A new survey from Bank of America Private Bank reveals that America's wealthiest households are fundamentally rethinking wealth management, driven by longevity concerns, a pivot to private markets, and the accelerating transfer of family businesses. The 2026 Study of Wealthy Americans polled over 1,400 individuals aged 21 and older with at least $3 million in investable assets, capturing shifts as the U.S. moves through what is projected to be a $124 trillion intergenerational wealth transfer, with annual transfers from baby boomers expected to reach nearly $5 trillion by 2048.
Longevity has emerged as a central planning factor, with more than 90% of respondents citing it as a key influence on their financial strategies. Conversations about life expectancy now rank among the most common topics wealthy clients raise with advisors, according to the study. Despite this, most baby boomer and Silent Generation respondents indicated they would maintain their existing transfer timelines, even if longevity adjustments were needed elsewhere in their plans.
Private Markets Gain Favor
Confidence in private markets is surging among the ultra-wealthy. Among investors with $25 million or more in investable assets, 77% believe private markets can deliver stronger returns than public markets, fueling continued appetite for alternative investments. Younger investors are even more emphatic: 67% of Gen Z and millennial respondents said they no longer believe traditional stocks and bonds can generate above-average returns. This skepticism is reshaping portfolios, with younger investors allocating an average of 15% to alternatives and 13% to cryptocurrency—a stark contrast to older generations. Advisors may find parallels in the endowment model approach that is gaining traction for managing large wealth transfers.
Family Businesses on the Rise
Inheritance is increasingly the path to business ownership among the wealthy. The study found that 23% of wealthy business owners now inherited their company, up sharply from just 5% in 2022, while the share who purchased their business declined over the same period. Many inherited business owners have no immediate plans to exit, though most expect to eventually sell or pass the business to family. Notably, reliance on personal and family funding for these businesses has dropped from 66% in 2022 to 47% this year, as owners turn to external financing alongside their own capital.
Succession Planning Gaps Persist
Despite the rise in inherited businesses, formal succession planning remains thin. While 78% of wealthy business owners consider succession planning important to their overall wealth strategy, only 20% have a fully documented plan in place. Among ultra-high-net-worth individuals with $25 million or more, 79% involve advisors in estate planning discussions with heirs, and 36% say their heirs are well prepared. However, 61% expressed concern that inherited wealth could diminish heirs' drive to succeed, prompting some to attach conditions to trusts, support heirs' business ventures, or keep family wealth private. This echoes findings from the $84 trillion wealth transfer regarding heir retention challenges.
Strategic Borrowing Increases
Borrowing is becoming a strategic tool for managing wealth transfers. One in five wealthy individuals overall reported using credit strategically, a figure that rises to 52% among the ultra-wealthy. This approach provides liquidity without requiring asset sales, a tactic that aligns with the growing complexity of multi-generational planning. As the wealth transfer accelerates, advisors may need to integrate such strategies alongside traditional estate planning, particularly as private equity metrics like DPI become more prominent in evaluating alternative investments.
