Ask most people what a "normal" inheritance looks like and you will hear a number that almost nobody actually receives. The gap between the average inheritance and the typical one is enormous, and it shapes how families in Colorado plan (or fail to plan) for what they leave behind.
This page pulls together the best available data on how much Americans, and Coloradans specifically, inherit. Every figure below links to its source in the list at the foot of the page. Where a precise Colorado number does not exist, we use the national figure and say so, then anchor it to Colorado with state economic data. Updated July 2026.
The gap between the average and the typical inheritance
The single most important thing to understand about inheritance data is that the mean (the arithmetic average) sits far above the median (the middle household), because a small number of very large estates pull the average upward.
1. The average U.S. inheritance is around $46,200
Analysis of the Federal Reserve's Survey of Consumer Finances puts the average household inheritance at roughly $46,200.1 That is the number most people quote, but it describes almost no one's actual experience, because it is dragged up by a handful of multimillion-dollar transfers.
2. The typical inheritance is closer to $12,000
When you look at the median instead of the mean, the picture shrinks dramatically. The Penn Wharton Budget Model, drawing on the same Federal Reserve survey data, found the median average inheritance across all ages and income groups was about $12,353 in 2019 dollars.2 A typical Colorado heir is far likelier to receive an amount in this range than the widely quoted $46,000.
3. The bottom half of households averages under $10,000
Among the least wealthy 50 percent of American families, the average inheritance is only about $9,700, according to Federal Reserve figures.3 For most working households, an inheritance helps but does not transform the balance sheet.
4. The wealthiest 1 percent average roughly $2.7 million
At the very top, the numbers are on a different scale entirely. The wealthiest 1 percent of families receive an average inheritance of about $2.7 million, hundreds of times more than families at the bottom.4 This concentration is exactly why the mean is so misleading.
5. Top earners inherit 4 to 12 times more than the middle
Sorted by income rather than wealth, households in the top 5 percent received a median average inheritance of about $51,499, while households across the bottom 80 percent ranged from roughly $497 to $9,477 depending on their income band.5 The gap runs from about 4 to 12 times.
| Measure | Amount (US) | Source |
|---|---|---|
| Average (mean) inheritance | ~$46,200 | Fed SCF |
| Median (typical) inheritance | ~$12,353 | Penn Wharton |
| Bottom 50% average | ~$9,700 | Fed SCF |
| Top 1% average | ~$2.7 million | Fed SCF analysis |
Who inherits, and when
6. Only about 1 in 5 households ever receives an inheritance
Receiving anything at all is far from universal. Federal Reserve data indicate that roughly one in five U.S. households has ever received an inheritance, which means the large majority never do.6 Planning your own estate matters precisely because you cannot assume your heirs will be rescued by someone else's.
7. Inheritances peak in mid-life, not early adulthood
Because people tend to inherit from parents who live into their 80s, receipts cluster in middle age. In any given five-year window the probability of receiving an inheritance peaks at about 11.2 percent for households aged 56 to 65, and the largest average amounts go to those aged 46 to 55, at roughly $19,792.7 Younger Coloradans in their 20s and 30s inherit far less, and far less often.
8. Inheritance is deeply unequal across racial lines
Federal Reserve survey data show white households are considerably more likely to have received an inheritance than Black or Hispanic households.8 Penn Wharton's analysis of the same data quantifies the gap: white households inherit roughly 5.3 times as much as Black households and about 6.4 times as much as Hispanic households.9
Colorado's tax and property picture
9. Colorado charges no state estate tax and no inheritance tax
This is good news for Colorado heirs. Colorado's estate tax was tied to a federal credit that was phased out, and the state has collected no estate tax since 2005; Colorado also has no separate inheritance tax.10 Unlike a handful of states such as Pennsylvania, which levies an inheritance tax of 4.5 to 15 percent, a Colorado beneficiary owes no state tax simply for receiving a bequest.
10. Almost no Colorado estate owes federal estate tax either
The federal estate tax still exists, but the exemption rose to $15 million per person in 2026, meaning a married couple can shield up to $30 million.11 The overwhelming majority of Colorado estates fall far below that threshold and pass to heirs with no death tax of any kind.
11. Home equity is the biggest asset most Coloradans pass on
For typical families, the house is the estate. Colorado home values are high: the median sale price sat around $563,000 in mid-2026 by one measure,12 and the average home value was about $537,600 by another.13 A paid-off Colorado home can easily be worth more than a lifetime of financial-account inheritances for the same family.
12. Two in three Colorado households own their home
Because inherited housing wealth depends on ownership, the state's homeownership rate matters: it stood at about 66.2 percent, slightly above the national figure, with a median household income near $97,113.14 That combination of high incomes and high home values means Colorado estates skew larger than the US median, even though the state levies no death tax on them.
The bigger picture
13. The US is in the middle of a $124 trillion wealth transfer
Inheritance is about to matter more than ever. Research firm Cerulli projects that some $124 trillion will change hands through 2048, with about $105 trillion going to heirs and $18 trillion to charity, and nearly $100 trillion of it coming from baby boomers and older generations.15 Colorado's share of that transfer will flow through wills, trusts, and (too often) intestacy.
14. Only about 24 percent of Americans have a will
Despite the sums involved, most people leave the paperwork undone. A 2025 national study found just 24 percent of adults had a will, down from 33 percent in 2022, with "it is low on the to-do list" the most common excuse.16 When someone dies without one in Colorado, state intestacy rules decide who inherits, and the outcome may not match what the person actually wanted. If you own a home in Colorado, you have more at stake than the typical inheritance figure suggests. You can put a valid will in place in an evening with our guided will builder, and you may also want to read how many Coloradans actually have a will.
The takeaway from the numbers is consistent. Most people inherit modestly or not at all, a small number inherit fortunes, and Colorado's tax code takes nothing from either group. What decides whether your own estate reaches the people you intend is not the size of it, but whether you wrote it down.
Sources
- 1Boldin, Average Inheritance From Parents (Federal Reserve SCF analysis) (boldin.com)
- 2Penn Wharton Budget Model, Inheritances by Age and Income Group (budgetmodel.wharton.upenn.edu)
- 3Federal Reserve, Changes in U.S. Family Finances from 2019 to 2022 (SCF) (federalreserve.gov)
- 4Boldin, Average Inheritance by Wealth Tier (boldin.com)
- 5Penn Wharton Budget Model, Inheritances by Income Group (budgetmodel.wharton.upenn.edu)
- 6Federal Reserve, Survey of Consumer Finances (federalreserve.gov)
- 7Penn Wharton Budget Model, Inheritances by Age (budgetmodel.wharton.upenn.edu)
- 8Federal Reserve, Intergenerational Wealth Transmission (FEDS Notes) (federalreserve.gov)
- 9Penn Wharton Budget Model, Inheritances by Race (budgetmodel.wharton.upenn.edu)
- 10Colorado General Assembly, Legislative Council Staff: Estate Tax (content.leg.colorado.gov)
- 11SmartAsset, Colorado Estate Tax and Federal Exemption (smartasset.com)
- 12Redfin, Colorado Housing Market (median sale price) (redfin.com)
- 13Zillow, Colorado Home Values (zillow.com)
- 14U.S. Census Bureau, QuickFacts: Colorado (census.gov)
- 15Cerulli Associates, $124 Trillion Wealth Transfer Through 2048 (cerulli.com)
- 16Caring.com, 2025 Wills and Estate Planning Study (caring.com)
About the author
Max Kuch
Max Kuch writes about estate planning, wills and inheritance for Online Will Colorado. He gathers the numbers from official Colorado and US public data, then explains what they mean for anyone thinking about putting their wishes in writing.