The largest wealth transfer in modern history is underway. Trillions of dollars in family wealth are expected to pass to heirs, who are likely to use that money differently from the generation that built it.
According to UBS, roughly $83.5 trillion is expected to move from baby boomers and older entrepreneurs to their children and grandchildren over the next two to twenty years.
UBS told CNBC that the world is entering a "historic generational wealth transfer." Wealthy families alone are expected to move about $6.9 trillion out by 2040.
When first-generation wealth builders accumulated their fortunes, many focused on what they knew best: family businesses, real estate, or local blue-chip stocks. Wealth experts told CNBC that the next generation is more likely to have an international education, greater geographic mobility, and an openness to a broader range of investment choices.
Elizabeth Hart, CEO and founder of Legacy Wealth Advisors, said: "The first generation are the builders; their wealth is often tied to one asset class, usually a family operating business or local blue-chip stocks they understand deeply."
By contrast, younger heirs tend to view wealth through a global lens. Hart added that they are more willing to diversify across asset classes and markets.
This shift could redirect some inherited capital away from traditional family "parking places," especially real estate. Hart noted that Asian families have historically been "almost exclusively focused on property investment" for generations, but second- and third-generation heirs are increasingly seeking to diversify into other assets and regions.
A Natixis Investment Managers survey found that, compared with older investors, millennials are more inclined to allocate to private assets such as private equity: 53% said they were interested. They are also more likely to discuss cryptocurrencies with advisers, with 62% saying they do, and 44% planning to increase or begin crypto investments within the next year.
The younger generation is also more comfortable with risk. Natixis found that 78% of millennials in Asia-Pacific want a chance to outperform the market, compared with just 38% of baby boomers who are willing to take risk to lead.
Using money as a means, not an end
Tobias Prestel, founder of Prestel & Partner, said younger wealth holders increasingly see money as a tool to achieve goals rather than the end goal itself.
He said: "For most older people, money is a thing. Money is of course useful; but for most younger people, money is just a tool. They care more about how the tool is used than about enjoying the 'treasure chest.'"
This shift in mindset is also changing spending habits. Some young heirs are no longer trying to collect traditional status symbols; instead, they prioritize experiences, mobility, and an international lifestyle. Prestel noted that younger wealthy people are less likely to own car collections and more likely to own homes around the world, combining travel with cross-border property holdings.
Interest in sustainable and impact investing is also growing. UBS found that nearly half of next-generation investors are already allocating to impact and sustainable investments, or strongly want to learn more.
Wealth succession is changing too. UBS research shows that next-generation family members increasingly see inheritance as the passing on of responsibility, not a final financial "windfall."
One respondent told UBS: "My brother and I don't see inheritance as something we get; it's our responsibility to do the job well, just as our father did."
But the transition is not without risk.
Despite the sheer scale of wealth handoffs, they are unlikely to derail the broader generational transfer overall, but advisers say the biggest risk to preserving wealth often comes from within the family.
Hart of Legacy Wealth Advisors said: "The cracks are not caused by a lack of money, but by a lack of communication."
In regions such as Asia, many first-generation wealth creators are reluctant to let go of control, especially when wealth is closely tied to the role of family elders. At the same time, heirs are pushing for greater transparency, succession arrangements, and formal governance structures around family assets.
Hart added: "Even with a succession plan, the biggest destroyer of wealth is still family conflict."
Advisers say that as wealth moves from the founder generation to the next stage, successful succession increasingly depends on preparing heirs for family stewardship and governance, not just on the asset structure itself.
