Global generational wealth transfer

A massive global transfer of wealth is underway as baby boomers and older entrepreneurs prepare to pass assets to younger generations. Estimates suggest approximately $83.5 trillion will be transferred globally, with Cerulli projecting the ‘Great Wealth Transfer’ could reach $124 trillion by 2048.

This transition faces several structural and logistical risks. In the United States, a succession crisis is emerging in sectors like engineering and construction, where many owners lack formal ownership transfer plans. Furthermore, family disputes and shifts in investment philosophy among more mobile, internationally educated heirs pose threats to preserving these fortunes.

Beyond business continuity, advisors are highlighting new vulnerabilities related to sudden wealth, including cyber exposure from social media and AI-generated deepfakes, as well as liability risks. The complexity of modern financial lives also complicates estate administration, as executors struggle to locate assets fragmented across digital platforms, pensions, and various savings accounts.

Recent trends show the ‘family office’ model—traditionally used by ultra-high-net-worth dynasties to manage investments, taxes, and estate planning—is becoming more accessible to a broader range of clients. However, a significant gap in communication persists. A Fidelity study indicates that over half of parents with at least $500,000 in investable assets have not communicated their net worth to their heirs, and 68% have not disclosed specific inheritance details. Experts note that while families often prepare legal documentation, they frequently fail to prepare heirs to manage significant wealth.