Objective The objectives of this study are to determine (i) what daughters, ages 18–24 years, of BRCA1/2 mutation carriers understand about their 50% chance of carrying a BRCA1/2 mutation and about risk reduction or management options for mutation carriers, (ii) the extent and nature of daughters' cancer‐related distress, and (iii) the effects of knowing mother's mutation status on daughters' future plans. Methods A total of 40 daughters, currently aged 18–24 years, of mothers who tested positive for a mutation in BRCA1/2 were invited by mail to participate (with contact information supplied by their mothers). Daughters participated in a qualitative telephone interview about the impact of learning their mother's mutation status on their understanding of their own cancer risks and their cancer‐related distress, and their knowledge of screening strategies, risk‐reducing surgery, current health status, and future plans. Participants also completed study‐specific demographic and family history questionnaires, the Brief Symptom Inventory‐18, Impact of Event Scale (with hereditary predisposition to breast/ovarian cancer as the event), and the Breast Cancer Genetic Counseling Knowledge Questionnaire. Results Daughters' genetic knowledge is suboptimal; gaps and misconceptions were common. Over 1/3 of the daughters reported high cancer‐related distress, despite normal levels of general distress. Disclosed genetic information raised future concerns, especially regarding childbearing. Conclusion Targeted professional attention to this high‐risk cohort of young women is critical to inform the next generation of daughters of BRCA1/2 mutation carriers and encourage recommended screening by age 25 years. Improved uptake of screening and risk reduction options could improve survival, and psychoeducation could reduce cancer‐related distress. Copyright © 2013 John Wiley & Sons, Ltd.