“For women, legacy often means more than passing wealth down to the next generation; it also means being capable of positively impacting the lives of others,” Marianna Mamou, head of “advice beyond investing” at UBS Global Wealth Management, informed CNBC Make It.
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Men and females have really various techniques to cash– which impacts how they hand down wealth to their kids.
Many females look beyond their household when thinking of what to do with their wealth, according to a brand-new report from UBS that assembled studies and information from the Swiss Bank and other sources.
“For women, legacy often means more than passing wealth down to the next generation; it also means being capable of positively impacting the lives of others,” Marianna Mamou, head of “advice beyond investing” at UBS Global Wealth Management, informed CNBC Make It.
For example, the method females invest their wealth is typically lined up with their individual worths or in service of causes. Those might be anything from supporting charities to assisting their successors begin a service they think in or acquire a house, the report states.
Women likewise see their wealth in general in a particular method according to the report.
“Women tend to perceive and value wealth mainly as a source of security and tend to focus on being financially secure and able to afford a certain lifestyle for themselves and their loved ones over the long term,” it states.
How females hand down their wealth
Women likewise deal with concerns about how to hand down their wealth to their successors in a different way from males, the report kept in mind.
As for the concern of when to hand down wealth, the distinctions in between males and females are specifically noticable, the report discovered, mentioning information from the 2022 UBS Investor Watch study.
“More women prefer to wait and pass on wealth after their death as they don’t want their heirs to worry about their health. In addition, more women than men worry about disputes between heirs,” Mamou states.
For example, 44% of females are worried about the latter point, compared to 37% of males.
“Another reason that women prefer to delay handover of wealth while they are alive is that they want to remain flexible,” Mamou includes. Sixty- 3 percent of females and 53% of males offered this factor in the UBS study.
When it concerns arguments for handing down possessions while they’re still alive, 66% of females state more youthful generations currently require financial assistance, compared to 61% of males. They are likewise somewhat more inspired by informing successors about dealing with wealth.
Men, on the other hand, are most likely to move cash prior to their death for tax factors (65% of males and 61% of females stated this) or to see their successors use it.
Succession preparation
The gender distinctions do not stop there.
In addition to females being not sure about just how much wealth they can hand down, the report discovered that a person of the factors they are reluctant to do so prior to they pass away is that they aren’t sure how.
“There is a gender gap in the understanding around succession planning,” the report concludes.
Getting specialist guidance– consisting of on how to purchase a manner in which makes sure wealth development is stabilized with worths– and making strategies faster instead of later on are for that reason crucial, the report states.
One thing that may aid with this is that females state they discover it much easier than males to speak about cash with their households, according to UBS information. Such conversations around wealth can likewise aid with issues like disputes around inheritance and monetary abilities, Mamou includes.
“Including younger generations in investment decisions should lead to a smoother transfer of wealth with fewer surprises. Furthermore, incorporating sustainable investing solutions can also be a great way to engage with, and bring in, the next generation,” she states.
“Investing together with the next generation provides a great opportunity to pass on the values and financial lessons that matter when the next generation comes of age.”
A last point the report makes is that females typically outlast– and for that reason acquire cash from– males. That suggests they have more wealth to move to the next generation– making strategies and discussions about this much more essential.
