4. Inheritance and Collecting

While billionaire wealth continued to grow in early 2024, for some HNWIs participating in the art market there were indications of a reduction in their allocations to art within their wealth portfolios. Surveys of HNWIs conducted by Arts Economics and UBS over the last nine years showed a peak allocation to art of 24% in 2022, falling to 19% in 2023, and again to 15% in 2024. The wealthiest respondents ($50 million-plus) remained at the higher end of the spectrum, allocating an above-average 25% of wealth to their collections.

Based on an analysis of global billionaire wealth, this small segment of the wealthiest HNWIs alone is likely to transfer over $6 trillion in wealth and assets to heirs and charities over the next 20 to 30 years, with evidence of this already taking place as the share of inherited wealth increases. 91% of HNWIs had works in their collections that were inherited or gifted through a will or other bequest, and 72% had kept at least some of those works in their collections.

Some of the main motivations for selling inherited works were practical: 55% did not have enough space to keep them, while 47% used the proceeds to help settle estate taxes. Despite the much-discussed issue of changing tastes across generations, less than one-third of millennial and Gen Z respondents cited a lack of fit with their collections as a reason for selling or donating inherited works.

How collections would be passed on was a significant issue, with 80% of HNWIs concerned about preserving their collections for future generations and legacy and succession planning. 65% already had a plan in place to bequeath works to their partner or spouse and 43% had a similar plan for their children. Nearly half (49%) of HNWIs had made a plan to donate their works to museums.