 | Estate | 0.8% to 16% | $4 million | 36.2% |
| Indiana | 242,672 | None | 0 | None | 36% |
| Iowa | 220,188 | Inheritance | 0% to 10% (phasing out by 2025) | Surviving spouses, children, grandchildren; decreasing rates annually | 36.4% |
| Kansas | 228,299 | None | 0 | None | 36.7% |
| Kentucky | 207,759 | Inheritance | 4% to 16% | Surviving spouses, parents, children, grandchildren; $1,000 exemption for Class B beneficiaries | 37.3% |
| Louisiana | 198,951 | None | 0 | None | 38.7% |
| Maine | 405,170 | Estate | 8% to 12% | $6.8 million | 41.7% |
| Maryland | 420,854 | Both | Estate: 16% Inheritance: 10% | Estate: $5 million; Inheritance: Surviving spouses, children, grandchildren, parents, siblings | 36.9% |
| Massachusetts | 627,596 | Estate | 0.8% to 16% | $2 million | 39.1% |
| Michigan | 247,638 | None | 0 | None | 38.1% |
| Minnesota | 334,240 | Estate | 13% to 16% | $3 million | 35.7% |
| Mississippi | 179,894 | None | 0 | None | 40.1% |
| Missouri | 247,482 | None | 0 | None | 37.4% |
| Montana | 463,962 | None | 0 | None | 41.7% |
| Nebraska | 260,097 | Inheritance | 1% to 15% | Surviving spouses; varying exemption amounts based on relationship (from $100,000 for close relatives, $40,000 for distant relatives to $25,000 for all others) | 35.6% |
| Nevada | 441,637 | None | 0 | None | 38.1% |
| New Hampshire | 479,752 | None | 0 | None | 42.5% |
| New Jersey | 535,982 | Inheritance | 11% to 16% | Surviving spouses, children, grandchildren; $25,000 exemption for Class C beneficiaries | 37.9% |
| New Mexico | 303,947 | None | 0 | None | 38.7% |
| New York | 757,540 | Estate | 3.06% to 16% | $6.94 million | 39.4% |
| North Carolina | 329,341 | None | 0 | None | 38.1% |
| North Dakota | 262,706 | None | 0 | None | 35.5% |
| Ohio | 230,250 | None | 0 | None | 38.1% |
| Oklahoma | 205,646 | None | 0 | None | 37.3% |
| Oregon | 495,042 | Estate | 10% to 16% | $1 million | 39.8% |
| Pennsylvania | 269,276 | Inheritance | 4.5% to 15% | Surviving spouses, parents of children aged 21 or younger | 39.4% |
| Rhode Island | 470,378 | Estate | 0.8% to 16% | $1,774,583 | 38.8% |
| South Carolina | 296,987 | None | 0 | None | 39.3% |
| South Dakota | 307,799 | None | 0 | None | 37.1% |
| Tennessee | 320,181 | None | 0 | None | 38% |
| Texas | 301,011 | None | 0 | None | 34% |
| Utah | 517,550 | None | 0 | None | 30.4% |
| Vermont | 395,523 | Estate | Flat 16% | $5 million | 42% |
| Virginia | 392,434 | None | 0 | None | 37.3% |
| Washington | 591,095 | Estate | 10% to 20% | $2,193,000 | 37% |
| West Virginia | 167,571 | None | 0 | None | 40.5% |
| Wisconsin | 306,557 | None | 0 | None | 38.3% |
| Wyoming | 353,250 | None | 0 | None | 39.5% |
| D.C. | 601,920 | Estate | 11.2% to 16% | $4,715,600 | – |
Heirs’ Property Statistics
When someone passes away without a will, a complicated situation known as “heirs’ property” can arise.
This means their assets, including homes, are left in limbo, tangled in legal proceedings that eventually split ownership among several relatives.
Lacking a clear title can lock these properties out of the full benefits of homeownership. We discuss this topic further in our article on “Can Heir Property Be Sold?“
Heirs in this situation will be unable to tap into loans, missing out on government assistance, and will not be able to benefit from homestead exemptions to reduce property taxes.
While this fractional ownership problem is more prevalent in BIPOC (black, indigenous, and people of color) communities, it occurs in every state.
Below we’ll look at state-by-state inherited property statistics as it relates to heirs’ property using data from Fannie Mae.
| State | Total Properties | Estimated Heirs’ Property | Percent Estimated Heirs’ Property | Total Assessed Value for All Identified Heirs’ Property |
| Alabama | 1,678,069 | 74,665 | 4.45% | $994,430,000 |
| Alaska | 177,975 | 998 | 0.56% | $102,420,000 |
| Arizona | 2,390,925 | 7,694 | 0.32% | $87,060,000 |
| Arkansas | 1,164,745 | 2,256 | 0.19% | $24,000,000 |
| California | 9,446,334 | 3,970 | 0.04% | $831,980,000 |
| Colorado | 1,954,530 | 9,631 | 0.49% | $136,580,000 |
| Connecticut | 1,026,050 | 222 | 0.02% | $48,380,000 |
| Delaware | 387,929 | 2,484 | 0.64% | $26,360,000 |
| District of Columbia | 158,897 | 33 | 0.02% | $9,500,000 |
| Florida | 7,727,675 | 45,717 | 0.59% | $7,222,630,000 |
| Georgia | 3,575,822 | 15,221 | 0.43% | $408,900,000 |
| Hawaii | 444,511 | 122 | 0.03% | $91,700,000 |
| Idaho | 691,483 | 1,556 | 0.23% | $143,810,000 |
| Illinois | 3,891,154 | 4,743 | 0.12% | $88,620,000 |
| Indiana | 2,305,707 | 20,976 | 0.91% | $1,749,070,000 |
| Iowa | 1,212,658 | 17,333 | 1.43% | $1,023,670,000 |
| Kentucky | 1,711,562 | 16,851 | 0.98% | $1,295,870,000 |
| Louisiana | 1,573,371 | 5,210 | 0.33% | $40,500,000 |
| Maine | 521,985 | 616 | 0.12% | $54,950,000 |
| Massachusetts | 1,796,525 | 689 | 0.04% | $158,580,000 |
| Michigan | 3,759,357 | 3,917 | 0.10% | $289,280,000 |
| Minnesota | 1,864,978 | 5,702 | 0.31% | $1,103,490,000 |
| Mississippi | 1,015,755 | 18,090 | 1.78% | $135,470,000 |
| Missouri | 2,124,516 | 30,985 | 1.46% | $474,630,000 |
| Montana | 414,292 | 13,258 | 3.20% | $1,209,060,000 |
| Nebraska | 663,467 | 5,052 | 0.76% | $448,490,000 |
| Nevada | 984,613 | 2,793 | 0.28% | $132,730,000 |
| New Hampshire | 495,075 | 1,459 | 0.29% | $134,850,000 |
| New Jersey | 2,597,456 | 181 | 0.01% | $47,380,000 |
| New Mexico | 729,392 | 1,406 | 0.19% | $28,740,000 |
| North Carolina | 3,760,932 | 72,914 | 1.94% | $5,526,860,000 |
| North Dakota | 203,217 | 428 | 0.21% | $18,430,000 |
| Ohio | 3,956,931 | 8,949 | 0.23% | $312,620,000 |
| Oklahoma | 1,315,751 | 8,318 | 0.63% | $39,110,00 |
| Oregon | 1,360,506 | 3,258 | 0.24% | $318,000,000 |
| Pennsylvania | 4,293,608 | 34,616 | 0.81% | $895,730,000 |
| Rhode Island | 282,856 | 92 | 0.03% | $16,080,000 |
| South Carolina | 2,084,358 | 16,973 | 0.81% | $57,580,000 |
| South Dakota | 285,930 | 2,017 | 0.71% | $138,630,000 |
| Tennessee | 2,501,800 | 15,451 | 0.62% | $488,870,000 |
| Texas | 8,869,162 | 8,283 | 0.09% | $823,870,000 |
| Utah | 919,527 | 297 | 0.03% | $73,320,000 |
| Virginia | 2,813,111 | 20,593 | 0.73% | $2,330,910,000 |
| Washington | 2,365,383 | 3,635 | 0.15% | $428,560,000 |
| West Virginia | 701,182 | 70,717 | 10.09% | $2,178,660,000 |
Data Sources:
- Zillow home values (as of September 2024)
- fool.com
- constructioncoverage.com
- fanniemae.com
