Wealthy heirs surpass self-made entrepreneurs in riches
According to a report by UBS, this year's new billionaires gained more wealth from inheritance than entrepreneurship, marking the first time this discrepancy has been observed in nine years. The study found that 53 new billionaires inherited a total of $150.8 billion, surpassing the $140.7 billion generated by 84 new self-made billionaires. The trend highlights the beginning of the Great Wealth Transfer, with over 1,000 billionaires expected to pass $5.2 trillion to heirs in the next few decades. The slowdown in initial public offerings (IPOs) has limited some entrepreneurs from cashing in on their businesses' value. The US tax code allows the wealthy to preserve their wealth for generations, with tools such as long-lasting trusts and offshore life insurance policies. The report also suggests that heirs prioritize wealth preservation over philanthropy, while first-generation billionaires show a higher inclination towards charitable giving.
