It is believed that the rich will never understand the poor and vice versa. Problems that wealthy people face are irrelevant to the lives of ordinary people. Yet, there is one thing that these groups may have in common: they may both have difficulties when deciding how to pass on their hard-earned money. However, when it comes to billionaires, the scope of the problem is much bigger. According to recent research, nearly $84 trillion is expected to be passed to younger generations within the next 20 years in the US alone. The sum is impressive, and naturally, those who have accumulated this wealth should think about the ways they are going to transfer it. Surprisingly, 41% of the ultra-rich surveyed by UBS said they did not have a plan for how they would pass on their wealth to the next generation. The report from UBS showed that a substantial number of high-net-worth investors are not taking action to prepare for a smooth inheritance process. Some 76% of respondents are concerned about possible issues that may arise when they transfer their assets. As much as 71% of investors are aiming to minimize inheritance taxes while 70% doubt that future generations will use their assets wisely. The report also found that not all of the respondents are planning to split their wealth equally. Notably, 46% of investors prefer to avoid this topic within the family. Yet, the lack of planning could cause long-term problems, according to Iqbal Khan, the president of UBS Global Wealth Management. “While investors overwhelmingly want the inheritance process to go smoothly, inadequate inheritance planning can be costly and could lead to unresolved family conflict,” he explained.
