New York (HedgeCo.Net) – At least $16 trillion of global ultra high net worth (UHNW) wealth will be transferred to the next generation over the next 30 years, according to the Wealth-X and NFP Family Wealth Transfers Report. This will be the largest wealth transfer in history, creating a new crop of ultra wealthy individuals.

Highlighting the need for hedge fund and private equity advisors, Bryan Schick, President of NFP International, said, “Expert guidance from qualified global advisors will be paramount in assisting the ultra high net worth in navigating complex planning challenges and executing an efficient transfer of wealth and values.”

Private holdings form the largest component of the net worth of UHNW individuals set to transfer their wealth, with $6 trillion of UHNW wealth currently held in private companies.

Other key highlights from the report:

• The majority of those passing on their wealth are self-made individuals.
• The United States will see the greatest amount of wealth transfers, with $6 trillion set to change hands in the next 30 years — amounting to nearly 40 percent of the global total.
• Forty-three percent of Asia’s UHNW wealth ($3 trillion) will be transferred.
• Nearly $5 trillion in liquid assets will change hands.
• Philanthropic bequests will also form part of this upcoming wealth transfer, with $300 billion in charitable donations expected.
• Wealth rises with age, and UHNW individuals who are 80 years old or above are on average five times wealthier than those under 40.

“The Wealth-X and NFP Family Wealth Transfers Report highlights what will be the largest wealth transfer in history from one generation to the next.” Wealth-X President David Friedman commented, “Expert commentary from NFP on how to leverage structures like life insurance to optimize such transfers complements Wealth-X’s global intelligence on the world’s UHNW population, most of which is privately held, producing a study that is unique, valuable and essential to those who would like to understand and engage this momentous transfer of ultra affluent wealth.”

The full report can be accessed here (pdf).

Alex Akesson
Editor for HedgeCo.net
alex@hedgeco.net
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership inHedgeCo.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!