More than $100 trillion in wealth is about to be inherited — here are the biggest winners
Of the total transfer, $106 trillion will go to family and heirs, while $18 trillion will be directed to charities. Wealthy individuals, particularly the top 2% with a net worth of over $5 million, are expected to contribute $62 trillion to this transfer. Currently, $2.5 trillion is being passed down annually, a figure projected to rise to $3 trillion by 2030, $4 trillion by 2036, and over $5 trillion by the late 2040s.
Demographics will play a significant role in the distribution of wealth. Women are projected to inherit $54 trillion, primarily through spousal transfers. Generation X will benefit the most in the next decade, inheriting $14 trillion by 2034 and $39 trillion by 2048. Millennials will inherit $46 trillion starting around 2038, while Gen Z is expected to receive $15 trillion over the same period.
The projections have increased significantly due to inflation, soaring asset values, and wealth concentration. Since 2021, estimates have risen nearly 50%, reflecting increases in equity (27%) and real estate (39%) values. Wealth concentration at the top has grown, with individuals worth $10 million or more holding 44% of total wealth in 2023, compared to 40% in 2020.
This transfer will have significant implications for wealth management, philanthropy, and luxury markets. Advisors and firms are already focusing on planning efficient ways to pass wealth, while also preparing for a new client base that includes more women, millennials, and Gen Z. Firms will need to recruit younger and more diverse advisors to reflect the evolving demographics and priorities of their future clients.
For more information see Robert Frank “More than $100 trillion in wealth is about to be inherited — here are the biggest winners” CNBC, December 13, 2024.
Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.