Global wealth transfer faces succession and dispute risks

A massive transfer of wealth is underway as baby boomers and older entrepreneurs prepare to pass assets to younger generations. UBS estimates that approximately $83.5 trillion will be transferred globally, with billionaire families alone expected to transfer $6.9 trillion by 2040.

In the United States, roughly 12 million businesses owned by baby boomers are expected to change hands over the next decade, representing nearly $10 trillion in assets according to JPMorgan Chase. However, a significant succession crisis looms for the trades and construction sectors. Many business owners lack formal transition plans; for instance, 58% of engineering and construction firm owners do not have a formal ownership transfer plan, and 51% of those planning to exit within five years have no defined strategy.

Beyond business continuity, wealth advisers warn that family disputes pose a major threat to preserving these fortunes. Additionally, a generational shift in investment philosophy is emerging, as heirs tend to be more mobile and internationally educated compared to the concentrated, asset-specific investment styles of their predecessors.