According to the latest report prepared by the Tax Office with 2022 data, the number of millionaires in Spain increased by 2.5 percent. The growth of great fortunes is a global phenomenon. According to the Global Wealth Report 2023 data prepared by UBS, 45.8 percent of global wealth is in the hands of only 1.1 percent of the population.

This concentration of wealth was mainly in the hands of the Silent Generation and Baby boomersIt will create a wonderful intergenerational transfer to your children and grandchildren. Forecasts from consulting firm Cerulli Associates speak of a “Massive Wealth Transfer” by 2045. approximately 84 billion dollars.

The Old Planning Dilemma

But not all millionaires encounter new ones the same way. HE Global Business Wealth Report HSBC Global Private Banking surveyed nearly 1,000 high-net-worth entrepreneurs about their wealth transfer plans, and the results are striking.

38 percent of the businessmen interviewed had started to transfer their wealth to their heirs in the form of foundations or donations and gifts. While 52 percent prefer their companies to remain in the hands of their heirs or relatives, 58 percent stated that this preference depends on a wealth of more than 10 million dollars. The most curious thing is that at least 8% of the millionaires surveyed have not yet thought about a successor.

Beyond tax issues, wealth transfer is a complex issue that large fortunes face from different angles depending on the source of their wealth.

Generational change in great empires

The heirs of names high on the lists of the largest fortunes have already taken strategic positions in their business empires to take over the baton of the generations when the time comes.

The clearest example of this is Bernard Arnault, who has already promoted five of his children to strategic management positions in his holding company. But the 75-year-old luxury mogul has said he has no plans to retire yet, prompting an amendment to LVMH’s charter to extend the retirement age for its chairman and CEO. Luck.

In the Arnault family, the transfer of wealth will be carried out through a simple change of authority procedure at the top of LVMH, given that his heirs already hold management positions at the main source of family wealth.

In Spain, Amancio Ortega’s succession follows the same lines as the Arnault dynasty; The main heirs of Amancio Ortega occupy relevant positions at the head of Inditex or hold strategic positions on the boards of directors of Pontegadea or other important companies. Management of more than $129.4 billion in assets held by Inditex’s founder, according to the Millionaires Index Forbes.

Not everyone wants to follow in his footsteps

Not all millionaires rely on their heirs to take over the reins of the companies that made them millionaires, according to an HSBC Global Private Banking report. 34 percent do not trust their heirs’ work ethic, and 66 percent say their heirs either do not want to continue the family business or want to pursue their own personal careers.

The main fortunes in the world have their origins in ideas and technological projects that developed thanks to the skills of their founders: Elon Musk, Mark Zuckerberg, Jeff Bezos, Larry Ellison, etc. But there is no guarantee that your heirs will be able (or have the skills) to take over.

In the list of the greatest fortunes, we also find examples of heirs who do not want to follow their own path and take over the family business. Bill Gates is a good example of this.

Each of Bill Gates’ heirs has chosen their own path, despite everything being considered to obtain a leadership position in the company their father co-founded. None of them are affiliated with Microsoft nor with the foundation that bears his surname.

Warren Buffett has stated many times that he has no intention of leaving any inheritance to his children, in fact, each of them has created a career outside of Berkshire Hathaway, the investment company that made his father a millionaire.

a few days ago, World Ryanair also published that Danielle Ryan, the granddaughter of the airline’s founder, had no intention of taking over the management of the company founded by her grandfather and achieved success by establishing her own perfumery brand.

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Image | Flickr (Fortune Live Media, World Bank Photography Collection, Jérémy Barande)