The growing share of businesses being inherited rather than purchased among wealthy Americans reflects the broader great wealth transfer and signals a shift in how wealth and business ownership are changing across generations, Fortune reports.
According to Bank of America’s 2026 Private Bank Study of Wealthy Americans, 23% of businesses owned by wealthy individuals are projected to be inherited, compared with 11% purchased, reversing the pattern seen in 2022 when 28% were purchased and only 5% inherited.
This change comes as an estimated $36 trillion to $124 trillion in assets is expected to pass from baby boomers to younger generations over the next two decades. Economists suggest that the increase in inherited businesses reflects growing wealth concentration, with the wealthiest households controlling a disproportionate share of U.S. wealth.
Business ownership often generates concentrated wealth, and passing businesses to heirs may further reinforce that concentration.
Jonathan Parker of MIT also notes that historically wealthier families have tended to have fewer children, meaning inherited wealth may be divided among fewer heirs.
Another contributing factor is that more companies are remaining private for longer, supported by the growth of private capital, which allows owners to delay selling or taking their businesses public. Current U.S. tax policies, including higher federal estate tax exemptions and the step-up in basis for inherited assets, may also encourage wealthy owners to retain businesses until they are passed on to heirs.
As a result, many business owners plan to eventually transfer ownership to family members, raising important questions about how inherited wealth will influence future business ownership, economic opportunity and wealth inequality in the U.S.
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