How the Rich Stay Rich: Intergenerational Wealth Transfer in the British Aristocracy, 1860 to 2022

Abstract

This thesis investigates the persistence of wealth within the British aristocracy from 1860 to 2022, shedding light on the mechanisms contributing to intergenerational wealth transfer. Drawing from probate data of hereditary peers and complemented by trust and estate documents, this study reveals the enduring financial dominance of the aristocracy despite societal reforms and changes in taxation policies. Employing a multi-stage analysis, this research shows disproportionate levels of wealth held by hereditary peers, their unique wealth trajectories compared to non-aristocrats, and high rates of intergenerational wealth transmission. Stratifying by peerage rank further underscores these patterns. Furthermore, analyzing trust and estate documents uncovers governmental interventions, including low-interest loans, grants, and the gifts of property, helping sustain aristocratic estates. The exploitation of tax loopholes and inter vivos transfers further perpetuate wealth accumulation within this privileged class. Through these findings, this thesis highlights the profound influence of historical status on contemporary socioeconomic inequality, emphasizing the entrenched nature of aristocratic wealth. This study concludes by urging deeper understanding of these mechanisms and their implications for wealth distribution. As the legacy of aristocratic wealth persists, it serves as a poignant reminder of the enduring influence of inherited privilege on modern society.