Bank of America finds longevity and wealth transfer complicate family finances

The 2026 Bank of America Private Bank Study of Wealthy Americans, surveying individuals with $3 million or more in investable assets, finds that longer lifespans, accelerating family business transitions and shifting investment preferences are reshaping financial priorities.

More than 90% cite longevity as a critical planning consideration, while nearly one-quarter of business owners report inheriting their companies, highlighting the speed at which multigenerational complexity is emerging.

"The Great Wealth Transfer is not simply a transfer of assets; it represents a meaningful shift in how clients define and engage with their wealth," said Katy Knox, president of Bank of America Private Bank. "As financial lives become increasingly complex, clients are looking for thoughtful, personalised strategies that bring together investing, credit, banking, and legacy planning in a more integrated and purposeful way."

Longevity moves to the centre of financial planning

Longer lives are raising expectations for lasting wealth, but planning has yet to fully catch up. Ninety-two per cent say longevity is an important factor in financial planning, and 94% are already taking steps to optimise their health and increase longevity. Sixty-one per cent are now discussing longevity with their advisers.

Long-term planning remains uneven: only 46% have the three essential documents: a will, living will or advance directive, and durable power of attorney. Fifty-five per cent of respondents have a trust, and 51% without a trust are likely to establish one, yet only 33% say they understand trusts quite well. Among younger married investors, planning is starting earlier: 32% of Gen Z and Millennials have a prenuptial agreement, with another 15% planning to, compared with 15% of Gen X and 4% of Boomers and Silents.

Transfer of family businesses accelerates and family involvement rises

Business ownership plays an increasingly central role in wealth transfer despite gaps in formal succession planning. Wealth transfer is underway as 23% of wealthy business owner respondents report inheriting their business, compared to 11% in 2024 and 5% in 2022.

Family involvement in business decisions rose to 27%, up from 7% in 2024, alongside increased participation in governance and future planning. Only 24% report no family involvement, down from 49% in 2024. Seventy-eight per cent of wealthy business owners say succession planning is important to their wealth strategy, yet only 20% have a fully documented succession plan. Family conversations (25%) rank among the biggest estate planning challenges for family business owners.

UHNW investors prioritise private markets and strategic credit

Ultra‑high‑net‑worth (UHNW) investors with over $25 million in investable assets are increasingly focused on private markets, strategic use of credit, and intentional planning to preserve wealth across generations. Seventy-seven per cent of UHNW respondents believe more money can be made in the private markets than in the public markets. UHNW investors cite real estate as the top opportunity for investment growth, up notably from 2024, followed by private equity.

More than half of respondents with over $25 million use credit strategically or occasionally, compared to 16% of respondents with $3 million to $10 million. UHNW respondents use credit to pursue opportunities (37% vs. 22% for $3 million to $10 million), support business operations (36% vs. 12%), bridge timing gaps between liquidity events (34% vs. 20%), and facilitate wealth transfer (22% vs. 9%). Sixty-one per cent of UHNW respondents express concern about their children's motivation and are taking actions such as supporting business ventures (51%), incorporating provisions into trusts (41%) and not disclosing the full amount of family wealth to them (36%).

Younger investors are redefining diversification

Younger investors, Gen Z and Millennials, ages 21 to 45, are reshaping how wealth is built and diversified, as they embrace alternative investments and emerging technologies. Sixty-seven per cent of younger investors believe traditional stocks and bonds can no longer deliver above-average returns.

Younger investors allocate nearly half as much to stocks as older generations, while allocating more to alternatives (15%) and crypto (13%) than older investors. Crypto ranks as the top "wealth‑creation opportunity" for young wealthy: 29% rank it first; 58% currently own crypto (up from 49% in 2024), and 92% either own or are interested. Eighty-eight per cent of younger investors say they're likely to allocate more to alternatives in the next few years, compared with just 15% of Boomers and Silents. Forty-seven per cent of young investors use artificial intelligence (AI) to research companies or markets, and 87% are comfortable with advisers using AI to help manage portfolios, yet 65% still prefer to receive investment advice from a human adviser. Forty-two per cent of younger respondents own art; among those who do not, 75% are interested in owning art and 94% own collectables.

Re-disseminated by Wealth and Society