Globally, more than half a million high-net-worth individuals will be transferring trillions of dollars in wealth by 2030, an average $28.2 million by each person.
Some $8.8 trillion will take place in North America, involving 360,000 people.
The opportunities for assistance from wealth management professionals are many, from guiding the sale of businesses and property, to setting up foundations or donating art collections. Those assisting the wealthy should approach the task as a continuous process. Instead of waiting to transfer assets after death, more affluent people are doing so while alive, and need guidance in the process.
The first group inheriting these assets will be Gen-Xers, followed by millennials; both are more digitally savvy than the generation transferring its wealth to them, and demand digital savvy from those assisting them. They also tend to pay increased attention to environmental, social and governance (ESG) factors, and this fact is getting the attention of wealth managers. For example, some 80% of clients at BlackRock’s U.S. and Canada family office are directly investing in equity, fixed income and/or alternative ESG solutions.
Of course, the generations inheriting these trillions are likely to have different priorities than those parting with their wealth. Providers to the affluent need to ensure that their offerings, services and values are in full touch with the needs of these next generations of wealthy individuals.
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Nearly $9 Trillion Will Change Hands by 2030 in North America | Wealth Management