How HSBC Global Private Banking is helping generations of wealthy families meet their succession planning goals
- High levels of wealth are spurring HNW and UHNW families to future-proof their legacies
- HSBC report suggests wealth preservation and its distribution to next generation is a prime objective among the wealthy
The distribution and preservation of wealth among wealthy families, whether between business entities, from one generation to the next, or to invest in new ventures, has taken on greater significance in recent years.
The level of wealth held or controlled in Asia is at a historic high. HSBC’s 2023 Global Entrepreneurial Wealth Report suggests mainland China has one of the largest concentrations of first-generation high-net-worth (HNW) and ultra-high-net-worth (UHNW) entrepreneurs in Asia, among the highest globally.
Many HNW and UHNW families see the need for a smooth transition to preserve their legacy, clarify succession and give the next generation sufficient scope to take charge of their family’s wealth and business interests.
“Amid a series of ‘black swan’ events, we have engaged with many families intent on future-proofing their financial assets and family legacies,” says Henry Lam, regional head of wealth planning and advisory, Asia-Pacific, HSBC Global Private Banking, citing broad estimates of trillions of dollars set to move from one generation to the next by 2030. “There’s been a mindset change. The pandemic, for example, highlighted how businesses can be blown off course by unforeseen events, which has led to a demand for family office structures that separate a family’s wealth from the family business, so as to limit the potential impact of one on the other.”
Preserving wealth
According to the HSBC report, 73 per cent of HNW and UHNW entrepreneurs cited the preservation of wealth or its distribution to the next generation as a prime imperative.
