Billionaire Heirs Claim Record $298 Billion in Wealth Transfer

The children and spouses of billionaires inherited a record $298 billion in the year leading to April 2023, according to research from Swiss bank UBS. This significant wealth transfer resulted in the creation of 91 new billionaires, individuals who did not accumulate their fortunes through personal endeavors. The report indicates a more than one-third increase in the total value of wealth transferred through inheritance compared to the previous year, marking the highest figure since UBS began tracking this data in 2015.

Benjamin Cavalli, head of strategic clients at UBS Global Wealth Management, remarked, “These heirs are proof of a multi-year wealth transfer that’s intensifying.” The findings are based on surveys of high-net-worth clients and a database monitoring billionaires across 47 global markets. UBS forecasts that heirs of billionaires will inherit at least $5.9 trillion over the next 15 years, underscoring the growing concentration of wealth.

New Billionaires and Global Trends

The total number of billionaires worldwide has now reached 2,919, up from 2,682 a year ago, with their combined wealth rising to $15.8 trillion, compared to $14 trillion previously. Among the 91 new heirs, 64 were male and 27 female. The report’s revelations come at a time when cash-strapped European governments are considering new taxes on the wealthy to support public services.

In Switzerland, where an estimated $206 billion is expected to be inherited over the next 15 years, voters recently rejected a proposal for a 50 percent tax on inherited fortunes exceeding $62 million. Concerns were raised that such a tax could lead to an exodus of wealthy individuals from the country.

In contrast to the heirs, 196 self-made entrepreneurs joined the ranks of billionaires during the same period, accumulating a combined wealth of $386.5 billion. These new billionaires emerged from diverse sectors, including marketing software, genetics, restaurants, infrastructure, and liquefied natural gas. The United States led the way with 87 new self-made billionaires.

Concerns Over Wealth Concentration

As wealth continues to concentrate in the hands of a few, prominent financial figures are voicing concerns. Ray Dalio, founder of Bridgewater Associates, has warned that the ongoing revolution in artificial intelligence could exacerbate wealth inequality unless effective redistribution policies are enacted.

In the technology sector, billionaires saw their wealth increase by 23.8 percent over the past year. In response to the growing concern over wealth concentration, initiatives such as the “Trump accounts,” promoted by the Trump administration, aim to encourage billionaires to share their wealth with American children. Recently, Michael Dell, the world’s 11th richest person, and his wife Susan Dell pledged $6.25 billion to establish investment accounts, providing $250 for 25 million American children.

These developments highlight a notable shift in wealth dynamics and the ongoing conversation surrounding wealth distribution in an era marked by significant financial disparities.