The Great Wealth Transfer, a broad term for the largest transfer of wealth from older generations to younger ones through inheritances and other financial gifts, is underway.[1] But that does not mean that every heir will receive a share. Some may miss out on an inheritance because their parents spend down their savings, while others may make the surprising choice to decline an inheritance.
Being named as a beneficiary does not mean that someone must accept an inheritance. A person may ask to be removed from an estate plan before the estate owner’s death or decline an inheritance later. Depending on how the plan is structured, they may be able to refuse one part while receiving another.
At a time when younger generations claim to be struggling financially, choosing to decline an inheritance may seem counterintuitive. But there are reasons why someone may choose to say, “Thanks, but no thanks.”
Why Would an Heir Choose to Decline an Inheritance?
Affordability is one of the defining economic buzzwords of the moment. Younger Americans, Gen Z in particular, say that basic expenses are stretching them to the limit—and in many cases, past their financial breaking point.[2]
They often contrast themselves with baby boomers, the wealthiest generation in history and the source of much of the wealth now expected to pass to younger generations.[3] According to a 2026 Northwestern Mutual study, nearly half of US adults remain financially dependent on their parents, while more than half say that achieving financial independence is harder today than it was for older Americans.[4]
It is not surprising, then, that many Gen Zers and millennials view an inheritance as important to their long-term financial security.[5] Many hope that the Great Wealth Transfer will ease the affordability crisis for them, even though an inheritance is neither guaranteed nor necessarily large enough to provide lasting security.[6] Fewer than one-third of Americans ever receive an inheritance, the average inheritance is below $50,000, and many recipients do not receive one until their mid-50s to mid-60s.[7]
Yet for one or more of the following reasons, an heir may choose to decline an inheritance:
- Avoiding family disputes over an inheritance. Stepping aside can help reduce power struggles or lingering resentment among siblings, blended family members, or other beneficiaries.
- Preserving personal independence and boundaries. An heir may want to distance themselves from complicated family dynamics, avoid the appearance of financial dependence, or refuse gifts that come with emotional strings attached.
- Avoiding unwanted property or responsibilities. Real estate, business interests, collectibles, and other assets can come with taxes, maintenance costs, management obligations, or other burdens that a recipient would prefer not to assume.
- Protecting financial or benefits planning. In some situations, an inheritance can complicate an heir’s existing financial arrangements or eligibility for certain needs-based benefits.
- Aligning assets with personal values. Turning down wealth tied to businesses, industries, or family practices can avoid conflicts with an heir’s personal or ethical beliefs.
One recent high-profile example involves an heir who chose not to inherit, and her reason was surprisingly ordinary.
Brooke Hogan and the Hulk Hogan Estate
Following longtime professional wrestler Hulk Hogan’s death in July 2025, reports revealed that his daughter, Brooke Hogan, would not receive anything from his estate.[8] Her absence from the will was not the result of a sudden or unexpected decision by her father. Brooke had asked to be removed years earlier.
She contacted her father’s financial manager in 2023 and asked to be taken out of the will because she did not trust the people around her father and wanted to avoid becoming involved in a financial battle after his death.
Brooke later explained her decision, saying that she feared the fighting that could follow her father’s death and wanted to avoid potential disputes over his money.[9] She specifically referenced concerns about conflict involving her mother and Hulk Hogan’s wife.
Her reason, in other words, was not all that unusual: She valued avoiding family conflict more than receiving a potential inheritance.
Brooke’s situation is also an example of how different parts of an estate plan can operate separately. Although Brooke had asked to be removed from her father’s will, TMZ reported that she remained a beneficiary of a small life insurance trust that Hulk Hogan had established.[10] Brooke reportedly planned to put that money toward her children’s college funds.
Declining One Part of an Inheritance
When a prospective heir asks to step away from an estate plan, it can seem like an all-or-nothing choice: Either someone remains part of the inheritance, or they opt out entirely.
But an estate plan can use different documents and arrangements for different purposes. Someone who is removed from a will may remain a beneficiary of a separate trust, life insurance policy, or retirement account, as was the case with Brooke Hogan.
A Will and Trust Can Serve Different Purposes
A will establishes who should receive property handled through the probate process, the court-supervised process for settling an estate after someone dies. A trust manages assets placed in it according to the instructions in the trust document.
Because wills and trusts operate separately, someone can structure their estate plan so that a beneficiary receives nothing through the will yet remains a named beneficiary of a separate trust or an asset like a life insurance policy, bank account, or retirement account.
That separation can give families some flexibility. A parent may respect an adult child’s wish to stay out of the broader estate while still providing for that child or their descendants through a separate method, like a trust, or through beneficiary designations on specific assets.
Preserving a Limited Benefit
A separate trust can provide a more targeted benefit rather than a share of the larger estate. For example, funds may be preserved for education, healthcare, or other specific needs.
Declining to be a part of one aspect of an estate plan does not necessarily mean refusing everything. Brooke Hogan’s situation illustrates the point that this type of arrangement can honor an heir’s wish while preserving a targeted benefit.
When and How to Decline an Inheritance
Whether you are creating an estate plan or may stand to inherit from one, everyone involved should understand that an inheritance can be declined.
- Before death. A prospective heir can ask to be removed from a will or another part of the estate plan. The person creating the plan can then decide whether and how to revise the documents.
- After death. The estate beneficiaries may also choose to disclaim an inheritance. A disclaimer is essentially a refusal to accept property that would otherwise pass to a beneficiary. For federal tax purposes, a qualified disclaimer must meet specific requirements, including being made in writing within a prescribed period and before the beneficiary accepts the property.
- Declining only part of an inheritance. Depending on the circumstances and the estate plan’s structure, a beneficiary may be able to refuse one asset or part of an inheritance while accepting other assets.
When family dynamics enter the equation, preserving peace or personal boundaries may matter more than the size of an inheritance.
At McDonald Law Firm, our estate planning attorneys can help both planners and beneficiaries understand the options available when those priorities do not line up neatly with the traditional expectation of simply accepting what is given. Contact McDonald Law Firm, an experienced Howard County, Montgomery County and District of Columbia estate planning, special-needs planning and Medicaid planning firm at (443) 741-1088; (301) 941-7809, (410) 337-8900 or (202) 640-2133; or use the following link: https://www.mcdonaldesq.com/#contactWrapper to schedule an initial consultation to discuss your options.
DISCLAIMER: THE INFORMATION POSTED ON THIS BLOG IS INTENDED FOR EDUCATIONAL PURPOSES ONLY AND IS NOT INTENDED TO CONVEY LEGAL, INSURANCE OR TAX ADVICE.
[1] Will the Great Wealth Transfer Impact the Markets?, Merrill Lynch, https://www.ml.com/articles/great-wealth-transfer-impact.html (last visited Sept. 30, 2026).
[2] BofA Study Finds Fewer Gen Z Rely on Family for Financial Assistance, Even With 42% Living Paycheck to Paycheck, Bank of Am. (May 19, 2026), https://newsroom.bankofamerica.com/content/newsroom/press-releases/2026/05/bofa-study-finds-fewer-gen-z-rely-on-family-for-financial-assist.html.
[3] Rohan Girvin, The Great Wealth Transfer and Its Implications for the American Economy, Mich. J. Econ. (Apr. 3, 2025), https://sites.lsa.umich.edu/mje/2025/04/03/the-great-wealth-transfer-and-its-implications-for-the-american-economy.
[4] America’s Declaration of “In Dependence”: More Than Half of Millennials and One-Third of Gen X Still Feel Financially Dependent on Their Parents, According to Northwestern Mutual 2026 Planning & Progress Study, Nw. Mut. (June 1, 2026), https://news.northwesternmutual.com/2026-06-01-Americas-Declaration-of-In-Dependence-More-Than-Half-of-Millennials-and-One-Third-of-Gen-X-Still-Feel-Financially-Dependent-on-their-Parents,-According-to-Northwestern-Mutual-2026-Planning-Progress-Study.
[5] Amanda Umpierrez, Americans Expect Inheritance to Fund Portion of Retirement, 401(k)Specialist (Aug. 6, 2024), https://401kspecialistmag.com/americans-expect-inheritance-to-fund-portion-of-retirement.
[6] Kimberly Palmer, How to Plan for a Potential Inheritance, Associated Press (Oct. 3, 2023), https://apnews.com/article/89ac550183964035c81f7bf5e84f0d70.
[7] David Beren, Only 30% of Americans Ever Receive an Inheritance. Those Who Do Get It at 58, Not 30, Yahoo Finance (June 24, 2026), https://finance.yahoo.com/economy/articles/only-30-americans-ever-receive-204409465.html.
[8] Brooke Hogan Asked to Be Taken Off Hulk’s Will, Won’t Get Anything from Estate, TMZ Sports (July 29, 2025), https://www.tmz.com/2025/07/29/brooke-hogan-asked-to-be-off-hulk-will.
[9] Sean Neumann, Brooke Hogan Explains Why She Asked to Be Removed from Father Hulk Hogan’s Will, People (Aug. 5, 2025), https://people.com/brooke-hogan-explains-why-she-asked-be-removed-father-hulk-hogan-will-11785446.
[10] Brooke Hogan Asked to Be Taken Off Hulk’s Will, supra note 8.
