【ALTRATA】2024年家庭财富转移报告

Summary of Family Wealth Transfer 2024

Core Content

This report provides an in-depth analysis of the global family wealth transfer landscape over the next decade, highlighting key trends, demographics, and challenges in the process of transferring substantial wealth from the ultra wealthy to their heirs.

Main Points

• Scale of Wealth Transfer: Over the next decade, 1.2 million individuals with a net worth of $5m+ are expected to transfer a collective wealth of $30.9trn by 2033. This amount exceeds the GDP of the US and is more than 10 times the market capitalization of Microsoft.
• Ultra Wealthy Dominance: Individuals with a net worth of $100m+ will account for almost half of the $30.9trn being passed on, and they will make up 36% of the total wealth transferred.
• Billionaires' Impact: Around 1,380 billionaires will transfer their wealth, contributing $5trn to the total, with an average transfer of $3.6bn per billionaire.
• Regional Distribution: North America and Europe will account for 71% of global wealth transfers, with North America representing 46% and Europe 22%. Asia will have a smaller share, at around 20%, due to its younger average age of wealthy individuals. The Middle East will have the highest average transfer per individual, at around $42m.
• Generational Shifts: Generation X will be the first to inherit from their wealthy parents, with an average age of mid-to-late 40s. Millennials and Gen Z are more likely to inherit from grandparents, which tends to result in smaller amounts of wealth. The next generation of heirs is more socially and environmentally conscious, showing a stronger interest in causes such as environment and healthcare than their parents.
• Wealth Transfer Timing: There is a growing trend of wealth being transferred during the lifetime of the head of the family, rather than solely upon death. This requires early engagement and preparation to ensure a smooth transition.
• Role of Advisors: Expert advisors play a crucial role in navigating the complexities of wealth transfer, especially with the increasing globalization of wealthy families and the shifting intergenerational values and priorities.

Key Trends

• Increased Complexity: The global wealth transfer process is becoming more complex due to geopolitical tensions, environmental changes, and economic volatility.
• Diversification: Wealthy families are diversifying their assets across geographies, industries, and financial instruments to mitigate risks and align with new opportunities.
• Philanthropy and Social Impact: Younger generations of wealthy individuals show a greater interest in philanthropy and social impact, often focusing on causes like the environment and healthcare, even if the scale of donations is not necessarily larger.
• Interpersonal Dynamics: Family dynamics, particularly intergenerational differences in values, business outlooks, and aspirations, are a major factor in the success of wealth transfer and legacy planning.

Demographics of Donors and Beneficiaries

Donors

• Gender: Approximately 90% of wealth transfer donors are men, with female representation increasing in the VHNW tier but still relatively low among UHNW individuals.
• Age: Two-thirds of wealthy donors are over 70, with the average age of those transferring wealth being 75. Over 80 years old is common among the ultra wealthy, with about a third of UHNW donors over 80.
• Wealth Source: Most wealthy individuals have created their own wealth, with only about 10% relying solely on inheritance. Among UHNW donors, 70% are corporate executives, 20% are entrepreneurs, and 7% are sole inheritors.

Beneficiaries

• Inheritance Recipients: Partners, children, and philanthropic organizations are the most common recipients. However, the next generation of heirs is expected to be more socially and environmentally conscious.
• Generation X: Will be the first to inherit from their wealthy parents, with an average age of mid-to-late 40s. Millennials and Gen Z are more likely to inherit from grandparents, which typically results in smaller transfers.

Wealth Transfer by Tier

• VHNW (Very High Net Worth): Individuals with $5m–$30m net worth will account for 87% of all wealth transfers, contributing $11.1trn to the total.
• UHNW (Ultra High Net Worth): Individuals with $30m+ will account for 13% of all transfers, yet contribute 64% of the total wealth. Those with $100m+ will represent 40–50% of total transferred wealth, with the Middle East showing the highest proportion at around 60%.

Methodology and Context

• The report is based on data from Wealth-X, an Altrata company, and includes insights from interviews with senior Altrata sector specialists.
• It focuses on the global population of individuals with a net worth of more than $5m, with a special emphasis on those with over $100m.
• The report highlights the importance of early engagement, understanding family dynamics, and aligning with the values and interests of the next generation of heirs.

About Altrata

Altrata is a global firm that provides insights and services related to wealth transfer, family offices, and the luxury and financial services industries. Their latest report, powered by Wealth-X data, offers comprehensive analysis and forecasts for the next decade's wealth transfer landscape.

Conclusion

The next decade will witness a massive transfer of wealth, driven by a growing number of ultra wealthy individuals and a shift in intergenerational priorities. The process will be influenced by global trends, geopolitical complexities, and the increasing focus on social and environmental causes. Early and comprehensive planning, along with expert advisory support, will be essential to ensure a successful and equitable transfer of wealth and values.