The great generational shift is not just a matter of inheritance
Over the next two or three decades, approximately $83 trillion will pass from one generation to the next, but this transfer of wealth, known as the “great wealth transfer,” is already well underway. But this great generational shift is not just a matter of inheritance: the point is not merely how much capital will change hands, but how this will happen, through which instruments, with what responsibilities, and what potential family tensions. A recent UBS report on the “next gen” shows that the new generation increasingly views inheritance as more than just a simple transfer of assets. In fact, 41% of respondents associate wealth transfer primarily with a transfer of responsibility, while 38% link it to the passing of a family member. The difference is small but significant: in more mature families, the focus is gradually shifting from the event of succession to the conscious management of wealth.
A Shift in Perspective
This shift in perspective is also evident in practical terms. Only 6% of families have not yet begun to address generational transition; 17% are just starting to think about it, 11% are planning with their family, 14% with advisors, while 33% are already in the process of transfer. In other words, for many families, the transition is not a future event: it is already underway, even if it often proceeds in stages.
The new generation covered by the report is global and diverse. 49% of respondents come from Europe, 19% from North America, 16% from Latin America, 11% from Asia-Pacific, and 5% from the Middle East and Africa. This is not a category defined solely by age, but by role: they are the heirs, the future decision-makers, often already active in the family business, in the family office, or in investment management.
Tech and AI Among the Most Urgent Challenges
Their priorities reveal a great deal about the world in which they are preparing to manage the wealth they will inherit through generational transition. 62% cite technology and artificial intelligence as among the most urgent social challenges for their generation; 49% mention poverty and inequality; 41% education; and 38% climate change. Wealth, therefore, is not perceived merely as an asset to be preserved, but as a lever to be harnessed.
Talking about inheritance: the most sensitive issue of generational transition
The most sensitive issue remains communication. 44% of respondents began discussing wealth in adulthood, 37% during adolescence, and only 17% as children. Yet 56% believe parents should discuss it earlier: 40% during adolescence and 16% as early as childhood. Not to burden children with premature responsibilities, but to prevent expectations and roles from remaining implicit.
This finding is important because many tensions arise precisely from what is left unsaid. 41% say they have not experienced significant conflicts in the inheritance process, but when problems arise, 33% attribute them to communication difficulties, 27% to differences in lifestyle, spending, or work ethic, and 24% to differing interpretations of fairness and equality. This is where the numbers become a diagnosis: the problem is not merely financial; it is relational.
Transparency is also limited. 48% of the new generation say they understand all aspects of the family’s wealth, and 30% say they are well-versed in specific areas. However, knowing “the numbers” is not enough. Many heirs want to understand why the estate has been structured in a certain way, what goals it pursues, and what values it should reflect.
On the organizational front, the report reveals a gap between formal tools and true governance. Six out of ten families have a will, and about half have legal and tax structures in place for succession. But fewer than a quarter have formalized governance, defined roles, family constitutions, or communication protocols. This is a crucial point: technical planning exists more often than relational planning.
Which professional should you turn to for support?
When it comes to support, the new generation does not rely on a single point of contact. 27% consider peers to be the primary source of advice on succession decisions; 21% turn to a wealth manager; 16% to a tax advisor; 14% to a lawyer; and 13% to a family officer. The data on peers is perhaps the most interesting: for heirs, discussing matters with those experiencing similar dynamics is almost as valuable as professional advice.
This does not mean that the wealth manager loses their central role. On the contrary, 79% of respondents cite experience and expertise among the fundamental qualities of an advisor; 56% seek a close relationship with themselves or their parents; 41% want a deep understanding of the needs of the new generation. But pure financial services are no longer enough: 78% place great value on networking opportunities, 56% on legal and tax advice, and 29% on training.
Investment management also reflects this evolution. 37% of families operate through single-family offices, 29% through wealth managers or private banks, while 27% of the new generation directly manages at least part of the wealth. In fourth-generation families, the use of single family offices rises to as high as 75%, a sign that wealth tends to become institutionalized as generations pass.
Assets and New Values
As for assets, continuity prevails over disruption. 79% invest primarily in individual stocks and bonds, 51% in passive funds, 46% in real estate, 25% in private markets, and 22% in direct investments. Cryptocurrencies remain marginal, at 11%. The new generation, therefore, does not seem intent on dismantling the traditional portfolio structure, but rather on expanding it with greater selectivity.
Interest in sustainability and impact, however, is stronger. Nearly half of those surveyed are already invested in these areas or want to explore them further. Here, the data must be interpreted carefully: we are not witnessing a replacement of financial logic with philanthropic logic, but rather an attempt to use multiple levers together—return, impact, responsibility, and family continuity.
Ultimately, the generational transition will not be determined solely by succession documents or tax structures. Those remain necessary. But the figures in the UBS report show that the true test will be families’ ability to transform wealth into a shared project. Without this step, even the best-structured wealth risks remaining technically efficient but humanly fragile.
