23% of businesses owned by wealthy Americans are projected to be inherited, versus 11% purchased, reversing 2022 when 28% were purchased and just 5% inherited, Bank of America’s 2026 Private Bank Study found.
A $36 trillion to $124 trillion transfer of assets from baby boomers to younger generations over the next two decades is driving the shift, alongside more companies staying private longer through abundant private capital.
U.S. tax rules also favor holding businesses until death, including higher federal estate-tax exemptions and the step-up in basis for inherited assets.
Economists say the trend could deepen wealth concentration because business ownership already creates outsized fortunes, and those assets may now pass to fewer heirs in already-wealthy families.
The shift points to a future in which family transfers play a larger role in business ownership, with implications for economic opportunity and U.S. wealth inequality.
With trillions changing hands, are the next-gen heirs truly prepared to lead these family businesses?
Is the American dream of merit-based success giving way to an 'inheritocracy' of inherited wealth?
As family empires grow, what becomes of the innovation driven by self-made entrepreneurs?
Inheriting America: The $124 Trillion Wealth Transfer and Its Ripple Effects on Business, Tax, and Society
Overview
The United States is undergoing the Great Wealth Transfer, a major shift that is changing how people think about and manage their wealth. This transition is not just about moving assets; it reflects a deeper change in attitudes, with individuals seeking more integrated and purposeful strategies for investing, banking, and legacy planning as their financial lives become more complex. As a result, the ways affluent Americans acquire businesses are also changing, with inheritance becoming more common than direct purchase. These trends are reshaping both personal wealth management and the broader landscape of business ownership in America.