The biggest wealth transfer in history is here: how the next generation will spend the trillions

Inside Creative House | Istock | Getty Images The largest transfer of wealth in modern history is underway, and the heirs set to inherit trillions of dollars in family fortunes are preparing to use the money very differently from the generations that built it. Over the next two decades, an estimated $83.5 trillion is expected to pass from baby boomers and older entrepreneurs to their children and grandchildren, according to UBS. "The world is entering a historic intergenerational wealth transfer," UBS told CNBC. Billionaire families alone are expected to transfer about $6.9 trillion by 2040. For many wealthy families, the first generation built fortunes in concentrated areas they knew well: family businesses, property, or local blue-chip shares, wealth experts told CNBC. Their children are more likely to be internationally educated, more mobile and open to a wider range of investments. "The first generation were 'builders,'" said Elizabeth Hart, CEO and founder of Legacy Wealth Advisors. "Their wealth is usually tied to a single asset class they understand deeply, often a family operating business or local blue-chip shares." By contrast, younger heirs tend to "view wealth through a global lens," Hart said, adding that they are more open to diversified investments across asset classes and markets. That shift could redirect some of the inherited wealth away from traditional stores of family capital, particularly real estate. …