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Succession Planning in Asian Families: Family Offices Are Formalising, but Are the Heirs Ready?
Succession planning is gaining urgency across Asia and the Gulf. Families are setting up trusts, structured family offices, and engaging advisors across multiple jurisdictions. Structures are maturing and intentions are clearer. But preparing heirs for long-term stewardship remains a challenge.
In many cases of Asian wealth transfer, families spend years protecting wealth, and far less time preparing successors. They focus on tax optimisation, legal frameworks, and asset consolidation, but treat education, delegation, and alignment as secondary. The result is succession that looks complete on paper, but untested in practice. This is a fundamental mismatch of cohesion, as succession planning in Asia is shifting from ownership to stewardship.
Preparation Is More Important Than Planning
The numbers are encouraging on the surface. Seventy percent of Asia-Pacific family offices say they have a succession plan, which is higher than the global average. But only a quarter of those plans are formalised and written. That’s well below the global average, and far below what families with global footprints actually need.
In many cases, the founder is still active and intends to remain so. The next generation may still be exploring careers or building outside the family ecosystem. There may be quiet alignment, but rarely a documented roadmap.
But in cross-border environments like the UAE, assumptions are risky. Local laws may override intentions, or heirs may be caught in regulatory grey zones. Without a clear strategy, even well-structured plans can unravel under pressure. A formal process creates room for dialogue. An informal one often leaves decisions to be made during moments of stress.
Culture Still Shapes The Conversation
In much of Southeast Asia and the Middle East, succession remains a sensitive topic. Founders are often reluctant to cede control. Mortality is a difficult conversation, family dynamics are complex, and many prefer harmony over confrontation.
That hesitation is understandable. But it often delays critical discussions. The longer those conversations are deferred, the more assumptions take root – about roles, responsibilities, and entitlements. And when succession eventually becomes urgent, those assumptions are difficult to reconcile.
Even when families are aligned, lack of clarity can create conflict. When they’re not aligned, the absence of structure can turn differences into divisions. Governance, when introduced early, protects both assets and preserves relationships.
Formal Structures Are Only Part Of The Answer
Legal tools have advanced significantly. The DIFC’s Family Wealth Centre has made it easier for families with cross-border ties to establish foundations, trusts, and succession frameworks. Regulatory clarity, combined with privacy and Shariah-aligned options, has made Dubai a preferred jurisdiction for many Asian family offices. The number of Indian family offices alone has grown from 45 in 2018 to over 300 in 2024.
But none of these structures run themselves. A trust is only as effective as the people managing it. A foundation is only as stable as the relationships around it. Without capable successors and shared intent, even the most sophisticated vehicles become administrative exercises.
Succession, in the end, is less about what’s set up and more about who it’s for. Families that treat it as a one-time transaction tend to revisit the same problems with each generation. Families that approach succession as a phased family office succession strategy build deeper continuity.
A Phased Approach Is Most Resilient
The most durable transitions tend to happen in stages. They involve a gradual shift of responsibility, a period of shared leadership, and a clear system for decision-making. They also involve honest conversations about values, expectations, and priorities.
This is where many families find the real work begins. It’s easier to build trust than to build trust. It’s easier to assign roles than to define purpose. But successors who are involved early in a meaningful, accountable way, tend to bring clarity as well as continuity. They ask different questions, and think longer term. And they begin to see the family’s wealth as a platform to build on, which is vital to longevity and legacy.
Preparing the next generation is about giving them the exposure, tools, and responsibility to lead in a way that reflects the family’s values and ambitions. That kind of preparation doesn’t sit in a trust deed. But it’s what holds everything else together. Our experts at Continental work closely with families, to turn intent into practical, cross-generational alignment – contact us to begin your journey.
The future of wealth management lies in a hybrid model, where AI and human expertise work in tandem to deliver superior outcomes. AI tools serve as an extension of the advisor’s capabilities, enabling them to focus on high-value tasks while automating repetitive ones. We will increasingly see a new pattern over the next decade, where an advisor might use AI to identify trends in a client’s portfolio but rely on their own judgment to tailor the recommendations to align with the client’s broader life goals.
As firms adopt AI-driven platforms, they must do so with a clear understanding of their strengths and limitations. Investors, too, should be cautious not to rely solely on technology.