Most Young Heirs Unprepared for Family Business Succession
A new survey finds that two-thirds of young heirs lack the readiness to take over operations from aging family business founders.
Updated on Oct. 20, 2026 in Financial Planning
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A global survey of over 700 financial professionals reveals that 66 per cent of young heirs are not ready to manage their family businesses. With aging founders approaching retirement, the findings highlight a significant gap in wealth succession preparedness.
Why it matters
As a massive intergenerational wealth transfer approaches, the lack of readiness among heirs threatens the continuity of family firms. This transition is becoming a top concern for ultra-wealthy families, often superseding worries about political stability.
Only 2.3 per cent of families are fully prepared for a transfer or sale, while 43 per cent of professionals cite wealth planning as the top family need. Meanwhile, 22.6 per cent of the next generation are considered prepared to take over.
The players
UBS
UBS is a multinational investment bank and financial services company that provides wealth management and advisory services to high-net-worth clients globally.
The details
Ultra-high-net-worth families, defined as those with at least 50 million Swiss francs in wealth, face a looming transition of US$83 trillion over the next two decades. Despite this, only 18.5 per cent of the next generation are actively involved in the communication process necessary for successful succession.
Timeline
UBS released a report on global wealth transition in 2025.
US$15 trillion in wealth is projected to transfer by 2030.
A total of US$83 trillion in global wealth is expected to transition over the coming two decades.
Market Dynamics
The transition of US$83 trillion in global wealth marks a structural shift in the financial landscape that will require decades of careful planning. As founders age, the inability of the next generation to step in could lead to widespread divestment or business closures.
For families navigating these transfers, prioritizing early communication and formal wealth planning is essential to protecting assets. Without a clear succession plan, heirs risk significant tax and legal complications that could erode the long-term value of their inheritances.
The takeaway
Heirs should proactively engage in transition discussions to bridge the significant gap in succession readiness. Establishing clear communication and defined roles early can significantly improve the chances of maintaining family wealth across generations.
Further reading
Learn more about managing assets during major life events in our Financial Planning section.
Source note: This article includes information reported by South China Morning Post.
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Do you feel that passing down family wealth or businesses is becoming easier for families today?
