UBS FINDS NEXT GENERATION BILLIONAIRES COLLECT MORE WEALTH FROM INHERITANCE THAN WORK – Swiss bank says 1,000 billionaires are likely to pass on $5.2tn to their children over next 20 years
Newly minted billionaires have collected more of their wealth from the deaths of relatives than through their own work and entrepreneurship, according to a Swiss bank favoured by the super-rich.
Of the 137 people who became billionaires in the 12 months to this April, 53 inherited a combined $150.8bn (£119bn) from their family, the report by UBS found. This exceeds the combined $140.7bn created by “84 new self-made” billionaires over the same period.
The bank said it was the first time in the nine-year history of its annual report on the fortunes of the richest 0.00004% of society that “the next generation of billionaires accumulated more wealth through inheritance than entrepreneurship”.
Benjamin Cavalli, the head of strategic clients at UBS Global Wealth Management, said: “This is a theme we expect to see more of over the next 20 years, as more than 1,000 billionaires pass an estimated $5.2tn to their children.”
The report said the “growing significance of these families can be seen across all major geographical regions”. In Asia-Pacific, inheritors’ average wealth was $2bn compared with $1.6bn for entrepreneurs. In the Americas, the inheritors were worth $2.2bn versus the entrepreneurs’ $1.5bn. In Europe, the Middle East and Africa (EMEA), the inheritors’ average wealth of $4.4bn – twice the entrepreneurs’ $2.2bn.
It comes as there is a growing public debate about the role of inheritance tax in helping to pay for public services and to assist families struggling to cope with the cost of living crisis.
