Share of inherited U.S. businesses projected to reach 23 percent in 2026, BofA data shows

Bank of America’s Private Bank Study of Wealthy Americans projects that 23 percent of businesses held by wealthy Americans will be inherited in 2026, compared with 11 percent purchased. The figures reverse the pattern recorded in 2022, when 28 percent of businesses were purchased and 5 percent were inherited.

Researchers surveyed 1,400 U.S. adults with at least $3 million in investable assets. The study examined how high-net-worth individuals are saving and transferring wealth.

The Great Wealth Transfer The projected transfer of between $36 trillion and $124 trillion in assets from Baby Boomers to younger generations over the next two decades forms the backdrop for the data. Wealthy individuals account for a large share of the assets moving between generations.

Jonathan Parker, an MIT Sloan School of Management professor of financial economics, said the rising share of inherited businesses points to greater wealth concentration. The top 1 percent of U.S. households hold nearly one-third of the country’s wealth, equal to about $44 trillion, according to the Federal Reserve Bank of St.

Louis.

Tax rules and private ownership Parker noted that the federal estate-tax exemption now stands at $15 million per person under the One Big Beautiful Bill Act. The step-up in basis at death continues to eliminate capital gains tax on appreciation that occurred during an owner’s lifetime.

The study found that a notable portion of business owners have no plans to exit their companies and that most intend to transfer or sell ownership to family heirs. Parker said these patterns may encourage owners to retain assets longer before passing them to heirs.