The Great Wealth Shift: What Millionaires Can Learn From Billionaires About Transferring Wealth

Have you ever wondered how much wealth will change hands in the coming decades? The answer might surprise you. For both billionaires and millionaires, this shift represents not only opportunity but also immense complexity—and the stakes couldn’t be higher.

I recently read an article published by UBS on the patterns of billionaire wealth and I was struck by one statistic in particular: $6.3 trillion in wealth is expected to transfer from baby boomer billionaires to the next generation in the next 15 years. It’s an eye-watering number, but when I looked into how this compares to millionaires, I was even more surprised.

For millionaires, the total wealth transfer during the same period far exceeds this figure, with $84 trillion expected to pass from baby boomers to millennials and Gen Z by 2045. This staggering sum highlights just how critical it is to handle these transfers with foresight and care.

Lessons from Billionaires: Wealth Transfer Strategies for Millionaires

While billionaires often have professional teams managing their wealth transfer, the same principles apply to millionaires. Whether your wealth is measured in millions or billions, one thing is clear: careful planning is essential.

Here are three key areas to focus on:

1. Structures Matter

Proper financial and legal structures are vital for protecting your wealth and ensuring it is distributed according to your wishes. Tools like trusts, wills, and portfolio bonds can safeguard your assets and reduce risks such as disputes or mismanagement.

2. Inheritance Tax 

Inheritance tax remains one of the biggest risks to wealth preservation, especially for British expats overseas. Even if you’ve lived abroad for decades, ever-changing UK domicile rules could expose your global estate to significant tax liabilities.

Understanding these risks and leveraging international treaties can reduce the burden, but this requires expert guidance.

3. Generational Involvement

Wealth transfer isn’t just about assets—it’s about values. Involving the next generation in planning ensures they are prepared to manage their inheritance responsibly, preserving both your legacy and family harmony.

4. Working With the Right Professionals

When it comes to multijurisdictional wealth transfer, the right professionals are essential. Cross-border tax rules, inheritance laws, and domicile considerations can quickly complicate even the best-laid plans.

An experienced advisor can:

• Simplify the process by tailoring strategies to your unique needs.

• Coordinate with experts like tax consultants and legal advisors to create a seamless plan.

• Keep you ahead of changing laws and regulations that could impact your legacy.

With the right team on your side, you’ll avoid costly mistakes and ensure your legacy is protected.

Where Do You Start?

You may not have Billions or a teams of advisors, but their strategies are just as relevant for millionaires. The difference lies in taking action early and tailoring a plan to your unique circumstances. Whether it’s establishing the right structures, mitigating IHT exposure, or preparing your family for the future, the right guidance can make all the difference.

If this is relevant to you, let’s discuss how to future-proof your wealth transfer strategy. Together, we can create a plan to secure your family’s future and protect your legacy.