Published by Hubbis– 22nd Nov 2017
According to the survey, only 31 per cent of HNW families in Asia have been able to establish a complete plan to pass on their wealth
When it comes to transferring and inheriting wealth, most high net worth global families living in Asia are unprepared. This is according to new research by RBC Wealth Management, part of Royal Bank of Canada, conducted in collaboration with Scorpio Partnership.
The majority of global families in Asia (57 per cent) have had conversations with their beneficiaries about how wealth will be transferred to them. However, less than one third (31 per cent) have a full plan in place for how they will pass on their assets to the next generation, the study found.
“This lack of planning is particularly concerning in Asia,” explained Peter Corry, Head of RBC Wealth Management – Asia. “Many high net worth families in the region have financial assets and family structures that cross national borders and legal jurisdictions, which can greatly complicate wealth transfer planning. Complex inheritance laws and regulations can make wealth transfer planning seem daunting, sometimes leaving family assets vulnerable during the transfer process.”
One silver lining the research revealed was a high proportion of those surveyed are taking steps to educate their heirs about wealth management. More than half (57 per cent) of beneficiaries in the region indicated they had been given guidance on how they should use their inherited wealth, significantly higher than the one-third of heirs (33 per cent) who received similar guidance in the Western markets surveyed.
“Despite the apparent lack of complete wealth transfer plans among Asia’s global families, it is encouraging to see that benefactors are taking steps to educate their heirs about how family wealth will be transferred and how they should use that wealth,” said Vivian Kiang, Head of Wealth Planning, RBC Wealth Management – Asia. “This will stand them in good stead by enhancing their financial literacy, as well as their confidence levels, when they receive their inheritance.”
