Tags: Ultra-wealthy | 16 trillion | transfer | wealth

Report: Ultra-Wealthy Will Pass on $16 Trillion to Heirs During Next 30 Years

By    |   Wednesday, 14 January 2015 01:06 PM

The biggest wealth transfer in history is coming, according to the Wealth-X and NFP Family Wealth Transfers Report.

The study estimates that the world's 211,275 ultra-high net worth (UNHW) individuals — those worth $30 million or more — will pass on $16 trillion to their heirs during the next 30 years.

"As self-made UHNW baby boomers start passing on their wealth to their children, the importance of entrepreneurship and hard work will be put to the test," say Wealth-X CEO Mykolas Rambus and President David Friedman in a letter accompanying the report.

"The report shows that self-made UHNW individuals will be responsible for the largest share of this upcoming wealth transfer. In the next 30 years, succession planning will become a key concern for this segment of the population."

Almost 40 percent of the wealth transfer, or $6 trillion, should come from UHNW individuals in the United States, according to the study.

The report also shows that wealth rises with age, and those UHNW individuals who are 80 years or older are worth five times more on average than are those younger than 40.

Liquidity also rises with age, both in absolute and relative terms, according to the study. In fact, 30 percent of the net worth of UHNW individuals who are expected to transfer their wealth is in liquid assets, allowing more flexibility for the next generation to invest and spend their inheritance as they wish.

Meanwhile, a majority of the most financially secure people in the United States don't think the poor need to be pitied, according to a new survey from the Pew Research Center.

Indeed, the study shows that 54 percent of the wealthiest maintain that "poor people today have it easy because they can get government benefits without doing anything in return."

In contrast, only 36 percent of the wealthy think that "poor people have hard lives because government benefits don't go far enough to help them live decently."

Not surprisingly, among the least wealthy people, only 29 percent subscribe to the former view, while 67 percent opt for the latter.

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The biggest wealth transfer in history is coming, according to the Wealth-X and NFP Family Wealth Transfers Report.
Ultra-wealthy, 16 trillion, transfer, wealth
Wednesday, 14 January 2015 01:06 PM
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