"In many instances, the accumulation of family wealth happened so quickly, there are few precedents to help guide the Nouveau riche when it comes to transferring wealth from one generation to the next. Another concern is the issue of jurisdiction and compliance when transferring family assets which are spread globally, as well as legal and tax issues involving potential inheritors who live outside Hong Kong."
As a result, family heads are concerned that their children, should they receive a windfall at a young age, lack the discipline necessary to properly manage the parent’s assets.
This is just one of a myriad of issues that affect the conversation around succession planning and transition of wealth, business ownership and management to the next generation. Education and awareness of the value of money is as important today as it always has been and there needs to be a clear plan to ensure the development of responsible business owners of the future to protect the business and ensure that it survives the transition too.
Succession planning involves important conversations and when there is an increasingly large sum of wealth involved extra caution is needed too so it is not surprising that this latest piece of research identifies Asian families adding conditions to the inheritance and succession planning process.
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Asian families confront awkward trust issues when succession planning A survey found 64% of Asian families plan to place conditions involving age, education and jobs when preparing a wealth asset transfer plan