Inherited Businesses Outpace Purchases in Wealth Transfer

More U.S. businesses are now being inherited than purchased, according to new data from Bank of America's Private Bank Study of Wealthy Americans. In 2026, the share of businesses inherited among wealthy Americans is projected to reach 23%, compared to 11% that are purchased. This marks a significant shift from 2022, when 28% of businesses were purchased and only 5% were inherited, according to BofA data.

This trend is part of the broader "Great Wealth Transfer," a projected inheritance of between $36 trillion and $124 trillion in assets from Baby Boomers to younger generations over the next two decades. Wealthy individuals are central to this transference, as wealth accumulation is highly concentrated at the top. The immense movement of wealth across generations raises questions about how the economy will be shaped by younger, affluent individuals.

Jonathan Parker, a professor of financial economics at MIT Sloan School of Management, noted that the way assets, including businesses, change hands can illuminate broader economic patterns. He suggested that a greater share of inherited businesses could indicate increased wealth concentration, a phenomenon that has drawn attention amid growing concerns about affordability and the "K-shaped economy," where the wealthy continue to accumulate wealth while others struggle.

The study surveyed 1,400 U.S. adults with at least $3 million in investable assets to examine how high-net-worth individuals are saving and passing down their wealth. The findings suggest a fundamental change in business succession planning and the distribution of economic power as significant wealth transitions to the next generation.