Highlights
- 91 people became billionaires through inheritance, receiving combined $298 bn in year to April.
- Total inherited wealth rose over a third from previous year, highest since records began in 2015.
- Billionaires' children expected to inherit at least $5.9 tn over next 15 years.
The children and spouses of billionaires inherited a record $298 bn in the year to April, creating 91 new billionaires who did not build their own fortunes, according to new research from Swiss bank UBS.
The total value of wealth transferred through inheritance rose more than a third from the previous year, marking the highest level since UBS began tracking the data in 2015. Of the 91 new heirs, 64 were male and 27 female.
Benjamin Cavalli, head of strategic clients at UBS Global Wealth Management, told The Times "These heirs are proof of a multi-year wealth transfer that's intensifying."
The report, based on surveys of high-net-worth clients and a database tracking billionaires across 47 global markets, predicts billionaires' children will inherit at least $5.9 trillion over the next 15 years.
The total number of billionaires worldwide has grown to 2,919, up from 2,682 a year ago, collectively controlling $15.8 tn compared to $14 tn previously.
Policy and inequality
The findings come as cash-strapped European governments explore new taxes on the wealthy to fund public services. In Switzerland, where $206 bn is expected to be inherited over 15 years, voters on Sunday overwhelmingly rejected a proposed 50 per cent tax on inherited fortunes exceeding $62 m after warnings it could trigger an exodus of wealthy individuals.
Meanwhile, 196 self-made entrepreneurs became new billionaires in the same period, amassing combined wealth of $386.5 bn through sectors including marketing software, genetics, restaurants, infrastructure and liquefied natural gas. America led with 87 new self-made billionaires.
Ray Dalio, founder of Bridgewater Associates, has warned the artificial intelligence revolution will intensify wealth concentration unless redistribution policies are implemented. Technology sector billionaires saw their wealth increase by 23.8 per cent during the year.
The Trump administration is promoting "Trump accounts" to encourage billionaires to share wealth with American children. On Tuesday, Michael Dell, the world's 11th richest man, and his wife Susan pledged $6.25 bn to deposit $250 into investment accounts for 25 million American children.
