More than 1.2 million wealthy people around the world will transfer $31 trillion by 2033, according to Altrata’s new Family Wealth Transfer report. Gen X is first in line to inherit from their wealthy parents over the next decade, the report says, while Gen Z and millennials are more likely to receive lesser sums from their grandparents.
Beneficiaries of the wealth more strongly support health care and environmental causes than their predecessors do. Among individuals set to receive wealth from ultra-high-net-worth donors over the next decade, 37% listed health care and medical research in their top seven philanthropic causes, while 22% listed the environment, conservation and animals. In contrast, 30% of UHNW individuals set to pass down wealth listed health care causes as a top seven philanthropic cause, while 15% listed the environment, conservation and animals.
Both the report’s inheritors and donors listed education, arts and culture, and social services as their top three philanthropic interests, signaling the generations might be more similar in their giving tendencies.
Altrata used its proprietary Wealth Transfer Model leveraging its Wealth-X Database to craft its report, which says individuals with a net worth of more than $100 million will account for almost half of the $31 trillion being passed on by 2033. The wealth transfer figure comprises 1.2 million people with net worths of at least $5 million each.