Asia’s rich fear losing family fortune but have no succession plans

Asia’s wealthy families want to preserve their wealth across generations, but many still lack basic succession plans, according to new research from Lombard Odier.

The survey of more than 390 high-net-worth individuals with net investable assets of at least $1 million across Asia-Pacific found that 64.2% of respondents said preserving family wealth across generations is their main priority when considering wealth transfer.

However, only 26.9% said their family had a complete succession plan, while 39.4% said they had no succession plan at all.

The findings reveal what the Swiss private bank describes as an “intention-implementation gap” among Asia’s wealthy families; Many of these families are unprepared despite increased awareness of inheritance risks.

This issue is becoming increasingly urgent as Asia and the rest of the world go through a crisis. massive intergenerational wealth transferespecially among first-generation entrepreneurs who are preparing to pass their businesses and wealth on to their children.

John Woods, chief investment officer for Asia at Lombard Odier, warned that many families were at risk of squandering their wealth without stronger management and planning frameworks.

“Those kinds of concerns about this discrepancy are concerning to me,” Woods said at a roundtable held alongside the report’s launch.

“If [majority] “The majority of customers we surveyed are not thinking seriously about wealth planning, they will not be able to hold on to their wealth for very long,” he added.

Across Asia-Pacific, Japan, the Philippines, Malaysia and Hong Kong stood out for their poor succession preparation. Nearly half of respondents in these markets said they did not have a succession plan or felt such planning was not relevant to them.

The survey also found that many older family members have yet to meaningfully engage younger generations in management and wealth discussions. More than a quarter of Baby Boomers surveyed said their families did not discuss having a clear common goal for wealth.

Louisa Loo, Lombard Odier’s head of Asian wealth planning, said many wealthy Asian families continue to delay succession discussions due to cultural sensitivities and a lack of urgency.

Communication remains a major hurdle, especially in Asia, where discussions about inheritance and wealth transfer are often considered taboo. Approximately 29% of survey respondents identified a lack of clear communication as a significant governance issue.

“When something unexpected happens, which is often the case, many families will be completely unprepared,” he said.