A new study from BNY Mellon Wealth Management and Campden Wealth has found that there is a disagreement on the issue of succession between the next generation of ultra-high-net-worth individuals (UHNWI) and family offices.
Altogether 85% of the next generation of ultra-high-net-worth individuals (UHNWI) who took part in the study believe that they are ready for succession, while only 39% of family offices are of the view that next generation is sufficiently prepared for their future roles.
Titled ‘The Next Generation of Wealth Holders in the United States 2022’, the study was joined by more than 100 next generation UHNWIs with a total family net worth of around $77bn in the US.
According to the study, next generation is interested in alleviating disputes within family business, with 66% of the respondents believe in having regular communication.
A total of 63% look for external support for planning their succession or transfer or wealth.
Even though the participants are willing to communicate, the roles and responsibilities along with concerns over business plan of their family members create hindrance for an easy succession, revealed the study.
Among other findings, the study also found that 27% of the respondents look for various alternative investments, such as private markets, hedge funds, commodities, while 24% want to incorporate new technologies, including blockchain, into their family office once they assume charge.
BNY Mellon Wealth Management head of advice, planning and fiduciary services Ben McGloin said: “Having worked over the past two centuries with ultra-high-net-worth individuals and family offices that span multiple generations, in some instances up to six generations, we have seen firsthand a willingness from Next Gen clients to be open to formal education, continued learning and community-building to ensure the successful transfer of wealth.
“We have helped to support and work through the family dynamics between Next Gen clients and family members with the pressures accompanying succession and inheriting multigenerational wealth.”