The latest Billionaires Report by UBS and PwC indicates that the unprecedented wealth creation that has happened in the past 20 years is going to be followed by an unprecedented period of wealth transfer. The report states that 460 billionaires will transfer over $2 trillion of assets to their heirs during the next 20 years.

It contains data culled from the last 20 years that has followed 1,400 billionaires across the 14 largest billionaire markets and explores the potential impact that this massive transfer of wealth could have on both the recipients and society at large. The report expounds on this by saying that, “As great wealth trickles down the generations, its goals will change. We are already seeing the early stages of what we expect to be an upsurge in philanthropy.” The report includes information given by an advisor to several billionaire families. “Today’s next gens are facing a much wider array of options due to better education, digitization and technology. This amplifies the importance of purpose and meaning for them when choosing what to do and what not to do,” the advisor states. (For more, see: Tips for Family Wealth Transfers.)

The report draws the conclusion that younger beneficiaries of billionaire wealth are driven by three key goals that set them apart from their elders. They tend to put business first, place greater emphasis on values instead of valuables and seek identity through philanthropy. Young multigenerational billionaires tend to be very entrepreneurial, and they believe that growing their businesses is a way to benefit society. They also believe in philanthropy, but they take a different approach to this than their forebears in many cases.

Of these last two factors, the report states: “Their business goals must deliver not only returns to the family, but also tangible benefits to a wide group of stakeholders – including employees, customers and society at large. More than previous generations, they bring business discipline and strategy to philanthropy. They want their giving to make an impact – and they want to be able to measure it.” (For more, see: Estate Planning Tips for Financial Advisors.)


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