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A historic transfer of wealth is now underway as older generations begin to pass down trillions of dollars to their descendants. According to UBS’s 2024 Global Wealth Report, an estimated $83 trillion worth of assets will be transferred within the next 20 years, a sum roughly equal to the global economic output in a year.

A notable aspect of this wealth transfer, often overlooked, is the significant amount of money moving “horizontally.” This means that, in many families, assets will first be transferred to surviving spouses. Due to higher life expectancies, this will result in a substantial shift of wealth to women. Approximately $9 trillion, or just over 10% of the total wealth transfer, is expected to be passed to spouses initially, with most of this occurring in the Americas.

Altrata, a people intelligence think tank, reported last month that Generation X, those born between the mid-1960s and early 1980s, are set to inherit $31 trillion within the next decade from their predecessors. Additionally, Ernst & Young (EY) estimated in April that baby boomers will transfer up to $3 trillion in wealth to their descendants by the end of this year. EY predicts that this significant transfer of wealth from baby boomers to their families will continue through the 2020s.

The inheritance from baby boomers, the largest transfer of assets in history, is expected to have a transformative impact on female and next-generation inheritors. By 2030, wealthy donors are projected to pass on $18 trillion, roughly equivalent to China’s annual GDP, to their beneficiaries.

Key Points:

  • An estimated $83 trillion in assets will be transferred from older generations within the next 20 years, according to UBS’s 2024 Global Wealth Report.
  • A significant portion, about $9 trillion, will be passed to surviving spouses first, mostly benefiting women due to higher life expectancies.
  • Generation X is set to inherit $31 trillion within the next decade, as reported by Altrata.
  • Ernst & Young (EY) estimates baby boomers will transfer up to $3 trillion in wealth to their descendants by the end of this year.
  • By 2030, an additional $18 trillion is expected to be inherited, highlighting the transformative effect on female and next-generation inheritors.

Fallon Jacobson – Reprinted with permission of Whatfinger News