In 2026, 23% of American businesses owned by wealthy individuals are expected to be inherited, surpassing the 11% that are purchased, Bank of America data shows. This marks a reversal from 2022, when 28% of businesses were bought and only 5% inherited, according to the Private Bank Study of Wealthy Americans released this week by BofA, highlighting a shift in how wealth is transferred among high-net-worth individuals.
The study surveyed 1,400 U.S. adults with at least $3 million in investable assets to analyze patterns in wealth preservation and transfer. The findings reveal that family-owned companies are increasingly passed down to the next generation rather than sold, reflecting broader trends within the Great Wealth Transfer, which projects between $36 trillion and $124 trillion in assets moving from Baby Boomers to younger generations over the next two decades, per fortune.com.
This shift toward inheritance over purchase in business ownership could reshape the U.S. economy by influencing how wealth and control are concentrated among younger wealthy individuals. Jonathan Parker, a financial economics professor at MIT Sloan, noted that the way assets like businesses change hands plays a critical role in economic dynamics. The trend contrasts with previous years when business acquisitions dominated, underscoring evolving strategies in wealth management among affluent families.
The Great Wealth Transfer is expected to unfold over the next 20 years, with the private bank study underscoring the increasing importance of inheritance in business ownership. The data highlights a significant change in wealth transition patterns among the wealthy, with implications for business continuity and economic influence across generations.