The majority of the next generation of ultra-wealthy feels confident about preparation for succession, while family offices believe some are prepared, a study by BNY Mellon Wealth Management and Campden Wealth reveals.

A disagreement exists on the issue of succession between the next generation of ultra-high-net-worth individuals (UHNWI) and family offices, a new study from BNY Mellon Wealth Management and Campden Wealth revealed.

About 85 percent of the next generation of UHNWI who took part in the study believe that they are ready for succession, while 39 percent of family offices are of the view that the next generation is sufficiently prepared for their future roles.

Concerns Over Succession

The study, titled «The Next Generation of Wealth Holders in the United States 2022», also revealed that the next generation is interested in alleviating disputes within family business, with 66 percent of the respondents believing in having regular communication.

About 63 percent look for external support for planning their succession or transfer or wealth. Even though the participants are open to communication, but the roles and responsibilities along with concerns over the business plan of their family members hinder an easy succession process.  

Alternative Investments

The study also found that 27 percent of the respondents look for various alternative investments, such as private markets, hedge funds, and commodities, while 24 percent want to incorporate new technologies, including blockchain, into their family office once they assume charge.

«We have seen first-hand 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,» said Ben McGloin, BNY Mellon Wealth Management head of advice, planning and fiduciary services.

The study was joined by more than 100 next-generation UHNWIs with a total family net worth of around $77 billion in the US.