Succession? Survey finds 66% of ultra-rich’s young heirs not ready to take over
Global ultra-rich families worry more about wealth succession than political uncertainty, as most of their next generation are not yet well prepared for the trillions of dollars’ worth of transfer, a survey by Julius Baer showed. The findings came after the Swiss private bank and its partner EY analysed responses from more than 700 financial professionals worldwide who advise ultra-high-net-worth…
A survey by Julius Baer found that 66% of young heirs in ultra-rich families are not ready to assume leadership of their family businesses, a concern growing alongside political uncertainty. Julius Baer and EY analyzed responses from over 700 financial professionals who advise ultra-high-net-worth families with wealth of 50 million Swiss francs or more, revealing wealth transfer as the second most pressing societal factor for these families, surpassing political stability.
Taxation was the top concern globally, with major homes in China and the UK intensifying efforts to tax the affluent. However, 43% of respondents noted wealth planning as their primary need, significantly more than 23.1% for tax and legal issues. Only 22.6% of the next generation were deemed ready to take over, while 66% showed no interest or were deemed unprepared.
Among those considering a transfer or sale, readiness was even lower at 2.3%. Christos Anagnostopoulos, head of family office solutions at Julius Baer, stated that families are grappling with these issues in real time, questioning the readiness and interest of the next generation. The survey also found that wealth transfer discussions are scarce, with only 18.5% of the next generation actively participating in communication.
Asia reported the lowest level of active participation in post-sale planning at 8.4%. To address this, experts suggest education, gradual participation, and guidance from previous generations as valuable investments for families.
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