There are five key principles for managing family succession to ensure a seamless transfer to the next generation
More than two-thirds of wealthy families expect a generational transfer in the next 10 to 15 years, but managing such transitions successfully can be challenging. This is especially true in Asia, where cultural issues often make it difficult or even taboo to discuss handing over to the next generation. Yet handing over the reins to the younger generation need not be messy. Here, we look at some basic principles that help ensure a smooth transfer.
Start early
Given all the complex concerns involved in generational transfers, it is extremely important to start planning early. “Succession is a process and a journey all families go through, and not a oneoff event,” says Edith Ang, executive director of the family advisory group for UBS Wealth Management in Asia Pacific, who shared her years of experience working with wealthy families in the region.