NEW YORK–Ultra high net worth (UHNW) individuals across the globe will transfer more than $3.9 trillion between generations over the next decade, according to a new report.
The findings are drawn from “Preparing for Tomorrow: A Report on Family Wealth Transfer,” which was produced by Wealth-X and is sponsored by NFP. The report takes an in-depth look at the most pertinent issues and challenges UHNW individuals face when transferring wealth to the next generation.
Among the findings of the report:
- More than 14,000 UHNW individuals are likely to transfer assets in the next 10 years.
- These UHNW individuals have an average personal wealth of $272 million.
- This total combined wealth ($3.9 trillion) represents 13% of all UHNW assets globally.
- The United States will experience the most wealth transfers globally in the next 10 years.
- Private investments represent the largest holdings for UHNW individuals set to transfer their wealth in the next decade, accounting for 36% of their net worth, an average of nearly $100 million per person.
- This same group has an average liquidity of US$92 million and US$16 million in real estate and luxury assets.
“As UHNW individuals age, they increasingly consider their legacy, whether that is maintaining it, if they are second or third generation wealthy, or creating it, if they are first generation,” said Tomas Povedano, COO, NFP Life Solutions, in a released statement. “The importance of early planning and education of all related family members cannot be overstated; we find that setting expectations prudently can create the long-term legacy and stability that is so important to many UHNW individuals.”
Preparing for Tomorrow: A Report on Family Wealth Transfer outlines many of the significant difficulties UHNW individuals face when planning for wealth transfer, from family disputes to global reporting requirements. From these findings, the report highlights best practices for UHNW individuals, including the importance of early planning to set expectations for all stakeholders in the family and prevent unforeseen circumstances
UHNW individuals are defined as those with a net worth of $30 million and above.